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811. Strategic Autonomy and Long-term Innovation Competitiveness: On the Importance of Intellectual Property Rights for the Production of High-Value Medicines in the EU

Author:
Matthias Bauer
Publication Date:
02-2022
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
Europe’s political leaders have in recent months called for “European industrial autonomy”. Notions of dependency, sovereignty and resilience are now also referred to in policy proposals targeted at pharmaceutical companies, with “strategic autonomy” being the ultimate political ambition. The precise meaning of strategic autonomy in biopharmaceutical industries remains yet to be defined, although the current Pharmaceutical Strategy only refers to “open strategic autonomy” in the context of dependencies and supply chains. This is regrettable, as it does not take into account the importance of strategic research and innovation autonomy, allowing the EU to ensure a high degree of autonomy in innovative medicines and therapies. Current policy conceptions fail to account for businesses’ long-term international innovation competitiveness and Europe’s capability to attract investments in pharmaceutical research and cutting-edge production technologies. Present conceptions of strategic autonomy of Europe’s pharmaceutical industry disregard the fact that the EU is substantially lagging the USA and, increasingly, other parts of the word in pharmaceutical innovation. Clinical trials’ pipeline data shows that, in the future, EU Member States will very likely become increasingly dependent on innovative medicines that are temporarily protected by patents and market exclusivity rights held by non-EU rights holders in many therapeutic areas. This gives some urgency to Commission President von der Leyen ensuring that the European industry remains an “innovator” and “world leader” (Mission Letter by Commission President von der Leyen to Commissioner Kyriakides). The European Commission’s current understanding of sovereignty in pharmaceutical industries centres around one core theme: the reduction of dependencies from pharmaceutical suppliers outside the EU. At the same time, in an effort to achieve equitable access to affordable medicines and to foster research into unmet medical needs, it considers changes in the incentive structure for research in medicines for children and rare diseases, and new obligations for companies to achieve a more equitable access to medicines across Member States. While these objectives are generally merited, the Commission has established a narrow perspective about a concept that is aiming for ambitious long-term achievements for Europe’s pharmaceutical industry. The industry’s future innovation competitiveness and the capacity to develop and produce high value-added medicines, which should be at the core of any concept of long-term autonomy, have largely been ignored.
Topic:
Intellectual Property/Copyright, European Union, Innovation, Medicine, Strategic Autonomy, and Economic Competition
Political Geography:
Europe

812. After the DMA, the DSA and the New AI regulation: Mapping the Economic Consequences of and Responses to New Digital Regulations in Europe

