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[TECHNOLOGY] · Germany · 7 sources

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Data protection can boost European competitiveness, study finds

A position paper by the 'Plattform Privatheit' project, led by the Fraunhofer Institute for Systems and Innovation Research and the University of Kassel, argues that reducing data protection standards is not an effective way to boost Europe's competitiveness in the digital economy.

The researchers, including Michael Friedewald and Alexander Roßnagel, state that the assumption that less data protection leads to more innovation is empirically unsupported. They contend that the General Data Protection Regulation (GDPR) is not the primary driver of innovation barriers.

However, the study notes that while large digital corporations can manage regulatory requirements, start-ups and small to medium-sized enterprises (SMEs) face significant challenges due to bureaucracy and legal uncertainty. To address this, the authors suggest aligning obligations with actual processing risks and increasing the responsibility of standard software manufacturers.

For emerging technologies like Artificial Intelligence, the paper emphasizes that success depends on data quality, precision, and the exclusivity of training data rather than simple data maximization. The researchers suggest that reliable data protection could serve as a 'Made in Europe' quality seal, providing a competitive advantage in sectors such as healthcare, finance, and administration.

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Alexander Roßnagel · European Union · Fraunhofer Institute for Systems and Innovation Research · Michael Friedewald · University of Kassel

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