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Data Governance in the Digital Age DATA GOVERNANCE IN THE DIGITAL AGE DIGITAL THE IN GOVERNANCE DATA DATA GOVERNANCE SPECIAL REPORT IN THE DIGITAL AGE SPECIAL REPORT 67 Erb Street West Waterloo, ON, Canada N2L 6C2 www.cigionline.org DATA GOVERNANCE IN THE DIGITAL AGE SPECIAL REPORT CIGI Masthead Executive President Rohinton P. Medhora Deputy Director, International Intellectual Property Law and Innovation Bassem Awad Chief Financial Officer and Director of Operations Shelley Boettger Director of the International Law Research Program Oonagh Fitzgerald Director of the Global Security & Politics Program Fen Osler Hampson Director of Human Resources Susan Hirst Interim Director of the Global Economy Program Paul Jenkins Deputy Director, International Environmental Law Silvia Maciunas Deputy Director, International Economic Law Hugo Perezcano Díaz Director, Evaluation and Partnerships Erica Shaw Managing Director and General Counsel Aaron Shull Director of Communications and Digital Media Spencer Tripp Publications Publisher Carol Bonnett Senior Publications Editor Jennifer Goyder Publications Editor Susan Bubak Publications Editor Patricia Holmes Publications Editor Nicole Langlois Publications Editor Lynn Schellenberg Graphic Designer Melodie Wakefield For publications enquiries, please contact [email protected]. Communications For media enquiries, please contact [email protected]. Copyright © 2018 by the Centre for International Governance Innovation, except where otherwise noted. The opinions expressed in this publication are those of the authors and do not necessarily reflect the views of the Centre for International Governance Innovation or its Board of Directors. This work is licensed under a Creative Commons Attribution — Non- commercial — No Derivatives License. To view this license, visit (www.creativecommons.org/licenses/by-nc-nd/3.0/). For re-use or distribution, please include this copyright notice. 67 Erb Street West Waterloo, Ontario N2L 6C2 Canada tel +1 519 885 2444 fax + 1 519 885 5450 www.cigionline.org CONTENTS Acronyms and Abbreviations . v Introduction Data Governance in the Digital Age . .2 Rohinton P. Medhora Rationale of a Data Strategy Considerations for Canada’s National Data Strategy . .6 Teresa Scassa The Economics of Data: Implications for the Data-driven Economy . 12 Dan Ciuriak The Government’s Role in Constructing the Data-driven Economy . 20 Blayne Haggart Canadian Network Sovereignty: A Strategy for Twenty-First-Century National Infrastructure Building . 26 Andrew Clement The Role of a Data Strategy for Canadian Industries Treasure of the Commons: Global Leadership through Health Data . .36 Sachin Aggarwal Monetizing Smart Cities: Framing the Debate . 44 Kurtis McBride Big Data: The Canadian Opportunity . .48 Ian MacGregor Balancing Privacy and Commercial Values Preventing Big Data Discrimination in Canada: Addressing Design, Consent and Sovereignty Challenges . 56 Jonathan Obar and Brenda McPhail Data and the Future of Growth: The Need for Strategic Data Policy . .66 Dan Breznitz Domestic Policy for Data Governance Ungoverned Space: How Surveillance Capitalism and AI Undermine Democracy . 74 Taylor Owen Screen Time, the Brain, Privacy and Mental Health . 78 Norman Doidge Governance Vacuums and How Code Is Becoming Law . .86 Bianca Wylie Measuring the Economy in an Increasingly Digitalized World: Are Statistics Up to the Task? . 92 André Loranger, Amanda Sinclair and James Tebrake International Policy Considerations Data Libera? Canada’s Data Strategy and the Law of the Sea . .100 Ariel Katz Data Rules in Modern Trade Agreements: Toward Reconciling an Open Internet with Privacy and Security Safeguards . .108 Michael Geist Data Minefield? How AI Is Prodding Governments to Rethink Trade in Data . .114 Susan Ariel Aaronson Epilogue On the Internet, Everybody Knows You Are a Dog . .122 Rohinton P. Medhora iv DATA GOVERNANCE IN THE DIGITAL AGE ACRONYMS AND ABBREVIATIONS ACRONYMS AND ABBREVIATIONS AI artificial intelligence BEP Black Experience Project CHI Canada Health Infoway CIHI Canadian Institute for Health Information CIRA Canadian Internet Registration Authority CPI Consumer Price Index CPTPP Comprehensive and Progressive Agreement for Trans-Pacific Partnership CSE Communications Security Establishment ECJ European Court of Justice GATS General Agreement on Trade in Services GATT General Agreement on Tariffs and Trade GDPR General Data Protection Regulation IMF International Monetary Fund IoT Internet of Things IP intellectual property ISPs internet service providers IXPs internet exchange points MIT Massachusetts Institute of Technology NAFTA North American Free Trade Agreement NSA National Security Agency NSOs national statistical organizations OCAP ownership, control, access and