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The Short-Run Effects of GDPR on Technology Venture Investment

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  • Jian Jia
  • Ginger Zhe Jin
  • Liad Wagman

Abstract

The General Data Protection Regulation (GDPR) came into effect in the European Union in May 2018. We study its short-run impact on investment in new and emerging technology firms. Our findings indicate negative post-GDPR effects on EU ventures, relative to their US counterparts. The negative effects manifest in the overall dollar amounts raised across funding deals, the number of deals, and the dollar amount raised per individual deal.

Suggested Citation

  • Jian Jia & Ginger Zhe Jin & Liad Wagman, 2018. "The Short-Run Effects of GDPR on Technology Venture Investment," NBER Working Papers 25248, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:25248
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    Cited by:

    1. Naudé, Wim, 2019. "The Race against the Robots and the Fallacy of the Giant Cheesecake: Immediate and Imagined Impacts of Artificial Intelligence," IZA Discussion Papers 12218, Institute of Labor Economics (IZA).
    2. Jean Roisse Rodrigues Ferreira, 2022. "Decision-Making under Risk: Conditions Affecting the Risk Preferences of Politicians in Digitalization," IJERPH, MDPI, vol. 19(5), pages 1-12, March.
    3. Youming Liu, 2023. "Competition for Exclusivity and Customer Lock-in: Evidence from Copyright Enforcement in China," Staff Working Papers 23-43, Bank of Canada.
    4. Bleier, Alexander & Goldfarb, Avi & Tucker, Catherine, 2020. "Consumer privacy and the future of data-based innovation and marketing," International Journal of Research in Marketing, Elsevier, vol. 37(3), pages 466-480.
    5. Catherine E. Tucker, 2023. "The Economics of Privacy: An Agenda," NBER Chapters, in: The Economics of Privacy, National Bureau of Economic Research, Inc.
    6. Fossen, Frank M. & McLemore, Trevor & Sorgner, Alina, 2024. "Artificial Intelligence and Entrepreneurship," IZA Discussion Papers 17055, Institute of Labor Economics (IZA).
    7. Wu, Chao, 2024. "Data privacy: From transparency to fairness," Technology in Society, Elsevier, vol. 76(C).
    8. Koski, Heli & Valmari, Nelli, 2020. "Short-term Impacts of the GDPR on Firm Performance," ETLA Working Papers 77, The Research Institute of the Finnish Economy.
    9. Julia M. Puaschunder, 2024. "Big Data Inequality," RAIS Conference Proceedings 2022-2024 0415, Research Association for Interdisciplinary Studies.

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    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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