Author:
Fredrik Erixon, Oscar Guinea, Erik van der Marel, and Elena Sisto
Publication Date:
04-2022
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
The European Union (EU) has pursued an ambitious agenda for regulating the digital economy, and it is now planning to establish a new package of regulations, including the Digital Markets Act (DMA), the Digital Services Act (DSA), and a new regulation of Artificial Intelligence (AI). These regulations build on an already established structure of digital and business regulations in Europe that is comparatively restrictive but that varies substantially between EU member states. In this study, we take stock of the new incoming regulations and review their effect on EU member states’ economies. More precisely, the paper considers how different countries in Europe will be affected by the regulations and how they should balance these effects with policies that help the economy to prosper. The European Commission’s economic analyses and impact assessments of the new regulations are thin. In fact, they are grossly inadequate for the purpose at hand: to better understand how the economy will change because of these regulations. The Commission identifies some benefits – for instance, positive competition outcomes from reduced network effects and more trust in AI-based goods and services. There are good reasons to think that these benefits are real. However, these regulations will also lead to new costs and have broader consequences for firms and resource allocation in the economy. Remarkably, the only costs identified in the impact assessments are direct compliance and administrative costs. Obviously, for far-reaching regulations such as the DMA, the DSA and the AI regulation, the main costs will not be the direct compliance burden, but the dynamic and downstream economic effects spurred by their implementation. This is because these regulations will prompt firms and markets to change their current and future behaviour: these changes are likely to define the most important costs. Furthermore, it is important to get a better idea of the distribution of these costs. It is highly unlikely that all sectors and countries will be affected equally. Some sectors will be more affected than others just as some countries will experience economic consequences that are bigger than in other countries. The question is: what factors will lead to the expected variation in the costs and consequences of the three new regulations? In this paper, we argue that two factors are important for grasping the distributive patterns of costs from digital regulations. First, the industry structure of a country is key. In the economy, countries have different endowment structures, and the modern European economy is defined by factor endowments such as data and digital competences. These factor endowments are exploited in the economy by firms and organisations that use them to create different comparative advantages. In turn, these advantages influence how a firm and a country market, sell and trade. Second, the existing structure of a country’s business and digital regulations will influence how an economy will respond to new and additional digital regulations. In fact, the restrictiveness of regulations that we know to impact on the digital economy vary substantially in the European Union – both between countries and between sectors. This variation will have consequences for the distribution of the costs of the three new regulations that are going to be implemented. This paper maps countries and country groups in the digital economy: their endowments, advantages, and flows. Especially, it evaluates the digital performance of countries in a number of key indicators and data points, and anchors the analysis in the academic literature. The paper points to some specific consequences of the DMA, the DSA and the AI regulation, and how different regulations will affect endowments structures and advantages. One key finding is that the distributive effects of the regulations will depend on size advantages and disadvantages. In short, small economies and small firms will likely carry a disproportionate part of the cost of new digital regulations. Furthermore, countries that have used their endowments to specialise in the digital economy will be more affected than others. On this score, there is a vast difference between EU countries. For instance, countries in Europe’s North – generally small, competitive, and open economies – will be most affected by these new regulatory burdens. Countries in Central and Eastern Europe will also be negatively affected, especially through risks of market exclusion effects for small firms. It is important for European policymakers to now consider how they can avoid that these new digital regulations continuously reinforce size advantages for big economies and big firms. There are some policy strategies that should be considered. First, regulations can be changed to better fit the overwhelming evidence that young, dynamic, and innovative firms drive a substantial part of productivity growth in the economy. Second, EU and national policymakers can pursue policies that make the transition into a more size-balanced economy easier, for instance by taxing and regulating small firms differently. Smaller economies can also be helped by having corporate taxes that are lower than in big economies. Third, EU and national policymakers can reform other digital and business regulations and make them less burdensome. Fourth, the EU can help to support the build-up of digital advantages in smaller economies.
Topic:
Markets, European Union, Regulation, and Digital Economy
Political Geography:
Europe

