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2. Germany’s Role in Europe’s Digital Regulatory Power: Shaping the Global Technology Rule Book in the Service of Europe
- Author:
- David Hagebölling and Tyson Barker
- Publication Date:
- 11-2022
- Content Type:
- Special Report
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- Four elements help to map the strengths and, at times, the limits of German power in digital rule-making. First, Germany anticipates EU digital regulation and attempts to establish facts on the ground. Second, Germany has outsized influence in the formal stages of EU digital regulatory policymaking. Third, the EU, in turn, provides Germany with a launch pad for influencing worldwide regulatory norms. Fourth, a belated reawakening of the capacity of the German private sector and affiliated technical standard bodies to influence global technical standards is occurring. Germany, as an EU member state, is engaging in three significant areas of data governance and cybersecurity: digital identities and open data, lawful access to electronic messaging systems, and rules for sovereign cloud usage. Germany’s largely successful role as a key incubator for the EU’s regulatory approach to digital technology and, therefore, as a proponent of the “Brussels Effect” of influencing global markets is not widely appreciated or understood at home. The lag among regulations, tech-nology, and international context is evident in areas such as data protection, content moderation, and market power of online platforms. Even meaningful regulatory debates on quantum, the metaverse (AR/VR), and 6G have yet to arise in Germany. Germany must change its approach to digital regulation to more accurately reflect the dynamic, general-purpose nature of emerging digital technologies against an increasingly fraught international landscape in which technological rules are a dimension of geopolitical power. This includes more fully addressing political trade-offs associated with digital regulation choices, expanding reviews and sunset clauses in digi-tal regulation to encourage flexibility, and making greater use of multi-stakeholder regulatory approaches that incorporate civil society, companies, and other non-state actors. Germany must also increase the engagement of its foreign policy and national security communi-ties in EU technology diplomacy and in global regulation enforcement.
- Topic:
- Science and Technology, European Union, Regulation, and Digital Policy
- Political Geography:
- Europe and Germany
3. The Geopolitics of Digital Technology Innovation: Assessing Strengths and Challenges of Germany’s Innovation Ecosystem
- Author:
- Tyson Barker and David Hagebölling
- Publication Date:
- 11-2022
- Content Type:
- Special Report
- Institution:
- German Council on Foreign Relations (DGAP)
- Abstract:
- The COVID-era public and private investment influx into Germany’s digital technology R&D is reversing amid inflation, fiscal consolidation, and geopolitical pressures coming from the Zeitenwende. Germany’s future in an EU that is among the top-tier technology powers requires a profound and rapid transition of the country’s R&D strengths into data-intensive, systems-centric areas of IoT and deep technology that are linked to the domestic manufacturing base. New policy approaches in three areas – money, markets, and minds – are needed. New technologies such as robotics, artificial intelligence (AI), advanced material science, biotech, and quantum computing tend to have broad general-purpose applications. But uncoordinated funding vehicles, universities’ civil clauses, and restrictive visa and onboarding guidelines for skilled foreign workers slow innovation in these sectors and hamper German techno-geopolitical competitiveness. In the mid-term, Germany could look at a scheme to bundle the Future Fund together with new institutional investment in a sort of embryonic German Sovereign Wealth Fund, with a proportion of funding specifically geared toward strategically important VC endeavors.
- Topic:
- Science and Technology, European Union, Geopolitics, Innovation, and Digital Policy
- Political Geography:
- Europe and Germany