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http://www.innovationforgrowth.co.uk/Blog/the-effect-of-congressional-legislation-on-innovation-in-american-corporations/


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The purpose of the research is to ascertain the effects of the Sarbanes-Oxley Act, specifically section 404, on innovation in America's publicly held corporations. The research started by compiling a random sample of 100 companies and then examined the trademark and patent applications before and after the institution of the Sarbanes/Oxley law. It also compared the R&D expenses with administration costs at these companies before and after the law took effect. The researcher then conducted several interviews to see if there might be causation to the correlation of the quantitative findings. Virtually every company did see an increase in accounting costs in relation to Sarbanes/Oxley implementation. Some firms did experience a reduction of R&D costs, but that was not the case throughout. Innovation was effected positively, negatively and neutrally in large part due to the regulatory environment of the company before the law and the culture of the company.
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