Skip to main content
SpringerLink
Log in

Economics, Security and Innovation

  • Conference paper
  • First Online:
Economics of Grids, Clouds, Systems, and Services (GECON 2014)

Part of the book series: Lecture Notes in Computer Science ((LNCCN,volume 8914))

Included in the following conference series:

Abstract

This paper takes into account an economic perspective of security and innovation. In particular, it discusses aspects of economics that may be relevant in order to assess and deploy security technologies. At the micro level of analysis, as an example, this paper highlights discussions on the economics of security in the cloud. Do we really understand the economics of security in the cloud? Are there economic models that capture operational security in the cloud? Early work at HP Labs on trust economics underpins a systematic approach to information security decision-making and risk management. The results on trust economics highlight how economics may drive operational security and the deployment of security technologies. At the macro level of analysis, drawn from ongoing work within the Security and Trust Coordination and Enhanced Collaboration, this paper links economics to innovation in cyber security and privacy. Despite the R&D investments in cyber security and privacy, the general perception is that security and privacy technologies are deployed ineffectively. This paper also presents an integrated framework taking into account market perspectives that may support identifying suitable R&D strategies and assessing their impact.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution
Chapter
USD 29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD 39.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD 54.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Institutional subscriptions

References

  1. The Economist: Defending the digital Frontier, Special Report on Cyber-Security (2014)

    Google Scholar 

  2. Anderson, R., Boehme, R., Clayton, R., Moore, T.: Security Economics and the Internal Market. ENISA (2008)

    Google Scholar 

  3. Maughan, D., Balenson, D., Lindqvist, U., Tudor, Z.: Crossing the valley of death: transitioning cybersecurity research into practice. IEEE Secur. Priv. 11, 14–23 (2013)

    Article  Google Scholar 

  4. Benzel, T.V., Lipner, S.: Crossing the great divide: transferring security technology from research to the market. IEEE Secur. Priv. 11, 12–13 (2013)

    Article  Google Scholar 

  5. IDC: Worldwide and Regional Public IT Cloud Services 2013–2017 Forecast (2013)

    Google Scholar 

  6. The Economist: Securing the Cloud (2002)

    Google Scholar 

  7. Pfleeger, S.L., Rue, R.: Cybersecurity economic issues: clearing the path to good practice. IEEE Softw. 25, 35–42 (2008)

    Article  Google Scholar 

  8. Mell, P., Grance, T.: The NIST Definition of Cloud Computing, NIST Special Publication 800-145, September 2011

    Google Scholar 

  9. Pieters, W.: Defining “The Weakest Link”: comparative security in complex systems of systems. In: IEEE International Conference on Cloud Computing Technology and Science (CloudCom 2013), pp. 39–44. IEEE Computer Society (2013)

    Google Scholar 

  10. Felici, M., Jaatun, M.G., Kosta, E., Wainwright, N.: Bringing accountability to the cloud: addressing emerging threats and legal perspectives. In: Felici, M. (ed.) CSP EU FORUM 2013. CCIS, vol. 182, pp. 28–40. Springer, Heidelberg (2013)

    Chapter  Google Scholar 

  11. Prüfer, J.: How to govern the cloud? characterizing the optimal enforcement institution that supports accountability in cloud computing. In: IEEE International Conference on Cloud Computing Technology and Science (CloudCom 2013), pp. 33–38. IEEE Computer Society (2013)

    Google Scholar 

  12. Díaz-Sánchez, F., Al Zahr, S., Gagnaire, M.: An exact placement approach for optimizing cost and recovery time under faulty multi-cloud environments. In: IEEE International Conference on Cloud Computing Technology and Science (CloudCom 2013), pp. 138–143. IEEE (2013)

    Google Scholar 

  13. Johnson, K., Wang, Y., Calinescu, R., Sommerville, I., Baxter, G., Tucker, J.V.: Services2Cloud: a framework for revenue analysis of software-as-a-service provisioning. In: IEEE International Conference on Cloud Computing Technology and Science (CloudCom 2013), pp. 144–151. IEEE Computer Society (2013)

    Google Scholar 

  14. Tsalis, N., Theoharidou, M., Gritzalis, D.: Return on security investment for cloud platforms. In: IEEE International Conference on Cloud Computing Technology and Science (CloudCom 2013), pp. 132–137. IEEE Computer Society (2013)

    Google Scholar 

  15. HP: Trust Economics: A Systematic Approach to Information Security Decision Making. HP Labs (2011)

    Google Scholar 

  16. Catteddu, D., Hogben, G. (eds.): Cloud Computing: Benefits, Risks and Recommendations for Information Security. European Network & Information Security Agency (2009)

    Google Scholar 

  17. Baldwin, A., Pym, D., Shiu, S.: Enterprise information risk management: dealing with cloud computing. In: Pearson, S., Yee, G. (eds.) Privacy and Security for Cloud Computing. Computer Communications and Networks, pp. 257–291. Springer, London (2013)

