The McKinsey research found that regulatory burdens – or uncertainty about potential regulatory changes – has made some firms hesitant to invest. Land-use permitting is one example of an arena where a quicker review process might spur business investment. Part of the solution might be a new kind of "enterprise zone" featuring preapproved permits.
The report also recommends a streamlining of the patent process. And it says some industries face needless rules about "how services can be delivered and by whom." In medicine, for example, a revision of state laws mandating that physicians do certain tasks could create many middle-skill jobs for nurse practitioners, doctors' assistants, and community health workers.
Responding to concerns from business, President Obama has launched a program to reduce excessive costs and delays related to federal regulation. The Business Roundtable, representing many large employers, recently praised that effort but said "much more work needs to be done to create a balanced regulatory system that promotes economic growth and job creation."
