Advancing the Use of Privacy-Enhancing Technologies

To incentivize the implementation of privacy-enhancing technologies (PETs), governments, research institutes, philanthropic organizations, and private partners should focus on creating an ecosystem that fosters both development and widespread adoption. Given the growing importance of privacy-preserving data sharing, these stakeholders can take key steps to drive this transformation in public sector data practices.

First, governments should align procurement policies with criteria that prioritize affordability, scalability, and effectiveness in real-world, public-sector applications. For instance, the Massive Data Institute’s Privacy-Enhancing Technologies initiative provides guidance to school districts and education agencies on how to use PETs to securely use student data to improve service delivery and learner outcomes.¹ By establishing clear benchmarks—particularly for solutions that can be adapted across various use cases—that support both privacy and data utility, governments can encourage vendors to competitively bid on their ability to deliver strong, secure, and efficient technologies.² Long-term contracts or public-private partnerships can further encourage innovation by providing a predictable revenue stream, motivating vendors to invest in scalable solutions that meet evolving needs.

Secondly, governments should also issue clear guidelines for determining when PETs are sufficient for meeting privacy and security requirements. Defining specific use cases where specific PETs—such as encryption or anonymization—are effective in mitigating risks while maintaining data utility can ensure that solutions are both secure and practical. These guidelines and frameworks also empower government users to confidently adopt a range of PET solutions, knowing they are in compliance with regulatory and privacy requirements.

Thirdly, the market alone may not fully address the need for effective PETs, especially given that the case for data sharing to improve government programs and services may not always be prioritized. To fill this gap, governments and other stakeholders should provide incentives for innovation through mechanisms like targeted grants or collaborative research initiatives. The Future of Privacy Forum’s Privacy-Enhancing Technologies Research Collaboration Network, supported by the U.S. National Science Foundation and Department of Energy, seeks to build a repository of existing use cases; this effort is an example of how government-supported collaboration can foster development and use-case clarity.³

International partnerships like the one between the U.K. Information Commissioner’s Office and the U.S. National Institute of Standards and Technology demonstrate the value of cross-border efforts. A key initiative supported by these entities was a global competition in which experts from academic institutions and private companies competed for a combined $1.6 million prize pool.⁴ These efforts show that when countries align, they can lower costs and drive the development of emerging technologies.