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From Compliance to Constraint: How Digital Regulation Impacts Productivity and Innovation in Europe

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  • Fredrik Erixon
  • Oscar Guinea

Abstract

A big part of the EU-US productivity gap is due to the EU investing less in ICT-related tangible and intangible capital These lower investments are partly explained by EU digital regulations limiting companies’ access to modern endowments like data Limits to these endowments push EU firms towards a market specialization in less ICT-intensive activitiesThe EU has overlooked the full impact of digital regulations by focusing on compliance over these behavioral effects The EU must reduce digital regulation restrictiveness to increase the contribution of digital technologies to productivity growth

Suggested Citation

  • Fredrik Erixon & Oscar Guinea, 2024. "From Compliance to Constraint: How Digital Regulation Impacts Productivity and Innovation in Europe," EconPol Forum, CESifo, vol. 25(06), pages 18-21, November.
    • Handle: RePEc:ces:epofor:v:25:y:2024:i:06:p:18-21
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    References listed on IDEAS

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    1. Mert Demirer & Diego J. Jiménez Hernández & Dean Li & Sida Peng, 2024. "Data, Privacy Laws and Firm Production: Evidence from the GDPR," NBER Working Papers 32146, National Bureau of Economic Research, Inc.
    2. Rebecca Janßen & Reinhold Kesler & Michael E. Kummer & Joel Waldfogel, 2022. "GDPR and the Lost Generation of Innovative Apps," NBER Working Papers 30028, National Bureau of Economic Research, Inc.
    3. Mert Demirer & Diego Jimenez-Hernandez & Dean Li & Sida Peng, 2024. "Data, Privacy Laws and Firm Production: Evidence from the GDPR," Working Paper Series WP 2024-02, Federal Reserve Bank of Chicago.
    4. Guglielmo Barone & Federico Cingano, 2011. "Service Regulation and Growth: Evidence from OECD Countries," Economic Journal, Royal Economic Society, vol. 121(555), pages 931-957, September.
    5. Erik Marel & Martina Francesca Ferracane, 2021. "Do data policy restrictions inhibit trade in services?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(4), pages 727-776, November.
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