The Impact of Regulation on Social Innovation in Sustainable Development

Abstract

Regulation plays a strategic and multidimensional role in guiding, shaping, and strengthening social innovation within the broader context of sustainable development. When designed with clarity, adaptability, and inclusiveness, regulatory frameworks and public policies can stimulate the adoption of innovations that are environmentally responsible, socially inclusive, and economically viable. Such frameworks create the conditions for creativity, experimentation, and cross-sector collaboration, enabling solutions that address the interconnected social, economic, and environmental challenges of the present era. In contrast, rigid, overly prescriptive, or fragmented regulations can obstruct these processes by limiting flexibility, discouraging experimentation, and slowing the pace of change. This literature-based study synthesizes international research findings to map the relationships between regulatory structures, the capacity for social innovation, and progress towards sustainable development goals. The review reveals that adaptive, participatory, evidence-based, and goal-oriented regulations are central to fostering multi-stakeholder cooperation, enhancing public trust, legitimizing innovative practices, and accelerating systemic transformation toward long-term and holistic sustainability.