813. The New Wave of Defensive Trade Policy Measures in the European Union: Design, Structure, and Trade Effects

Author:
Fredrik Erixon, Oscar Guinea, Philipp Lamprecht, Vanika Sharma, and Renata Zilli
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
European Centre for International Political Economy (ECIPE)
Abstract:
This study undertakes a comprehensive review of proposed and adopted defensive trade policy instruments in the EU, with the purpose of better understanding their design, functioning, and implications. The study covers eight policy instruments at different stages of development. These are: Anti-Coercion Instrument (ACI), International Procurement Instrument (IPI), Carbon Border Adjustment Mechanism (CBAM), Foreign Subsidy Instrument (FSI), Corporate Sustainability Due Diligence (DD), Level Playing Field Provisions in the EU-UK Trade and Cooperation Agreement (LPF), Enforcement Regulation (ER), and the Deforestation Initiative (DI). It is understandable that the EU seeks both redressive and retaliatory measures in its trade policy. However, these measures would have the total effect of Europe producing more for itself and being less dependent on imports. This is a significant policy shift, because in their totality the defensive trade policies make the EU more inward-looking. This can lead to major negative consequences. An extensive distortion of trade and markets would reduce the gains from trade and prompt a reallocation of European resources. Notably, the EU is a larger supplier of goods and services than it is a buyer, and an inward-looking policy that leads to retaliation from EU’s trading partners can harm its exports and trade surplus. There are also potential strategic consequences that could follow, and their importance has increased considerable as a result of the Russian war against Ukraine. Under these measures, the EU could introduce new trade frictions with friends and allies, and with countries that the EU seeks closer cooperation with to provide for a safer geopolitical environment. For each of these defensive measures, the study takes an extensive look at the objectives of the instruments, their legality, proportionality, and subsidiarity, the working of the instruments and the division of labour between institutions, as well as their enforceability in conjunction with existing multilateral and bilateral rules affecting the EU. It also attempts to capture the impact and potential for retaliation for the EU and its partners as a result of the implementation of the instruments. The study highlights the areas where the instruments lack clarity, particularly in the implementation of the instrument, the division of labour between the EU and EU member states, and the compliance of the instruments with WTO rules and bilateral FTA provisions. The instruments share some general characteristics. Many of the instruments have been created as retaliatory measures against coercion and unfair trade practices by partner countries. Very often, the partner countries most affected by the instruments are also the same. The United States, China, Russia, the UK, and Turkey are likely to be on the receiving end of the instruments due to the significant volumes of trade and economic interdependence with the EU, but also because they either do not follow the same trade rules as the EU, or the EU wants to maintain with them the current level of competitiveness. Most instruments also use restrictions to the EU market as the main policy lever. The objective is not just about creating an equal playing field but also ensuring that the rest of the world follows EU rules. Particularly, the EU aims at regulating non-EU companies directly and unilaterally through EU policies, which increases the risk of retaliation against the EU. At the same time, there are also important areas of departure in the specifics of each instrument, as illustrated by the varying objectives, measures, compatibility with international obligation, affected sectors, and whether the measures apply automatically or at the discretion of the EU.
Topic:
Defense Policy, Political Economy, European Union, and Trade
Political Geography:
Europe

814. The Role of Non-Pecuniary Considerations: Location Decisions of College Graduates from Low Income Backgrounds

Author:
Yifan Gong, Todd Stinebrickner, Yuxi Yao, and Ralph Stinebrickner
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Centre for Human Capital and Productivity (CHCP), Western University
Abstract:
We examine the initial post-college geographic location decisions of students from hometowns in the Appalachian region that often lack substantial high-skilled job opportunities, focusing on the role of non-pecuniary considerations. Novel survey questions allow us to measure the full non-pecuniary benefits of each relevant geographic location, in dollar equivalents. A new specification test is designed and implemented to provide evidence about the quality of these non-pecuniary measures. Supplementing perceived location choice probabilities and expectations about pecuniary factors with our new non-pecuniary measures allows a new approach for obtaining a comprehensive understanding of the importance of pecuniary and non-pecuniary factors for location decisions. We compare this approach to alternative expectations-based approaches. We also combine the non-pecuniary measures with realized location and earnings outcomes to characterize inequality in overall welfare.
Topic:
Income Inequality, Welfare, Higher Education, Data, and Location Choice
Political Geography:
North America, United States of America, and Appalachia

815. A Task-Based Theory of Occupations with Multidimensional Heterogeneity

Author:
Sergio Ocampo
Publication Date:
01-2022
Content Type:
Working Paper
Institution:
Centre for Human Capital and Productivity (CHCP), Western University
Abstract:
I develop an assignment model of occupations with multidimensional heterogeneity in production tasks and worker skills. Tasks are distributed continuously in the skill space, whereas workers have a discrete distribution with a finite number of types. Occupations arise endogenously as bundles of tasks optimally assigned to a type of worker. The model allows us to study how occupations respond to changes in the economic environment, making it useful for analyzing the implications of automation, skill-biased technical change, offshoring, and worker training. Using the model, I characterize how wages, the marginal product of workers, the substitutability between worker types, and the labor share depend on the assignment of tasks to workers. I introduce automation as the choice of the optimal size and location of a mass of identical robots in the task space. Automation displaces workers by replacing them in the performance of tasks, generating a cascading effect on other workers as the boundaries of occupations are redrawn.
Topic:
Occupation, Automation, Skills, and Tasks
Political Geography:
Global Focus

