Smart Factories, Dumb Policy?: Managing Cybersecurity and Data Privacy Risks in the Industrial Internet of Things

36 Pages Posted: 14 Oct 2018 Last revised: 16 Jun 2019

See all articles by Scott Shackelford

Scott Shackelford

Indiana University - Kelley School of Business - Department of Business Law; Harvard Kennedy School Belfer Center for Science & International Affairs; Center for Applied Cybersecurity Research; Stanford Center for Internet and Society; Stanford Law School

Date Written: September 20, 2018

Abstract

There is a great deal of buzz surrounding the Internet of Things (IoT), which is the notion, simply put, that nearly everything not currently connected to the Internet from gym shorts to factories soon will be. The Industrial Internet of Things (IIoT) is one application of this trend and involves the use of IoT technologies in manufacturing. It holds the promise to revolutionize manufacturing, but there are a number of outstanding cybersecurity and data privacy issues impacting the realization of the myriad benefits promised by IIoT proponents. This white paper analyzes some of these, focusing on: (1) critical infrastructure protection and cybersecurity due diligence, (2) trends in transatlantic data privacy protections, and (3) the regulation of new technologies like artificial intelligence (AI) and blockchain. The paper concludes with a list of options for state and federal policymakers to consider in an effort to harden the IIoT along with the supply chains critical to the continued development of smart factories.

Keywords: Cybersecurity, Internet of Things, Smart Factories, GDPR

Suggested Citation

Shackelford, Scott J., Smart Factories, Dumb Policy?: Managing Cybersecurity and Data Privacy Risks in the Industrial Internet of Things (September 20, 2018). Minnesota Journal of Law, Science & Technology, 2020; Kelley School of Business Research Paper No. 18-80. Available at SSRN: https://ssrn.com/abstract=3252498 or http://dx.doi.org/10.2139/ssrn.3252498

Scott J. Shackelford (Contact Author)

Indiana University - Kelley School of Business - Department of Business Law ( email )

Bloomington, IN 47405
United States

Harvard Kennedy School Belfer Center for Science & International Affairs ( email )

79 JFK Street
Cambridge, MA 02138
United States

Center for Applied Cybersecurity Research ( email )

Wylie Hall 105
100 South Woodlawn
Bloomington, IN 47405
United States

Stanford Center for Internet and Society ( email )

Palo Alto, CA
United States

Stanford Law School ( email )

Stanford, CA 94305
United States

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