by From Maria Alejandra Madi Throughout 2016, many countries around the world keep on competing for market share in high-wage, innovation-based industries. Indeed, these countries have turned to “innovation mercantilism” by imposing protectionist policies to expand domestic production and exports of high-tech goods and services. In this setting, innovation mercantilist policies are being oriented to high-value tech sectors such as life sciences, renewable energy, computers and electronics, and Internet services. There are new “beggar-thy-neighbor” strategies adopted by nation-states, such as forcing companies to transfer the rights to their technology or forcing them to relocate their production, research and development (R&D), or data-storage activities. These strategies aim at both replacing imports with domestic production or promoting exports. At this respect, the 2016 Information Technology and Innovation Foundation annual report shows that: China introduced a new cybersecurity law so as to impose local data-storage requirements, and forced intellectual property and source code disclosures. This country also introduced new cloud-computing restrictions so as to exclude and prevent foreign firms from operating in the Chinese market. Germany introduced forced local data-storage requirements as part of a new telecommunications data law.
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from Maria Alejandra Madi
Throughout 2016, many countries around the world keep on competing for market share in high-wage, innovation-based industries. Indeed, these countries have turned to “innovation mercantilism” by imposing protectionist policies to expand domestic production and exports of high-tech goods and services.
In this setting, innovation mercantilist policies are being oriented to high-value tech sectors such as life sciences, renewable energy, computers and electronics, and Internet services. There are new “beggar-thy-neighbor” strategies adopted by nation-states, such as forcing companies to transfer the rights to their technology or forcing them to relocate their production, research and development (R&D), or data-storage activities. These strategies aim at both replacing imports with domestic production or promoting exports.
At this respect, the 2016 Information Technology and Innovation Foundation annual report shows that:
- China introduced a new cybersecurity law so as to impose local data-storage requirements, and forced intellectual property and source code disclosures. This country also introduced new cloud-computing restrictions so as to exclude and prevent foreign firms from operating in the Chinese market.
- Germany introduced forced local data-storage requirements as part of a new telecommunications data law.
- Indonesia introduced forced local data-storage requirements for Internet-based content providers. The country also introduced a patent law amendment in order to force local production and technology transfers.
- Russia introduced forced local data-storage requirements and encryption-key disclosure as part of a new telecommunications data law. The country also introduced new government procurement rules in order to ban the purchase of foreign software.
- Turkey introduced a new data-protection law that, as a matter of fact, forced local data storage.
- Vietnam introduced forced local data-storage requirements for Internet-based content providers. The country also introduced a new network-security law that forces disclose encryption keys and source codes a condition of market access. read more