    Chapter  Google Scholar 

  18. Lloyd’s: Managing Digital Risk: Trends, Issues and Implications for Business (2010)

    Google Scholar 

  19. Auerswald, P.E., Branscomb, L.M.: Valleys of death and darwinian seas: financing the invention to innovation transition in the united states. J. Technol. Transf. 28(3–4), 227–239 (2003). Kluwer Academic Publishers

    Article  Google Scholar 

  20. D’Amico, A., O’Brien, B., Larkin, M.: Building a bridge across the transition chasm. IEEE Secur. Priv. 11(2), 24–33 (2013)

    Article  Google Scholar 

  21. Mankins, J.C.: Technology Readiness Levels: A White Paper. NASA (1995)

    Google Scholar 

  22. NASA: HRST Technology Assessments Technology Readiness Levels, Chart (1995)

    Google Scholar 

  23. Mankins, J.C.: Research & Development Degree of Difficulty (R&D3). NASA (1998)

    Google Scholar 

  24. ENISA: Security Economics & the Internal Market: Evaluation of Stakeholder Replies (2008)

    Google Scholar 

  25. ENISA: Security Economics & the Internal Market, Conclusions on Follow-up Activities (2008)

    Google Scholar 

  26. INSEAD: The Global Innovation Index 2012: Stronger Innovation Linkages for Global Growth, INSEAD and WIPO (2012)

    Google Scholar 

  27. Kapletia, D., Felici, M., Wainwright, N.: An integrated framework for innovation management in cyber security and privacy. In: Cleary, F., Felici, M. (eds.) CSP Forum 2014. CCIS, vol. 470, pp. 135–147. Springer, Heidelberg (2014)

    Chapter  Google Scholar 

  28. ENISA: Activity Report, European Public+Private Partnership for Resilience (2012)

    Google Scholar 

  29. ENISA: Work Objectives, European Public+Private Partnership for Resilience (2013)

    Google Scholar 

  30. NIST: Between Invention and Innovation: An Analysis of Funding for Early-Stage Technology Development. NIST GCR 02–841, November 2002

    Google Scholar 

  31. Hartmann, G.C., Myers, M.B.: Technical risk, product specifications, and market risk. In: Branscomb, L.M., Auerswald, P.E. (eds.) Taking Technical Risks: How Innovators, Executives, and Investors Manage High-Tech Risks. MIT Press, Cambridge (2003)

    Google Scholar 

  32. European Commission: Pre-Commercial Procurement: Driving Innovation to Ensure High Public Services in Europe, European Communities (2008)

    Google Scholar 

  33. European Commission: Opportunities for Public Technology Procurement in the ICT-related sectors in Europe, Final Report (2008)

    Google Scholar 

  34. European Commission: Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions, Pre-commercial Procurement: Driving innovation to ensure sustainable high quality public services in Europe, SEC(2007) 1668, COM(2007) 799 final, Brussels (2007)

    Google Scholar 

Download references

Acknowledgements

I would like to thank colleagues at HP Labs, in particular, Yolanta Beres, Dharm Kapletia, Simon Shiu and Nick Wainwright, who supported me with different materials I further elaborated in this paper. Their work has provided me solid foundations for my research interests. The work on the ‘economics of security in the cloud’ and the ‘integrated framework for innovation management’ has been partially funded by the Security and Trust Coordination and Enhanced Collaboration (SecCord) – http://www.seccord.eu/ – grant agreement 316622 within the Seventh Framework Programme (FP7) of the European Commission. The section on technological innovation pathways has benefited from feedback by the SecCord’s Advisory Focus Group.

Author information

Authors and Affiliations

  1. Security and Cloud Lab, Hewlett-Packard Laboratories, Long Down Avenue, Bristol, BS34 8QZ, UK

    Massimo Felici

Authors
  1. Massimo Felici
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Massimo Felici .

Editor information

Editors and Affiliations

  1. Technology, Economics, and Policy Program, College of Engineering, Seoul National University, Gwanak-Gu, Seoul, Korea, Republic of (South Korea)

    Jörn Altmann

  2. Department of Mathematics and Computer Science, University of Antwerp, Antwerp, Belgium

    Kurt Vanmechelen

  3. School of Computer Science, Cardiff University, Cardiff, United Kingdom

    Omer F. Rana

Rights and permissions

Reprints and permissions

Copyright information

© 2014 Springer International Publishing Switzerland

About this paper

Cite this paper

Felici, M. (2014). Economics, Security and Innovation. In: Altmann, J., Vanmechelen, K., Rana, O. (eds) Economics of Grids, Clouds, Systems, and Services. GECON 2014. Lecture Notes in Computer Science(), vol 8914. Springer, Cham. https://doi.org/10.1007/978-3-319-14609-6_1

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-14609-6_1

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-14608-9

  • Online ISBN: 978-3-319-14609-6

  • eBook Packages: Computer ScienceComputer Science (R0)

Publish with us

Policies and ethics

Search

Navigation