Technological sovereignty in Germany: techno-industrial policy as a form of economic statecraft?

Abstract

Technological sovereignty has emerged as a prominent topic, with states positioning themselves to ensure security and economic competitiveness. However, German economic policy rarely involved strategic government interventions and industrial policies due to its deep-rooted adherence to ordoliberalism. In response to the influence of foreign big tech companies and growing economic competition from China, the German state is now formulating a strategic techno-industrial policy agenda, advocating interventions for the preservation of sovereignty. This article analyses the proposed agenda using an inductive process-tracing approach (Trampusch and Palier, 2016) and document analysis (Bowen, 2009) of strategy papers, policy documents and selected media reports. Drawing on the concepts of structural power (Strange, 2004 [1988]) and economic statecraft (Weiss and Thurbon, 2021), we argue that Germany’s pursuit of technological sovereignty represents a distinctive form of (geo-)economically motivated statecraft, primarily directed at enhancing commercial competitiveness rather than prioritising security. However, we identify limitations to this approach where the regulatory regime and institutional legacy, both at the national and EU levels, impede strategic government interventions in the economy, thus constraining the pursuit of technological sovereignty.