Exploring the interplay between social distancing, innovation adoption, and privacy concerns amid the COVID-19 crisis

Abstract

Using the case of coronavirus disease-2019 (COVID-19) as a natural experiment, this study discusses how innovation policy should be designed in times of crisis when public interest and privacy concerns collide. For this purpose, the causal relationship between social distancing enforcement and innovation adoption in consideration of privacy concerns is explored by using national-level survey data. Our key findings from econometric analysis are as follows: first, the implementation of social distancing policies leads to an increase in the adoption of wearable devices. Second, the strengthening of social distancing has caused a decrease in individual privacy concerns. Finally, a decrease in individual privacy concerns leads to an increase in wearable device adoption. Social distancing during the COVID-19 not only accelerated innovation adoption but also led a decrease in privacy concerns. Our results suggest that government should play a role in safe guarding public privacy when individuals may let their guard down during times of crises.