<p>Today, we are living in an age of data-driven economy. This paper is aimed to evaluate the issues on the data economy-related policy agenda facing Japan. Personal data are characterized by non-rivalry in consumption and externalities which differentiate from other goods. It is extremely difficult to assess the value of personal data because of the fact that personal data are often provided by individuals in exchange for digital services rendered by platformers at zero price under the information asymmetry between the two parties. Data can also be considered as social goods or common goods or public goods. In order to utilize data for solving social issues, it is beneficial to treat data as common goods or public goods.</p><p>Data provide the useful information for firms to choose the optimal technology, while at the same time they are used as input to create ideas or knowledge, both of them promote the productivity of the economy. While widespread dissemination of data contributes to improving the efficiency of the economy, it is needed to adequately protect the privacy and firms’ secrecy.</p><p>The first issue on policy agenda in Japan is how to find the solution of trade-off between the free flow of data and privacy protection. Based on the preposition that the ownership of personal data belongs to individuals in a democratic society, it is desirable to let the individuals, instead of the platformers, to choose the balance between privacy protection in digital service consumption. We need not only make clear that the individuals are entitled to control their personal data, but also establish rules on the data portability as well as interoperability. These rules are essential for facilitating the function of personal data trust banks as information intermediary. In addition, the government needs to provide the guideline on the data sharing among big tech companies.</p><p>The second issue is how to establish the arrangements between countries to facilitate the free flow of personal data across borders under the requirement of national security. The European Court of Justice made judgement that the “Privacy Shield Principle” to secure the free flow of personal data between the EU and the US violates the EU’s General Data Protection Regulation. The core problem lies in the different treatment on the balance between the privacy protection and the national security. If the US and the EU fail to achieve the agreement on the issue, the world will be divided into three “digital economic zones”, which are represented by the US “notice and consent” system, the EU’s privacy based system and China’s central state control system.</p>