Privacy and Innovation

Avi Goldfarb and Catherine Tucker

Innovation Policy and the Economy, 2012, vol. 12, issue 1, 65 - 90

Abstract: Executive SummaryInformation and communication technologies now enable firms to collect detailed and potentially intrusive data about their customers both easily and cheaply. Privacy concerns are thus no longer limited to government surveillance and public figures' private lives. The empirical literature shows that privacy regulation may affect the extent and direction of data-based innovation. We also show that the impacts of privacy regulation can be extremely heterogeneous. We therefore argue that digitization has made privacy policy a part of innovation policy.

Date: 2012
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Chapter: Privacy and Innovation (2012)
Working Paper: Privacy and Innovation (2011)
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