ABSTRACT
This chapter discusses the assumptions underpinning the idea that law making in new governance structures presents us with the possibility to do away with the gripping effect of command and control rules. It suggests that there was some kind of inevitability in promoting flexible governance structures in Europe. The chapter examines the diverse theoretical frameworks informing the notion of innovation, as elaborated by various political economists. The utilitarian discourse as developed by Bentham and Mill would require an extensive analysis beyond the scope. The chapter argues that innovation is important for the economy and society. It considers the different paradigms, with a view to show the diverse options available to law and policy as to the ways innovation may be fostered. The chapter discusses the influence of ordoliberalism in the early days of the European Community, as it presents an alternative model of regulatory law, based on the deployment of neutral and objective procedures indirectly intervening in the economy.
