Borders and breakthroughs: How geopolitics is reshaping corporate innovation

AS INNOVATION becomes the battlefield of geopolitical tensions, corporate nationality is increasingly defining which firms can access new knowledge, innovate, and find new sources of competitive advantage. When national security considerations are high, the key question defining a company’s innovation output is this: Where are you from?

The answer to this question drives the reaction of governments, regulators, and other stakeholders. The main concern is that resources that contribute to a global company’s innovation efforts – and the innovation itself – would be exploited by the company’s home country to gain an advantage in geopolitical competition. As a result, companies that come from perceived rival countries face challenges and hostilities when undertaking global innovation.

Techno-nationalism and keeping innovations at home

Techno-nationalism broadly alludes to the idea of retaining a domestic technological edge in sectors that are key to national security. In these sectors, a key concern is that foreign firms do not undermine domestic innovation efforts or gain a relative advantage.