IEP’s Brent Skorup and the Mercatus Center’s senior research fellow Adam Thierer have published a working paper regarding the history of cronyism in the IT sector. Skorup and Thierer argue in the paper, which is titled “A History of Cronyism and Capture in the Information Economy Sector,” that growth and entrepreneurship in the information economy are threatened by the current prospect of increased regulation and accompanying lobbying. Such regulation could harm growth due to an associated rise in cronyism. Cronyism causes companies to shift resources into ascertaining influence within the regulatory structure, instead of focusing on research and development. Skorup and Thierer provide context to their discussion by looking at cronyism’s historical role in the technology and telecommunications sectors, as well as posing solutions to alleviate this growing issue.
The article can be found here, as well as below.