Search

Begin New Search Topic Innovation Political Geography Europe

1. Strengthening the Supply-Side Innovation in EU Telecommunications

Author:
Fredrik Erixon, Oscar Guinea, and Dyuti Pandya
Publication Date:
06-2025
Content Type:
Policy Brief
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The telecommunications sector is central to the EU’s competitiveness, not only providing the infrastructure that underpins digital connectivity but also serving as a key driver of innovation. Recent EU reports already highlight the persistent structural challenges faced by the EU telecommunication sector: market fragmentation, low investment levels, divergent spectrum policies, and an urgent need to bolster digital sovereignty. However, a critical dimension in this discussion often receives far less attention: the supply of the underlying technologies that power telecommunications infrastructure. In this domain, EU companies remain competitive. In 2023, 27 EU-headquartered firms were among the world’s top 2,000 R&D spenders in telecommunications, accounting for 16 percent of global sectoral investment. These figures underscore that, while Europe may lag in investment and infrastructure, it still holds strategic leadership in telecom innovation and technology development. Central to Europe’s success are standard development organisations (SDOs), technical standards, and Standard Essential Patents (SEPs). SDOs provide collaborative forums where companies jointly develop technical standards that ensure interoperability, reduce fragmentation and foster innovation. Complementing this, SEPs protect the innovations embedded within these standards, granting European companies vital licensing revenues that sustain their research efforts. This system is particularly important for EU firms, which tend to be smaller than their global competitors; it enables them to specialise in cutting-edge technology development and commercialise their innovations globally without needing to dominate manufacturing or end-user markets. As competitiveness in telecommunications increasingly depends on the pace and adoption of innovation, the EU faces both a challenge and an opportunity. European firms have the potential not only to supply critical technologies but to drive breakthroughs in connectivity which are linked to the development of other technologies such as artificial intelligence (AI) or quantum technologies. However, to stay competitive, the EU must reinforce its position on the supply side, where its companies still operate at the technological frontier.
Topic:
Economics, European Union, Digital Economy, Innovation, and Supply and Demand
Political Geography:
Europe

2. Which companies are ahead in frontier innovation on critical technologies? Comparing China, the European Union and the United States

Author:
Alicia Garcia-Herrero, Michal Krystyanczuk, and Robin Schindowski
Publication Date:
05-2025
Content Type:
Working Paper
Institution:
Bruegel
Abstract:
Competition in critical technologies is attracting increasing attention not only because of the foundational nature of these technologies for other types of innovation, but also because of their role in the United States national security strategy. In this paper, we look into which entities in China, the European Union and the US innovate at the technology frontier in the three most important critical technologies – artificial intelligence, quantum computing and semiconductors – based on identification of the most radical novel patents in these technologies and their subsectors. Working with these pathbreaking patents, we look into the origin of the companies that file the largest numbers of them. US innovators dominate the innovation frontier for quantum computing and, to a lesser extent, AI, with Chinese innovators doing better in semiconductors. European innovators lag in all, but perform relatively better in quantum computing, in which they rank similarly to Chinese innovators. Furthermore, the innovation ecosystem is quite different across geographies. In the US, tech companies top the rankings of critical novelties and are highly concentrated: as many as three companies are in the top rankings of all of the three critical technologies. Frontier innovators in the field in which the EU competes most equally – quantum – are mostly research centres and not companies. China lies somewhat in between in all three domains.
Topic:
Science and Technology, European Union, Innovation, Artificial Intelligence, Semiconductors, and Quantum Computing
Political Geography:
China, Europe, Asia, and United States of America

