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The Government is pursuing a no deal Brexit for the worst possible reason: to direct technology markets.
As I explained for @CapX, state R&D schemes and bailouts reward unproductive companies who are good at applying for grants, not innovating. https://capx.co/why-british-arpa-is-destined-to-fail/
As I explained for @CapX, state R&D schemes and bailouts reward unproductive companies who are good at applying for grants, not innovating. https://capx.co/why-british-arpa-is-destined-to-fail/
1. “One figure with intimate knowledge of the negotiations and how they link to domestic policy tells me ‘state aid is critical if you are going to try and shape markets in technology’” https://www.thetimes.co.uk/article/johnson-sees-no-deal-as-better-than-surrender-t5sf30chw
If anyone thinks the British state — that has behaved miserably in response to Covid — has the ability to pick technology winners have I got news for you.
2. “The concern is that unless the UK can do that, it will end up a technological vassal — reliant on either the United States or China, both of whom are unafraid to use the state to shape these markets.”
This is insane technological autarky. Of course we are going to be mutually interdependent on global technology.
Imagine how awful everything would be if we tried to just use British-made: no iPhones, no Zoom, no Samsung TVs, no Amazon, no Microsoft Windows, etc.
Imagine how awful everything would be if we tried to just use British-made: no iPhones, no Zoom, no Samsung TVs, no Amazon, no Microsoft Windows, etc.
3. “Britain is going to use it to try to spur the creation of domestic technology sectors that can compete on a global level”
What, like the bankrupt OneWeb satellite company? That the Government has invested over $500 million and yet is unlikely to be of any use: “its low-earth-orbit satellites may be unable to provide accurate location signals” https://www.telegraph.co.uk/technology/2020/06/26/space-officials-warn-government-500m-satellite-push-could-fail/
An investment that even BEIS offices advised against: https://www.bbc.co.uk/news/business-53506960
An investment that now needs another £1 billion to stay afloat. Meaning the UK’s stake could be diluted. https://www.telegraph.co.uk/technology/2020/08/16/taxpayer-backed-oneweb-needs-1bn-cover-losses/
Clearly the Government is just absolutely fantastic at picking technological winners.
Taxpayer money will NEVER be wasted.
Taxpayer money will NEVER be wasted.
