Business  and  Innova5on   Many  empirical  studies  confirm  that  the  private  sector  invest  less  than  the  socially   op3mal  level  of  technology  research  and  development.     What  is  in  socie3es  best  interest  with  regard  to  cyber  security  is  not  always  in  the   best  interests  of  the  private  sector.       Private-­‐sector  owners  of  cri3cal  infrastructure  accept  responsibility  for  securing   their  systems—to  the  point  that  it  is  profitable;  that  is,  as  far  as  the  cost  of  dealing   with  an  outage  promises  to  cost  more  than  preven3ng  it.     However,  they  tend  to  make  a  dis3nc3on  between  protec3ng  against  low-­‐level   threats  such  as  ‘background  noise,  individual  hackers,  and  possibly  hack3vists’  and   protec3ng  gainst  an  adack  on  the  state  (na3onal  security).     This  disjuncture  in  percep3ons  is  arguably  at  the  heart  of  the  tension  in ��this   ‘partnership’.       Page  §  37  

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