Innovation and the GDPR: Much ado about quite a lot

This paper critically reviews the extant empirical economics literature and findings on the GDPR’s impact on innovation. It concludes that while the topic has been studied surprisingly little, and some more-widely discussed papers have significant flaws, the available evidence suggests that on balance the GDPR is having a significant negative impact on innovation in Europe. While it has also had positive innovation effects, European firms ironically seem not to have benefited much from these. The paper concludes with a discussion of possible reforms.