Wind and wires

Europe's tech capabilities and global competitiveness are often overlooked in policy debates on the global tech race. The European Union (EU) is commonly portrayed by international media as lagging behind the United States and China. In some technologies, this depiction of competitive weaknesses is warranted: the EU does not boast household-name digital champions such as Google or Alibaba, nor a standout global leader in consumer electronics and software comparable to Microsoft or Huawei.

But in other technologies, such as wind power and fifth-generation mobile networks, the EU is in the race – and leading it. In a new report for the Hinrich Foundation, Luke Patey examines European competitiveness in critical technologies. While the report points out the challenges Europe faces from rising competition – China in particular – it diverges from analysis focusing on the EU’s tech deficiencies. Instead, it places a spotlight on what the EU can do to maintain the global leadership it has already achieved.

In wind & mobile technology, Patey argues that the EU must maintain a technological cutting-edge, strengthen and expand European industrial capacities, and diversify international partners to produce & access these technologies. Russia’s Ukraine invasion heightens the urgency for the EU to reduce its strategic dependences. In critical technologies, rising competition from China can create new vulnerabilities. To enjoy the economic benefits of boasting the world’s top wind and mobile technology companies, Patey calls on EU leaders to balance the profit maximization of large corporations with building up and maintaining jobs, income, and taxes from green supply chains. The EU should not pursue decoupling from China. But it is necessary to see the Asian economic landscape for what it is rather than what some European political and corporate leaders would like it to be. Time and energy spent on incentivizing diversification into India, Southeast Asia, and other emerging countries and regions may offer more fruitful outcomes than entrenched policy differences in negotiations with China.