The paper explores the theoretical framework of the interrelations between tariff policy and the innovative development and provides assessing of this relationship. The authors analyze the definition of the high-quality government regulation, review the theoretical considerations of its role in changing the level of innovative activity. The paper also considers the potential effects of the tariff policy on the innovative development. By applying regressive and correlation analysis tools, the authors assess the character of the interrelationships between simple mean tariff and an innovative development indicator, particularly, innovative firms as a percentage of total firms in several countries. The study concluded that there is no statistically significant relationship between reviewed indicators. At the same time, significant correlation is revealed between changing the simple mean tariff (in particular, its rising) and changing the innovative firms percentage.
Highlights:
1. Two key impacts of regulation implementation: the negative one – compliance burden imposing; the positive one that stimulates innovations.
2. Import tariff is the integrated duty rates applied on goods entering a customs territory.
3. The research question is whether there is a correlation between simple mean tariff and innovative development indicators.
4. The conclusion of the study is that there is no significant relationship between simple mean tariff and the innovative firms’ ratio.
5. At the same time, there is significant negative correlation between simple mean tariff raising and the innovative firms’ ratio.
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