Privacy as Enabler of Innovation

Privacy has long been perceived as a hindrance to innovation. It has been considered to raise costs for data governance without providing real benefits. However, the attitude of various stakeholders towards the relationship between privacy and innovation has started to change. Privacy is increasingly embraced as an enabler of innovation, given that consumer trust is central for realising businesses with data-driven products and services. In addition to building trust by demonstrating accountability in the processing of personal data, companies are increasingly using tools to protect privacy, for example in the context of data storage and archiving. More and more companies are realising that they can benefit from a proactive approach to data protection. A growing number of tools for privacy protection, and the emergence of products and services that are inherently privacy friendly indicate that the market is about to change. In this paper, we first outline what “privacy as enabler of innovation” means and then present evidence for this position. Key challenges that need to be overcome on the way towards successful privacy markets include the lack of profitability of privacy-friendly offerings, conflicts with new and existing business models, low value attached to privacy by individuals, latent cultural specificities, skill gaps and regulatory loopholes.

[1]  Charles Duhigg,et al.  How Companies Learn Your Secrets , 2012 .

[2]  Michael Friedewald,et al.  Seven Types of Privacy , 2013, European Data Protection.

[3]  G. Loewenstein,et al.  What Is Privacy Worth? , 2013, The Journal of Legal Studies.

[4]  Ramon Casadesus-Masanell,et al.  Competing with Privacy , 2015, Manag. Sci..

[5]  Isaiah Berlin,et al.  Two Concepts of Liberty , 1958 .

[6]  Tal Z. Zarsky.  The Privacy–Innovation Conundrum , 2015 .

[7]  Steven M. Miller,et al.  Collaborative Approaches Needed to Close the Big Data Skills Gap , 2014 .

[8]  Marc van Lieshout,et al.  The Value of Personal Data , 2014, Privacy and Identity Management.

[9]  George Pallis,et al.  Healthcare Informatics and Privacy , 2018, IEEE Internet Comput..

[10]  Jess Hemerly,et al.  Public Policy Considerations for Data-Driven Innovation , 2013, Computer.

[11]  Abeer Alsadoon,et al.  Ethical Implications of User Perceptions of Wearable Devices , 2018, Sci. Eng. Ethics.

[12]  Sandra J. Milberg,et al.  Information Privacy: Corporate Management and National Regulation , 2000 .

[13]  Tal Z. Zarsky,et al.  Incompatible: The GDPR in the Age of Big Data , 2017 .

[14]  Bryce Clayton Newell,et al.  A typology of privacy , 2016 .

[15]  Henrik Grönberg,et al.  The European Parliament proposal for the new EU General Data Protection Regulation may severely restrict European epidemiological research , 2014, European Journal of Epidemiology.

[16]  Gerald L. Lohse,et al.  International Differences in Information Privacy Concerns: A Global Survey of Consumers , 2004, Inf. Soc..

[17]  Pasi Tyrväinen,et al.  Towards enabling privacy preserving smart city apps , 2016, 2016 IEEE International Smart Cities Conference (ISC2).

[18]  Lambèr M. M. Royakkers,et al.  Ethical issues in web data mining , 2004, Ethics and Information Technology.

[19]  Daniel Bachlechner,et al.  The Role of Privacy-Preserving Technologies in the Age of Big Data , 2018 .

[20]  N. Kshetri.  Big data's impact on privacy, security and consumer welfare , 2014 .

[21]  Curtis R. Taylor,et al.  The Economics of Privacy , 2016 .

[22]  Colin J. Bennett,et al.  The Governance of Privacy: Policy Instruments in Global Perspective , 2006 .

[23]  Kelly D. Martin,et al.  The role of data privacy in marketing , 2016, Journal of the Academy of Marketing Science.

[24]  J. Greene,et al.  Hidden in plain sight marketing prescription drugs to consumers in the twentieth century. , 2010, American journal of public health.

[25]  Nadezhda Purtova.  The law of everything. Broad concept of personal data and future of EU data protection law , 2018 .

[26]  Benjamin C. M. Fung,et al.  Quantifying the costs and benefits of privacy-preserving health data publishing , 2014, J. Biomed. Informatics.

[27]  S. Dolnicar,et al.  A Market-Oriented Approach to Responsibly Managing Information Privacy Concerns in Direct Marketing , 2007 .

[28]  M. Nagenborg.  Hidden in plain sight: Conceptual and Regulatory Challenges , 2017 .

[29]  Albert E. Scherr.  Privacy in public spaces: the problem of out-of-body DNA , 2017 .

[30]  J. Morsink,et al.  The Universal Declaration of Human Rights: Origins, Drafting, and Intent , 1999 .

[31]  Vito Laterza,et al.  Cambridge Analytica, independent research and the national interest , 2018, Anthropology Today.