TY - JOUR AU - Goldfarb, Avi AU - Tucker, Catherine TI - Privacy and Innovation JF - National Bureau of Economic Research Working Paper Series VL - No. 17124 PY - 2011 Y2 - June 2011 DO - 10.3386/w17124 UR - http://www.nber.org/papers/w17124 L1 - http://www.nber.org/papers/w17124.pdf N1 - Author contact info: Avi Goldfarb Rotman School of Management University of Toronto 105 St. George Street Toronto, ON M5S 3E6 CANADA Tel: 416/946-8604 Fax: 416/978-5433 E-Mail: agoldfarb@rotman.utoronto.ca Catherine Tucker MIT Sloan School of Management 100 Main Street, E62-533 Cambridge, MA 02142 Tel: 617/252-1499 Fax: 617/258-7597 E-Mail: cetucker@mit.edu M1 - published as Avi Goldfarb, Catherine Tucker. "Privacy and Innovation," in Josh Lerner and Scott Stern, editors, "Innovation Policy and the Economy, Volume 12" University of Chicago Press (2012) AB - Information and communication technology now enables firms to collect detailed and potentially intrusive data about their customers both easily and cheaply. This means that privacy concerns are no longer limited to government surveillance and public figures' private lives. The empirical literature on privacy regulation shows that privacy regulation may affect the extent and direction of data-based innovation. We also show that the impact of privacy regulation can be extremely heterogeneous. Therefore, we argue that digitization means that privacy policy is now a part of innovation policy. ER -