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101. Managing Risk and Technology Insertion in Crewed Tactical Jet Engines

Author:
Alexander Holderness
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
China’s investments in its military turbofan industrial base may challenge U.S. dominance in fighter engine technology in the coming years. The question is whether the United States is making the necessary investments to ensure superiority, especially given its traditionally risk-cautious approach to military turbofan innovation and fielding. While the historic U.S. approach to innovation has been adequate to this point, policymakers may need to consider more assertive action to ensure that the capability gap between the United States and China is enduring. This brief examines four different case studies to understand the U.S. turbofan development history in the context of growing competition with China.
Topic:
Innovation and Defense Industry
Political Geography:
China and Asia

102. Managing Risk and Technology Insertion in Crewed Tactical Jet Engines

Author:
Alexander Holderness, Gregory Sanders, and Nicholas Velazquez
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Center for Strategic and International Studies (CSIS)
Abstract:
China’s investments in its military turbofan industrial base may challenge U.S. dominance in fighter engine technology in the coming years. The question is whether the United States is making the necessary investments to ensure superiority, especially given its traditionally risk-cautious approach to military turbofan innovation and fielding. While the historic U.S. approach to innovation has been adequate to this point, policymakers may need to consider more assertive action to ensure that the capability gap between the United States and China is enduring. This brief examines four different case studies to understand the U.S. turbofan development history in the context of growing competition with China.
Topic:
Innovation, Defense Industry, and Military Technology
Political Geography:
China and Asia

103. Foreign Linkages, Innovation & Productivity: Evidence from Enterprise Surveys

Author:
Anmol Kaur Grewal
Publication Date:
04-2023
Content Type:
Working Paper
Institution:
Centre for Trade and Economic Integration, The Graduate Institute (IHEID)
Abstract:
This paper estimates a three-stage structural model of how foreign linkages affect innovation which in turn affects firm productivity. Using harmonized firm-level data from the World Bank Enterprise Surveys, I construct a panel dataset for 47 developing countries spanning 2003 to 2019. I distinguish between four types of foreign linkages (exports, imports, inward foreign direct investment (FDI) and the use of foreign-licensed technology), and two types of innovation (product innovation and process innovation). To mitigate concerns regarding sample selection and endogeneity biases, I employ advanced panel data methods. In the first stage, I find that being an exporter, using foreign inputs, and using foreign-licensed technology makes firms more likely to invest in R&D, relative to other firms. I also find evidence of sample selection bias which is corrected by using a two-step Heckman selection model. In the second stage, I find that while increases in the R&D intensity increase the probability of product innovation, they have no statistically significant effect on the likelihood of process innovation. In the third stage, I find that product or process innovation is associated with increases in firm-level productivity. These results remain robust across alternative measures of innovation and firm productivity.
Topic:
Economics, Innovation, Trade, and Productivity
Political Geography:
Global Focus

104. Gateway to growth: How the European Green Deal can strengthen Africa’s and Europe’s economies

Author:
Michaël Tanchum
Publication Date:
01-2022
Content Type:
Policy Brief
Institution:
European Council on Foreign Relations (ECFR)
Abstract:
In much of Africa, growth is being driven by “green energy innovation ecosystems”, which combine telecoms, digital platforms, solar power, and the internet of things. European companies and states risk losing out on business opportunities and political influence if they fail to integrate their services and infrastructure into these emerging ecosystems. China and other economic and geopolitical rivals will become African states’ main partner if Europeans stand aside from this key growth trajectory. The EU can: assist on offering world-class data regulation and supporting the construction of data centres; support the construction of other infrastructure, such as for 5G; and help roll out off-grid solar power generation and electric vehicle manufacturing. Europeans should work in joint ventures with African firms as this model is proven to create value added that China’s investments often fail to produce. The EU should merge its nascent Global Gateway international connectivity programme with the European Green Deal. The objectives of both require similar levels of investment in African infrastructure and they can unlock the investment potential of European public-private partnerships.
Topic:
Foreign Policy, European Union, Economy, Innovation, and Green Deal
Political Geography:
Africa, Europe, and Sub-Saharan Africa

105. E-mobility: An OPPORTUNITY for Central-Eastern Europe

Author:
Michal Hrubý
Publication Date:
11-2022
Content Type:
Special Report
Institution:
Europeum Institute for European Policy
Abstract:
The transition to e-mobility is happening more slowly in CEE than other parts of Europe and even faces resistance from some quarters, which was heavily debated at the conference. Although some CEE policymakers might pretend as if this path is not yet decided – especially challenging since leadership is one of the characteristics most needed to seize the e-mobility opportunity – the private sector realizes the opposite.
Topic:
Infrastructure, Mobility, Innovation, and Transportation
Political Geography:
Europe, Eastern Europe, and Central Europe

106. The Rise of Sino-Russian Biotech Cooperation

Author:
Svitlana Lebedenko
Publication Date:
05-2022
Content Type:
Special Report
Institution:
Foreign Policy Research Institute (FPRI)
Abstract:
The People’s Republic of China’s rise as a global innovation power is rooted in the development of a sovereign innovation infrastructure, one that allows China to compete in high-technology races with the United States. This process is complemented by an intensifying science and technology partnership with the Russian Federation. By decoupling from China and Russia, the United States and its allies are pushing China and Russia closer to each other. The paper discusses recent examples of Sino-Russian biotechnology cooperation projects, offering an early account of the emerging integration of two distinct but complementary innovation infrastructures.
Topic:
Development, Science and Technology, Infrastructure, Innovation, and Biotechnology
Political Geography:
Russia, China, Eurasia, and Asia

