Chemicals Regulation and the Porter Hypothesis - a Critical Review of the New European Chemical Regulation

In this contribution, discussion about the Porter Hypothesis and the pros and cons of the new European chemicals regulation system REACH are tied together. The contribution seeks to apply the Porter Hypothesis to the field of European chemicals regulation. Porter's claim of positive effects of regulation on innovations seems especially important for the chemicals sector pursuing differentiation. But, understanding Porter's concept of strategic management indicates that certain segments of the chemicals industry will suffer negative effects on competition and innovation.

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