The impact of the general data protection regulation on innovation and the global political economy

This paper attempts to outline how the General Data Protection Regulation might be positive not only for consumers and societal well-being but also for innovation in the digital age. Situated within the highly charged debate regarding the impact of regulations on innovation, this paper examines the General Data Protection Regulation in light of the theoretical facets underpinning the contexts in which regulation has a positive effect on innovation. These are in relation to firstly, tackling concentrated market power where too much concentration leads to the hampering of competitiveness and innovation. Secondly, structural features outlined in the Porter hypothesis that a regulation should have to promote innovation and thirdly, whether the General Data Protection Regulation falls within the scope of the Brussels effect and hence, levels the competitive playing field as well as helps shape the future of the digital economy. The General Data Protection Regulation's alignment with these three dimensions is outlined with certain deviations being noted.