This 70-page document contains an extensive summary of all the readings treated during the JBL110 Innovation and Regulation course as well as exhaustive summaries of the lectures and important information from the tutorials. This will help you prepare for the assignments as well as the final exam!
Lieve Göbbels
Innovation and Regulation
Semester 2, 2021-2022
Innovation and Regulation
Lecture 1: Introduction 3
Bloom et al. (2019) - Toolkit of policies 3
European Commission - Ethics Guidelines 4
Baldwin et al. (2012) - Why regulate? 5
Butenko et al. (2015) - Regulation and innovation 7
Knowledge clips 7
Lecture 1 - Introduction I 8
Objectives 9
Tutorial 1: Introduction 10
Marda (2020) - Privacy versus health 10
Veale (2020) - Privacy protocols 10
Edwards (2020) - Protecting rights with code 11
Keyes (2020) - Perils of privacy 11
Objectives 11
Lecture 2: Introduction 12
Baldwin et al. (2012) - Regulatory strategies 12
Blanka et al. (2020) - Energy transition 13
Principles of good regulation 14
Knowledge clips 14
Lecture 2 - Introduction II 16
Objectives 17
Tutorial 2: Introduction 18
Knowledge clips 18
Objectives 18
Lecture 3: Data and Regulation of Competition 20
Podszun et al. (2018) - Data and competition law 20
European Parliament (2020) - Fact sheets EU competition policy 22
Lecture 3 - Data and regulation of competition 22
Objectives 26
Tutorial 3: Data and Regulation of Competition 28
Case studies 28
Discussion 29
Objectives 30
Lecture 4: IP and Data(base) Protection 31
Hugenholtz (2019) - The new copyright directive 31
Meys (2020) - Data mining and database protection 31
Synodinou (2016) - Ryanair vs. PR Aviation 34
EU Database Directive 35
, EU copyright DSM Directive 37
Lecture 4 - IP and data(base) protection 39
Objectives 48
Tutorial 4: Data and Regulation of Competition 50
Objectives 50
Lecture 5: Legal Aspects of Data Sharing 51
Support Centre for data sharing (2020) - Analytical report 51
OECD (2019) - Enhancing access to and sharing of data 52
Lecture 5 - Legal aspects of data sharing 55
Objectives 58
Tutorial 5: Legal Aspects of Data Sharing 59
Problem statements 59
Objectives 59
Lecture 6: Privacy and Data Protection 60
Kaal et al. (2016) - Regulating disruptive innovation 60
Lecture 6 - Privacy and data protection 61
Objectives 63
Tutorial 6: Privacy and Data Protection 65
Summary (Data Protection) 65
Objectives 70
, Lecture 1: Introduction
In short:
• Bloom et al. (2019) - Toolkit of policies
• European Commission - Ethics Guidelines
• Baldwin et al. (2012) - Why regulate?
• Butenko et al. (2015) - Regulation and innovation
• Knowledge clips
• Lecture 1 - Introduction I
• Objectives
Bloom et al. (2019) - Toolkit of policies
For developed countries, innovation is the only way to secure sustainable productivity growth for the
long run. With this, the question arises what the most e ective policies for stimulating technological
innovation are. The focus of this article is to answer this question and describe possible advise to a
policymaker (with a xed budget of nancial and political capital) using a practical approach. The
authors believe that sensible innovation policy design is a key part of the solution for revitalizing
leading economies and will lead to large long-run increases in welfare, but that innovation policy is
not the only solution to the US productivity problem.
Background
One set of metrics of innovative activity revolves around R&D (research and development). Around
13% of US R&D is done at colleges and universities and just over half of R&D expenditures at US
colleges and universities have been federally funded. Another set focuses on the scienti c
workforce: the fraction of workers who are researchers in the US is stable between 0.7 and 0.9%,
which is similar for the EU and 1% for Japan. A related metric is the number of temporary work visas
issues regarding high-skilled worker categories.
Promoting innovation
Despite government failures it is important for the government to promote innovation because of
market failure, or knowledge spillovers as a speci c type of market failure. Economic theory
suggests that R&D expenditures in a market economy can be too low or too high, depending on the
net size of knowledge spillovers relative to what could be described as product market spillovers.
The key idea behind this second type of spillover is that private incentives can lead to business-
stealing overinvestment in R&D because innovator rms may steal market share from other rms
without necessarily generating social bene t.
In general, there are three methods to estimate spillovers:
1. case studies (e.g. Griliches hybrid corn research);
2. production function approach (abandons details of speci c technologies and instead relates
productivity growth to lagged measures of investment in research and development);
3. research based on patent counts (uses the idea that each patent cites other patents that form
the basis of ‘prior art’).
The key idea when searching for spillovers has been to focus a dimension over which spillovers are
mediated. One consensus is that social returns to R&D are much higher than private returns. A
solution to knowledge spillovers is strong intellectual property rights. Next to spillovers, there are
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