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Industry Governance Theory It is contended that industry has become the dominant force not only in revising regulations and standards, but even in setting the policy agenda and defining regulatory objectives. One reason for this is that industry is closer to the “ingredients” that make for better regulation. Perpetually obliged to innovate services and products; to be accountable to shareholders for long-term objectives; to deal with consumers’ dissatisfactions; and to face competition at all Levels – National, European and Global, – industry have a better understanding of market dynamics, of the products and services that consumers want, of emerging technologies, and of the overall “state of competition” inside and outside the European Union. But because business organisations create employment and are a major contributor to national and European wealth, it is also true that the new governance is purposely oriented toward accommodating the needs of business within the overall regulatory plan.

The empirical research conducted for the book “Industry Governance and Regulatory Compliance” (Reinke, 2012) has also revealed a link between regulation and standards-setting. European and national regulators have the same interest as industry in the setting of common standards supporting regulatory implementation and allowing interoperability between products and services.

Based on the results of research and observation, a new term, industry governance, is here introduced. Industry governance may be defined as:


 * the pro-active role of industry in the new consultative governance of the regulatory regime, resulting in industry’s predominating influence in shaping public policies, regulations and standards, in order to achieve the business objectives of enhanced innovation, competitiveness and consumer satisfaction. (Reinke, 2009)