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FIW-PB 61 Innovation, industrial and trade policies for technological sovereignty

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  • Jürgen Janger

Abstract

Interrupted supply chains in the wake of COVID-19 and Russia’s attack on Ukraine have highlighted the geopolitical risks of sourcing critical raw materials and products from a small number of authoritarian countries. The EU has initiated a flurry of activities to reduce unilateral dependencies, witnessed by trade, innovation and industrial policy instruments, such as the IPCEIs, the Chips Act and new anti-subsidy measures. This policy brief focuses on fostering technological sovereignty to insure against risks from international trade specifically in critical general purpose technologies. Bundles of innovation, industrial and trade policies enter three consistent policy mixes according to the distance to the technological frontier: for emerging technologies, the frontier policy mix emphasises an improvement in general framework conditions such as a more integrated European capital market. Technologies which lag behind the frontier benefit from coordinated support within the catch-up policy mix, while technologies at risk of losing their position at the frontier fall within the remit of the defensive policy mix.

Suggested Citation

  • Jürgen Janger, 2024. "FIW-PB 61 Innovation, industrial and trade policies for technological sovereignty," FIW Policy Brief series 61, FIW.
    • Handle: RePEc:wsr:pbrief:y:2024:m:01:i:61
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    References listed on IDEAS

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    1. Pietro Moncada-Paternò-Castello & Nicola Grassano, 2022. "The EU vs US corporate R&D intensity gap: investigating key sectors and firms [A primer on innovation and growth]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(1), pages 19-38.
    2. Melitz, Marc J., 2005. "When and how should infant industries be protected?," Journal of International Economics, Elsevier, vol. 66(1), pages 177-196, May.
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    Cited by:

    1. Jürgen Janger & Julia Bock-Schappelwein & Werner Hölzl & Agnes Kügler & Bernhard Dachs & Katja Lamprecht & Cornelia Reiter & Karl-Heinz Leitner, 2025. "Evaluierung der FTI-Strategie 2030 zur Hälfte der Laufzeit," WIFO Studies, WIFO, number 57605085.
    2. Sergio Mariotti, 2025. "“Open strategic autonomy” as an industrial policy compass for the EU competitiveness and growth: The good, the bad, or the ugly?," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 52(1), pages 1-26, March.
    3. Susanne Bärenthaler-Sieber & Michael Böheim & Elisabeth Christen, 2026. "FIW-PB 73 Austria's Economic Defence as an Integral Part of a European Security Strategy," FIW Policy Brief series y:2026:m:02, FIW.

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