possession OECD Organisation for Economic Co-operation and Development OPC Office of the Privacy Commissioner PHI personal health information PIPEDA Personal Information Protection and Electronic Documents Act R&D research and development SCADA Supervisory Control and Data Acquisition TISA Trade in Services Agreement TPP Trans-Pacific Partnership WTO World Trade Organization vi DATA GOVERNANCE IN THE DIGITAL AGE INTRODUCTION DATA GOVERNANCE IN THE DIGITAL AGE ROHINTON P. MEDHORA he data revolution has great economic potential. Indeed, some have already hailed data “the new oil.”1 This T may be an imperfect analogy, but it does capture the excitement and high expectations surrounding the data-driven economy. The prospect of extracting lucrative insights from rapidly growing pools of data is galvanizing entrepreneurs and investors in all sectors of industry. There is no doubt that ownership of data and associated analytical algorithms has taken on great importance for the future of many, if not all, commercial enterprises. The success of the most valuable companies in the world (Apple, Google, Facebook and Microsoft) is now underpinned by, above all else, a sophisticated capacity to collect, organize, control and commercialize stores of data and intellectual property (IP). Big data and artificial intelligence (AI) are fast becoming the lead drivers of wealth creation, and are increasing productivity, accelerating innovation and disrupting existing business models. Data and IP will soon become an essential part of the business strategy of all companies. John Deere, for example, no longer simply manufactures tractors — the company now also collects data on the farms where those tractors are used. It plans to leverage this data in the coming years to shift the control and profit structure of farming, similar to how Uber upended the taxi industry. 1 See www.quora.com/Who-should-get-credit-for-the-quote-data-is-the-new-oil. 2 DATA GOVERNANCE IN THE DIGITAL AGE John Deere collects data on the farms where its tractors are used and intends to leverage this data in the coming years to shift the control and profit structure of farming. (Photo: iStock.com) But there is an equally, if not more, important non- • reaping the gains from the economic potential of economic dimension to the data revolution. In our rush data; to profit from data, we must be sensitive to the fact that • respecting, or even enhancing, its fundamental it is not a commodity like grain or timber. Once created, privacy elements; data — and especially personally identifiable information — exercises an enduring and uniquely potent influence • preserving an open society and democracy; on individual lives, social relationships and autonomy. • maintaining public security; and While there is still debate about whether individuals • building institutions (such as information networks “own” the data that relates to them, it is undeniable that and governance processes) that maintain or they retain a stake in that data — who sees it, and how enhance Canada’s national identity. it is used. Finding ways to respect this interest while commercializing the data will be a central mandate of any The delicate interplay between these goals means data strategy. that they should be addressed together, within a single strategic framework. The essays in this More broadly, we have seen how a greater capacity collection examine these issues and the multiple to access and manipulate data can alter our political trade-offs involved in data governance nationally and landscape. Recently, we have witnessed the vulnerability internationally. They are grouped into five blocks. of democracies to shrewd (too shrewd, perhaps even illegal) deployment of a data strategy by Robert Mercer The first block motivates the discussion by outlining and Cambridge Analytica on platforms such as Facebook why data requires dedicated and consistent policy to influence the outcomes of the Brexit referendum and treatment (that is, governance). Data pervades every the 2016 US presidential race. The Washington Post has aspect of our lives; it matters economically, politically detailed Russian use of data-driven Facebook messaging and socially. It stands to reason that Canada — indeed campaigns to affect the outcome of US elections every country — must have a framework within which (Dwoskin, Timberg and Entous 2017). In short, the data data are managed to achieve sometimes-conflicting revolution not only has huge implications for commerce, imperatives. but for the very operation of liberal democracy itself. The second block of essays provides three case Any national data strategy will have to address both the studies — for health, urban and resource sector data economic and non-economic dimensions of harnessing — on how
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