Podcast 🎧 & blog: Industry and regulation are assets of digital governance in a changing world

Digital governance, done right, calls for leaders and changemakers to be versed in a variety of spheres and domains. Cybersecurity, artificial intelligence, diplomacy, relations with societal stakeholders. In a way, that was to be expected – digital development and technological advancements accelerated global and international integration, of both markets and general trends, in the past thirty years.

All themes Paul Timmers, Research Fellow at Oxford University and Chairman of the Board at e-Governance Academy, has enthusiastically dived in in this podcast episode. An argued review of what awaits, how is Europe equipped to face the implications of technological dependence, and competition with other major international blocs.

How far we have come – and what took us here

The last e-Governance Conference served as a good moment to take stock of where we stand. Of all the challenges that lay ahead, in light of increasing geopolitical tensions and competition. Or how to strike the right balance between innovation and regulation.

But also, just how far we have come too. Over twenty years of doing digitalisation have passed, and the 10^th edition of the Conference brought together the diverse experiences of panelists from all continents. As Timmers notes, discussions highlighted the complexity of digital transformation. And how to bring it forward, many elements need to be taken into account – infrastructure, citizen-government relationships, and the integration of the private sector.

“One of the things that I found striking in panel talks is how many different elements and factors speakers brought onto the table,” Timmers remarks. Testament to that are successful projects of digital development and their enablers, such as the implementation of digital ID, in Estonia as elsewhere. The approach often adopted demonstrates how collaborative efforts and decisions could accelerate digital adoption, resulting in millions of users practically utilising digital IDs today – in Estonia as much as abroad.

Not all sailing has been smooth, though. As Timmers points out, the development of digital governance has not been linear – but marked by periods of slow growth, then followed by rapid acceleration due to key decisions. Such a path shows the importance of looking forward strategically, and the willingness to adapt to new circumstances. “We have to be able to look at these various aspects that come into play from infrastructure to usage, from governments to citizens to the private sector, to changing contexts and conditions,” he continues.

Striking the right balance between innovation and regulation

Digital leaders made huge steps in advancing digitalisation in their own countries all around the world. But one big question remains, and perhaps so it will for long more – is there any duality, or dichotomy, between regulation and innovation?

On Artificial Intelligence

The European Union’s approach to AI and cybersecurity exemplifies quite well what’s the take on the matter, at least in the Old Continent. “I think it’s really good that the EU puts a law in place that gives the framing,” Timmers says, referring to the recently approved EU AI Act.

“I don’t believe at all that this is bad for innovation; I still need to see the evidence of that. Actually, that can serve innovation even better if the law comes together with, for example, training of companies, citizens, and governments, and experimentation by governments. Responsible AI is essential, and regulations can coexist with innovation – if not even promote it. The EU has a balanced approach, ensuring that AI technologies develop ethically and are used responsibly.”

On cybersecurity

The progression of cybersecurity policy in the EU also demonstrates the challenges and successes of regulatory efforts. From early wake-up calls like the cyber attack on Estonia (2007), to the development of comprehensive public policies.

But despite challenges, the EU finds strength in its strongest suits. “The EU can mobilise the legal frameworks, it can mobilise the money, and it can also ultimately mobilise the collaboration that you need for it,” Timmers states. None of this, still, takes anything away from the fact that faster and more experimental policy approaches are very much needed, to keep pace with rapidly evolving cyber threats.

A revival for industrial policy in digital transformation

The conversation also touches on the importance of industrial policy in digital transformation, a relatively sidelined policy domain in the past couple of decades. The recent debate over supply chains and the semiconductor industry, indeed, shows that digital transformation should not be explored solely through digital agendas and policy papers.

“Doing sensible digital transformation of government must include industrial policy. If you need access to chips or materials from someone else who may not play ball, or whom you don’t trust much, then that paves the way for geopoliticising and weaponising these topics. This signals a shift, there is a different world compared to 20 years ago when we talked about an open global marketplace,” Timmers asserts. Developing digital industries, furthermore, allows governments to do something that ensures future jobs and security.

Talking geopolitics and technology points to Europe’s reliance on technological components from other regions, and the need to balance autonomy with global cooperation. “You have to be realistic and pragmatic, and also probably modest, as Europe,” Timmers says.

But Europe did – and still should – develop, roll out, and protect its digital assets. “Digital assets that are good for sovereignty can also be beneficial when collaborating with others. For instance, healthcare data, and diversity in data collected across Europe, are valuable assets. These assets can be used internally and externally without compromising national sovereignty. Plus, a culture of democratic debate and regulatory approaches also adds to our digital assets. Criticising and debating policies and technologies helps raise standards and ensures that digital services continuously improve, benefiting both local communities and the broader European context.” And yes, still all steering away from the risks of protectionism.

Listen to all Digital Government Podcast episodes >>> ega.ee/digital-government-podcast