Why digital infrastructure is a cornerstone for the burgeoning growth markets

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The recent media discussions surrounding the origins of semiconductor chips used in the Huawei Mate 60 Pro handset have intensified the global conversation about the need for technological sovereignty.

This device represents a burgeoning symbol of the steadfast journey towards technological self-sufficiency. Amid economic uncertainty, there is an aspiration that these advanced hi-tech devices will spur domestic consumer consumption, highlighting the critical importance of national technological sovereignty in the modern era.

Digital infrastructure

The drive towards self-reliance in technology underscores the broader, global imperative for nations to develop robust digital and blockchain infrastructures, pivotal in enhancing security, innovation and economic resilience.

Technological sovereignty underscores, the imperative for comprehensive control across three fundamental layers: the physical layer surrounding infrastructure and technology, the code layer covering standards, rules and design, and the data layer relating to ownership, flows and utilisation. It aims to shield individuals by enhancing data protection, bolster the competitiveness of domestic enterprises through local content requirements or diverse industrial policy considerations, and safeguard strategic public interests.

Digital governance

In the realm of digital governance, especially data governance, escalating tensions are palpable. The critical question is who lays the foundation for the global digital economy’s basic infrastructure, extending even to third countries worldwide. Amid the concerted efforts by various economic, innovation and technology policies to establish economic sovereignty, the allure of technological sovereignty is intensifying.

This attraction parallels the exploitation of raw materials and the strategic positioning of economic actors in global production and value chains.

Technology sovereignty is intrinsically intertwined with innovation sovereignty, serving as a vital conduit to achieving the latter. Achieving both short and long-term economic objectives relies on innovation sovereignty, necessitating the cultivation of local technological advancements.

The dual attainment of technology and innovation sovereignty is realised by creating pertinent scientific and technological knowledge. However, it’s crucial to acknowledge that such knowledge holds tangible economic impact only when supported by essential resources and preconditions, including a robust regulatory framework and substantial infrastructure.

Developing nations

Numerous developing nations grapple with the challenge, of independently constructing digital hardware and software.

The predominant advantage within the digital economy for these countries lies in adeptly harnessing available technologies to amplify output and productivity across agricultural and manufacturing value chains. Nevertheless, realising this advantage necessitates tailored digital industrial policies that encourage local innovation and stimulate demand within the domestic private sector, considering the hurdles of absorptive capacity.

The evolution of digital infrastructure stands as a cornerstone for the burgeoning growth markets in the realm of technological sovereignty.

The advent of Web3 and blockchain technologies presents an opportunity in this endeavour. As decentralised and open-source platforms, they provide robust frameworks that can catalyse comprehensive development.

The technology’s inherent decentralisation emboldens the enhancement of regulatory frameworks, reinforcing information security and ensuring transparency via the secure dissemination of encrypted data within peer-to-peer networks. In the quest to optimise the manifold benefits of blockchain for surmounting developmental obstacles, the expeditious establishment of a supportive environment is crucial for developing nations.

This commitment includes the meticulous crafting of an organisational structure paired with the augmentation of digital infrastructure. Such an initiative is vital to unlocking the economic prospects offered by blockchain, all while navigating the potential risks within the expanse of the digital economy.

The author is managing partner, Agile Dynamics.

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