What We Can Learn from the Biggest Tech Policy Mistakes of 2018
2018 was a year filled with plenty of news to remind us of the importance of policy in the world of innovation. While much of the recent focus has been on Big Tech, it is becoming increasingly clear that more and more innovators, including startups, will need to think about policy implications as they grow and scale.
In what I’ve called The Third Wave, the Internet will become ubiquitous and transform industries that are part of our everyday life including health care, transportation, education, food, etc. As we shift from the app-centric Second Wave and focus on some of the most fundamental aspects of daily life, the “ask for forgiveness, not permission” approach will begin to give way to constructive engagement between innovators and policymakers.
Investors will need to understand policy as well. In the Internet’s First Wave, the focus was on technology risk — can they build it. In the Second Wave, the key risk factor became market risk — there was little doubt it could be built, but considerable concern over which of the many app competitors would break through. In the Third Wave, policy risk will be front and center — can the entrepreneurs navigate the complex regulatory waters to successfully bring their product or service to market.
While this will put an additional burden on entrepreneurs and investors, they won’t be alone. Governments will need to find the right balance between regulation and innovation — how to protect society from things going wrong, while also leaning into the future, so innovations can be brought to life that can improve (and sometimes even save) lives.
As we kick off 2019, let’s look back on some of the “greatest hits” of 2018, that highlight why policy now matters.
Lawmakers grow impatient with Facebook — Facebook remains a global phenomenon, used by more than 2 billion people. But the company played defense for much of 2018, and the scrutiny is likely to intensify in 2019. Indeed, legislation now seems inevitable to rein in some of Facebook’s practices.
The 21 scariest data breaches of 2018 — Marriott, Orbitz, Google all had issues with data breaches this year. Consumers have long benefited from the convenience and value the services they use provide, but now are starting to get more leery of the risks, including to their privacy.
The Year of the Scooter: The Good, The Bad, and The Road Ahead — Scooters were all the rage this year, popping up in cities and on sidewalks all across the country. Without coordination or notification to city officials, some felt blindsided and reacted by impounding scooters. Issues around transportation and smart cities will continue to be important as public and private entities look for ways to create innovative solutions for challenges like traffic, pollution, walkability, etc.
What the hell happened to crypto this year? — This past year was a wild ride of ups and downs for the value of crypto. For example, after booming in 2017, bitcoin lost over 70% of its value in 2018. And the “anything goes” presumption that to so many had — that crypto would be a new borderless currency, free of government intervention — began to give way to the reality that some regulations were inevitable.
‘Raising the bar’: Uber details shortcomings in self-driving car that killed pedestrian — Autonomous vehicles are on the horizon; indeed, are on the streets today in a few American cities. As this new technology develops, the innovators and policymakers need to work together to establish practices for safety and security (including cybersecurity). Driverless cars and trucks can (and likely will) be game changers, but they need to be integrated into society in a wise manner, so the benefits can clearly outweigh the risks.
Space tech has outpaced space law, and we’re at risk of killing innovation — NASA got the space race going, but the center of gravity then shifted to commercial operations, including new companies such as SpaceX and Blue Origin. This has driven an exciting phase of breakthrough innovation that can and should continue. But policy implications are beginning to rear their head, and — again — getting the balance right between innovation and regulation will be critical.
