Data Protection in Germany Must Become More Growth-Friendly

Germany needs a public debate on what growth-friendly data protection could look like. This is what Oliver Falck, Director of the ifo Center for Industrial Organization and New Technologies, writes in an article for ifo Schnelldienst. “As a raw material, data holds great growth potential. Public data in particular, such as maps, weather data, satellite images, or statistical data, provides the basis for innovative business models, for example for navigation systems, weather forecasts, mobile applications, or financial and insurance services,” Falck says.

However, Germany is still a long way from making systematic use of public data. “When it comes to digitalization, policymakers need to do more than focus on broadband expansion – they must also help get these kinds of digital services off the ground,” Falck says. It is up to Germany’s public administration in particular to take a pioneering role here and facilitate access to public data. In this way, the state could create a better framework for innovation in the private sector. Moreover, using public administration data could improve the range of public goods and digital services on offer.

“Compared to other European countries, Germans are rather critical of data-based innovations,” Falck says. He points out that this is particularly evident in the public debate about the extent to which digital tools, such as smartphone apps or electronic ID cards, are being used to combat the pandemic.