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Paola Pisano, Opening session


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Presentation by Paola Pisano at the OECD Global Conference on Governance Innovation which took place in Paris on 13-14 January 2020. Further information is available at

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Paola Pisano, Opening session

  1. 1. The Daunting Task of Regulating Innovation Paola Pisano Minister for Technological Innovation and Digitization Conference on Governance Innovation OECD, Paris 13-14 January 2020
  2. 2. Agenda Introduction Italy Outstanding Issues Local Level Experiences What we are doing Our Vision Challenges 02 KEY TOPICS
  3. 3. INTRODUCTION 03 ● Regulating in “normal time” can be difficult ● The speed of transformative technologies determines growing complexity and uncertainty in many areas ● Governments have a major role in encouraging innovation and incentivizing the development of emerging technologies
  4. 4. 04 Some inspiring examples of fixed-term regulatory exemptions and adaptive regulations In the USA, the Federal Aviation Administration launched the Unmanned Aircraft System- UAVs Integration Pilot Program to test the safe application of drones. The UK Office of Gas and Energy Markets - OFGEM launched a regulatory programme for innovators in energy markets, enabling them to test innovative business products, services and business models that otherwise cannot function with real-life customers under existing regulations. The Federal Ministry of Transport and Digital Infrastructure (BMVI) in Germany set up a “Digital Motorway Test Bed” to allow testing the latest automated driving technology in a real-life setting. UK GERMANY USA Source: OECD The role of sandboxes in promoting flexibility and innovation in the digital age - Going Digital Toolkit Policy Note - DSTI/CDEP/GD(2019)7
  5. 5. 05 Italy outstanding issues ● According to the World Bank Doing Business 2020 and Doing Business in the EU 2020, since 2012, Italy has introduced several measures to improve its performance ● The digitalization of public administration has also shown sivgnificant progress ● Yet, the Italian business environment remains challenging and still performs below the EU average in terms of the ease of doing business ● In civil law regimes such as ours, excessive regulation limits technological development: regulation excluded the circulation of electric kick-scooters in the cities; a norm was recently introduced putting them in the same category as bikes ● We need Technology Neutral Regulation
  6. 6. MY EXPERIENCE AT LOCAL LEVEL 06 ● My experience as a Deputy Mayor and Council Member with the Innovation portfolio, in the City Council of Turin is inspiring my strategy as Minister ● “Torino City Lab”, a platform aimed at creating specific regulatory arrangements for companies testing innovative solutions at pre-commercial stage, in the real- world environment ● Torino has become an open laboratory of frontier innovation able to attract companies and skills for the development of the "City of the future": autonomously driven and connected vehicles, drones, IOT and 5G, AI and robotics
  7. 7. 07 ● Entrepreneurship and innovation are means, not ultimate policy goals. ● Public policy should encourage innovative entrepreneurship that address grand societal challenges: youth unemployment, aging, climate change, food security, immigration. ● Create policy spaces for testing new business models and services that can benefit society at large, without lowering protection. MY INITIATIVES AS MINISTER
  8. 8. 08 ● The bill provides a form of regulatory waiver or flexibility for firms to test new products or business models with less regulatory requirements, while preserving some protection. ● Startups and innovative companies that find a regulatory obstacle, will thus be able to pursue their project. ● The bill requires that applicants demonstrate the need for the regulatory exemption and identify the regulatory requirement constraining their activity ● It is mandatory for applicants to provide an ex-ante impact assessment on positive societal impacts. ● If the experimentation proves to have a positive social impact, the specific norms that prevent the innovative product or service will be modified Introducing a New Bill: The Right to innovate (Diritto ad Innovare)
  9. 9. Ethics Lab 09 ● We’re working on the establishment of the “Ethics Lab” focused on the rules of developing AI fair, accountable, and transparent way algorithms ○ We wish to introduce a labeling system to certify that all AI public sector applications are compliant with ethical values and laws ○ We wish to apply the principle of Incorporating - wherever possible - the rules in coding and algorithms to ensure regulatory efficacy ● We’re experimenting with an obligation for ethical-legal impact assessment before introducing AI applications to the market
  10. 10. Less bureaucracy more transparency 10 We are continuing our effort to eliminate useless and redundant red tape, by making more public services available digitally for the benefit of citizens and enterprises, to increase transparency and reduce corruption: ○ IO Project ○ PagoPA
  11. 11. 11 ● Identify stakeholders who are strategic for the development of innovation and engage them in the process ● Discuss with them through structured mechanisms and include their suggestions to improve countries' regulatory frameworks ● More cooperative mechanisms between public and private players as there is a pressing need for a deep and constructive synergy between public and private players in shaping and implementing legal rules OUR VISION COREGULATION
  12. 12. 12 ● In some areas, and wherever appropriate, governments should promote forms of self- regulation, facilitating the creation of voluntary codes and providing financial and institutional resources to support private sector efforts (soft law vs traditional regulation) OUR VISION SOFTLAW
  13. 13. 13 ● National regulation is not suited to deal with technologies of international scope; the risk is jeopardizing the ecosystem. ● Delegate as much as possible in areas with high innovative and technological content and delegate secondary regulation and supervision to sector Authorities in international networks. OUR VISION
  14. 14. A DAUNTING TASK: REGULATING WHILE INNOVATING 14 ● There is much resistance ● How the OECD can help to speed up changes? ● Which form​ of governance ​can be useful? ● Which ​type cooperation the OECD can help to establish in order to create a “coalition of policies experimenters”?
  15. 15. THANK YOU Q&A 03 Paola Pisano @paolapisano.min @MinisteroInnovazione