The United States is rocketing into the future at a shockingly rapid pace. Autonomous vehicles, drones, artificial intelligence, and blockchain are only the beginning of the story, and Aii is dedicated to researching the shortfalls, promoting creative solutions, and encouraging the prudent use of technology across industry. Crypto features and cybersecurity will also become increasingly critical to the economy and national security in the next few years.

These areas overlap considerably with other policy spaces. As drones increase in number and application, the Federal Aviation Administration will become involved to set the rules for the airway. Corporations, innovators, and the government will influence each other, and cooperation is essential for public safety and efficiency.

Technological advancements also revive older and more traditional appliances and equipment. The Internet of Things is constantly expanding and awakening formerly analog technology. This double edged advancement greatly benefits consumers and efficiency, allowing remote control of and communication between homes, vehicles, and appliances, but opens the door to hacking, privacy invasion, and sabotage.

The future of innovation is, by its very nature, unknown. So, best practices are essential to safeguard data. Communication among stakeholders and regulators is also critical.

Where innovation is concerned, the problem is anything and everything. We innovate to improve safety, efficiency, output, comfort, or just for the sake of trying something new. The old adage “if it ain’t broke, don’t fix it” simply does not apply to innovators. Virtually everything can be improved, reimagined, or replaced with a better, cheaper, faster, or more appealing alternative.

But in the midst of all this creative expansion is a dragnet slowing progress and taxing innovation. The regulatory framework generally favors known processes and proven technology. We have built our regulatory infrastructure to protect intellectual property and incentivize growth on the one hand, but to slow unruly innovation and limit the creative destruction that often comes with it.

Our regulatory system must learn to adapt and keep up with the dynamic nature of innovation. This does not mean leaving the technological space unattended, but allowing it the flexibility to try new things and bring consumers more options.

Government and regulatory bodies are difficult to reshape. They are designed to mitigate dangers by slowing and providing rules for businesses and individuals. But regulation does not have to work this way. There are ways to ensure the safety outcomes we desire and unleash innovation and creativity.

One regulatory method is to focus on performance rather than prescription. Performance regulation sets standards for the outcome of technology rather than the process. This is different from prescriptive regulation that details the acceptable techniques and methods and tells people how they are allowed to build, operate, or implement technology.

It is the difference between performance saying “roadworthy cars must have a safe weight distribution and balance” and “roadworthy cars must have four wheels.” These are not real regulations, but illustrate the difference between the regulatory mindset: one focuses on the outcome (performance) and the other on the process (prescription). For innovators, performance regulation gives them virtually unlimited potential to try new ways of achieving the goal, while prescription limits the available avenues for creativity, even while it guarantees safe outcomes.