Encouraging Innovation in Cybersecurity
Rapid technological advances in computer and communication systems have greatly influenced social, economic and political development of many countries. However, high dependence on computer and communication systems increases the potential damage in cyberspace that may be caused by commercial or political institutions, as well as individuals, such as hackers, criminals and terrorists, driven by diverse motives. Damage in the cyber world may seriously affect any person or organization operating in a country, therefore this potential damage may require the state to act through regulatory tools in order to encourage research and development (R&D) of innovative technologies aimed at protecting cyberspace.
The involvement of governments in promoting innovation is usually based on neoclassical economic growth theory, according to which, a government has the legitimacy of intervention depending on the need to correct market failure. Moreover, scientific and technological innovations are means to improve the State's production function.
The study examines the basic assumptions regarding government's involvement in promoting innovation, and criticizes them in light of the unique challenges in cyberspace.