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431. The Digital Trade Imbalance and Its Implications for Internet Governance

Author:
Susan Ariel Aaronson
Publication Date:
02-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
Today, information is currency; it facilitates productivity, exchange, technology and trade. Information is also the building block of the digital economy (an economy based on digital technologies — products and services that facilitate the creation, storage, analysis and sharing of data and information). Although many countries are gaining expertise and market share, one country, the United States, dominates both the global digital economy and digital trade (commerce in products and services delivered via the Internet). The United States is also the key force behind efforts to develop a system of trade rules to govern cross-border information flows.
Topic:
Economics, Science and Technology, Mass Media, and Digital Economy
Political Geography:
Global Focus

432. The Case for Intellectual Property Rights: Should Patents Be Strengthened, Weakened or Abolished Altogether?

Author:
Joel Blit
Publication Date:
11-2015
Content Type:
Working Paper
Institution:
Centre for International Governance Innovation
Abstract:
The case for patents rests crucially on three conditions: that innovation is undersupplied in the absence of patents; that patents promote increased innovation; and that the welfare benefits of any additional innovation outweigh the welfare costs associated with the temporary monopoly that patents generate. While it is probably true that innovation is undersupplied, the empirical evidence is mixed on whether patents foster innovation. This may be due to patents stifling cumulative innovation because of holdup and ex ante uncertainty over patent rights. This policy brief recommends that to reduce the potential for holdup, uncertainty around patent rights should be reduced. Patents should be easily searchable and more easily understood by non-legal experts. In addition, patents should be narrower and more clearly demarcated. To the extent that the welfare costs of patents appear to outweigh their benefits, the requirements for obtaining a patent should be tightened. Further, patents should be made less broad and, concomitant with the reduction in the length of the product cycle, the length of patents should also be reduced.
Topic:
Human Welfare, Science and Technology, Intellectual Property/Copyright, and Governance
Political Geography:
United States

433. From Catching Up to Forging Ahead: China’s Policies for Semiconductors

Publication Date:
01-2015
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
China, the world's leading exporter of electronic products, faces a fundamental dilemma. It is the largest and fastest-growing market for semiconductors, the core component of those electronics products. Yet, at least 80 percent of the semiconductors used in China's electronics products must be imported. As a result, China's trade deficit in semiconductors has more than doubled since 2005 and now exceeds the huge amount it spends on crude oil imports. To correct this unsustainable imbalance, China's new strategy to upgrade its semiconductor industry seeks to move from catching up to forging ahead in semiconductors. The strategy calls for simultaneously strengthening advanced manufacturing and innovation capabilities in China's integrated circuit (IC) design industry and its domestic IC fabrication, primarily through foundry services. Drawing on policy documents and interviews with China-based industry experts, this study takes a close look at the objectives, strategy, and implementation policies of China's new push in semiconductors and examines what this implies for China's prospects in this industry. The study shows that China's new policy resorts to private equity investment rather than subsidy as the tool of industrial policy. The government participates in equity investment and claims it will do so without intervening in management decisions. This policy is expected to reduce the cost of investment funds for a selected group of firms, which is to form a "national team" in the semiconductor industry. China's new policy to upgrade its semiconductor industry through innovation does not represent a radical break with its deeply embedded statist tradition. Within these boundaries, however, the study detects important changes in the direction of a bottom-up, market-led approach to industrial policy. In response to the rising complexity and uncertainty of today's semiconductor industry, the government seems more open to experimentation with new approaches to investment finance and flexible, bottom-up policy implementation, based on multilayered industrial dialogues with private firms. China's policies to forge ahead in semiconductors, thus, provide an interesting example of its current efforts to move from investment-driven catching up to an innovation-driven development model.
Topic:
Economics, International Trade and Finance, Oil, Science and Technology, and Financial Markets
Political Geography:
China

434. North Korea and the Sony Hack: Exporting Instability Through Cyberspace

Author:
Stephen Haggard and Jon R. Lindsay
Publication Date:
05-2015
Content Type:
Policy Brief
Institution:
East-West Center
Abstract:
The North Korean cyber attack against Sony Pictures Entertainment in connection with the planned release of The Interview raised important questions about the feasibility of deterrence in cyberspace, the protection of First Amendment values, and the responsibility of the US government to safeguard private networks. It also resulted in the unprecedented attribution of responsibility for a cyber attack to a nation state by a US president, despite public controversy over the evidence. North Korea has long engaged in provocative behavior on the Korean peninsula, recently including cyber attacks, but the probability of general war with South Korea remains quite low. Strategists describe this problem as the stability-instability paradox. North Korean coercion targeting a corporation on US soil in effect extends this dynamic into global cyberspace. It is impossible to deter all forms of cyber harassment, but policymakers can manipulate the threshold of ambiguity that makes limited aggression more or less attractive.
Topic:
Science and Technology, Law, and Cybersecurity
Political Geography:
North Korea

