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The TikTok Debate Should Start With Reciprocity; Everything Else Is Secondary

The TikTok Debate Should Start With Reciprocity; Everything Else Is Secondary

Defending Digital Series, No. 16: The recent congressional hearing about TikTok was a missed opportunity to insist that U.S. and Chinese companies be treated equally in both nations.

Europe’s Cloud Security Regime Should Focus on Technology, Not Nationality

Europe’s Cloud Security Regime Should Focus on Technology, Not Nationality

The EU’s new cloud cybersecurity regime should focus on good security practices, as the U.S. FedRAMP regime does. Emulating China’s protectionist focus on firm nationality is a bad security practice that weakens transatlantic influence over cybersecurity issues globally.

The Economics of Biopharmaceutical Innovation: Symposium Report

The Economics of Biopharmaceutical Innovation: Symposium Report

Investments in biopharmaceutical innovation and expenditures on medicines themselves both produce tremendous societal returns. Maintaining the robust innovation ecosystem necessary to capitalize on these benefits requires the right mix of “push” and “pull” incentives.

What Kind of Industrial Policy: Progressive or Hamiltonian?

What Kind of Industrial Policy: Progressive or Hamiltonian?

Progressives want to replace neoliberalism with green-equity-focused industrial policy, which would make America poorer and weaker. Washington should instead adopt a Hamiltonian agenda to win the global competition for advanced industry leadership, especially versus China.

Critics of Generative AI Are Worrying About the Wrong IP Issues

Critics of Generative AI Are Worrying About the Wrong IP Issues

Critics argue developers of generative AI systems such as ChatGPT and DALL-E have unfairly trained their models on copyrighted works. Those concerns are misguided.

Platforms Are the New Organizational Paradigm

Platforms Are the New Organizational Paradigm

Just as there was opposition to the corporate economy in the early 1900s, there is opposition to the platform economy today. But limiting “platformization” would have considerable long-lasting economic costs for the nation and consumers.

Balancing Privacy and Innovation in Smart Cities and Communities

Balancing Privacy and Innovation in Smart Cities and Communities

Smart city technology could modernize local government services and improve residents’ quality of life. To reap these benefits and maintain public trust, cities and communities need to balance the interests of innovation and privacy.

The Flawed Analysis Underlying Calls for Antitrust Reform: Revisiting Lina Khan’s “Amazon’s Antitrust Paradox”

The Flawed Analysis Underlying Calls for Antitrust Reform: Revisiting Lina Khan’s “Amazon’s Antitrust Paradox”

In the 2017 law journal article that established her reputation, now FTC Chair Lina Khan ignored or misapplied the economics of two-sided markets, mischaracterized competitive conditions, and did not consider the pro-competitive effects of Amazon’s conduct.

Industry Disruption Isn’t Accelerating; It’s Shifting to the Physical World

Industry Disruption Isn’t Accelerating; It’s Shifting to the Physical World

Defending Digital Series, No. 15: While ChatGPT and generative artificial intelligence have great potential, predictions of ever-increasing digital disruption thus far have proven to be false. Looking ahead, the most significant societal shifts won’t be driven by digital technology; they will stem from the demands of the physical world.

Filling Gaps in US Spectrum Allocation: Reforms for Collaborative Management

Filling Gaps in US Spectrum Allocation: Reforms for Collaborative Management

Interrelated gaps and failures in the process and policies used to efficiently allocate spectrum demand comprehensive reform. To prevent future failures, policymakers must improve device performance, increase data gathering and sharing, and clarify the spectrum allocation process.

Estimated State-Level Employment Impact of Enhancing Federal R&D Tax Incentives

Estimated State-Level Employment Impact of Enhancing Federal R&D Tax Incentives

Tax incentives for research and development (R&D) in America are less generous than in comparable countries—and now prevent firms from expensing the full value of R&D investments in the first year. Enhancing R&D tax incentives would create high-paying jobs across the country.

Climate-Tech to Watch: Hydrogen-Powered Aviation

Climate-Tech to Watch: Hydrogen-Powered Aviation

Policymakers and the aviation industry see hydrogen as a promising low-carbon fuel for aviation. But to make hydrogen-powered flight a reality, they first need to bring down the cost of green hydrogen and overcome aircraft design challenges.

