i3 - March/April 2017 - 37

CTA's Gary Shapiro testifying before
a Senate Commerce Committee hearing on
"Reducing Unnecessary Regulatory Burdens."

overtime exceptions. Startups and small
businesses thrive on innovators who are
willing to do what it takes to get the job
done. Many startup employees are willing to
join a new venture for hard work and low pay,
with the expectation of a huge payoff if the
business becomes successful. This has been
the model for America's startup success.
By vastly increasing the number of
employees who must be paid overtime,
President Obama's overtime rule would prevent startups from getting new and exciting
innovations off the ground. The mandate was
blocked by a district court, but the Trump
administration and/or Congress should
definitively kill it. Only by cutting down on
these kinds of restrictive labor rules will
new businesses be able to grow so they can
employ graduates and provide invaluable
skills to interns.

2

Cut unnecessary rules
on technologies.

3

Operate on an actual-harm policy
to better embrace disruption.

LEFT: C.J. BURTON/GETTY IMAGES

Extensive and overly broad rules
intended to increase user safety can inadvertently throttle innovation and halt new products from coming to market. The National
Highway Traffic Safety Administration's
recently proposed Phase II guidelines are
a perfect example. With no legal authority,
they say the government expects every
product, from iPhones to Fitbits, to turn off
if held by a driver. Reducing driver distraction
is a worthy goal, but the proposal is absurd
and reaches far beyond the agency's purview.

Federal Trade Commission Acting
Chairman Maureen Ohlhausen advocates
an "actual harm" policy that delays crafting
regulation until consumers demonstrate
that a new technology has produced genuine
harm. When the agencies attempt to

C TA . t e c h / i 3

pre-empt problems by regulating ahead, they
simultaneously choke innovation and favor
incumbent companies with old technologies.
With the Internet of Things (IoT), industry
disruptions will occur all the more frequently,
and the temptation to protect the status quo
will be strong. But Congress and the new
administration must welcome disruption.
By waiting for harm to be demonstrated and
practicing a kind of "regulatory humility," in
Chairman Ohlhausen's words, new technologies and industries will emerge and thrive.

4

Work together across parties,
branches and agencies.

The most effective way to protect
consumers is for Congress to pass legislation.
The 1996 Telecom Act, although 20 years old,
to this day continues to allow new industries
to thrive. Congress must work together to
help allow the innovations of IoT to take place.
CTA supports the bipartisan DIGIT Act, which
creates a task force to help the government
manage internet-produced disruption.
Additionally, agencies need to strategize
among themselves on how best to deal
with emerging technologies. New products
will continue to blur the lines of oversight
between agencies, and open communication
is necessary both among them and between
Congress for America to stay on top.
Unnecessary mandates not only waste
taxpayer money, they also impose burdens
that slow innovation, stifle creativity, reduce
consumers' choices and ultimately threaten
jobs and the economy.
By addressing new technologies with
a smart and light-touch regulatory
approach, Congress can allow business
leaders to invest time and resources into
growing their companies, creating high
paying new jobs, and developing new
products and services that will create new
jobs and change our lives for the better. ■

CTA's 2017 Innovation
Scorecard: America's
Most Innovative States
For the third consecutive year
Michigan, Utah and Virginia have
earned CTA's Innovation Champion
ranking, a top-tier award reflecting
states that are doing everything
possible to create an innovationfriendly environment for the tech
industry. Also joining them are
returning champions, Delaware,
Massachusetts, North Dakota,
Utah, Virginia and newcomers
Colorado, Maryland, New
Hampshire and Washington.
This diverse set of states all
share fast internet, significant
STEM graduates, a rich tech workforce, the ability to attract venture
capital dollars and an understanding that any regulatory policies
need to be flexible to encourage
innovation. A majority of Innovation
Champion states have also welcomed ridesharing, homesharing,
self-driving cars and drones -
building an attractive environment for entrepreneurs, investors
and students looking to find technology opportunities.
The scorecard grades every
state on 10 quantitative and
qualitative criteria and assigns
each to one of four categories:
Innovation Champion, Innovation
Leader, Innovation Adopter or
Modest Innovator. The full 2017
Innovation Scorecard, featuring
category rankings, state-by-state
profiles and an explanation of
CTA's methodology can be found
online at CTA.tech/Scorecard.
MARCH/APRIL 2017

37


http://www.cta.tech/scorecard http://www.cta.tech/scorecard http://cta.tech/Scorecard http://cta.tech/I3

Table of Contents for the Digital Edition of i3 - March/April 2017

Contents
i3 - March/April 2017 - Cover1
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i3 - March/April 2017 - Contents
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