Summary

To bolster competition, entrepreneurship, and innovation, the next administration should facilitate business-to-business (B2B) data sharing between startups and data-rich, established companies. Asymmetry in the digital economy is an existing market failure that, if left unchecked will continue to intensify to the detriment of consumer choice and our collective security.

Leveling the playing field requires policy to remove barriers to entry created by data advantages and to promote market competition through increased access to big data. Specifically, we propose that the Small Business Administration’s Office of Investment and Innovation establish a data-sharing program that gives entrepreneurs access to the data they need to improve algorithms underpinning their products and services. This would support a thriving and diverse ecosystem of startups that could in time yield valuable new markets and products.