EU Aims to Lead IoT with Investment and Data Rule Reforms
The Internet of Things (IoT) promises a connected future, but faces hurdles like market failures and data regulation. The EU is considering steps to lead in IoT, including revising data rules and investing in projects.
Three key market failures hinder IoT growth: the collective action problem, chicken-and-egg problem, and the 'penguin effect'. Public investment can tackle these by creating connection points, reducing expansion costs.
The EU is exploring ways to boost IoT, with the Free Flow of Data Initiative aiming to scrap data localization laws. In 2016, the EU invested over €100 million in IoT pilots and €60 million in smart city projects.
However, the General Data Protection Regulation (GDPR) poses challenges. It makes data experimentation difficult, but also ensures privacy. After an earthquake, Jawbone used anonymized user data to aid response, showing IoT's potential.
To lead in IoT, the EU and member states should create national strategies and revise GDPR to allow more data reuse. Overregulation could hinder Europe's IoT benefits.
The EU is poised to lead in IoT, with investment and potential GDPR revisions. However, striking the right balance between innovation and privacy remains crucial.
