How Data Protection Regulation Affects Startup Innovation

Martin, N; Matt, C; Niebel, C; Blind, K (2019). How Data Protection Regulation Affects Startup Innovation. Information systems frontiers, pp. 1-18. Springer 10.1007/s10796-019-09974-2

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While many data-driven businesses have seen rapid growth in recent years, their business development might be highly contingent upon data protection regulation. While it is often claimed that stricter regulation penalizes firms, there is only scarce empirical evidence for this. We therefore study how data protection regulation affects startup innovation, exploring this question during the ongoing introduction of the EU General Data Protection Regulation (GDPR). Our results show that the effects of data protection regulation on startup innovation are complex: it simultaneously stimulates and constrains innovation. We identify six distinct firm responses to the effects of the GDPR; three where it stimulates innovation, and three where it constrains it. We furthermore identify two key stipulations in the GDPR that account for the most important innovation constraints. Implications and potential policy responses are discussed.

Item Type:

Journal Article (Original Article)

Division/Institute:

03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Information Systems > Information Management
03 Faculty of Business, Economics and Social Sciences > Department of Business Management > Institute of Information Systems

UniBE Contributor:

Matt, Christian

Subjects:

000 Computer science, knowledge & systems
300 Social sciences, sociology & anthropology > 330 Economics

ISSN:

1387-3326

Publisher:

Springer

Language:

English

Submitter:

Michelle Deborah Rohrer

Date Deposited:

11 Oct 2019 07:42

Last Modified:

02 Dec 2019 08:37

Publisher DOI:

10.1007/s10796-019-09974-2

BORIS DOI:

10.7892/boris.133793

URI:

https://boris.unibe.ch/id/eprint/133793

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