816. Policy Paper: Considerations of condemnation and balance of Palestine’s position on the war in Ukraine

Author:
Palthink
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Pal-Think For Strategic Studies
Abstract:
In classic wars, we waited for the military result, and then we formed a political response. In new wars, there is not a final resolution; there is only the stronger party imposing its conditions. Additionally, there is also geographical control, regime projection, or behavior modification goals. Russia is seeking to maintain its national security and enhance its regional and international position. It has a deep fear that NATO will expand, bringing weapons to its border with Ukraine. Now that the first shock of the war has receded, the world realizes that the war will not exceed Ukraine’s borders. Russia has given indications that it will limit itself to the minimum that preserves its national security by preventing Ukraine from joining NATO. Global concern about the consequences of war is high. People are wondering if it will continue or stop. Additionally, sanctions have been announced. In this context, developing and poor countries are affected by conflict because they depend on foreign aid. Their positions on the war will determine where they are positioned, and how the political, economic and security consequences will affect them. Trying to show a neutral position would not endear them to the great powers. On the face of it, it may seem to be a war fought on Ukrainian lands only, but it is a world war of influence. The survival of developing nations depends on the strength of the international community and the extent to which it supports these nations in the light of political realism, not because of their strength and resources. Many places cannot survive without traditional international support.
Topic:
International Relations, Defense Policy, Military Strategy, and Conflict
Political Geography:
Europe, Ukraine, Middle East, and Palestine

817. Position Paper: Municipal elections in the Westbank: a first step towards inclusive democracy.

Author:
Palthink
Publication Date:
03-2022
Content Type:
Working Paper
Institution:
Pal-Think For Strategic Studies
Abstract:
PalThink for Strategic Studies followed the second phase of the electoral process in its second phase with great interest. It was conducted in eleven governorates in the West Bank, including occupied Jerusalem, and was held in fifty local municipalities. Two-hundred thirty-four lists competed in the elections. According to the Chairman of the Central Election Commission, Hanna Nasser, who spoke at the morning press conference in Al-Bireh city on March 26, 2022, independent parties comprised 64.4% of the candidates, while there were 35.6% party lists. The overall turnout was 53% of those eligible to vote despite the challenges of holding regular and permanent elections in all Palestinian areas, sectors, and institutions.
Topic:
Elections, Democracy, Local, Voting, and Participation
Political Geography:
Middle East and Palestine

818. New Policy Papaer : The Consequences of No General Elections in Palestine

Author:
Palthink
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
Pal-Think For Strategic Studies
Abstract:
This paper tracks the disastrous repercussions of the political and legal absence of Palestinian elections, the distortion of the work of the three authorities as a result of the suspension of some provisions of the Basic Law and the dissolution of the Legislative Council. In addition, the absence of elections in the Palestinian economy is due to the duplication of public politics in both the West Bank and the Gaza Strip, and their direct effects on the general budget considering the lack of planning and oversight, which has affected the level of transparency and accountability. All this has directly affected Palestinian society in all its aspects and has increased tensions such as demonstrations and strikes, which have increased the situation of impunity and crimes without accountability among segments of society. At the international level, the absence of elections and the negative renewal of legitimacy have affected the political project and the international community’s advocacy of the Palestinian cause, considering the rapid global changes and transformations. In the end, the policy paper outlined four main trends in promoting the chances of elections in Palestine.
Topic:
Elections, Democracy, Voting, and Participation
Political Geography:
Middle East and Palestine

