Expertise
Geopolitics
Economic Security & Competitiveness
Trade & investment
Innovation &
IP rights
Geopolitics
Companies and governments are all operating within the confinements of geopolitical realities. China may be the most attractive economic market, but also politically increasingly uncertain for a US or EU company. What is the geopolitical impact of the Houthi rebel attacks at the Bab el-Mandeb strait and whose competitiveness is affected most? What about the geopolitical implications of the war in Ukraine and the ensuing sanctions – trade and investment patterns are shifting. Drought has affected the water levels needed for operating the Panama Canal, leading to increased constraints on vessel size and capacity of this global chokepoint. But contrary to the dominant news, these geopolitical changes do not only constitute threats. Some may be large opportunities for agile companies to increase their competitiveness and commercial performance.
Economic Security & Competitiveness
Over the past decade, global fragmentation has increased. Global shocks like Brexit, the COVID-19 pandemic, the US-China trade war and the War in Ukraine have led to ruptured global value chains and an increased focus on reducing dependencies. Countries are more than ever concerned with their economic security and – linked to that – competitiveness. If there is a high degree of dependence on imports of certain (intermediate) products coming from a very small number of global suppliers, crucial inputs or components for products may be jeopardised. This could impact the degree to which key policy objectives can be met and the global competitiveness and level playing field for companies. How should large companies navigate these rapid changes and adapt to the new reality where economic security may trump trade and investment.
Trade & investment
Trade and investment are the two cornerstones of international economic relations, having been responsible for unprecedented increases in welfare and economic prosperity globally. Trade policy has led to not only the global multi-lateral trading system, but also – in addition – to a myriad of bilateral trade and investment agreements. These Agreements provide long-term legal certainty for companies and improve market access, but they are also viewed increasingly in the light of their social, environmental and human rights effects. The ‘trade and investment’ team at KORDENA has specialised in the interface between the public and private sector regarding trade & investment – focusing on how companies can leverage international trade agreements for competitiveness and security of their supply chains.
Innovation & IP Rights
In order to achieve key policy objectives to tackle climate change, ensure accessible healthcare for patients, enable a digital transformation, and reduce dependencies, innovation is key, especially in the long-run. For example, for the EU there is no possibility to effectively tackle climate change through the Green Deal (via decoupling, reducing emissions, etc.) or to ensure access of innovative medicines, or to pursue a digital transformation without innovation. For a large company, leading in chip technologies, that lead is continuously being challenged from within the industry and from the side of other industries – the market is continuously in flux. Vessels in 20 years from now need to run on methanol or hydrogen, technologies that are now being tested but that are still in their infancy. With an ageing population, unmet medical needs of patients remain and only through innovation in new and innovative medicines can we hope to help patients in the future. For this innovation, through R&D, is key. A strong system of intellectual property rights (IPR) is vital to incentivise R&D and innovation by the private sector – where risk-taking is part of every day life (unlike for the public sector).
