THE IMPACT OF CYBERSECURITY AND DATA PROTECTION REGULATIONS ON STARTUP INNOVATION AND PERFORMANCE: EVIDENCE FROM EMERGING ECONOMIES

The growing wave of cybersecurity and data protection regulations is reshaping entrepreneurial ecosystems in emerging economies (Goldfarb & Tucker, 2011; European Parliament, 2016). This paper examines how such regulations influence startup innovation and performance by combining insights from the resource-based view (Barney, 1991), dynamic capabilities (Teece, 2007), and institutional theory (DiMaggio & Powell, 1983). Using a conceptual framework and an empirical strategy based on firm-level panel data (Cohen & Levinthal, 1990; Khanna & Palepu, 2010), the study finds that while compliance initially constrains innovation due to costs and complexity, it later enhances strategic innovation quality and customer trust, leading to superior performance (Porter & van der Linde, 1995; Goldfarb & Tucker, 2011). The findings offer implications for startup founders, investors, and policymakers seeking to balance regulatory enforcement with innovation-driven growth in dynamic and resource-constrained environments (La Porta et al., 1998; Blind, 2012).

• cybersecurity
• data protection
• startups
• innovation
• emerging economies
• regulation

• EL Kadiri Kenza, Research Professor, Laboratory of Economic Sciences and Public Policies (LSEPP), Department of Economics, Faculty of Economics and Management, Ibn Tofail University, Kenitra, Morocco kenza.elkadiri@uit.ac.ma
• Bouya Sara, Doctoral Student, Laboratory of Economic Sciences and Public Policies (LSEPP), Department of Economics, Faculty of Economics and Management, Ibn Tofail University, Kenitra, Morocco sarra.bouya@uit.ac.ma

EL Kadiri Kenza, Bouya Sara, “THE IMPACT OF CYBERSECURITY AND DATA PROTECTION REGULATIONS ON STARTUP INNOVATION AND PERFORMANCE: EVIDENCE FROM EMERGING ECONOMIES,” IPEM Law Journal, vol. 9, pp. 1–5, Dec. 2025, doi:

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