Geopolitical undercurrents are causing upstream supply chains in the EV sector to fragment into localized ecosystems in China, Europe, and North America. The growing nexus between semiconductors and EVs will follow a similar pattern. Techno-nationalism will increase the likelihood of more restrictions on dual-use technologies, presenting complex challenges to global trade.
Trade plays key roles in fostering innovation, both as a conduit for the diffusion of global technology and knowhow that facilitates innovation in developing nations and by giving innovative companies access to large global markets through which they can recoup their upfront investments in R&D and generate revenues to finance future generations of innovation. GTIPA-member reports here examine trade-innovation linkages.