The Case for Immersive Tech in Apprenticeship Programs

The Case for Immersive Tech in Apprenticeship Programs

Immersive technologies have already proved to be useful in supplementing classroom education and on-the-job training. Those successes underscore how implementing the technology can bolster the effectiveness of apprenticeship programs in the United States.

Ten Principles for Regulation That Does Not Harm AI Innovation

Ten Principles for Regulation That Does Not Harm AI Innovation

Concerns about artificial intelligence have prompted policymakers to propose a variety of laws and regulations to create “responsible AI.” Unfortunately, many proposals would likely harm AI innovation because few have considered what “responsible regulation of AI” entails.

The AI Act Should Be Technology-Neutral

The AI Act Should Be Technology-Neutral

The AI Act’s broad definition of AI penalizes technologies that do not pose novel risks. To resolve this, policymakers should revise the definition of AI to only apply to specific AI approaches that create significant challenges.

Building on Uncle Sam’s “Beachfront” Spectrum: Six Ways to Align Incentives to Make Better Use of the Airwaves

Building on Uncle Sam’s “Beachfront” Spectrum: Six Ways to Align Incentives to Make Better Use of the Airwaves

The federal government controls large swaths of the electromagnetic spectrum, but the current system for managing it lacks effective ways to incentivize agencies to use it efficiently. Congress and the Biden administration should promote good stewardship of spectrum and better enable it to power both federal missions and the commercial wireless ecosystem.

Wake Up, America: China Is Overtaking the United States in Innovation Capacity

Wake Up, America: China Is Overtaking the United States in Innovation Capacity

Based on key indicators of innovation and advanced-industry performance, China has surpassed the United States in total innovation output and is getting close on a proportional basis. To regain its leadership, the United States must respond more strategically and forcefully.

Oops! It Turns Out Aggressive Antitrust Would Increase Business Lobbying

Oops! It Turns Out Aggressive Antitrust Would Increase Business Lobbying

The common refrain that big business wields disproportionate political power is overblown. Lobbying data indicates that large firms spend relatively less on lobbying than do smaller firms.

User Safety in AR/VR: Protecting Adults

User Safety in AR/VR: Protecting Adults

Policymakers should empower metaverse platforms to develop innovative tools and solutions to address safety issues and ensure AR/VR products and services don’t harm users. Overly prescriptive regulation risks stifling the progress of those innovations.

Broadband Myths: Is U.S. Broadband Service Slow?

Broadband Myths: Is U.S. Broadband Service Slow?

Critics argue U.S. broadband speeds are slow and the country’s broadband system overall is poor, but U.S. speeds actually are fast and outpace everyday demands. Focusing too much attention on speed simply diverts resources that otherwise could be used to close the digital divide.

Police Tech: Exploring the Opportunities and Fact-Checking the Criticisms

Police Tech: Exploring the Opportunities and Fact-Checking the Criticisms

Police tech could transform the way law enforcement operates, reducing crime and saving lives. Policymakers should focus on advancing adoption while enacting regulations to maximize the benefits and minimize the risks of police tech.

The Cost of Data Localization Policies in Bangladesh, Hong Kong, Indonesia, Pakistan, and Vietnam

The Cost of Data Localization Policies in Bangladesh, Hong Kong, Indonesia, Pakistan, and Vietnam

Restrictive data policies coming into effect in Bangladesh, Hong Kong, Indonesia, Pakistan, and Vietnam will measurably increase import costs and reduce trade volumes, undermining the broader economic role of data. Policymakers should change course or else be left behind in the race for digital development.

How Policymakers Can Prevent Gift Card Scams

How Policymakers Can Prevent Gift Card Scams

Gift card scams are on the rise. Scammers have relied on predatory tactics, emotional stories, and product tampering to steal nearly $450 million from unsuspecting Americans in the last three years alone, and the trend shows little signs of slowing.

The State of US Broadband in 2022: Reassessing the Whole Picture

The State of US Broadband in 2022: Reassessing the Whole Picture

In absolute terms, the United States is among the world’s leaders in deploying fast broadband, and it does so at competitive prices. But there is room for improvement on broadband adoption.

