Digital Innovation and Regulatory Policy: Why does development of digital technology not lead to innovation?

The purpose of this study is to explain why the development of digital technology does not lead to innovation and to analyze it in terms of policy process. Specifically, Wilson's regulatory politics model is used to explain the relationship between regulation and innovation, which is regarded as the biggest obstacle to digital innovation. In order to review the deregulation politics model, we analyze the cases of taxi call service (Uber - Kakao taxi). As a result of analysis, Uber service, which creates conflicts with existing providers during the initial introduction of new services, has failed to enter the initial market. However, the process of introducing these new services is not a one-time and static process, but it can be seen that the changes in the policy environment and the actor's interaction with the changes in time affect the influence of the regulatory system and the entry of new businesses into the market. Uber's failure has become a culmination of market entry and business success with the transformation of the business model.