What results to we expect to achieve by creating regulatory sandboxes? In order to strengthen regulatory sandboxes as a tool to drive digitalisation forward, the Federal Economic Affairs Ministry is pursuing three objectives:
1. Regulatory sandboxes need regulatory leeway
If we want to ensure that regulation does not lag behind innovation, we will need more flexibility and “breathing space” in the future. Experimentation clauses and exemptions are key components for shaping the legal framework in an innovation-friendly and future-oriented way. These instruments must be strengthened. One goal of the regulatory sandbox strategy is therefore to give new laws and regulations more flexibility through the increased use of experimentation clauses.
At the same time, we need to ensure that better use is made of existing clauses. How must these clauses be designed to allow the greatest possible flexibility while ensuring regulatory sandboxes are implemented in a legally compliant manner? And on what legal level must or can they be established in order to create sufficient flexibility? Is it possible to incorporate a “general clause”? Legal opinions are already being prepared to help answer these questions.
2. Transfer of expertise and networking
We need to reduce uncertainties, fill gaps in information and improve networking and the exchange of information between industry, science and public administration. In the context of many ongoing and planned projects, the same questions are being raised: Is this legally possible? Who should I contact? Where can I find potential project partners? What do I have to consider with regard to state aid and competition law and what about questions of liability and insurance? Who can support me?
Finding answers to these questions takes a lot of time and effort, which is often a reason why innovative and promising ideas are not put into practice.
“Handbook for Regulatory Sandboxes”
Our aim is to fill gaps in information, use synergies and avoid duplication of work. To this end, the Economic Affairs Ministry has developed the “Handbook for Regulatory Sandboxes”, which seeks to enable the relevant stakeholders to ask the right and necessary questions and to help them find answers to them. At the same time, the Handbook provides information on legal issues and describes best practice examples.
Research report on regulatory sandboxes, online consultation
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“Network for Regulatory Sandboxes”
The “Network for Regulatory Sandboxes” is to facilitate the exchange of information and networking between stakeholders and to disseminate information on legal possibilities, future competitions in this field and examples from practice from Germany and abroad. The network can also serve to bring together project partners, for example a start-up with an innovative idea with stakeholders who are keen to experiment. The network’s first meeting was held on 28 August at the Federal Ministry for Economic Affairs and Energy. Furthermore, the existing interministerial working group strengthens networking between the federal ministries.
Regulatory sandboxes as facilities for testing innovation and regulation: The Federal Economic Affairs Ministry considers regulatory sandboxes as a cross-cutting regulatory policy instrument. In addition, the Federal Economic Affairs Ministry is not only responsible for innovation and digitalisation policy, but also for reduction of bureaucracy and better regulation (in German). At the same time, the specific areas of application go far beyond the remit of the Federal Economic Affairs Ministry. The 2018 Coalition Agreement (in German) also has the clear goal of advancing/pressing ahead with the development of regulatory sandboxes and testing environments in many subject areas. Close cooperation between the individual ministries is therefore a key prerequisite for the successful implementation of our regulatory sandbox strategy. In order to facilitate the exchange of information, the interministerial working group “Regulatory Sandboxes" was set up. The inaugural meeting of the working group took place in Berlin on 27 November 2018. There is broad consensus that in times of digital change, regulatory sandboxes are an important and necessary instrument for further developing the regulatory framework and promoting innovation in Germany. |
3. Testing regulatory sandboxes in practice
In implementing our own projects, we want to link the testing of innovation and regulation more closely to actual practice and lead the way with positive examples. All this is to show that regulatory sandboxes can make a valuable contribution to innovation in Germany. Regulatory sandbox competitions are intended to take up and implement ideas from industry. The first competition will be launched by the Economic Affairs Ministry in the autumn of 2019.
“Regulatory sandboxes for the energy transition” Parallel to the cross-cutting initiative presented here which aims to strengthen regulatory test beds, the Federal Economic Affairs Ministry has created a new funding pillar/strand of funding in the 7th Energy Research Programme, which is entitled “Regulatory sandboxes for the energy transition”. Our goal is to accelerate the transfer of technology and innovation from research stations to the energy market by means of implementing large-scale, system-oriented demonstration projects combined with sustainable business models.
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If you have any questions or suggestions, please do not hesitate to contact us by e-mail at reallabore@bmwi.bund.de at any time.