Click Here for Adderall: Fixing Telehealth Advertising and Services To Prevent Stimulant Misuse

Click Here for Adderall: Fixing Telehealth Advertising and Services To Prevent Stimulant Misuse

Policymakers should both make permanent many of the COVID-19 era policies that allow medical providers to see patients remotely and enact provisions allowing for the practice of telemedicine over state lines. However, policymakers should also take further steps to ensure that telehealth providers offer and abide by the same standard of care as in-person treatment.

History Shows How Private Labels and Self-Preferencing Help Consumers

History Shows How Private Labels and Self-Preferencing Help Consumers

Private label products have been important for consumers and the economy since the 19th century because retailers can sell them at lower prices with greater efficiency than brand-name alternatives. Legislation that prevents retailers from putting their own products front and center—either online or on store shelves—would jeopardize those benefits.

How to Mitigate the Damage From China’s Unfair Trade Practices by Giving USITC Power to Make Them Less Profitable

How to Mitigate the Damage From China’s Unfair Trade Practices by Giving USITC Power to Make Them Less Profitable

Section 337 of the 1930 Tariff Act allows the U.S. International Trade Commission (USITC) to bar imports when domestic industries suffer harm due to unfair competition. Congress should expand the law to better address the unfair trade practices China uses to capture market share in advanced industries at America’s expense.

Why Congress Should Restore Full Expensing for Investments in Equipment and Research and Development

Why Congress Should Restore Full Expensing for Investments in Equipment and Research and Development

The tax law allowing firms to fully expense their research and development (R&D) costs expired at the end of 2021, and full expensing of equipment costs will begin phasing out in 2023. This decreases firms’ incentive to invest in these key drivers of economic growth and competitiveness. Congress should restore and make permanent full expensing for these investments.

The Effect of International Proposals for Monitoring Obligations on End-To-End Encryption

The Effect of International Proposals for Monitoring Obligations on End-To-End Encryption

European and U.S. policymakers have proposed imposing monitoring obligations on Internet intermediaries to improve online safety. Despite their best efforts, these proposals risk undermining users’ privacy by eliminating the use of end-to-end encryption. Therefore, policymakers should not pursue them.

Consumers Are the Ones Who End Up Paying for Sending-Party-Pays Mandates

Consumers Are the Ones Who End Up Paying for Sending-Party-Pays Mandates

Policymakers in some nations want edge companies such as Netflix to pay a larger share of broadband infrastructure costs. These “sending-party-pays” policies would harm Internet users, disproportionately tax U.S. tech companies, and fail to deliver infrastructure improvements.

With Customer Satisfaction at a New Low, Federal Agencies Still Fail to Measure It Well or Provide Enough Digital Services

With Customer Satisfaction at a New Low, Federal Agencies Still Fail to Measure It Well or Provide Enough Digital Services

The Biden administration has made improving customer experience (CX) a top priority for federal agencies. That hinges on providing robust digital services. But agencies are behind in digital adoption, and they don’t do enough to measure CX via digital platforms, much less to improve.

How to Address Political Speech on Social Media in the United States

How to Address Political Speech on Social Media in the United States

Policymakers could improve content moderation on social media by building international consensus on content moderation guidelines, providing more resources to address state-sponsored disinformation, and increasing transparency in content moderation decisions.

The Process of Creative Destruction, Illustrated: The US Retail Industry

The Process of Creative Destruction, Illustrated: The US Retail Industry

The process of “creative destruction,” whereby new technologies and business models displace old ones, is key to growth and innovation. The evolution of the retail industry illustrates why it is beneficial and sheds light on the pitfalls of current legislative and regulatory efforts to limit it.

Reforming the UK Online Safety Bill to Protect Legal Free Expression and Anonymity

Reforming the UK Online Safety Bill to Protect Legal Free Expression and Anonymity

The Online Safety Bill’s loose definition of what constitutes “legal but harmful” content, overbroad scope, and general legislative overreach encroach on the civil liberties of all users—not just those in the United Kingdom.

Maintaining a Light-Touch Approach to Data Protection in the United States

Maintaining a Light-Touch Approach to Data Protection in the United States

Data privacy regulations impose significant costs on businesses and the economy. Effective, targeted federal legislation would address actual privacy harms while reducing costs that hinder productivity and innovation.

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