The focal point of this paper is the study of the process of emergence of novel institutions and the identification of factors that may influence the outcome of this process. We view institutions as"commonly accepted sets of rules that influence actors decisions" and focus on state-mandated sets of rules i.e. regulations. We consider regulations as endogenously emerging institutions that evolve in accordance to other socioeconomic factors and analyze the regulatory process at each of its stages adopting an evolutionary approach. We find that the regulatory process resembles the innovation process as it can be viewed as a process of knowledge accumulation and transmission that is facilitated by purposeful actors whose perceptions and choices vary and evolve. Our study is empirically contextualized in the European political system, the detergents industry and specific regulations formulated at European level. Data is drawn by secondary resources and in-depth interviews with different types of public and private stakeholders participating in the process.