31or no value to the economy and subsequently should be heavily regulated, and moreover, regulated in an internationally coordinated manner. We instead argue that the rise of large platform ﬁrms is exactly what we expect to observe in the transition from an industrial to a digital economy.

Keywords Innovation policy · Platform economy · Digital economy

If you were successful, somebody along the line gave you some help. There was a great

teacher somewhere in your life. Somebody helped to create this unbelievable American

system that we have that allowed you to thrive. Somebody invested in roads and bridges. If

you’ve got a business, you didn’t build that. Somebody else made that happen.

U.S. President Barack Obama (2012).

1 Introduction

In a 2012 campaign speech, former U.S. President Barack Obama correctly pointed out that the market economy relies on cooperation and the division of labor. Anyone familiar with Adam Smith’s discussion of the division of labor would view that comment, at face value, as uncontroversial. Adam Smith had written (1976, p. 30),

In civilised society he stands at all times in need of the co-operation and assistance of great

multitudes, while his whole life is scarce sufﬁcient to gain the friendship of a few persons.

S. Davidson (*) · J. Potts RMIT Blockchain Innovation Hub, RMIT University, Melbourne, Australia e-mail: sinclair.davidson@rmit.edu.au; jason.potts@rmit.edu.au