Regulatory Sandboxes and Innovation Testbeds: A Look at International Experience in Latin America and the Caribbean

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Rosemberg, Cristina;
Potau, Xavier;
Leistner, Samuel;
Dijkstal, Felix;
Vinnik, Aaron;
Tiriduzzi, Costanza;
Dave, Anoushka;
Blind, Knut
Jul 2020
Regulation can pose a barrier to innovation when it is unnecessarily burdensome or slow to adapt, but it can also act as a driver of innovation by providing support and ground rules for competition and consumer protection. Regulators can opt to play a more active role in nurturing and supporting innovation by exploring the application of regulatory sandboxes and innovation testbeds. This publication presents the main results of an in-depth analysis of seven international case studies that explore the application of regulatory sandboxes and innovation testbeds as mechanisms to enable emerging innovations in sectors that were traditionally heavily regulated, such as telecommunications, health, and energy. By identifying key aspects of their implementation, governance, support mechanisms, and impact, the study draws some important lessons for Latin America and the Caribbean, showing how agile and experimental approaches to regulation could be considered as part of the innovation policy mix, and how innovation agencies can play a fundamental role in implementing those types of initiatives.