A weekly digest of the latest news and research related to the work of the Technology, Economics, and Governance Working Group. Topics covered in the digest include cybersecurity, domestic regulation, innovation, international competition, social media disinformation, and the California exodus.
This week’s edition features diplomatic competition between the West and Russia in Africa, Saudi Arabia’s capacity to increase global oil supplies, the passage of the Chips and Science Act, and a new FTC filing against Meta. Additionally, startups warm to military contracts, robots harvest CA strawberries, the US bolsters cyber partnerships in the Middle East, and DHS reviews the failed rollout of its disinformation governance board.
Industrial Policy & International Security
‘New Cold War’: Russia and West vie for influence in Africa | AP News
Political leaders from Russia, France and the United States are traveling across Africa to compete for alignment on Ukraine and political influence. While Russia has sought to portray the West as the culprit for rising food prices, Western officials are accusing Russia of imperialism. However, Russia’s influence in Africa is visible: twenty-five countries from the continent voted to abstain or did not vote on the resolution condemning Russia for the Ukraine crisis. More recently, long-term US ally and President of Uganda, Yoweri Museveni, fondly recalled past relations with Russia and appeared on television next to Foreign Minister Sergey Lavrov. Additionally, RT broadcasts to Africa could restart (after being blocked by sanctions) when the Russian television network opens its new bureau in Johannesburg.
Saudi Arabia nears its oil pumping limit | The Wall Street Journal
Saudi Arabia may have difficulties with increasing global oil supply as it reaches its oil pumping limit. OPEC+, the name for OPEC and a parallel group of producers in Russia, will meet early next month to determine if gradual increases in production will continue. Saudi Arabia is a swing producer, with the ability to surge production to 12 million barrels a day for a short period of time or release supply from its strategic storage. However, it is currently pumping 10.5 million barrels a day and measures to increase Saudi Arabia’s production could cause long-term damage. Some OPEC+ members have also found it difficult to meet production demand due to sanctions in Russia and chronic output problems. Saudi Arabia is aiming to raise its production capacity to 13 million barrels a day by 2027, but it may have to tap into storage to meet production demands in the short term.
House passes bill to subsidize US-made semiconductor chips in win for Biden | The Washington Post
The House and Senate voted this week to pass the $280 billion Chips and Science Act with bipartisan support to boost US leadership in the semiconductor industry. President Biden praised the bill’s potential to strengthen the economy. The legislation includes $52 billion to incentivize domestic fabrication plants and includes provisions that prohibit construction in China or other adversarial countries. While the US used to manufacture 40% of the world’s chips, production has declined to 12%, with the highest quality chips coming from Taiwan. In addition, the bill authorizes $100 billion over five years to support the National Science Foundation and the development of regional tech hubs. However, lawmakers on both sides of the aisle had concerns about potential dampening effects on competition and significant increases to government spending, despite the benefits to national security.
US Regulation
FTC sues to block Meta’s virtual reality deal as it confronts big tech | The New York Times
The Federal Trade Commission (FTC) filed an injunction against Meta this week to prevent the purchase of the virtual reality (VR) company Within. The lawsuit is the first filed under new FTC chair and big tech critic Lina Khan. The antitrust filing is unique in its focus on the acquisition of a startup, and the authorizing vote was split three to two. Supporters argue that government inaction has led tech companies to dominance across markets, while critics are skeptical that a hypothetical state of future competition is a valid reason to block deals. The FTC points to the company’s purchase of Beat Games and other VR studios as indicative of Meta’s intention “to buy market position.”
Innovation
After Ukraine, even sexy startups aren’t ashamed of military ties | The Wall Street Journal
The invasion of Ukraine and certainty of Pentagon funding in a slowing economy is leading tech companies, even startups, to be more vocal about ties to the defense industry. Investors’ focus on environmental, social, and governance factors, known as ESG, diverted attention away from military contracts in the past. Today, Russia’s military aggression is shining a more ethical light on the defense market. Denver-based startup Boom Supersonic recently announced a collaboration with Northop Grumman and there are increasing efforts in Europe to lobby the EU to include defense in its ESG taxonomy. With this change of heart, the founders behind moonshots may be more accepting of military funding. ESG critics, however, see this as evidence that social and governance factors are undefined and subject to political whims.
California’s strawberry fields may not be forever. Could robots help? | Los Angeles Times
Strawberry picking robots created by Tortuga AgTech are now operating in California. Tortuga charges a flat rate per picked box at a similar rate to standard wages, with about the same efficiency as a slow human worker. The robots work on indoor hydroponic tables, not the ground farms that supply most of California’s strawberries. Decreasing pesticide effectiveness and rising temperatures make indoor farming more appealing, but optimizing the costs of transitioning from ground to table is still a challenge. Additionally, the limited number of technicians means that a problem with a robot can take hours to fix. However, Tortuga is optimistic that continued improvements to their technology and programs to retrain harvest workers as mechanics can increase efficiency, decrease costs, and help the industry adapt.
Cyber
US bolsters cyber alliance to counter rising Iran threat | The Hill
During his trip to the Middle East, President Biden signed bilateral cybersecurity agreements with Saudi Arabia and committed to increase cyber collaboration with Israel as part of a cooperative effort to counter Iran. Iran’s use of cyberattacks against the US and Israel has motivated increasing regional cooperation and potentially secret talks between Israel and Saudi Arabia, which do not have official diplomatic ties. However, critics point out that Biden failed to raise concerns about Israel’s NSO Group as a supplier of surveillance technology and Saudi Arabia as a consumer of such tools. Analysts believe the administration’s silence on human rights issues is indicative of the urgent need to counter Iranian influence.
During the Aspen Security Forum this week, Microsoft President Brad Smith shared the company’s analysis of Russia’a cyber strategy since invading Ukraine and lessons for the US and its allies. Microsoft’s report, “Defending Ukraine: Early Lessons from the Cyber War,” draws conclusions from Russian cyber operations in forty-two countries. Smith shared that cyber attacks are most often used to soften military targets, conduct espionage, or run influence operations. Distributing digital infrastructure and data sets while expanding public-private partnerships will be essential to strengthen the United States’ and allies’ defensive posture.
State & Local Tech Ecosystems
California governor calls for a massive 20 GW of offshore wind by 2045 | Electrek
California Governor Gavin Newsom called for the state to set a goal of 20 gigawatts (GW) of offshore wind power by 2045. In a recent letter to the chair of the California Air Resources Board, Newsom asked for the current wind energy plan, which aims for 20 GW by 2050, to be moved up by 5 years. The Biden Administration set a target for the entire United States to reach 30 GW of offshore capacity by 2030 and, last year, opened the Pacific Coast to offshore clean energy projects. The deep water off the California coast will require the use of floating offshore technology to generate wind energy.
Democracy Online
DHS plans to overhaul disinformation efforts to ‘increase trust with the public’ | Cyberscoop
The Department of Homeland Security is set to announce its new strategy for fighting disinformation next week. DHS’s “disinformation governance board” was dissolved earlier this year under pressure from legal scholars and right-wing lawmakers. DHS conducted a review of the failed rollout and has already ruled out the creation of an alternative governance board. While experts agree that disinformation poses a significant threat to the US, many academic and legal scholars hesitated to support DHS as the leading agency to counter disinformation. The review team’s final recommendations released next week will include stronger definitions of disinformation and DHS leadership says they will prioritize transparency moving forward.
