Data as a Driver of Economic Efficiency
The General Data Protection Regulation (GDPR) became enforceable on May 25, 2018. The regulation aims to protect data by ‘design and default,’ whereby firms must handle data according to a set of principles. GDPR mandates opt-in consent for data collection and assigns substantial liability risks and penalties for data flow and data processing violations. GDPR’s enactment is particularly likely to influence technology ventures, given an increasing need for the use of data as a core product input. Specifically, data has become a key factor in technology-driven innovation and production, spanning industry sectors from pharmaceuticals and healthcare, to automative, smart infrastructure, and broader decision making. This report presents economic analyses of the consequences of data regulation and opt-in consent requirements for investment in new technology ventures, for consumer prices, and for economic welfare.