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The Short-Run Effects of GDPR on Technology Venture Investment

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Listed:
  • Jian Jia
  • Ginger Zhe Jin
  • Liad Wagman

Abstract

The General Data Protection Regulation (GDPR) came into effect in the European Union in May 2018. We study its short-run impact on investment in new and emerging technology firms. Our findings indicate negative post-GDPR effects on EU ventures, relative to their US counterparts. The negative effects manifest in the overall dollar amounts raised across funding deals, the number of deals, and the dollar amount raised per individual deal.

Suggested Citation

  • Jian Jia & Ginger Zhe Jin & Liad Wagman, 2018. "The Short-Run Effects of GDPR on Technology Venture Investment," NBER Working Papers 25248, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:25248
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    File URL: http://www.nber.org/papers/w25248.pdf
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    References listed on IDEAS

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    Cited by:

    1. Naudé, Wim, 2019. "The Race against the Robots and the Fallacy of the Giant Cheesecake: Immediate and Imagined Impacts of Artificial Intelligence," IZA Discussion Papers 12218, Institute of Labor Economics (IZA).
    2. Koski, Heli & Valmari, Nelli, 2020. "Short-term Impacts of the GDPR on Firm Performance," ETLA Working Papers 77, The Research Institute of the Finnish Economy.

    More about this item

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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