As negotiations over the proposed new EU e-Privacy Regulation heat up, European policymakers are considering the broader implications for Europe’s economy. In this blog post Professor Anja Lambrecht of the London Business School presents her new research on the relationship between existing EU e-Privacy frameworks and venture capital investment in the EU. Professor Lambrecht’s study was first presented at the Center for European Policy Studies at the end of last year.
Firms in the digital economy contribute significantly to innovation by creating new products and services for consumers and business at impressive rates. Often, collecting and analyzing data allows firms to offer new and superior services. For example, location data from internet-enabled consumer devices like smartphones can be used to notify consumers of weather changes or emergencies in their area, or suggest restaurants in their vicinity. Consider also the multitude of online streaming services that learn a user’s preferences in order to suggest new artists, films, and books that might be of interest to them. The potential for innovation in the digital economy also means that investment in European technology companies is substantial. According to Atomico’s 2016 “The State of European Tech” report, tech investment in Europe increased to a projected $13.6 billion in 2016, up from $2.8 billion in 2011.