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The Global 5G/6G Race: Regulation, Markets, and Innovation Dynamics

Author

Listed:
  • Koski, Heli
  • Rouvinen, Petri

Abstract

This report examines the global race for 5G and 6G leadership through a comparative analysis of regulation, R&D investment, patenting, and the rollout of next-generation networks and services across Europe, the United States, and Asia. The United States leads in digital services and semiconductors, while Asia dominates telecommunications infrastructure and hardware. Europe’s strengths lie in telecom equipment and specific semiconductor niches but remain too narrow to offset weaknesses in digital platforms and data-driven services. Patent data highlight Asia’s stronger position in 5G technologies, while R&D spending confirms U.S. leadership in areas less visible in patent counts yet vital for long-term innovation and value creation. Europe performs relatively well in 5G network deployment and services in some member states but lacks the scale in digital services and innovation ecosystems needed for global leadership. The EU’s comprehensive digital regulation has particularly strengthened privacy protection but risks constraining innovation. To remain a meaningful player in the 6G era, Europe must align its regulatory ambitions with its production and innovation capacities and its investment incentives. Without such recalibration, well-intentioned regulation may ultimately erode the competitiveness it seeks to protect.

Suggested Citation

  • Koski, Heli & Rouvinen, Petri, 2025. "The Global 5G/6G Race: Regulation, Markets, and Innovation Dynamics," ETLA Reports 170, The Research Institute of the Finnish Economy.
    • Handle: RePEc:rif:report:170
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    References listed on IDEAS

    as
    1. Mert Demirer & Diego J. Jiménez Hernández & Dean Li & Sida Peng, 2024. "Data, Privacy Laws and Firm Production: Evidence from the GDPR," NBER Working Papers 32146, National Bureau of Economic Research, Inc.
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    3. Mert Demirer & Diego Jimenez-Hernandez & Dean Li & Sida Peng, 2024. "Data, Privacy Laws and Firm Production: Evidence from the GDPR," Working Paper Series WP 2024-02, Federal Reserve Bank of Chicago.
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    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications
    • L8 - Industrial Organization - - Industry Studies: Services

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