Geopolitics of the Digital Economy: Implications for States and Firms

Abstract

The lack of boundaries in cyberspace contributes to geopolitical disputes, as data and technology are weaponized across borders, and hacking of critical infrastructure becomes pervasive. But we lack a framework for understanding the tangible impact of geopolitical tensions and digital proxy conflict on states and firms. We argue that governments and companies can gain insights into these tensions by examining who controls the main structural power pillars of the international political economy: production, security, knowledge, and finance. Based on this approach, we consider how policymakers and practitioners can engage and navigate digital geopolitics in an age of uncertainty.