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Security at what cost? Dual-use research oversight and its effect on innovation: an empirical investigation of the Danish Biosecurity Act

Onkenhout, Maximilian LU (2024) NEKP01 20241
Department of Economics
Abstract
Technological innovation has been a crucial driver of economic growth, leading to significant improvements in our quality of life. However, the rise of dual-use technologies—those with both beneficial and harmful potential—poses increasing risks. This paper examines what the impact of government policies designed to mitigate these risks is on innovation, focusing on Denmark’s 2008 Biosecurity Law (DBL). Using the Synthetic Control Method (SCM), the study creates a counterfactual ”synthetic Denmark” to estimate the DBL’s effect on biotech
innovation. The results indicate a 46 percent reduction in annual biotechnology patents post-2008, suggesting a significant decline in innovation due to the DBL. The law had minimal impact on dual-use... (More)
Technological innovation has been a crucial driver of economic growth, leading to significant improvements in our quality of life. However, the rise of dual-use technologies—those with both beneficial and harmful potential—poses increasing risks. This paper examines what the impact of government policies designed to mitigate these risks is on innovation, focusing on Denmark’s 2008 Biosecurity Law (DBL). Using the Synthetic Control Method (SCM), the study creates a counterfactual ”synthetic Denmark” to estimate the DBL’s effect on biotech
innovation. The results indicate a 46 percent reduction in annual biotechnology patents post-2008, suggesting a significant decline in innovation due to the DBL. The law had minimal impact on dual-use biotech patents but significantly affected other biotech areas, likely due to decreased research investment and resource diversion. This study highlights the trade-off between technological innovation and security, showing that while dual-use oversight policies may be necessary, they can unintentionally hinder innovation. The findings contribute to the understanding of how government intervention affects innovation and underscore the need for carefully designed policies to balance security with technological progress. (Less)
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author
Onkenhout, Maximilian LU
supervisor
organization
course
NEKP01 20241
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Innovation, Dual-use, Research Oversight, Synthetic Control Method, Patents
language
English
id
9177682
date added to LUP
2025-01-20 12:18:36
date last changed
2025-01-20 12:18:36
@misc{9177682,
  abstract     = {{Technological innovation has been a crucial driver of economic growth, leading to significant improvements in our quality of life. However, the rise of dual-use technologies—those with both beneficial and harmful potential—poses increasing risks. This paper examines what the impact of government policies designed to mitigate these risks is on innovation, focusing on Denmark’s 2008 Biosecurity Law (DBL). Using the Synthetic Control Method (SCM), the study creates a counterfactual ”synthetic Denmark” to estimate the DBL’s effect on biotech
innovation. The results indicate a 46 percent reduction in annual biotechnology patents post-2008, suggesting a significant decline in innovation due to the DBL. The law had minimal impact on dual-use biotech patents but significantly affected other biotech areas, likely due to decreased research investment and resource diversion. This study highlights the trade-off between technological innovation and security, showing that while dual-use oversight policies may be necessary, they can unintentionally hinder innovation. The findings contribute to the understanding of how government intervention affects innovation and underscore the need for carefully designed policies to balance security with technological progress.}},
  author       = {{Onkenhout, Maximilian}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Security at what cost? Dual-use research oversight and its effect on innovation: an empirical investigation of the Danish Biosecurity Act}},
  year         = {{2024}},
}