Abstract
The heart of the argument of this paper is to describe the shift that took place in the governance of many advanced industrial societies in the second half of the twentieth century from the Keynesian welfare state to the regulatory state via the paradigm approach created by professor Thomas Kuhn. It compared the welfare state with the regulatory state from regulatory purpose, ways of thinking, institutional tools. According to the analysis, it can be argued that we are towards the rise of the regulatory state. Moreover, the paper is argued that we shall understand the weaknesses of the regulatory state and we should redefine the relationship between regulatory institutions and industries to create a virtuous circle of trust, policy adaptability and greater public interest.