OECD Science, Technology and Innovation Outlook 2023 9
Geopolitical tensions are contributing to a growing ‘securitisation’ of STI policy Technological leadership has long underpinned the economic prosperity and security of OECD countries. Leadership has inevitably involved some measure of protection of technologies from strategic competitors, but such efforts today are complicated by the interdependent and multinational nature of contemporary technological innovation. Many technologies have diverse origins and rely heavily on other technologies with owners, users and stakeholders from multiple countries. Many also have dual-use (civilian and military) potential.
China has accumulated critical capabilities to innovate at technological frontiers As a rising power, China is faced with an imperative to acquire and develop technologies to climb the global value chain and escape the middle-income trap. It has accumulated formidable technological capabilities over the last few decades and is already a market leader in areas like 5G and at the forefront in others. It has also accelerated innovation in technology areas that are critical to sustainability transitions, including photovoltaics, wind turbines and electric vehicle batteries. These successes are underpinned by significant growth in R&D expenditures (Figure 7) and researchers (Figure 8), which provide China with the critical mass to innovate at technological frontiers.