Work

Innovation and the GDPR: Much ado about quite a lot

Year: 2026

Type: article

Abstract: 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.

Source: Computer law & security review

DOI: 10.1016/j.clsr.2026.106270

Authors: Nicholas Martin, Max von Grafenstein

Institution: Fraunhofer Institute for Systems and Innovation Research

Language: English

Topic: Digitalization, Law, and Regulation

Subfield: Law

Field: Social Sciences

Domain: Social Sciences

SDGs: Industry, innovation and infrastructure, Peace, justice, and strong institutions

Open Access status: hybrid

Funder: Bundesministerium für Bildung und Forschung