Brains in a Bar: Brexit Will Positively Impact U.K. and Global Innovation
Just in time for a mid-week break, a few exclusive Tech Square ATL (TSQATL) Social Club members visited a secret location in Tech Square to enjoy some drinks and discuss Brexit's impact on innovation in the European Union (EU), fintech, and beyond.
This intimate, invite-only gathering was TSQATL’s latest edition of Brains in a Bar, where individuals come together over cocktails to discuss a brainy topic. As always, only those who correctly solve a series of puzzles are invited to participate.
Brexit, the withdrawal of the United Kingdom (U.K.) from the EU, could be considered as quite disruptive – but isn’t disruption precisely where innovation thrives? To dive deeper into this, we headed over to our local watering hole, Cypress Street Pint & Plate, which also served as our speakeasy for this particular event.
The discussion, led by Donald Innocent-Ike – a British citizen, graduate student at Georgia Tech, and investment banker at Truist Bank – covered topics such as talent flow, capital flow, data privacy laws, and (mis-)perceptions of the EU single market. As the beverages were consumed, the conversation continued around a few key questions:
Q: How will freedom of movement restrictions and data privacy laws impact the global flow of tech talent and the U.K.’s ability to innovate?
A: The U.K.'s departure from the EU frees the U.K. from EU labor laws governing hiring practices and therefore restricts the free flow of labor between EU member states and the U.K.. While perception may be that new visa requirements will limit the U.K.'s access to top EU talent, the inverse may actually be true: it may free U.K. firms to hire the best candidates from within its own labor market (rather than hiring EU mandated candidates from other member states), spurring greater focus and innovation, particularly in fintech.
Q: With uncertainty on whether London-based financial companies will retain access to the EU single market, will this shift capital flow away from the EU to other markets?
A: While the EU is nominally a single market designed to compete with the US, underlying differences in culture, preferences, and consumer behavior between member states (i.e., northern France is vastly different than southern Greece) cannot be ignored. In fact, those differences most likely hampered the EU's ability to innovate and launch startups into the Eurozone.
Q: Separating from EU law governing privacy and information flow within the U.K., will Brexit bring innovation and growth in the U.K. startup community? Could we see the development of a U.K.-based social media platform?
A: Brexit frees the U.K. (internally) from much of EU data privacy laws. Though this will still impact the U.K.'s ability to transact with Eurozone member-states (as it sells into the EU single market), it will likely give rise to new, U.K.-based startups (perhaps even a U.K.-founded social media company) that benefit from fewer restrictions.
All in all, the consensus was that the changes Brexit brings to the U.K. will unlock new innovation opportunities and have positive ripple effects to innovation communities globally.
What are your thoughts on Brexit and the innovation opportunities it presents? Let us know in the comments below!