Tuesday, April 20, 2021, 11:00-12:30 Vienna time (CET)

Presenters

Mr. Marc Auboin, Counselor, WTO

Ms. Ankai Xu, Research Economist, WTO

Moderator

Mr. Holger Floerkemeier, Deputy Director, JVI

In the decade since the global financial crisis, government intervention in the economy has come back into fashion. Over 100 countries have articulated “new industrial policies”, “Industry 4.0”, “digital transformation” plans. While policies have always offered a mix of support to mature industries and rising sectors, an overriding theme in this new wave of measures is the goal of encouraging technological upgrading, digitalized production and digital innovation. Countries at all levels of development have policies geared to support innovation and the digital transition.

The World Trade Report 2020 looks at how the specific characteristics of the digital economy lead to a re-thinking of government policies, notably in their design and the tools they use to spur innovation. It reviews the economic rationale for innovation policies as well as the determinants of innovation. It discusses the role of trade in supporting and diffusing innovation. It shows that there is a significant role for international cooperation, including in the WTO, to make the pursuit of digital development and technological innovation more effective, while limiting negative spill-overs from national policies.