Does it Help or Hinder ? - Promotion of Innovation on the Internet and Citizens’ Right to Privacy

This study investigates the interplay between Internet innovation and privacy. We propose working definitions of innovation and privacy and review the literature about their interaction. We interpret the possible tensions and problems in terms of market and system failures and analyse the relevant legal and policy aspects in relation to examples of privacy invasion and/or protection by innovating companies. Using a four issue framework we analyse relevant case studies such as cloud computing and online behavioural advertising. Following a gap analysis according to our model of failure, we present a series of recommendations aimed at different stakeholders. The study was based on desk research, key informant interviews, case studies and an interactive expert consultation held in Brussels in June 2011.