Expanding the innovation trilemma – 4Is in regulating fintech development

Using equity crowdfunding in Denmark as a case of fintech development this paper contributes to the existing knowledge by pointing out areas of crowdfunding that involves prioritising the type and intensity of regulation. Recent literature has conceptualised such priorities as an Innovation Trilemma. This literature argues that in addition to the traditional choices involved when
on the one hand fostering innovation and on the other hand maintain market integrity through regulation, the regulatory authorities should also consider facilitating inclusion of a broad array of market participants. Applying the Danish crowdfunding case, it is found in this paper that this theory needs to be developed to encompass an international dimension, a fourth ‘I’.