435. China’s Hidden Obstacles to Socioeconomic Rebalancing

Author:
Christopher McNally and Boy Lüthje
Publication Date:
09-2015
Content Type:
Working Paper
Institution:
East-West Center
Abstract:
The global financial crisis of 2008-09 led to a policy consensus in China that its socioeconomic development model needed rebalancing. China's rapid development has been based on extensive growth reliant on exports, low wages, environmental exploitation, and the manufacturing of cheap products. China's current plans identify paths to economic rebalancing through intensive growth driven by rising investment in new technologies and manufacturing processes, improved wages and skills, and improved worker and environmental protections. Two industries, automotive and information technology, demonstrate the experience of and opportunities for rebalancing. Both offer improved employment conditions with better wages, but continue to incorporate large swaths of low-wage employment with little protection for workers' health and the environment. Economic rebalancing in China, therefore, has so far only appeared in pockets. Institutional safeguards for wages and labor standards remain constrained by powerful alliances among multinational corporations, Chinese state-owned/private enterprises, and the Chinese state.
Topic:
Economics, Markets, Science and Technology, Labor Issues, and Financial Crisis
Political Geography:
China

436. Reforming U.S. Export Controls Reforms: Advancing U.S. Army Interests

Author:
Dr. Richard Weitz
Publication Date:
12-2015
Content Type:
Working Paper
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
The U.S. defense export system needs further major reforms to reduce inefficiencies and weaknesses. Although the International Traffic in Arms Regulations (ITAR) do help prevent potential foreign adversaries from using U.S. arms against the United States and its allies, the Regulations, as enforced, can weaken U.S. national security in other important ways. For example, by excessively impeding defense exports, the ITAR makes it more difficult for U.S. firms to sustain core U.S. defense technological and industrial advantages, decreases U.S. military interoperability with allies that purchase ITAR-free weapons from other sources, and generates other undesirable effects for the U.S. Army and U.S. national security.
Topic:
Defense Policy, International Trade and Finance, National Security, Science and Technology, Military Affairs, Reform, and Weapons
Political Geography:
United States of America

437. Training Humans for the Human Domain

Author:
Dr. Steve Tatham and Keir Giles
Publication Date:
11-2015
Content Type:
Working Paper
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
Experience from Afghanistan and Iraq has demonstrated the vital nature of understanding human terrain, with conclusions relevant far beyond counterinsurgency operations in the Islamic world. Any situation where adversary actions are described as “irrational” demonstrates a fundamental failure in understanding the human dimension of the conflict. It follows that where states and their leaders act in a manner which in the U.S. is perceived as irrational, this too betrays a lack of human knowledge. This monograph offers principles for operating in the human domain which can be extended to consideration of other actors which are adversarial to the United States, and whose decision-making calculus sits in a different framework to our own — including such major states as Russia and China. This monograph argues that the human dimension has become more, not less, important in recent conflicts and that for all the rise in technology future conflicts will be as much defined by the participants’ understanding of culture, behavior, and language as by mastery of technology.
Topic:
Islam, Science and Technology, and Counterinsurgency
Political Geography:
United States of America

438. Cyber Defense: An International View

Author:
Kim Hartmann and Keir Giles
Publication Date:
09-2015
Content Type:
Working Paper
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
An overview of four different national approaches to cyber defense are discussed: those of Norway, Estonia, Germany and Sweden. While providing a useful guide for engagement with the relevant governmental and other organizations in each of these countries, the Paper also compares and contrasts the advantages and drawbacks of each national approach.
Topic:
National Security, Science and Technology, Governance, and Cybersecurity
Political Geography:
Norway, Germany, Estonia, and Sweden

439. Terrorist and Insurgent Unmanned Aerial Vehicles: Use, Potentials, and Military Implications

Author:
Dr. Robert J. Bunker
Publication Date:
08-2015
Content Type:
Working Paper
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
This manuscript focuses on the present threat posed by terrorist and insurgent use of unmanned aerial vehicles (UAVs) as well as associated future threat potentials. This work presents a counterintuitive analysis in the sense that armed drones are typically viewed as a component of America’s conventional warfighting prowess—not a technology that would be used against U.S. troops deployed overseas or against civilians back home. The emerging threat of such UAV use against the United States is investigated, and the unique analysis and creative approach related to the threat scenario variants generated are very informative. Hopefully, the larger implications posed by this analysis related to semi-autonomous and autonomous UAV type robotic systems will be of benefit.
Topic:
National Security, Science and Technology, Military Strategy, Military Affairs, and Drones
Political Geography:
United States of America

440. Using Target Audience Analysis to Aid Strategic Level Decisionmaking

Author:
Dr. Steve Tatham
Publication Date:
08-2015
Content Type:
Working Paper
Institution:
The Strategic Studies Institute of the U.S. Army War College
Abstract:
The author explains how sophisticated social science research and behavioral profiling can be used to warn us of impeding issues and how that information might be used by senior strategy makers as a tool for testing and refining strategy. He makes a compelling case that the science of Target Audience Analysis (TAA) is now so well advanced that it must become a key component of future strategic decision-making. The author views social media as just another communication conduit, and sees this as a continuum of wrong activities being undertaken. In Iraq and Afghanistan, he saw how big public relations and marketing companies cost the U.S. taxpayer millions of dollars in ultimately failed communication and propaganda campaigns. Social media, he argues, has become yet another blank checkbook for companies who rely on creative energy rather than empirical understanding to produce communications campaigns. Instead, he argues for far greater resource in TAA and greater understanding by federal agencies of what is and is not possible or desirable in their communication efforts. To this end, he looks in particular at the U.S. Agency for International Development relief work in Pakistan and argues that the communication objectives set at the start of the projects are almost unattainable, even naive in their presumptions.
Topic:
Science and Technology, Military Strategy, Military Affairs, and Social Media
Political Geography:
Pakistan, Afghanistan, and Iraq