Innovation and Privacy: the Duet of the Century

Examples of data-driven business decisions date back centuries. 

Famously, Henry Ford methodically collected data from his assembly lines to improve their speed. Data itself is nothing new or innovative. But thanks to digitization, we can now collect and analyze data in previously unimaginable ways. And the value that can be derived through digital means – from artificial intelligence to machine learning – has made data the most valuable resource in the world.

Today, five of the six most valuable publicly traded companies in the world deal in data. And if you ask the cancer survivor who made the most of an early diagnosis, or the farmer who cut her pesticide use in half, the advantages of harnessing data for our society and our economy are obvious. Data-driven innovation will allow companies to grow and create good middle-class jobs for Canadians.

But this data boom is a double-edged sword. Like every major innovative breakthrough, it also poses its fair share of risks. Canadians are rightfully concerned about reports of data breaches, misuse of personal information by large companies, election interference, and online hate related to mass tragedies.

Given this new reality, how do we protect people’s privacy and the security of their data, while preserving and even improving the competitiveness of Canadian innovators in this data-driven economy?

For many people, this sounds like a zero-sum game. Sacrifice privacy for innovation, or let innovation suffer in the name of privacy. But these should not be competing priorities. In fact, we can only reach our full innovative potential if we build a strong foundation of trust on which our digital economy can flourish. Data-driven businesses rely on their users’ trust and confidence. They cannot afford to have them slam on the brakes and turn off the data taps. We as a society can’t afford it either – even if just a few users are scared away, because when certain groups are under-represented in the digital world, algorithms become biased. And nothing will undermine people’s confidence in the data world more than a data world that leaves some of us behind.

There is also a more optimistic argument to be made in favor of the mutually reinforcing relationship between trust and innovation: Think about the wealth of business opportunities that exist at the very nexus of innovation and privacy. For example, after some admittedly tough years, Blackberry is now sitting in the driver’s seat of the car of the future because of the security of its software systems. What needs to be more secure than the software that’s going to be driving our cars? Canada will gain a global competitive advantage if we can build an entire digital economy based on trust!

Already, because of our diversity, Canada is an attractive place to gather data. Data is more valuable when it’s collected from people that come from all parts of the globe. We can also be the standard-bearer for data security and privacy norms that enable innovation. Every data and digital company should seek Canada’s seal of approval.

If we want to compete successfully in the global digital economy, the way forward on data collection, management, and use must be built on a strong foundation of trust and transparency between citizens, companies and government.

By launching Canada’s Digital Charter, we took a foundational step to do just that. Composed of ten principles based on Canadian values – from giving Canadians control of their data to strong enforcement mechanisms – the Charter lays the groundwork for strong but predictable rules so businesses can innovate, and citizens can be confident their digital society is being built for them.

So let’s embrace this opportunity. Let’s define the rules of the game. And let’s reap the rewards of a robust digital and data-driven economy built on trust and inclusion.