Ethics of Innovation: A Framework for Responsible Innovation Governance

Authors

Nicole Morris, Emory University School of LawFollow

Abstract

Over the past several years, startups that once seemed destined for greatness have failed or collapsed because of fraud committed by the founders. Most notable are the Theranos and FTX business collapses, which culminated in the convictions of two infamous entrepreneurs, Elizabeth Holmes and Sam Bankman-Fired, respectively. Startup innovators are not alone when it comes to morally dubious behavior. According to Retraction Watch, nearly 5000 papers published in science & engineering journals were retracted in 2022. Research misconduct allegations eventually led to the resignation of Stanford University President Marc Tessier-Lavigne in July 2023. The research scandal at Stanford received lots of public attention. Absent such public scrutiny, however, organizations are slow to act on allegations of research falsification. This raises several important questions: are these occurrences becoming more frequent? What governance frameworks are available to effectively detect and prevent such misconduct and fraudulent behavior? This Essay examines the current business ethics and corporate governance framework applicable to innovation, argues that it lacks sufficient safeguards to prevent misconduct and promote responsible practices. This Essay offers a two-pronged approach to address the ethical void in innovation. First, the implementation of stricter oversight by federal agencies (such as NSF or NIH), including penalties for non-compliance. Second, the legal profession must play a more active role in shaping and advising on ethical frameworks for responsible innovation. Lawyers can play a crucial role in evaluating both the risks and benefits of innovation, while also utilizing innovative tools to improve legal service delivery. By combining enhanced oversight with deeper legal involvement, we can create a more robust and comprehensive framework that fosters responsible innovation governance.

Recommended Citation

Nicole Morris, Ethics of Innovation: A Framework for Responsible Innovation Governance, 27 SMU Sci. & Tech. L. Rev. 39 (2024)