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1. Lonely in the Crowd: Plugged or Remote?

Author:
Tobia Zevi
Publication Date:
05-2025
Content Type:
Special Report
Institution:
Italian Institute for International Political Studies (ISPI)
Abstract:
The Covid-19 pandemic forced cities to shut down and citizens to stay home, disrupting economic activity and social life. The crisis pushed companies to adopt remote work, transforming it from a niche practice to a widespread norm, altering the balance between work and personal life. This shift created inequalities across sectors and influenced the ability of "global cities" to attract talent in a globalized labor market. Now, as the pandemic has receded, many companies are reversing course. This Report explores how remote work has impacted cities and citizens, from mobility to urban planning. How can remote work reshape global cities? What strategies are available to local authorities? Is remote work still the future?
Topic:
Cities, COVID-19, Labor Market, Digitalization, and Remote Work
Political Geography:
Europe and Global Focus

2. Which Migrant Jobs are Linked with the Adoption of Novel Technologies, Robotisation, and Digitalisation?

Author:
Antea Barišić, Mahdi Ghodsi, and Robert Stehrer
Publication Date:
02-2024
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In recent decades, the development of novel technologies has intensified due to globalisation, prompting countries to enhance competitiveness through innovation. These technologies have significantly improved global welfare, particularly in sectors like healthcare, where they have facilitated tasks and boosted productivity, for example playing a crucial role in combating the COVID-19 pandemic. However, certain technologies, such as robots, can negatively impact employment by replacing workers and tasks. Additionally, the emergence of artificial intelligence as digital assets not only replaces specific tasks but also introduces complexities that may displace employees who are unable to adapt. While the existing literature extensively explores the heterogeneous effects of these technologies on labour markets, studies of their impact on migrant workers remain scarce. This paper presents pioneering evidence on the effects of various novel technologies on migrant employment in the European Union. The analysis covers 18 EU member states from 2005 to 2019 focusing on the impact of novel innovations, robot adoption, three types of digital assets, and total factor productivity, on migrant employment. The key findings reveal that innovations measured by the number of granted patents increase both the number and proportion of migrant workers relative to the overall workforce. While robots do replace jobs, their impact on native workers surpasses that of migrant workers, resulting in a higher share of migrant workers following robot adoption. Total factor productivity positively influences migrant workers, while the effects of digital assets are heterogeneous. Moreover, the impacts of these technologies on migrant workers vary significantly across different occupation types and educational levels.
Topic:
Migration, Labor Issues, European Union, Innovation, Robotics, Migrant Workers, Digitalization, and Income Distribution
Political Geography:
Europe

3. Assessing Digital Leadership: Is the EU Losing out to the US?

Author:
Dario Guarascio and Roman Stöllinger
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Since Leontief’s (1953) seminal work on the factor content of trade, the validity of the Heckscher-Ohlin-model has been judged not only on the basis of formal tests of the theory but also tested against prior expectation. In this vein, this paper uses the Heckscher-Ohlin-Vanek (HOV) approach to investigate whether supposed US leadership in the digital domain can be traced back to digital task endowments embodied in labour services. In a comparison between EU member states and the US, we find that the latter is more intensive in digital tasks than the EU and that this difference is explained by both an intensity-effect (US occupations being more digital-task intensive) and a structural component (relatively more digital-task intensive occupations). Viewed through the lens of the HOV theorem we find that the US is abundant in digital tasks relative to non-digital tasks, while the opposite is true for the EU. The standard tests for the predictive power of the HOV theorem are high and in line with the results for labour in previous literature.
Topic:
International Trade and Finance, Foreign Direct Investment, European Union, Digitalization, and Competition
Political Geography:
Europe and United States of America

4. Trade Balances and International Competitiveness in Cyber-physical, Digital Task-intensive, ICT Capital-intensive and Traditional Industries

