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1. Open strategic autonomy: The digital dimension

Author:
Maaike Okano-Heijmans
Publication Date:
01-2023
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
In recent years the European Union (EU) and its member states hesitantly embarked on a new and ambitious path towards what came to be called ‘digital and technological autonomy’. This paradigm shift involves a turn away from the market-based, open economy thinking that has dominated in European policy circles in recent decades. The new direction is towards a geostrategic, more closed economy thinking, with a shift from a focus on trade to technology.
Topic:
Science and Technology, Sovereignty, European Union, Leadership, Strategic Autonomy, and Digital Sovereignty
Political Geography:
Global Focus

2. How strategic tech cooperation can reinvigorate relations between the EU and India

Author:
Vera Kranenburg and Maaike Okano-Heijmans
Publication Date:
01-2023
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
In an era of multipolarity, India – expected to become the world’s most populous nation soon – will be a significant geopolitical player. This necessitates European Union (EU) member states to shift their policies to engage one of the world’s largest consumer and industrial markets.
Topic:
Markets, Science and Technology, European Union, Industry, Multipolarity, and Cooperation
Political Geography:
Europe, South Asia, and India

3. Strengthening digital economic security in Europe

Author:
Maaike Okano-Heijmans and Alexandre Ferreira Gomes
Publication Date:
10-2023
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Tweet this Post on Facebook Post on LinkedIn Technological leadership, digital autonomy and economic security are now political Chefsache in countries throughout the world, including in Europe, as new technologies are revolutionising industries and reshaping societies. Set against this context, the Dutch government is preparing implementable measures to act on open strategic autonomy (OSA) in the digital domain, to be presented in October 2023. This comes just months after the launch of the European Economic Security Strategy by the European Commission. The Dutch government must reckon with the move in this new direction – from DOSA to (digital) economic security – if it wishes to leverage its reputation as a European frontrunner in this field. This report offers a strategic international analysis to inform Dutch policies and action on digital economic security, in a European context. It reflects on the geopolitical context that shapes digital OSA (DOSA) concerns and showcases the key features of both the European and Dutch approaches to the digital component of strategic autonomy. Next, the authors present a concise overview of the state of play in a select group of key countries (in-depth case studies focus on Germany, France and Finland; as well as the United States, China and India) and offer suggestions for future action. A key point emerging from the report is that European governments need to ensure that the focus on Regulate and Protect of recent years must be complemented by greater investments in Promote and Shape policies – both within the European Union and in coordination with key partners. The networks of Innovation Attachés and Economic Security Attachés (image below) play an important role in the Netherlands’ enhanced approach to digital economic security. The longstanding network of Innovation Attachés is an asset on the Promote side of Dutch technology policy that needs to be geared towards more strategic objectives. The newly established Economic Security network focuses on the Protect line of action.
Topic:
Security, European Union, Economic Security, and Digital Autonomy
Political Geography:
Europe

4. The geopolitics of digital financial technologies: A chance for Europe?

Author:
Brigitte Dekker, Arief Hühn, Pim Korsten, and Maaike Okano-Heijmans
Publication Date:
01-2022
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Geopolitical tensions are permeating the digital domain. During the 1990s, the emergence of the internet still involved optimism and high hopes for digital technology as a force for openness, connectedness and freedom for all. Yet contrary to these promises, a trend of centralization, is prevalent in the digital economy. This trend of centralization, with the subsequent problems of gatekeeping, ecosystem lock-in, disproportional rent-seeking and monopolists that set market rules, is now also evident in the financial industry. Whereas smaller financial technology (fintech) companies, including many European firms, revolutionized the financial sector in the 2000s – disrupting traditional banks and their vested interests – we now witness a concentration of power and data in this sector, either in incumbent firms or within Big Tech companies. In response, governments in China, the European Union (EU) and the United States (US) are devising regulations, while at the same time technology innovators are building a radically new infrastructure to underpin our financial sector: Decentralized Finance (DeFi). The geopolitical implications of this disruptive transformation of the financial sector – through both fintech and DeFi – require forward-looking government responses that protect and promote European interests in the long term. This Clingendael Report first reflects on these trends of centralization in digital finance and decentralization in ‘traditional finance’. The paper examines the relationship between geopolitics and finance and looks at the position of the EU and its member states. The analysis considers the medium to longer-term implications in the following three domains: economic competitiveness and innovation; financial–economic and social stability; and inclusivity and equality. Data governance, data protection and data portability between financial services are key concepts in each of these areas. Building on these insights, the report argues for a push towards greater awareness among European policymakers on the potentials of DeFi to counter Big Tech’s rising influence in the European financial system with a decentralized, human-centred and value-based system. At the same time, the regulatory and security risks of DeFi – and the trend of decentralization in general – must be addressed. The report also highlights the need to help people to develop digital skills and become responsible and resilient digital citizens, and calls for enhanced dialogues with officials and technology company executives in like-minded countries on current developments. New approaches, such as multi-stakeholder consultations and increased rapprochement with the open-source and crypto-communities, are needed to facilitate knowledge exchange and best practices that will improve (regulatory) responses.
Topic:
Science and Technology, European Union, Geopolitics, Internet, and Digital Finance
Political Geography:
China, Europe, and United States of America