3. How DeepSeek has changed artificial intelligence and what it means for Europe

Author:
Bertin Martens
Publication Date:
03-2025
Content Type:
Policy Brief
Institution:
Bruegel
Abstract:
By mid-2024, artificial intelligence large language models (LLMs) were running into diminishing returns to scale in training data and computational capacity. LLM training began to shift away from costly pre-training to cheaper fine-tuning and allowing LLMs to ‘reason’ for longer before replying to questions. Fine-tuning uses chain-of-thought (CoT) training data that includes questions and the logical steps to reach correct answers. This increases the efficiency of learning for smaller AI models, such as DeepSeek. CoT data can be extracted from large ‘teacher’ LLMs to train small ‘student’ models. These changes shift the cost structure of AI models from high pre-training costs to lower fine-tuning costs for model developers and more inference costs for users. While smaller models are cheaper to use, a positive AI demand effect is likely to exceed the negative price effect. Price competition between models will increase, resulting in tighter margins for AI firms. Specialised models can still fetch premium prices. Cheaper LLMs are an opportunity for European Union companies to catch up in building smaller AI models and applications on top of LLMs. Increased demand for AI services will require more investment in computing infrastructure, including in the EU. Investing in large LLMs and the corresponding hyperscale infrastructure is riskier, especially as price competition between models increases. Knowledge extraction between AI models puts pressure on model developers to protect their investments against free-riding by others. It also creates a dilemma for policymakers: should they favour free-riding to promote competition and innovation, or should they clamp down and reinforce monopoly rents to stimulate investment in AI models? Past policy will not be an appropriate response in a world that offers vastly expanded opportunities for knowledge pooling and innovation at lower cost.
Topic:
Science and Technology, European Union, Economic Policy, Microeconomics, Innovation, Artificial Intelligence, Large Language Models (LLMs), and DeepSeek
Political Geography:
Europe

4. NATO: Waging High-Tech Warfare

Author:
Yury Belobrov
Publication Date:
01-2024
Content Type:
Journal Article
Journal:
International Affairs: A Russian Journal of World Politics, Diplomacy and International Relations
Institution:
East View Information Services
Abstract:
THE rapid technological progress observed in the last decade throughout the world, especially in China and Russia, threatens the established sources of military and industrial dominance of the collective West on the world stage. NATO views this as an alarming trend, and in an attempt to stop it, bloc members are making a determined effort to preserve their militarytechnological leadership and the international order structured around their policies. To this end, they are initiating a new arms race, partially through the active incorporation into the military sphere of the latest breakthrough technologies (Emerging and Disruptive Technologies – EDT), which, they believe, can reverse the emerging multipolarity of international relations and radically change the nature of future wars. Thus, the Allies are stepping up collective efforts to master innovative technologies and introduce them into the operational activities of NATO and all member nations to ensure their victory in future high-tech wars. They emphasize the urgency of adapting the armed forces of said countries to the realities of global technological advancement. As the communiqué adopted at the Alliance summit in Vilnius in 2023 directly stated: “We are accelerating our own efforts to ensure that the Alliance maintains its technological edge in emerging and disruptive technologies to retain our interoperability and military advantage including through dual-use solutions.”1 The US, as the main sponsor of NATO militarism, demands that its allies and partners closely and expeditiously collaborate on the creation of novel weaponry utilizing these emerging technologies and dramatically increase investment in various EDT projects and adapt their armed forces to them. Under the US’s diktat, Brussels and its American allies are creating new bureaucratic and financial entities. Private businesses and academic and research institutions are also being drawn into this sphere. To speed up this process, at the urging of Washington at the NATO summit in Brussels in 2021, a strategic initiative was launched to create the NATO Defense Innovation Accelerator for the North Atlantic (DIANA), which will manage and coordinate all this activity within NATO. The main task of this organization is to form an innovative technological network that unites R&D centers, innovative start-ups, defense enterprises, and military agencies in order to simultaneously and rapidly master all types of dual-use EDT technologies and implement them in the civilian and military fields. In addition to these efforts, a decision was also made to form a €1 billion NATO Innovation Fund to finance venture capital companies developing dual EDT in areas of strategic importance to NATO. Essentially, these decisions by the alliance are aimed at mobilizing European resources, primarily to strengthen American military power. Of course, the main efforts to field the latest technologies are being undertaken by the largest member nations.
Topic:
NATO, International Cooperation, Weapons, Innovation, Emerging Technology, High-Tech Wars, and Military and Industrial Advantage
Political Geography:
Russia, Europe, and United States of America

