How can regulatory sandboxes become a strategic tool for innovation in Svweden? On behalf of the Swedish government, Vinnova presents a proposal for how regulatory sandboxes can become a tool in Sweden so that new technology can be tested more quickly and come to market.
Since the 2010s, regulatory sandboxes have been used in parts of Europe as a tool to enable testing and piloting of new technologies when legislation is lagging behind. Gradually, regulatory sandboxes have become a more strategic tool to achieve societal and political objective. For example, sandboxes are seen as an important tool within the EU to achieve objective zero carbon emissions and to strengthen competitiveness.
Sweden risks losing ground in the global innovation race if we do not build up a national capacity to establish and operate sandboxes.
International experience shows that countries that actively work with sandboxes can accelerate innovation and work towards regulatory development and simplification. I EU has already started several regulatory sandbox initiatives in areas such as the energy sector, development of AI solutions and cybersecurity.
– A consequence of the fact that several member states are already far ahead is that Sweden risks losing ground in the global innovation race if we do not build up a national capacity to establish and operate sandboxes, says Johana Axelsson, project manager for the assignment.
Vinnova proposes overall structure for regulatory sandboxes
In light of the EU's increased focus on sandboxes as a policy instrument for innovation, Sweden needs to take a position on the national organization of regulatory sandboxes in more areas than net-zero technologies. To avoid the introduction being sector-specific without the possibility of uniform working methods and coordination, Vinnova therefore proposes a coherent structure for regulatory sandboxes.
The structure is complemented by a work process that has been tested and developed together with the actors and where companies receive early dialogue, guidance and the opportunity to iterate their applications in collaboration with authorities.
Need for complementary regulations and coordinated communication
Vinnova also points out the need for supplementary regulations for governance and trial and experiment clauses for net-zero technologies.
– The review indicates that Swedish law needs more and more comprehensive trial and experiment clauses to enable regulatory sandboxes with exceptions to current rules. If such clauses are widely lacking, the introduction of sandboxes in Sweden risks being delayed, which could affect Sweden's ability to achieve climate goals and Swedish companies' competitive conditions vis-à-vis the rest of Europe, notes Johana Axelsson.
There is also a need for coordinated communication to companies about the possibility of regulatory sandboxes and the dissemination of learning from the sandboxes.
– We authorities need to jointly reach out with the call for proposals about regulatory sandboxes where innovative companies operate. In dialogues with the companies, they highlight the importance of being able to take part in results and learning from the sandboxes as support for their own development process, says Johana Axelsson.
Overall, Vinnova assesses that a coherent national structure for regulatory sandboxes is an important prerequisite for Sweden to be able to meet the need for new technology, strengthen competitiveness and accelerate the transition to a climate-neutral society.
