a review of the impact regulation on chemical industry final report to royal commission environmental pollution november 2002 surya mahdi paul nightingale and frans berkhout spru science technology policy research university sussex chemicals 1 executive summary this explores claim that health safety hs&e in european union has reduced capacity innovate it is argued higher costs slower pace processes for notifying new products eu put at disadvantage relative competitors us japan debate significant against background current proposals reform main conclusions academic related literatures are there no consensus about whether inhibits or stimulates innovation likely most cases both playing modulating role instance many countries successful firms industries also those face highest levels pharmaceuticals uk