5. Toward Innovation-driven Growth: Innovation Systems and Policies in EU Member States of Central Eastern Europe

Author:
Alexandra Bykova, Viktrória Döme, Richard Grieveson, Francesca Guadagno, and Doris Hanzl-Weiss
Publication Date:
09-2024
Content Type:
Special Report
Institution:
The Vienna Institute for International Economic Studies (WIIW)
Abstract:
This study builds on our previous analyses of a new growth model for the EU member states of Central and Eastern European (CEE), focusing on fostering innovation-driven development. We aim to explain the types of innovation systems and policies that enhance domestic innovation capabilities, drawing on global best practices. A critical evaluation of the current innovation landscape in EU-CEE countries is conducted, particularly in the context of the green and digital transitions. The study assesses the strengths and weaknesses of both national innovation initiatives and opportunities provided by EU industrial and technology policy frameworks. Based on these insights, we offer actionable policy recommendations to promote innovation-driven growth, enhance productivity, and boost economic convergence over the medium term, taking into account the unique political and historical contexts of the EU-CEE countries. Additionally, we prepare country-specific briefing notes tailored to the individual development needs and opportunities of each nation.
Topic:
Development, International Trade and Finance, Science and Technology, Economic Growth, Innovation, Economic Competition, and Convergence
Political Geography:
Europe, Eastern Europe, and Central Europe

6. 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

7. The Western Innovators of the Mobile Revolution: The Data on Global Royalty Flows to U.S. and Europe and Why It Matters

Author:
Adam Mossoff
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Hudson Institute
Abstract:
The mobile revolution has radically altered our world in ways that were imagined only as science fiction a mere thirty years ago. Western innovators launched this revolution in creating its foundational telecommunications technologies; thus, it is unsurprising that private companies in the United States and Europe receive payments for the use of their telecommunications technologies, which is compensation for the billions in investments and decades of research and development of these inventions. The majority of the commercial implementers—the companies that make and sell consumer products that use these telecommunications technologies like smartphones or connected cars—are in Asia. China in particular has an increasingly growing share of these implementers across all sectors of the global innovation economy. This explains in part China’s domestic industrial policies that seek to lower the royalties paid by its national companies like Huawei or Oppo. Evidence-based policymaking should guide U.S. and European laws and regulations. Data confirm the critical role of reliable and effective patent rights, the rule of law, and courts using due process to resolve disputes have been essential for Western innovators creating the modern world—and will drive the technologies of tomorrow in the internet of things (IoT) and artificial intelligence (AI).
Topic:
Science and Technology, Intellectual Property/Copyright, Innovation, and Telecommunications
Political Geography:
China, Europe, and United States of America

8. EU-Pacific Talks | Global Race in Emerging Technologies: Lessons for EU-Pacific Cooperation

Author:
Simona Růžičková
Publication Date:
01-2024
Content Type:
Special Report
Institution:
Europeum Institute for European Policy
Abstract:
In the next debate of the EU-Pacific Talks series, hosted by EUROPEUM Institute for European Policy, the guests explored the relationship between cooperation and competition in overcoming technological frontiers in the context of pressing climate and industrial demands. Guests explored insights on fostering technological innovation, tackling climate change and promoting sustainable development. Read what our guests discussed in the report written by Simona Růžičková.
Topic:
Climate Change, Science and Technology, European Union, Innovation, Emerging Technology, and Sustainable Development
Political Geography:
Europe and Indo-Pacific

