Permissionless Innovation

Great innovations thrive in a legal environment that understands and accepts their necessity. Our framework provides a method of evaluating and determining what, if any, regulations a new technology may need.

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Why Is Permissionless Innovation Important?

Permissionless Innovation can unleash the true potential of human ingenuity and creativity.

We have seen the amazingly negative impact associated with precautionary approaches to regulating technology in Europe. They lag in innovation and creativity as a direct result of their approach to handling technology.

It creates a pathway for entrepreneurs to improve their economic situation. When successful technologies, goods, or services are introduced to society, the entrepreneur benefits from creating that innovation.

Consumers win! When new products are introduced to the market, they are usually welfare-enhancing, meaning that they make people’s lives better in some way. Whether it's through lower prices, increased access, or introducing competition to traditional business models, the consumer is the winner.

It is a method of creating change where existing rules do not allow for it. Think about Uber and the impact that it had on the taxi industry in NYC. Uber essentially took a hammer to bad policy and was able to substantively change it into something better.

Society as a whole is better off. When new technologies are introduced, even the public sector benefits as a result. For example, with continuing our research into 5G, Internet of Things products can help cities run their infrastructure like electricity, water, and garbage more effectively, reducing costs to the town.

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Frequently Asked Questions

What is Permissionless Innovation?

Permissionless Innovation is a concept that Adam Thierer writes about in his book entitled, Permissionless Innovation: The Continuing Case for Comprehensive Technological Freedom. The concept talks about how to think about regulating new business models or technologies. It advocates for politicians and people not to assume the worst when it comes to technology, not to give in to the often unfounded fears of technology.

Is Utah a safe harbor for tech and innovative companies?

Utah certainly labels itself as a safe harbor for tech and innovative companies. However, the state may not always be living up to this label. Numerous companies have had countless run-ins with regulators for simply doing something different. Whether it was Tesla, Uber and Lyft, or Airbnb, companies with innovative ideas and business models are not always met with warm, welcoming arms.

What is the Market Empowerment Framework?

The Market Empowerment Framework is a process we have developed to assist legislators, regulators, and consumers to evaluate the necessity and level of regulations that should be applied to new and/or innovative companies. By answering a series of questions, a person will be able to follow a least-restrictive means process to enable innovation in Utah. As a result, the state would become an increasingly attractive option for companies looking to relocate out of extraordinarily burdensome regulatory environments to friendlier places.

What are some examples of companies that practice permissionless innovation?

Uber and Lyft are well-known and recent examples. Due to regulations in the taxi industry, they should not have even existed. However, they looked at the problematic laws and safely went to market anyway, dealing with the political repercussions along the way. Another example of a company that practices permissionless innovation is RobinHood, a popular app that allows for people to engage in trading stock with no commission fees on trades. This was radically different than the industry standard at the time, and as a result, many of the traditional brokers have eliminated commission fees on trades as well. This has enabled more people to have access to the marketplace.

What states or countries practice permissionless innovation?

There are no states or countries that truly embrace everything that permissionless innovation calls for. However, the United States has historically been the beacon of getting close to it. Out of the top 10 most innovative companies in the world in 2019, 8 of them were based in the United States.

How can I help make Utah embrace permissionless innovation?

Many people are familiar with the large companies but don't realize that they all started out as small businesses. Apple, Amazon, and Google all started in a garage by people who had a vision of how their product could change their industries. Working with the legislature is key to ensuring that our small businesses are placed in the best position to succeed within the state of Utah to become the next American success story.

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