# kaal:claim:2831040-003

**Claim.** Regulators face a two ended timing trap: at the early stage of an innovation they lack information about its possible impact, and at the later stage the innovation is entrenched, so regulatory change becomes far more costly for innovating corporations.

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

**Holds when.**

- disruptive innovation across a product cycle

**Source quote.**

> Entrenched innovation during a later stage of a product cycle also creates issues for regulation because it becomes much more costly to implement regulatory changes for innovating corporations

**From.** Wulf A. Kaal, *Dynamic Regulation for Innovation* (2016), II. Law's Diminishing Capacity to React to Innovation, page 8

**Cite as.** Wulf A. Kaal, Dynamic Regulation for Innovation (2016). SSRN: https://ssrn.com/abstract=2831040

**Verify.** sha256 of source PDF `de5156f14f44a5753cab55b6c4b03049eda58a143b99e08ef427aee1d261e1bf` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202016%20-%20Dynamic%20Regulation%20for%20Innovation.pdf

**Failure mode.** Collingridge dilemma  (family: regulatory-lag)

**Topics.** disclosure

**Keywords.** collingridge-dilemma, timing-of-regulation, information-asymmetry, entrenchment

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