Key Insights and Takeaways: 2024 Technology Economics Competition (TEC) Institute Summit, Brussels

Brussels as a Global Policy and Business Hub

The Brussels summit marked the first in a new transatlantic series of thought leadership events facilitated by Cornerstone Research. The choice of Brussels as the location for the TEC Institute’s inaugural summit underscores Cornerstone Research’s commitment to the city as a vital global hub for policy and business discussions and a strategic location for the firm’s clients. Brussels remains at the forefront of evolving conversations about AI, semiconductors, regulation and litigation.

TEC: Technology, Economics, Competition

The goal of the TEC Institute is to create the most relevant legal and economic framework and provide a deeper understanding of technology trends and the current policy landscape. Representing the intersection of industry, policy and expert/academic communities, the TEC Institute seeks to influence global economic growth.

The goal of the TEC Institute is to create the most relevant legal and economic framework and provide a deeper understanding of technology trends and the current policy landscape.

Leaders around the world recognise the importance of creating effective innovation and competition policies. This priority is particularly evident in the European Union (EU) which has implemented the Digital Single Market and the Digital Markets Act (DMA) to encourage innovation, ensure fair competition, and maintain control over emerging technologies. The TEC Institute examines how to achieve these complementary and challenging goals.

Key Insights and Takeaways

Kirti Gupta, Cornerstone Research’s Chief Economist of Global Technology and former Chief Economist at Qualcomm, has played a large role in launching the TEC Institute. Dr Gupta opened the Brussels summit with this observation:

Cornerstone Research established the TEC Institute to track today’s major technology trends around the world. As industry professionals, we are all here to address the key issues facing the tech industry. The world is posing some key policy and regulatory questions that we need to be aware of and be prepared to answer. Our goal is to position ourselves as the most well-informed experts in the field, delivering the highest quality economic analysis.

In discussing the global semiconductor industry, Dr Gupta said that “the shortage of semiconductors, which we all experienced during the pandemic, has not been resolved.” Semiconductors, she added, are “the foundational technology that powers everything, from AI engines to quantum computing.”

To close the gap that developers in the Asia-Pacific region have established, Dr Gupta noted that plans are underway on both sides of the Atlantic to revamp semiconductor R&D. TEC Institute Summit participants discussed various EU initiatives, such as the European Chips Act, which aim to help Europe reclaim its leadership position in developing critical semiconductor technologies.

Gregor Langus, a vice president* at Cornerstone Research and head of the firm’s Brussels office, expressed the excitement felt by everyone at Cornerstone Research at the inaugural TEC Institute Summit. He noted that the firm is thrilled to launch a new series dedicated to high-level conversations at the intersection of economics, politics, social issues and transformative new technologies like AI and semiconductors. Dr Langus reiterated Cornerstone Research’s commitment to Brussels as a critical economic, regulatory and policy centre and an important location for many of the firm’s clients.
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Balancing Regulation, Competition and Innovation

Pier Luigi Parcu leads the European University Institute’s (EUI’s) Centre for a Digital Society, Europe’s largest postdoctoral social science research centre. EUI focuses on four key tenets of digital tech and development: regulation, competition, democracy and innovation. EU competition policy is an area of focus for Dr Parcu’s team, particularly the intersection of competition frameworks and technological innovation in the public or private sectors.

In a fireside chat during the conference, Dr Parcu spoke with Carlota Reyners Fontana of the EC’s Directorate-General for Competition (DG COMP) about the future of EU competition policy. As Ms Reyners Fontana noted, the Commission has two main tools at its disposal: the DMA and pre-existing antitrust instruments. Using these tools, the Commission can design, implement, maintain and uphold clear, competitive and open frameworks. While recent fines demonstrate the Commission’s determination to enforce competition policy, she emphasised its intention to strike a balance in its regulatory approach and avoid overreach.

Building Transparency and Cooperation across Borders and Businesses

All speakers at the summit emphasised the importance of an open environment for AI. Only through cooperation among regulators, competition authorities, innovators and global leaders can critical technology like AI and semiconductors be harnessed for the collective good.

Only through cooperation among regulators, competition authorities, innovators and global leaders can critical technology like AI and semiconductors be harnessed for the collective good.

Norbert Maier, a Brussels-based principal* at Cornerstone Research, found the event informative, noting that “members of the European Commission were very open-minded and embraced the conversation.” He added that the substantial number of highly experienced experts who attended the conference was “extremely beneficial,” noting that Dr Gupta on semiconductors and Dr Ting Li on AI provided “great perspective and rich insights on two key topics.”
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Keynote: Plurality and the Future of AI

In his keynote address, E. Glen Weyl, founder of the Plural Technology Collaboratory at Microsoft Research, outlined three prevalent competition policy perspectives: the American approach, emphasising free market dynamics; the European approach, prioritising competition within clear regulatory boundaries; and the Chinese approach, featuring active state guidance. In Dr Weyl’s view, no single method provides a clear path forward. The most effective future model for global cooperation will likely incorporate elements from all three systems.

Dr Weyl asked delegates to consider the following question: “What is your positive vision of the future of digital policy?”

Dr Weyl also highlighted Taiwan’s g0v movement, which demonstrates the potential for open-source, democratic-by-design systems for public services. Such initiatives offer a glimpse into a possible future for economic, regulatory and competition frameworks built on the same principles. Dr Weyl, who believes that technology such as AI has the potential “to bridge our divides and differences” if used “deliberately and proactively,” had this to say about the TEC Institute:

I am excited to hear answers to questions about AI policy, together with public investment in semiconductors, at a moment of huge technical change. …[T]he public sector [has a chance] to support the development and direction of technology in a new era in a way that it hasn’t in a long time. That sort of multi-sectoral collaboration is what built the internet.

Session Summaries

Artificial Intelligence: Past, Present and Future

The summit’s artificial intelligence panel explored the exciting possibilities of AI, highlighting both its potential benefits and inherent risks. Discussions centred on navigating responsible development, with a focus on AI’s significant impact across various fields, particularly healthcare and scientific discovery.

The panel acknowledged AI’s potential to automate routine tasks, freeing humans for more creative endeavours. However, a key tension emerged regarding regulation. While some speakers emphasised the importance of open and accessible development, others stressed the need for regulations to safeguard responsible use. The discussion underscored the need to strike a balance between caution and urgency, to avoid hindering progress on the one hand, and prevent the growth of an unregulated, oversaturated market on the other.

Semiconductors Today: Geopolitics, Antitrust and State Aid

Semiconductor panel participants discussed regulations affecting the industry, such as foreign direct investment (FDI) and merger control. Speakers highlighted the industry’s concentration, with specialised companies focusing solely on design or manufacturing, leading to a complex supply chain. The European Chips Act aims to revitalise domestic chip production, but concerns emerged about the complexity of obtaining funding, whether through this act or FDI.

The Future of Technology Policy

In closing his remarks, Dr Weyl asked delegates to consider the following question through the rest of the summit and in returning to their industry, policy and academic communities: “What is your positive vision of the future of digital policy?”

Contact Cornerstone Research to continue the conversation and learn about future TEC Institute events.