Promoting Entrepreneurship and Innovation Through Business-to-Business (B2B) Data Sharing
Summary
To bolster competition, entrepreneurship, and innovation, the next administration should facilitate business-to-business (B2B) data sharing between startups and data-rich, established companies. Asymmetry in the digital economy is an existing market failure that, if left unchecked will continue to intensify to the detriment of consumer choice and our collective security.
Leveling the playing field requires policy to remove barriers to entry created by data advantages and to promote market competition through increased access to big data. Specifically, we propose that the Small Business Administration’s Office of Investment and Innovation establish a data-sharing program that gives entrepreneurs access to the data they need to improve algorithms underpinning their products and services. This would support a thriving and diverse ecosystem of startups that could in time yield valuable new markets and products.
In an industry with such high fixed costs, the Chinese state’s subsidization gives such firms a great advantage and imperils U.S. competitiveness and national security. To curtail Chinese legacy chip dominance, the United States should weaponize its monopoly on electronic design automation software.
The technical advances fueled by leading-edge nodes are vital to our long-term competitiveness, but they too rely on legacy devices.
To tackle AI risks in grant spending, grant-making agencies should adopt trustworthy AI practices in their grant competitions and start enforcing them against reckless grantees.
As people become less able to distinguish between what is real and what is fake, it has become easier than ever to be misled by synthetic content, whether by accident or with malicious intent. This makes advancing alternative countermeasures, such as technical solutions, more vital than ever before.