Another Voice: Regulatory proposals threaten Buffalo's burgeoning tech scene
If Albany and Washington continue to draw inspiration from European-style innovation-suppressing regulations, the bright future Governor Hochul envisions could be severely compromised. Buffalo is becoming a leading tech scene with 266 deals and $1.5 billion in funding over the past decade. However, proposals from Washington and Albany could threaten this growth. The American Innovation and Choice Online Act, a bill in Congress aimed at reducing the power of major technology firms, is a priority for populist antitrust crusaders and could have a chilling effect on private investments and mergers and acquisitions, reducing exit valuations for innovative startup founders. Other state lawmakers are considering similar bills, which would change the legal framework for competition policy to the murky “abuse of dominance” standard, and undermine the startup environment. These proposals could also lead to more government challenges to beneficial business deals, making cities like Buffalo less attractive for entrepreneurs and investors.
نشرت : منذ 4 أسابيع بواسطة cameron d. miller, Cameron D. Miller في Tech
Buffalo is quickly becoming a leader in innovation. An American Edge Project and PitchBook report highlights that Buffalo is emerging as one of the nation’s fastest-growing venture capital ecosystems, with 266 deals and $1.5 billion in funding over the past decade. Yet, this promising growth could be threatened by legislative and regulatory proposals coming from Washington and Albany.
A bill in Congress, the American Innovation and Choice Online Act, is a priority for populist antitrust crusaders looking to rein in the power of major technology firms. But antitrust populists and their “big is bad” rallying cry ignore the reality that large scale digital platforms mean that consumers, creators, app developers, and small businesses all have more choices and larger audiences – making the platforms more valuable for all parties. , my co-author and I illustrate how this well-intentioned legislation might harm those it seeks to protect and disrupt the tech startup ecosystem, including here in Buffalo. It will have a chilling effect on private investments and restrain mergers and acquisitions, treducing exit valuations for innovative startup founders.
State lawmakers, including in New York , are considering equally concerning bills. Changing the legal framework for competition policy to the murky “abuse of dominance” standard would deter local investments due to vague and complex rules. These proposals would also undermine the startup environment and lead to more government challenges to beneficial business deals, making cities like Buffalo less attractive for entrepreneurs and investors.
Amid these regulatory threats, Gov. Kathy Hochul’s Empire AI initiative is a breath of fresh air. By injecting public and private investments into artificial intelligence research, New York aims to become the next Silicon Valley. “We have our Erie Canal moment right now,” Hochul recently remarked , underscoring the proposal’s transformative potential for maintaining New York’s and America’s lead in global innovation , especially as the US competes with China for leadership in emerging technologies .
However, if Albany and Washington continue to draw inspiration from European-style innovation-suppressing regulations, the bright future Gov. Hochul envisions could be severely compromised. As the American Edge report notes, and pales in comparison to the US in terms of both our innovation economy’s size and dynamism. Overly restrictive policies could shift investments abroad and send founders seeking greener pastures in less regulated markets.
Considering the vast benefits that a vibrant tech community brings with it , lawmakers should focus on nurturing burgeoning innovation ecosystems like Buffalo’s. The growth of our local startup economies — and American leadership on the global stage — depends on how our policymakers choose to approach the technologies of the future.
Cameron D. Miller, Ph.D., is an associate professor at Syracuse University’s Whitman School of Management.