Author:
Alexandra Bykova and Roman Stöllinger
Publication Date:
05-2023
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
In this report, we analyse the international competitiveness of the EU in four industry groups over the period 1995-2018. The groups are delineated by specific factor intensities, where these intensities are assessed from digital tasks performed by labour services and ICT capital stocks. The EU’s positions relating to trade balances, revealed comparative advantages and unit value ratios are assessed relative to its main competitors, such as the US, China, Japan and South Korea. The trade specialisation patterns confirm EU advantages in traditional industries, which still represent the largest part of global trade, and in the group of digital task-intensive industries. In the cyber-physical group of industries, which are characterised by both high digital task and ICT capital intensities, the EU records a trade deficit, although this has been receding in recent years. Competitiveness indicators depict heterogeneity among EU countries. The loss of international competitiveness for some technology front-runners is a worrying sign. On the positive side, however, a reduction in trade deficits or an improvement in product quality and market shares is evident for certain EU countries, especially in the Central European region.
Topic:
International Trade and Finance, European Union, Trade, Digitalization, and International Competition
Political Geography:
Japan, China, Europe, Asia, South Korea, and United States of America

5. The Future of EU Cohesion - Effects of the Twin Transition on Disparities across European Regions

Author:
Ambre Maucorps, Roman Römisch, Thomas Schwab, and Nina Vujanović
Publication Date:
05-2023
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
Closing the prosperity gap between regions has always been a key political aspiration of the European Union – and cohesion policy is the primary means to achieve that goal. Europe is currently undergoing a digital and green transition that is drastically changing the way its economy works. How well prepared are regions to capitalise on the twin transition? And what impact will it have on regional cohesion in Europe? Our study finds that greening and digitalising the economy will likely widen the gap between rich and poor regions in Europe.
Topic:
European Union, Economy, Regional Integration, Digitalization, Green Transition, and Regional Development
Political Geography:
Europe

6. RETHINKING STRATEGIC AUTONOMY IN TIMES OF NEXT GENERATION EU: NEW DIGITAL AGENDA

Author:
Miguel Angel Solsona and Marcin Roman Czubala Ostapiuk
Publication Date:
03-2023
Content Type:
Journal Article
Journal:
Journal of Liberty and International Affairs
Institution:
Institute for Research and European Studies (IRES)
Abstract:
The digital transformation of the global economy and society has accelerated after the Covid-19 pandemic. The European Union (EU), compared to China and the United States, is losing its capacity for innovation and control over data and fundamental raw materials and could even lose ground in the regulatory power it has in the digital realm. This paper pays special attention to the situation and progress toward a new European policy to achieve digital strategic autonomy. It also briefly outlines the Recovery Plan for Europe as a possible incentive for its promotion. Both descriptive and analytical methods were employed to gather the data from secondary sources and provide reliable research results. The major findings of this article are that strategic autonomy is an imperative requirement for sustaining and encouraging European integration, forcing the EU to advance faster toward developing critical digital technologies. There is also an urgent need to secure critical parts of supply chains and data protection, intellectual property, and defense against disinformation. Finally, the European Union must improve its resilience to face new crises and lead the digitalization of its economy.
Topic:
Science and Technology, European Union, Economy, Autonomy, Digital Policy, and Digitalization
Political Geography:
Europe

7. Digitalisation: An enabler for the clean energy transition

Author:
Simon Dekeyrel and Melanie Fessler
Publication Date:
01-2023
Content Type:
Working Paper
Institution:
European Policy Centre (EPC)
Abstract:
Russia’s invasion of Ukraine and the resulting energy crisis are a painful reminder that Europe must reduce its dependence on fossil fuels. To build a sustainable, secure and affordable energy future, the coming years will require a massive scale-up of renewable energy across the EU and a tremendous effort by European businesses and households to cut their energy consumption. To wrap up the "Digitalisation for a Clean Energy Transition" project undertaken by the EPC and the Vodafone Institute for Society and Communications, this Discussion Paper examines how digitalisation can act as a catalyst for the clean energy transition in Europe. The study considers the regulatory framework necessary to coordinate and promote synergies between energy and digital policies and support the twin green and digital transformation of the European energy system. To fully unlock the potential of digitalisation in the transition towards smart and sustainable energy systems, the EU and its member states need to: Accelerate work on a common European energy data space, characterised by interoperable data standards, adequate incentives for data sharing, data protection and privacy safeguards for consumers. Ensure that citizens possess the necessary digital skills and information to reap the full benefits of the twin transition in terms of consumer empowerment and access to affordable and clean energy. Put in place the necessary safeguards regarding the cybersecurity of energy networks to ensure that the digital transformation does not jeopardise the resilience of EU energy systems. Use financial tools to accelerate the deployment of digital solutions in the energy sector and equip existing networks with the necessary digital infrastructure. For digitalisation to deliver, it needs to be steered in the right direction. For this, we need an adequate policy and financing framework to make sure that the twin transition not only empowers people and businesses to play an active role in accelerating the transition to clean energy sources but also contributes to greening the digital and ICT sector.
Topic:
Cybersecurity, Fossil Fuels, Digitalization, Energy, Russia-Ukraine War, and Energy Transition
Political Geography:
Europe

