# kaal:claim:2740477-020

**Claim.** Formal rulemaking is simply too time consuming for disruptive innovation: the speed of product innovation lets a new product reach the market while a rulemaking that takes months or years is still processing the previous product launch.

**Type.** failure  **Support.** argued

**Holds when.**

- formal rulemaking in the existing regulatory infrastructure
- high speed of product innovation

**Source quote.**

> The speed of product innovation makes it possible to bring a new product to market while formal rulemaking in the existing regulatory infrastructure, taking months and often years of regulatory procedure, is still dealing with the last product launch.

**From.** Wulf A. Kaal, Erik P.M. Vermeulen, *Venture Capital as Dynamic Regulation of Disruptive Innovation* (2016), IV.3. Timing, page 21

**Cite as.** Wulf A. Kaal, Erik P.M. Vermeulen, Venture Capital as Dynamic Regulation of Disruptive Innovation (2016). SSRN: https://ssrn.com/abstract=2740477

**Verify.** sha256 of source PDF `c72871b76fa2ad5a8a69ee8d3defc8f64e624be9052ce763e79cf6c58883f726` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20and%20Vermeulen%20-%202016%20-%20Venture%20Capital%20as%20Dynamic%20Regulation%20of%20Disruptive%20Innovation.pdf

**Failure mode.** Rulemaking one product cycle behind  (family: regulatory-lag)

**Topics.** dynamic-regulation, systemic-risk

**Keywords.** rulemaking-speed, ossification, regulatory-timing, product-cycles

**Related claims.**

- restated_by: https://wulfkaal.github.io/claims/2808132-022
- restated_by: https://wulfkaal.github.io/claims/2834531-006
- extended_by: https://wulfkaal.github.io/claims/2808132-023
- restated_by: https://wulfkaal.github.io/claims/2957645-003

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