The Risk Averse Society: A Risk for Innovation?

Abstract

Due to complex interaction of demographic, cultural and socio-economic circumstances, European societies have become more risk averse than before or than elsewhere in the world. This has been strengthened by a series of environmental and food safety crisis and by an increasing awareness of their effects on health. They have led to the introduction of significant health and environmental policy making powers of the European Union (previously European Economic Community). The policy making system of the European Union and the self-interest of its principal institutions have led to an ever increasing use of these powers of consumer, health and environment protection, to a shift from risk assessment to hazard and to pursuing regulatory trajectories without sufficient impact and feedback assessment. These systemic trends are migrating now to ever more policy areas. This is caused partly by a lack of inclusive strategy development within corporations.