819. Powered by Twitter? The Taliban's Takeover of Afghanistan

Author:
Laura Courchesne, Bahar Rasikh, Brian McQuinn, and Cody Buntain
Publication Date:
06-2022
Content Type:
Working Paper
Institution:
Empirical Studies of Conflict Project (ESOC)
Abstract:
On August 15, 2021, a spokesperson of the Islamic Emirate of Afghanistan, the Taliban’s self- proclaimed state, declared on Twitter: “With the help of God, and the support of the nation, we are now in control of all parts of the country. We would like to congratulate our nation on this big achievement.” After 20 years of conflict with U.S. and NATO coalition forces, no one predicted the speed with which the Taliban would consolidate power and precipitate the collapse of the Afghan government and military. Presenting research conducted by the newly established Centre for Artificial Intelligence, Data, and Conflict (CAIDAC), this report explores social media’s central role in the Taliban’s takeover of Afghanistan and the strategies used by the group to manipulate international and domestic audiences. It examines the Taliban’s social media strategy on Twitter throughout their takeover of Afghanistan, which culminated in the storming of Kabul on August 15, 2021. Specifically, we studied the activity of 63 accounts claimed by the Taliban leadership, spokespersons, and avowed members from April 1 to September 16, 2021. These accounts had more than 2 million followers on Twitter in September 2021. As of May 8, 2022, Taliban content reaches more than 3.3 million accounts. We also examined the broader Taliban ecosystem, which included more than 126,000 Twitter accounts that either retweeted Taliban content or posted content subsequently shared by the Taliban’s core network. We found clear patterns in the group’s communication strategies, visual imagery deployed, and the timing and content of social media activity and events on the ground.
Topic:
NATO, Terrorism, Taliban, Social Media, and Political Extremism
Political Geography:
Afghanistan

820. UN Peacekeeping and the Protection of Civilians from Sexual and GenderBased Violence

Author:
Jenna Russo
Publication Date:
05-2022
Content Type:
Working Paper
Institution:
International Peace Institute
Abstract:
While all UN multidimensional peacekeeping operations are mandated to prevent and respond to conflict-related sexual violence (CRSV), the missions in the Democratic Republic of the Congo (DRC) and South Sudan, as well as in the Central African Republic, are also mandated to protect civilians from sexual and gender-based violence (SGBV). While SGBV is often used and understood interchangeably with CRSV, SGBV is broader in scope, as it encompasses nonsexual forms of gender-based violence and need not be connected to armed conflict. This report examines how missions are implementing their mandates to protect civilians from SGBV, including CRSV, and assesses good practices, gaps, and opportunities for improvement. The report draws on lessons learned from the UN missions in South Sudan (UNMISS) and the DRC (MONUSCO). It considers how the complexities of preventing and responding to SGBV necessitate a whole-of-mission approach to the protection of civilians (POC) that encompasses not only physical protection from violence but also activities that address cultural norms related to gender, strengthen the rule of law, and enhance women’s participation. This report thus considers a range of protection activities carried out by missions, as well as structures and processes that promote the effective integration of gender into mission planning and activities. The paper concludes with several recommendations for UN peacekeeping missions, the UN Department of Peace Operations (DPO), and member states on the Security Council to strengthen work on SGBV: Provide clear guidance on what it means to protect civilians from SGBV as part of a peacekeeping mandate; Systematically and meaningfully integrate gender advisers and women’s protection advisers into POC planning at the strategic and operational levels; Include gender-sensitive indicators in monitoring and reporting systems and prioritize the gathering of sex-disaggregated data; Take a holistic approach to protecting civilians from violence, recognizing the risks of armed responses and prioritizing partnerships; and Continue to combat impunity and engage with governments and armed groups to promote accountability.
Topic:
Security, Peacekeeping, Women, Gender Based Violence, Sexual Violence, Peace, Civilians, and Protection
Political Geography:
Global Focus