Something has been nagging at me.
I have been inherently lazy in my discussions about State Aid and Brexit.
The gist of my tweets - and those of many others - is "ha ha, you think this UK Government could pick a tech winner? Dream on!"
I have been inherently lazy in my discussions about State Aid and Brexit.
The gist of my tweets - and those of many others - is "ha ha, you think this UK Government could pick a tech winner? Dream on!"
Now that may not be wrong. But it is not enough. It is not adequate.
I& #39;d like to unpack this a little, and I& #39;d like my followers to help unpack it too.
I& #39;d like to unpack this a little, and I& #39;d like my followers to help unpack it too.
Let us assume for a moment that the UK wanting greater control on State Aid is not for malevolent purposes, and the idea that the UK could be a world leader in AI or biotech or other tech sectors is a noble aim, and that *government intervention* could help towards this end.
The leads to two logical further questions:
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> Are there cases in other countries where state backing of tech industries worked, and these could serve as a model for the UK?
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> If so, is there anything in EU State Aid rules that would stop the UK answering question
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1">
I don& #39;t think either the USA or China help us answer question
https://abs.twimg.com/emoji/v2/... draggable="false" alt="1️⃣" title="Tastenkappe Ziffer 1" aria-label="Emoji: Tastenkappe Ziffer 1"> - the UK does not have the USA& #39;s military-industrial complex that was at the root of a lot of what Silicon Valley did at the start. And the UK will not emulate China& #39;s surveillance-authoritarian-capitalist model.
So what else is there? Are there examples of medium sized countries that have - through state intervention - done something right in this regard? South Korea (but Samsung, Daewoo, LG...?), Taiwan, perhaps the Nordics? Canada?
And then to
https://abs.twimg.com/emoji/v2/... draggable="false" alt="2️⃣" title="Tastenkappe Ziffer 2" aria-label="Emoji: Tastenkappe Ziffer 2"> - the UK has traditionally been much more reluctant to use State Aid than plenty of other EU countries, where it is mostly used to help declining industries to restructure - and the EU& #39;s State Aid regime has been flexible enough to allow this.
Two semi-tangents:
@williamnhutton has a proposal that the UK Government could invest in ARM but I& #39;ve not seen any more about that https://www.theguardian.com/commentisfree/2020/aug/09/this-tech-giant-up-for-sale-is-a-homegrown-miracle-it-must-be-saved-for-britain
The">https://www.theguardian.com/commentis... Times reports how the tech sector in the UK is in good health *anyway* https://www.thetimes.co.uk/article/tech-firms-blaze-trail-with-huge-jobs-drive-jbr507j07">https://www.thetimes.co.uk/article/t...
@williamnhutton has a proposal that the UK Government could invest in ARM but I& #39;ve not seen any more about that https://www.theguardian.com/commentisfree/2020/aug/09/this-tech-giant-up-for-sale-is-a-homegrown-miracle-it-must-be-saved-for-britain
The">https://www.theguardian.com/commentis... Times reports how the tech sector in the UK is in good health *anyway* https://www.thetimes.co.uk/article/tech-firms-blaze-trail-with-huge-jobs-drive-jbr507j07">https://www.thetimes.co.uk/article/t...
Anyway, so those are the things I would like to unpack, and indeed those are the questions people like @peston ought to be unpacking too, rather than regurgitating the government& #39;s plans: https://www.itv.com/news/2020-09-07/the-reason-why-boris-johnson-is-jeopardising-an-eu-free-trade-deal">https://www.itv.com/news/2020...
I& #39;d value thoughts from @DavidHenigUK @SamuelMarcLowe @GeorgePeretzQC about issues raised in this thread - is there some "Would what they& #39;re trying to do even work?" piece somewhere that can explain this in a way that doesn& #39;t just assume Number 10 is lazy or malevolent?
/ends
/ends