It’s been a long, and often painful, climb up the tech learning curve for regulators, but more and more state regulators are embracing the pro-innovation ideals of Silicon Valley rather than the staid ways of the past. And increasingly, our regulators are using — and seemingly demonstrating an understanding of — the technology they’re tasked with overseeing. That’s a critical step forward in establishing the framework in which innovators can operate.
But as we know, innovation is moving faster and faster. So if regulators have any real hope of keeping up with this breakneck pace, it’s going to take some rethinking of the regulatory process. Some tech leaders believe a blueprint for this may be found in startup guru Eric Ries’ The Lean Startup.
One of Ries’ core teachings is the creation of a Minimum Viable Product, or MVP. Get your product into the marketplace, the thinking goes, and allow the market to help shape future iterations. Taking Ries’ idea and applying it to the regulatory front would lead to Minimum Viable Regulations (MVR), which would allow for beta testing of innovative technologies.
I’ll be the first to admit that MVR isn’t fully baked, but the idea of applying beta tests to innovations like ridesharing (e.g. SideCar), home sharing (e.g. AirBNB), self-driving cars, or even the upgrade of communications networks to next-generation, Internet-based systems is intriguing. By creating baseline consumer protections coupled with a way to measure societal good, the technology could then be adjusted accordingly.
Another idea being bandied about, one that is more fully baked than MVR, is the better collection and use of large data sets, also known as Big Data. For the privacy crowd, I’m not talking about NSA surveillance, but rather, the collection of anonymized data that can be used by the government and the private sector. Having access to an ever-increasing pool of anonymous data will create even more new businesses, new jobs, and lead to greater government accountability. Examples of these new businesses that are growing due to the availability and use of data are Appallicious, PopVox and SeeClickFix. The big data era is just beginning and the more regulators at all levels of support it, the greater societal impact it will have.
Of course, it’s one thing to encourage Sacramento to be more like Silicon Valley, but it’s another to actually make it happen. To help chart a course of what could be, here are three ways regulators can be more like innovators:
Start With Mobile
People from all economic backgrounds are increasingly accessing the Internet on mobile devices. Having a mobile-first mentality for both governmental IT programs and regulations can better serve constituents.
Embrace and Understand the Future
As Silicon Valley Leadership Group CEO Carl Guardino has said, "Let your faith be bigger than your fears." Regulators should consider a greater willingness to consider the enormous upside to new ideas, networks and platforms that can be beneficial to society. It’s far harder than it sounds, but a keen awareness of the tech marketplace and consumer trends would be immensely helpful in breaking down any lack of understanding regulators may have about certain technologies, which will enable them to more fully support innovation and ultimately move the economy forward.
Be Fast, But Get It Right
Facebook’s Mark Zuckerberg is fond of the idea of moving fast and breaking things. Obviously, regulators should ignore that second part about breaking things, but the ability to think deliberately and get it right while at the same time moving more quickly than usual is essential if regulations are to have any chance of being effective — and helping nurture — innovation in the marketplace.
When it comes to this new age of collaboration, innovation, and ideation in which we find ourselves, California is leading the charge. Madison Nguyen, Vice Mayor of the City of San Jose, once said her city "works at the speed of business." That’s the perfect mindset for our leaders in Sacramento to take.
Do we want things like self-driving cars and sprinklers that talk to weather satellites? Maybe. Do we want products and platforms that save lives and keep people happier, healthier, employed and educated? Of course. But keeping the digital economy booming requires a new way of thinking about regulations. More and more, our state leaders are understanding that when it comes to technology, the old ways are not necessarily always the best ways.
There’s no shortage of innovation happening in California. The more Sacramento learns from Silicon Valley and other tech hubs throughout the state, the healthier our digital economy will be.
This article was originally published in the winter 2014 issue of Techwire Magazine.
