Technology Policy in an Economic Security Era: Recommendations for a G7 FDI Screening Toolkit

Economic security has supplanted the neoliberal consensus on trade, retooling globalisation while moving national security to the forefront of the foreign policy agenda. G7 and close partner countries still need to develop enforceable rules to create guardrails for the economic security agenda, especially in relation to high-tech critical sectors. To address these concerns, this policy brief proposes a common foreign direct investment (FDI) screening toolkit, encompassing two key components: a shared definition of critical high-tech sectors as a basis for risk assessments, and supranational golden shares, thus providing the G7 financial institutions with the ability to prevent potential harmful foreign takeovers of critical assets. By implementing this common FDI screening toolkit, the G7 can fortify its economic security, protect national interests, and create a virtuous cooperative cycle among its members.