‘Home-grown’ innovation has costs as well as beneﬁts - Europe can improve its innovation systems, but should
6 November 2023
Meanwhile, the leadership of the jurisdiction may be slower to act to mitigate harms from a home-grown product. It is a well-known problem that the political power of corporations is often deployed against regulation that would limit their profits. [...] ‘Home-grown’ innovation has costs as well as benefits 3 Bruegel analysis 32/2023 / 02 November 2023 The consumption benefits from technological innovation can be increased in Europe with carefully-designed rules that protect citizens from the harms experienced in the US, and indeed the European Union has been quick to regulate the safety of new technology, through the General Data Protection Regul. [...] The first is to outsource high-tech innovation to the US while benefiting from consumption, investment and access to the US labour market for talented Europeans. [...] Europeans can gain from allowing American society to shoulder the significant negative externalities of growing these tech firms, while European savers take advantage of the investment opportunities and European consumers take advantage of the innovations. [...] Other notable immigrant executives in Silicon Valley include the current CEO of Microsoft, the founder of eBay, and co-founders of Facebook, Yahoo, Uber and Stripe.