8. Is there Eurasian Connectivity without Europe?

Author:
Niva Yau
Publication Date:
12-2023
Content Type:
Journal Article
Journal:
Fletcher Security Review
Institution:
The Fletcher School, Tufts University
Abstract:
Tucked between Russia, Iran, and China, Central Asia is now desperately looking for solutions to cushion the impacts of global tension on its fragile economies, which are deeply tied to sanctions against Russia and a local production slowdown as China recovers from its zero COVID policy. While European diplomacy has come at a crucial time, its Central Asian policy is ambiguous, and commitments misplaced. Central Asia is continuously perceived by the EU as a region in need of developmental assistance, which leads to European regional policies that focus on digitalization and climate issues. What Central Asia needs is the establishment of concrete logistical connectivity that will enable efficient flow of products across Eurasia.
Topic:
Climate Change, Diplomacy, Economics, European Union, Connectivity, and Digitalization
Political Geography:
Russia, China, Europe, Iran, Central Asia, Eurasia, and Asia

9. What Role Could Digital Technologies Play in the New EU Pact on Migration and Asylum?

Author:
Lucía Salgado and Hanne Beirens
Publication Date:
12-2023
Content Type:
Policy Brief
Institution:
Migration Policy Institute (MPI)
Abstract:
Pressure on EU migration and asylum systems has grown considerably in recent years, with rising arrivals of asylum seekers and migrants and the level of asylum applications approaching those that threw the European Union into disarray in 2015–16. The arrival of more than 4 million displaced Ukrainians, meanwhile, has challenged already strained reception and integration systems. And across Europe, migration has become a flashpoint for political tensions and dominated electoral debates. Many policymakers and other stakeholders have pinned their hopes on the New Pact on Migration and Asylum to help Europe address these challenges. The pact, which was announced by the European Commission in 2020 and has recently entered the final stages of negotiation, is a series of legislative proposals aimed at revamping EU migration and asylum systems. Yet even if the pact is finalized, it has to pass another test before policymakers can claim victory: translating a complex legal construct into something that works in practice and can withstand spikes in arrivals and other challenges. This policy brief explores how digital technologies—already increasingly being used in European migration and asylum systems—could be leveraged to support the implementation of the pact and where caution is merited. It examines the role new digital tools could play in three key areas: decision-making at the border, relocation of asylum seekers/refugees among Member States, and return and reintegration. It also discusses the broader implications of digitalization in migration and asylum systems and reflects on how policymakers can set appropriate governance models and safeguards to ensure responsible use of new technologies.
Topic:
International Cooperation, Governance, Border Control, European Union, Refugees, Resettlement, Asylum, and Digitalization
Political Geography:
Europe

10. Beyond the Brussels Effect: Supporting the International Case for a Value-based Digital Market

Author:
Susanna M. Sprague
Publication Date:
06-2022
Content Type:
Policy Brief
Institution:
EGMONT - The Royal Institute for International Relations
Abstract:
Building a strong European Single Market represents a major effort and challenge to the European Union. It must encompass and respond to the dramatic ways in which digital technologies are changing our businesses, societies, and behaviors. The EU is not alone in its need to grapple with issues such as privacy, misinformation, consumer protection, and anti-competitive practices online while protecting fundamental rights. However, the EU also has an important and unique position as a major market, with many international partners. It is determined to ensure its economy will be based on its values as reflected in its laws.
Topic:
Regional Cooperation, European Union, Regulation, and Digitalization
Political Geography:
Europe