Value Creation in the Geoeconomic Transformation of the 5G and 6G Era

5G and 6G are more than communications infrastructures: they provide a foundation for data- and software-driven value creation, productivity growth, and welfare. In global R&D related to 5G and 6G, leadership has become increasingly concentrated in the United States and Asia, while Europe’s share has declined, especially in the upper layers of value creation driven by data and software. Geopolitical fragmentation reduces cross-border innovation collaboration and the diversity of international innovation networks. EU digital regulation strengthens consumer rights and privacy protection but also raises compliance costs for firms and increases innovation costs, particularly in data-intensive sectors. A central policy challenge is to balance security objectives with the benefits of data and information flows, and to target security and resilience measures on a risk-based basis so that opportunities for international innovation collaboration and knowledge use are preserved. Public policy should improve the conditions for the movement and use of data, including across borders, and strengthen incentives for firms to invest in the main growth areas of value creation: data, software, and semiconductors.