Fragmentation of Information TechnologyIf governments perceive that the corporations of one nation are collecting enormous data stores about their citizenry this may be viewed as a security and economic threat. As such, nations have incentive to create laws that require data to be stored and governed locally. This favors local firms and may lead to a more diverse and fragmented technology industry.
Self CensorshipThe idea that governments are putting your communications, voice commands, keystrokes, sensor data and digital activities such as web browsing in a permanent database can have a chilling effect on ideas, freedom of speech and adoption of technology such as pervasive computing.
Data vs TrustMany firms don't leverage as much value from a customer's data as they would from the trust gained from stronger guarantees of privacy.
Data as a RiskData can be compromised due to information security incidents that cause reputational damage and liability.
|Overview: Economics Of Privacy|
The idea that privacy guarantees can stimulate economic activity.