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31. Leadership in European Digital Policy: Future Role and Direction for the D9+ Group

Author:
Fredrik Philipp, Philipp Lamprecht, Erik van der Marel, Vanika Sharma, and Elena Sisto
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
In this paper, we will discuss how Europe makes digital policy and how its digital economic performance can be improved. The focus is on the D9+ initiative. Launched in 2016 on the initiative of former Swedish trade minister, Ann Linde, nine countries with a particular interest in matters of the digital economy met to learn from each other and seek common ground on policy issues. On occasions, the D9+ Group has issued joint statements relating to regulatory initiatives in the EU. Since its founding, the group has expanded, and now also includes “guest countries”, but it remains fundamentally an initiative of small and mid-sized open-oriented economies with a strong interest to exploit the economic power of digitalisation and new emerging technologies. The D9+ initiative is important and this paper argues that its work should expand and focus on expanding the scale and scope of digital technological change in the European economy while addressing risks that an over-powering regulatory approach to digital policies in Europe reduces the benefits of the digital transformation. Importantly, the D9+ Group has a special interest to promote digital openness and avoid the agenda for technology sovereignty and strategic autonomy sliding into digital protectionism. Finding the right direction of policy is of fundamental importance for Europe’s long-run economic growth, and the D9+ Group should take a leadership role.
Topic:
Digital Economy, Leadership, Economic Growth, and Digital Policy
Political Geography:
Europe

32. A German Digital Grand Strategy: Integrating Digital Technology, Economic Competitiveness, and National Security in Times of Geopolitical Change

Author:
Tyson Barker and David Hagebölling
Publication Date:
11-2022
Content Type:
Special Report
Institution:
German Council on Foreign Relations (DGAP)
Abstract:
This report systematically outlines the state of play in digital policy and Berlin’s current policy approach. It provides 48 recommendations for strengthening Germany’s efforts to build a confident, high-performing European digital economy embedded in an open, democratic, and rules-based digital order.
Topic:
Economics, National Security, Science and Technology, Geopolitics, Grand Strategy, and Digital Policy
Political Geography:
Europe

33. 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

34. 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

35. Remaking the Future of the Internet

Author:
James Lewis
Publication Date:
09-2022
Content Type:
Journal Article
Journal:
Brown Journal of World Affairs
Institution:
Brown Journal of World Affairs
Abstract:
A rule of thumb in Hollywood is when you have no new ideas for a 1lm, remake an old one. 5e United States is taking a similar approach to internet policy, with the well-intended “Declaration for the Future of the Internet” (hereafter referred to as “the Declaration”) reiterating themes from the dawn of the internet.1 5ere is a real opportunity for a new approach to internet policy that endorses democratic values and a reformed multistakeholder model, but the Declaration does not provide this opportunity because it ignores sovereignty and great power con6ict—the forces reshaping the internet. 5ere are 193 countries in the world. Only 60 endorsed the Declaration.2 If this had been an election, the United States would have lost. 5is outcome may partly re6ect a lack of diplomatic skill by the United States, but it also re6ects a paucity of ideas to address concerns in the developing world, which center around development, sovereignty, and the rule of law. Many nations would have welcomed a bold new vision for the internet that took their interests into account. 5ey did not get this vision from the Declaration.
Topic:
Science and Technology, Internet, and Digital Policy
Political Geography:
Global Focus and United States of America

36. Fishing for Chips: Assessing the EU Chips Act

Author:
Niclas Poitiers and Pauline Weil
Publication Date:
07-2022
Content Type:
Policy Brief
Institution:
Institut français des relations internationales (IFRI)
Abstract:
China, the United States, and the European Union (EU) are currently developing strategies for semiconductors aimed at financing R&D and the installation of new factories on their territories, in particular through subsidies. The EU Chips Act, announced in February 2022, represents a real break in Europe's industrial policy. Key Takeaways: Drawing lessons from the ongoing shortages in chip supply, the United States, China, and the European Union are adopting industrial policies in the semiconductor sector in search for supply chain security and economic and technological competitiveness. The EU Chips Act in particular represents a notable shift from a long-held opposition to industrial subsidies seen as detrimental to international competition. The proposal will support R&D in Europe, provide a legal basis for EU member states to use subsidize domestic semiconductor manufacturing, and facilitate trade measures to intervene in the supply chain in times of crisis. This new global subsidy race to build foundries carries the risks of channeling billions in public funds into unprofitable investments, due to the complexity of semiconductor production and risks of overcapacity in certain segments. To avoid that, cooperation with like-minded partners of the EU, especially the US, appears necessary but still needs to be worked out.
Topic:
Industrial Policy, Digital Policy, Value Chains, and Semiconductors
Political Geography:
China, Europe, and United States of America