107. Pricing for Medicine Innovation: A Regulatory Approach to Support Drug Development and Patient Access

Author:
Rosie Collington and William Lazonick
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
The United States represents the world’s largest market for pharmaceutical drugs. It is also the only advanced economy in the world that does not regulate drug prices. There is no upper threshold for the prices of medicines in the United States. List prices are instead set by manufacturers in negotiation with supply-chain intermediaries, though some federal programs have degrees of discretion in price determinations. In practice, this deregulated system means that drug prices in the United States are generally far higher than in other advanced economies, adversely affecting patient accessibility and system affordability. In this paper, we draw on the “theory of innovative enterprise” to develop a framework that provides both a critique of the existing pricing system in the United States and a foundation for developing a new model of pricing regulation to support safety and effectiveness through drug development as well as accessibility and affordability in the distribution of approved medicines to patients. We introduce a regulatory approach we term “Pricing for Medicine Innovation” (PMI), which departs dramatically from the market-equilibrium assumptions of conventional (neoclassical) economics. The PMI approach recognizes the centrality of collective investments by government agencies and business firms in the productive capabilities that underpin the drug development process. PMI specifies the conditions under which, at the firm level, drug pricing can support both sustained investment in these capabilities and improved patient access. PMI can advance both of these objectives simultaneously by regulating not just the level of corporate profit but also its allocation to reinvestment in the drug development process. PMI suggests that although price caps are likely to improve drug affordability, there remain two potential issues with this pricing approach. Firstly, in an innovation system where a company’s sales revenue is the source of its finance for further drug development, price caps may deprive a firm of the means to invest in innovation. Secondly, even with adequate profits available for investment in innovation, a firm that is run to maximize shareholder value will tend to use those profits to fund distributions to shareholders rather than for investment in drug innovation. We argue that, if implemented properly, PMI could both improve the affordability of medicines and enhance the innovative performance of pharmaceutical companies.
Topic:
Health Care Policy, Drugs, Innovation, Medicine, and Price
Political Geography:
North America and United States of America

108. China’s Development Path: Government, Business, and Globalization in an Innovating Economy

Author:
Yin Yi and William Lazonick
Publication Date:
08-2022
Content Type:
Working Paper
Institution:
Institute for New Economic Thinking (INET)
Abstract:
We employ the “social conditions of innovative enterprise” framework to analyze the key determinants of China’s development path from the economic reforms of 1978 to the present. First, we focus on how government investments in human capabilities and physical infrastructure provided foundational support for the emergence of Chinese enterprises capable of technological learning. Second, we delve into the main modes by which Chinese firms engaged in technological learning from abroad—joint ventures with foreign multinationals, global value chains, and experienced high-tech returnees—that have contributed to industrial development in China. Third, we provide evidence on achievements in indigenous innovation—by which we mean improvements in national productive capabilities that build on learning from abroad and enable the innovating firms to engage in global competition—in the computer, automobile, communication-technology, and semiconductor-fabrication industries. Finally, we sketch out the implications of our approach for current debates on the role of innovation in China’s development path as it continues to unfold.
Topic:
Development, Economics, Globalization, Infrastructure, Hegemony, and Innovation
Political Geography:
China and Asia

109. Liberty’s Doom? Artificial Intelligence in Middle Eastern Security

Author:
Kristina Kausch
Publication Date:
05-2022
Content Type:
Policy Brief
Institution:
IEMed/EuroMeSCo
Abstract:
The surge of artificial intelligence (AI)-enabled technologies has triggered global debates on the potential risks and opportunities of the use of these technologies to enhance societies’ prosperity, security and well-being while ensuring human control and safeguarding fundamental rights. In the area of security, AI has the potential of making key sectors, such as predictive policing, counter-terrorism or border management more efficient, just and humane. At the same time, the risks inherent to AI in the security sector have raised numerous concerns regarding surveillance and data protection, human rights and civil liberties, or the prospect of an arms race in autonomous weapons systems, which have overshadowed debates on opportunities. The Middle East and North Africa (MENA) region presents particular challenges in this equation. On the one hand, the region’s myriad security challenges could greatly benefit from a booster in security-related problem-solving efficiency. On the other, ethical and legal considerations gain particular weight in a region largely governed by authoritarian rulers and with a weak rule of law, as these conditions prevent thorough AI governance and the necessary checks and balances to avoid authoritarian abuse of the ample opportunities presented by AI. This collection attempts to approach the questions and dilemmas raised by AI in Middle Eastern security through a European policy lens. Zooming in on AI in border management, surveillance, defence and regulation, exploring both risks and opportunities of this set of technologies for the fragile security of the MENA region, each chapter draws conclusions for future European Union (EU) policy and cooperation with MENA partners on AI.
Topic:
Security, Science and Technology, Innovation, and Artificial Intelligence
Political Geography:
Middle East

110. Fragile States Index 2022 – Annual Report

Author:
Nate Haken, Daniel Woodburn, Juliette Gallo-Carelli, Asa Cooper, and Dylan Souquet
Publication Date:
07-2022
Content Type:
Special Report
Institution:
The Fund for Peace
Abstract:
The Fragile States Index, produced by The Fund for Peace, is a critical tool in highlighting not only the normal pressures that all states experience, but also in identifying when those pressures are pushing a state towards the brink of failure. By highlighting pertinent issues in weak and failing states, The Fragile States Index—and the social science framework and software application upon which it is built—makes political risk assessment and early warning of conflict accessible to policy-makers and the public at large.
Topic:
Territorial Disputes, Elections, Fragile States, Political stability, Violence, Crisis Management, Innovation, and Reconciliation
Political Geography:
Sudan, Libya, Brazil, South America, North Africa, Haiti, Somalia, Mali, Guinea, Sahel, Global Focus, and Lake Chad Basin