5. Growing stronger together: Towards an EU–ASEAN digital partnership?

Author:
Maaike Okano-Heijmans and Brigitte Dekker
Publication Date:
02-2022
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
In December 2021, the EU and Singapore launched talks towards a digital partnership agreement that could prove a building block for broader EU–ASEAN cooperation. This Report assesses the strategic value of increased cooperation in the field of digital connectivity, also acknowledged in the EU’s Indo-Pacific strategy of September 2021, and considers the practical challenges and opportunities of stronger ties between the two blocs and their member states in this increasingly important realm. The authors argue that three domains could form the basis of a future, shared, EU–ASEAN approach to digital connectivity: (1) digital infrastructure; (2) data governance and digital trade regulation; and (3) the digital economy and financial technologies (fintech). A bloc-to-bloc approach should run in parallel with strengthened ties by the EU and its member states with specific ASEAN member states. Together, these building blocks will serve EU and ASEAN long-term interests, promoting economic competitiveness and inclusive growth, as well as openness, transparency and freedom in the digital realm.
Topic:
European Union, Partnerships, ASEAN, and Digital Policy
Political Geography:
Europe, Asia, and Singapore

6. Fostering digital connectivity in and with the Indo-Pacific

Author:
Brigitte Dekker and Maaike Okano-Heijmans
Publication Date:
04-2021
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
pen, safe and inclusive digital connectivity and engage with the region’s thriving digital economies. While Indo-Pacific countries have called for greater maritime presence by European countries in their increasingly contested waters, European actors may have more to offer in the less-discussed but equally contested high-tech and digital domains. Recognizing the opportunities and disruptions that accompany the digital transition and green transformation globally, the EU and its member states need to increase their engagement with governments, commercial and civil-society stakeholders and networks in the Indo-Pacific on a broad array of digitalization issues.
Topic:
Civil Society, European Union, Economy, and Digitalization
Political Geography:
Europe and Indo-Pacific

7. Dealing with China on high-tech issues Views from the US, EU and like-minded countries in a changing geopolitical landscape

Author:
Brigitte Dekker and Maaike Okano-Heijmans
Publication Date:
12-2020
Content Type:
Special Report
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
As President-Elect Joe Biden enters the White House, what are the opportunities for EU–US cooperation in the trade, high-tech and digital domains? Together with like-minded partners, the transatlantic partners aim for deepened and renewed engagement in the bilateral and multilateral context. They need to deliver on broadening multilateralism to new areas and, in certain cases, new approaches. This Clingendael Report aims to contribute to a reorientation of the EU in the broad field of economic security, in the transatlantic context and with Japan, India and Australia. The policies of European governments and businesses in the trade, high-tech and digital domains are undergoing profound change. Stakeholders are starting to act on the awareness that some geopolitical challenges, in particular concerning China, cannot be solved within the liberal–democratic mindset alone. Still, however, they do want to uphold – and update – the basic principles of the rules-based system. This report adopts an ‘outside-in approach’ to discuss the many economic security challenges. It presents views and forward-looking suggestions by key experts from six countries: the United States, Germany, France, Japan, India and Australia.
Topic:
European Union, Geopolitics, Multilateralism, and Economic Security
Political Geography:
Europe, North America, and United States of America

8. How to strengthen Europe’s Policy Brief agenda on digital connectivity

Author:
Maaike Okano-Heijmans
Publication Date:
07-2019
Content Type:
Policy Brief
Institution:
Clingendael Netherlands Institute of International Relations
Abstract:
Connectivity is high on the EU’s agenda, but its digital dimension remains underdeveloped. The short paragraph on digital in the EU connectivity strategy is telling. The EU’s distinct approach to digital connectivity – with a focus on the internal market, rule-making and development – differs from similar strategies, particularly China and its Digital Silk Road. "Now is the time to act on digital connectivity's practical as well as strategic elements of hard infrastructure and business operations." Needed, now, is a comprehensive strategic vision that spurs action on all three practical elements of digital connectivity – namely, telecommunications infrastructure, business and regulation – and gives strategic guidance in the political and even securitized sense, and not only from a market perspective. Read the full Policy Brief by Senior Research Fellow Maaike Okano-Heijmans.
Topic:
Science and Technology, Infrastructure, European Union, and Digital Cooperation
Political Geography:
China and Europe