The Rapidly Evolving Role of the Regulator in the Data
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1 The Rapidly Evolving Role of the Regulator in the Data Economy Daniel Castro Vice President, ITIF June 20, to Congreso Latinoamericano
2 ITIF is a Top Science and Technology Policy Think Tank 2
3 Contents How Can Data-Driven Innovation Drive Economic Growth? How Should Regulators Adapt to the Digital Economy? How Can Countries Accelerate Digital Adoption? 3
4 The Rise of the Data Economy Better data: More precise More accurate Higher resolution More timely 4
5 Data is Transforming Industries 5
6 Why Does Data-Driven Innovation Matter? Better data means better decisions. Artificial Intelligence + The Internet of Things = More Automation. These capabilities can boost productivity, improve public safety, increase environmental sustainability, generate new insights in health care, and support more effective government. 6
7 The Internet of Things Will Generate Substantial Value The Internet of Things is the set of physical objects embedded with sensors or actuators that are enhanced with network connectivity. There is expected to be up to 50 billion connected devices by 2020 generating $4-11 trillion in annual economic value.
8 Artificial Intelligence Will Drive Automation Artificial intelligence is the use of software to imitate intelligent human behavior, such as learning, reasoning, and making decisions. AI is expected to generate $5-7 trillion annually by automating knowledge work.
9 How Can Companies Use AI? Monitoring Interacting with the Physical Environment Discovering Interacting with People Predicting Interpreting Interacting with Machines
10 AI Beats Humans At Playing Chess, Poker, Go, Pac-Man Detecting heart disease and skin, breast, and lung cancer Transcribing speech and lip reading Inspecting bridges 10
11 And AI Keeps Getting Better 11
12 Contents How Can Data-Driven Innovation Drive Economic Growth? How Should Regulators Adapt to the Digital Economy? How Can Countries Accelerate Digital Adoption? 12
13 Los hombres prácticos, que se creen totalmente exentos de cualquier influencia intelectual, son usualmente los esclavos de algún difunto economista. John Maynard Keynes 13
14 Most Economic Doctrines Do Not Understand Innovation Conservative Neoclassical Liberal Neoclassical Neo-Keynesian 14
15 Economic Theories Ignore Innovation at Their Peril Technological innovation is not A black box A toy A tweak Manna from heaven 15
16 El proceso de Destrucción Creadora es el hecho esencial del capitalismo Joseph Schumpeter 16
17 Innovation Economics Emphasizes Economic Evolution The central goal of economic policy should be to spur higher productivity and greater innovation. 17
18 Contents How Can Data-Driven Innovation Drive Economic Growth? How Should Regulators Adapt to the Digital Economy? How Can Countries Accelerate Digital Adoption? 18
19 The Private Sector Cannot Solve Digital Adoption On Its Own The government should address three main areas: Overcoming market failures Creating an innovation-friendly regulatory environment Promoting equity and access
20 Government Can Help Overcome Market Failures - Externalities - Chicken-and-egg dynamics - Risk and uncertainty - Global competitiveness - Interoperability - Public goods 20
21 Government Can Create Innovation-Friendly Regulations
22 Government Can Promote Equity and Access
23 Elements of a National Strategy for the Data Economy Funding Planning Agency Regulation Trade Policy Pilot projects R&D Public-private partnerships Voluntary industry-led standards Government adoption Open data initiatives Minimize regulatory cost of data Fast-track regulatory review of smart devices Ensure free flow of data across borders Promote access to technology
24 Thank You!
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