37. The international role of the euro and the dollar: Forever in the lead?

Author:
Martin Mühleisen
Publication Date:
09-2022
Content Type:
Policy Brief
Institution:
Atlantic Council
Abstract:
The international monetary system has been surprisingly resilient over the past two years, considering the size of pandemic and geopolitical shocks that hit markets during this period. Liquidity injections by the major central banks helped stabilize economic activity and avoid disruptions to capital flows or foreign exchange markets. Major exchange rates remained range-bound throughout most of the crisis, even if the dollar has appreciated sharply in recent months. Volatility is likely to pick up as monetary policy responds to high inflation, but there should be no doubt that the dollar-based monetary order has withstood a major test during the past two years. This feat has been even more remarkable as the global security landscape has deteriorated in dramatic fashion, and Russia’s invasion of Ukraine has brought international tensions to a level not seen since the 1961 Cuban missile crisis. Moreover, while the dollar’s safe haven status remains firmly established, the center of global economic activity has been shifting east. Asia has become an economic powerhouse, and China is on course to become the world’s largest economy over the next few years. It is a natural question whether China will challenge the United States and Europe for global economic leadership, and whether the renminbi will appear as a leading, if not dominant, currency. This paper argues that this is unlikely for the foreseeable future, in part because a larger global role for the renminbi would be inconsistent with the Chinese leadership’s current policy priorities. However, there is no room for complacency. With the post-World War II international order in gradual decline, the world could again reach a moment where unforeseen geopolitical events might lead to changes in long-held political and economic paradigms. The United States and Europe can reduce this risk by making their growth models more robust and sustainable. Moreover, keeping their global alliances intact could prevent a loss of influence that has heralded changes in the international monetary system in the past.
Topic:
Economic Growth, Currency, Financial Institutions, Digital Policy, Digital Currency, Dollar, and Euro
Political Geography:
Europe and United States of America

38. The European Union renews its offensive against US technology firms

Author:
Gary Clyde Hufbauer and Megan Hogan
Publication Date:
02-2022
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
The European Union's proposed Digital Markets Act (DMA) contemplates extensive regulation of "gatekeeper" digital platforms—firms that perform a "core platform service" in the European Union (defined as online intermediation, online search, social networking, video sharing, electronic communication, cloud services, or online advertising), have a significant impact on the EU internal market, serve as an important gateway between business users and end-users, and enjoy an entrenched and durable position. Although at least one European firm could qualify as a gatekeeper, Hufbauer and Hogan say, the DMA discriminates against American technology firms by singling them out for the label of "gatekeepers." The European Commission’s proposed DMA targets both US tech giants such as Google, Amazon, Facebook, Apple, and Microsoft and smaller (albeit huge) US tech firms such as Airbnb and PayPal. The authors say the EU goal is to confer competitive advantage on European digital firms, breaching the EU commitment to national treatment of foreign firms, violating their intellectual property rights, and imposing high expenses on the "gatekeepers." At the same time, France is planning to enact its own steep barriers against US and other foreign cloud services.
Topic:
Markets, Science and Technology, European Union, Economy, and Digital Policy
Political Geography:
Europe and United States of America

39. Digital Southeast Asia:Opportunities for Australia–India cooperation to support the region in the post-Covid-19 context

Author:
Huon Curtis, Bart Hogeveen, Jocelinn Kang, Huong Le Thu, Rajeswari Pillai Rajagopalan, and Trisha Ray
Publication Date:
02-2022
Content Type:
Special Report
Institution:
Australian Strategic Policy Institute (ASPI)
Abstract:
Covid-19 and the subsequent public-health responses have disrupted social and economic lives across the globe. Fiscal support measures may have alleviated the initial fallout in some places, but one of the bigger shocks has been the accelerated adoption and integration of and reliance on digital technologies. While this is a positive contribution towards digital development, it has also accentuated the already large gap between those able to adopt digital technologies and those without sufficient means to do so. For the many fragile democracies in the Indo-Pacific, this is creating conditions that could undermine democratic resilience. A central question for these democratic governments is how to drive accelerating digital transformation and ICT-enabled growth towards poverty reduction, sustainable economic growth and building social cohesion while maintaining resilience to cybersecurity threats. Southeast Asians are exceptional consumers of online goods and services. The region is also home to a growing number of technology start-ups, and governments are pushing this ‘drive for digital’ through ambitious national strategies. Despite those positives, digital growth within the region and within individual economies is uneven.
Topic:
International Cooperation, Bilateral Relations, COVID-19, and Digital Policy
Political Geography:
India, Australia, and Southeast Asia

40. Qualitative Synthesis Maps for Data-Driven Urban Governance A Methodological Evaluation

Author:
Murat Güvenç
Publication Date:
11-2022
Content Type:
Working Paper
Institution:
Turkish Economic and Social Studies Foundation (TESEV)
Abstract:
Prof. Dr. Murat Güvenç explains the methodology of maps produced within the scope of projects carried out by TESEV since 2016, including The Empowering Civil Society and Municipalities for Data-Driven Participatory Gender Equality Policies.
Topic:
Governance, Sustainability, Digital Policy, Mapping, and Methodology
Political Geography:
Turkey and Middle East