The possibility of technology decoupling between China and the West is a massive challenge to investment decision-taking by companies and governments in developed countries. This was one of the conclusions reached during “Technology and innovation: key factors in deflation and productivity”, the third conference in the series entitled “The return of geopolitics to board agendas” organized by the Esade Center for Corporate Governance and EsadeGeo.

According to Emma Fernández, an independent board member and also a member of the Advisory Council of the Esade Center for Corporate Governance, “Europe is no longer the leader it used to be when rolling out mobile telephone networks,” and this, in addition to its decreased productivity, “obliges the countries in Europe to invest more in technology.” This is an increasingly complicated task because “in the long term we’re highly likely to have two divergent technological ecosystems.” In fact, “we’re witnessing an upsurge in the ‘techno-nationalism’ that triggered ‘cold war 2.0’ between China and the United States, something that will greatly impact Europe.”

Raquel Jorge, researcher at the Real Instituto Elcano, agreed with this assessment, although she warned that “we talk about the technology race very lightly, but it’s not a matter of which bloc leads which technology but which of the two blocs has the monopoly for that technology, i.e. which one can transform it into a product and sell it.” “As regards the tech capabilities of the European Union,” she added, “in some technologies, such as A.I. and cybersecurity, it is competitive; in others, such as data servers and new batteries, the EU is at the forefront; but in others, in which it has barely minimal capabilities, it needs public-private collaboration.” “Even so, we have plenty of opportunities in the realms of blockchain, data spaces, virtualization and cybersecurity for critical infrastructures and the public sector,” concluded the technology and globalization expert from the Real Instituto Elcano.

Quantum computing and its energy requirements

“Not all technologies are the same,” confirmed Carlos López Blanco, president of the ESYS Foundation and a member of the advisory council to Telefónica Spain. He emphasized that “the terrain where global tech hegemony is being battled out is not A.I. but quantum computing, in which the US invests US$ 3.3 bn a year.” “Europe,” added the Esade Law School professor, “can no longer aspire to lead but can aspire to play an important role in regulation and the digitalization of its economy.” This concept, which López explained should not be confused with the ‘digital economy’, “can lead to companies demanding increasingly complex technology, there being a market for that technology, and it being produced in Europe.

María Sicilia, independent board member and Head of Investment at Enagás, pointed out that most technologies, particularly quantum technology, “need a lot of energy, and a big part of the problem of being competitive in this regard is its price. For example,” she explained, “Europe pays seven times more than the United States for gas and three times more than China for electricity, although Spain is in a privileged position in that respect.” “Here in Spain, we’ve managed to pull through the crisis and emerge in a more advantageous position than Germany. Let’s see if we’re also able to attract this technology and industry, underpinned by green energy.” “But the green shift won’t be easy or reduce geopolitical tensions,” she concluded, in reference, amongst things, to the reduction in imports of fossil fuels and the demand for minerals such as lithium and rare earths, both of which are controlled by the same players.