9. Rethinking Industrial Policy for Central and Eastern Europe

Author:
Michal Hrubý
Publication Date:
06-2024
Content Type:
Working Paper
Institution:
German Marshall Fund of the United States (GMFUS)
Abstract:
Central and Eastern Europe (CEE) is increasingly important in the EU’s manufacturing landscape. The region’s export-oriented economies became an integral part of it through foreign direct investment—supported primarily by EU funding, including Cohesion Policy programs for regional and industrial development, and by national state spending. With its competitiveness at stake, the EU now focuses on industrial policy for cutting-edge technologies with high capital intensity. Many of its new regulations loosen state aid rules to allow generous support by governments to attract investors, which poses a problem for member states with less fiscal room to do so, including the CEE countries. This report discusses the opportunities and challenges for CEE countries to build manufacturing with potential to grow and to increase domestic value-added. It examines two case studies in the region: batteries and semiconductors, and their position in the value chains in Czechia and Hungary. Hungary has become one of the EU’s leading battery industry hubs and plays a key role in the drive toward self- sufficiency in this field. Its success came principally through government spending on investment promotion. Key issues have arisen regarding the environmental sustainability of new investments, the decision to attract cheap foreign labor without any appropriate long-term labor policy, and the lack of knowledge spillover from multinational companies to small and medium domestic ones to improve their value-chain position. New large investments announced by Chinese companies also raise geopolitical and security issues. With its broad innovation and R&D strategy and record low unemployment, Czechia did not make attracting large investments a priority before the COVID-19 pandemic. This has changed and its semiconductor industry is well- placed to draw in new investments in the micro- and nanoelectronics value chain. Czechia has started to support the industry through state aid for a handful of domestic and foreign companies, due to its strategic importance, its high value-added in production output, and the opportunity for stimulating R&D and high-skill employment. These case studies reveal key takeaways for Central and Eastern Europe. First, industrial policy based on state aid in small open economies are costly and will not generate long-term benefits if it is oriented solely at production tasks as in the past. Investment must bring innovation and R&D. Second, CEE countries should make financing innovation and R&D the priority, not subsidizing new manufacturing projects. They should rationalize their policy objectives and update and stick to their national strategies. Third, tight budgets and financial consolidation put pressure on selecting projects for state aid. Governments should not provide this aid without a solid cost-benefit analysis of the investments. Fourth, the CEE countries should consolidate the too broad innovation priorities within their national strategies and analyze their long-term growth potential. Fifth, industrial policy must be accompanied by appropriate labor and education policies to support the green and digital transition.
Topic:
Economics, Industrial Policy, Science and Technology, Innovation, and Trade
Political Geography:
Europe, Eastern Europe, and Central Europe

10. European agriculture and Ukrainian agriculture complement each other

Author:
Alan Hervé
Publication Date:
07-2024
Content Type:
Working Paper
Institution:
Robert Schuman Foundation (RSF)
Abstract:
Agriculture has long been the richest, most diversified and most innovative of Ukraine's economic and social activities. Since Russia launched its aggression against Ukraine in 2014 with the annexation of Crimea, it has also become the most essential for the country and the one that raises the most questions in its relations with the European Union, which it intends to join as soon as possible. Many accuse Ukraine of unfair competition: on wheat, which is seriously disrupting Poland's agrarian economy; on poultry meat, which is said to be a threat to French production; on sugar and, increasingly, on organic products. Beyond the particular circumstances we are currently experiencing, Ukraine could occupy a place of choice within an enlarged Union. Thanks to its high-performance agriculture, it could help to strengthen the Union's role in meeting the food needs of deficit countries, at a time when, without Ukraine, the European Union is losing market share all over the world, particularly to the growing competition from Russia. Ukraine's competitiveness should not be an obstacle to fruitful cooperation, if the accession negotiations agree to include all the key issues of climate change, ecological diversity and the aspiration of a majority of rural people to contribute to solving these problems. This paper outlines the issues at stake and the solutions we need to analyse together in order to take action, and thus to set a new and determined course for a Common Agricultural Policy (CAP) that has lost its way.
Topic:
Agriculture, Economics, European Union, Innovation, and Russia-Ukraine War
Political Geography:
Europe and Ukraine