The way that Government designs and implements regulations can have an impact on the ability of businesses to innovate.

The Innovation Report proposed projects to examine the effect of the regulatory framework on innovation in practice. Three projects were chosen to examine how environmental regulations can be designed and implemented to secure the desired environmental outcomes in a way that does more to promote innovation and business opportunities.

The pilot projects - led by DTI in partnership with Defra, Cabinet Office, DfT, the Treasury and the Environment Agency - covered:

• Future Design of Televisions
• Controls on Vehicle Emissions
• Implementation of the Integrated Pollution Prevention Control (IPPC) Directive

Around half of all legislation with a significant impact on businesses, charities and the voluntary sector starts off in Europe. The EU Better Regulation agenda is a priority for the UK Presidency.

• The Innovation Report proposed to increase our influence on the emerging European regulatory agenda.