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THE EUROPEAN UNION AND THE TECHNOLOGY SHIFT Interdisciplinary European Studies EDITED BY ANTONINA BAKARDJIEVA ENGELBREKT KARIN LEIJON · ANNA MICHALSKI · LARS OXELHEIM The European Union and the Technology Shift Antonina Bakardjieva Engelbrekt Karin Leijon • Anna Michalski Lars Oxelheim Editors The European Union and the Technology Shift Editors Antonina Bakardjieva Engelbrekt Karin Leijon Faculty of Law Department of Government Stockholm University Uppsala University Stockholm, Sweden Uppsala, Sweden Anna Michalski Lars Oxelheim Department of Government University of Agder Uppsala University Kristiansand, Norway Uppsala, Sweden Research Institute of Industrial Economics (IFN) Stockholm, Sweden ISBN 978-3-030-63671-5 ISBN 978-3-030-63672-2 (eBook) https://doi.org/10.1007/978-3-030-63672-2 © The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature Switzerland AG 2021 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Cover illustration: Sky Motion / eStudio Calamar This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG. The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland C ontents 1 What Does the Technological Shift Have in Store for the EU? Opportunities and Pitfalls for European Societies 1 Antonina Bakardjieva Engelbrekt, Karin Leijon, Anna Michalski, and Lars Oxelheim 2 Technological Megashift and the EU: Threats, Vulnerabilities and Fragmented Responsibilities 27 Lindy M. Newlove-Eriksson and Johan Eriksson 3 Technological Discontinuities and the Climate Transition in Europe: The Role of Policy in Two Traditions of Economic Thinking 57 Staffan Jacobsson and Björn Sandén 4 AI in the EU: Ethical Guidelines as a Governance Tool 85 Stefan Larsson 5 How Does the EU Protect Competition in the Digital Platform Economy? 113 Björn Lundqvist v vi CONTENTS 6 Digitalisation, Productivity and Jobs: A European Perspective 135 Fredrik Heyman, Pehr-Johan Norbäck, and Lars Persson 7 Technological Shifts and the Social Partners: Is the European Semester Heading Towards a Social Europe? 161 Jenny Jansson, Olle Jansson, and Jan Ottosson 8 Money for Nothin’: Digitalization and Fluid Tax Bases 185 Mårten Blix and Emil Bustos 9 New Tax on Digital Services: A Step Towards Fairer Taxation in the EU’s Single Market? 211 Pernilla Rendahl 10 Digital Democracy and the European Union 237 Martin Karlsson Index 263 n C otes on ontributors Mårten Blix is research fellow at the Research Institute of Industrial Economics (IFN) in Stockholm, Sweden. He holds an MSc in Econometrics from The London School of Economics and Political Science and a PhD in Economics from Stockholm University. His research interests include digitalisation, public finance and welfare. Emil Bustos is a PhD candidate at the Stockholm School of Economics in Sweden. He holds an MSc in Economics from the Paris School of Economics. His research interests include labour market institutions and the role of commercial insurance. Antonina Bakardjieva Engelbrekt is Professor of European Law at the Faculty of Law of Stockholm University. She is chair of the Swedish Network for European Legal Studies (SNELS), and she has been Torsten och Ragnar Söderberg Professor of Legal Science (2015–2018). Her research interests include European economic law and the influence of Europeanisation and globalisation on national laws and institutions. Johan Eriksson is Professor of Political Science at Södertörn University. His research interests include international relations, security studies and foreign policy, specifically politics of technology and expertise, space policy and cybersecurity. Fredrik Heyman is Associate Professor of Economics and senior research fellow at the Research Institute of Industrial Economics (IFN) in Stockholm. His research interests include how globalisation and new technologies affect firms and workers. vii viii NOTES ON CONTRIBUTORS Staffan Jacobsson is Professor Emeritus of Science and Technology Policy, Chalmers University of Technology. His research interests include technical and industrial development, such as computer-controlled machine tools, wind turbines, solar cells and gasified biomass. Jenny Jansson is a researcher at the Department of Government, Uppsala University. Her research interests include industrial relations, social media and workers’ education. Olle Jansson is a researcher at the Department of Economic History, Uppsala University. His areas of interests include labour migration and migration governance in Sweden during the post-war period, post-war industrial relations and social partners policies and influence on social protection for employees. Martin Karlsson is Associate Professor of Political Science at Örebro University. His research interests include the relationship between information technology and politics, as well as citizen participation in demo- cratic decision-making. Stefan Larsson is a lawyer (LLM), senior lecturer and Associate Professor of Technology and Social Change at the Department of Technology and Society, Lund University, Sweden. His research interests include issues of trust and transparency on digital, data-driven markets, and the socio-legal impact of autonomous and AI-driven technologies. Karin Leijon holds a PhD in Political Science and is a researcher at the Department of Government, Uppsala University. Her research interests include judicial politics, European legal integration and public administration. Björn Lundqvist is Associate Professor of Law at the Department of Law, Stockholm University. His research interests include innovation, competition, property and law. Anna Michalski is Associate Professor of Political Science at the Department of Government, Uppsala University, and associate research fellow at the Swedish Institute of International Affairs. She is chair for the Swedish Network for European Studies in Political Science (SNES). Her research interests include European foreign policy, EU-China relations, strategic partnerships and socialisation in international organisations. NOTES ON CONTRIBUTORS ix Lindy M. Newlove-Eriksson is adjunct lecturer at the Swedish Defence University and doctoral candidate at the Royal Institute of Technology (KTH). Her research interests include governance and accountability, specifically with regard to the politics of critical infrastructure, and psychoso- cial support in crises. Pehr-Johan Norbäck is Associate Professor of Economics and senior research fellow at the Research Institute of Industrial Economics (IFN) in Stockholm. His research interests include globalisation, foreign direct investment and how venture capitalists, entrepreneurs and incumbent firms interact in the innovation market. Jan Ottosson is Professor of Economic History at the Department of Economic History, Uppsala University. His research interests include business history, financial history, transport history, regulations, industrial relations and institutional theory, focusing on modern economic history of Sweden. He is Editor-in-Chief of the peer-review journal Economic and Industrial Democracy. Lars Oxelheim is Professor of International Business and Finance at the University of Agder and affiliated with the Research Institute of Industrial Economics (IFN). He is the founder of the Swedish Network for European Studies in Economics and Business (SNEE). His research interests include economic and financial integration, corporate governance and risk management. Lars Persson is Professor of Economics and Deputy Director of Research Institute of Industrial Economics (IFN) in Stockholm. His research interests include the functioning of imperfectly competitive markets, entrepre- neurship, technology change and trade. Pernilla Rendahl is Associate Professor of Tax Law at the Department of Law, University of Gothenburg. Her research interests include EU law, societal challenges of tax law and sustainability in tax law. Björn Sandén is Professor of Innovation and Sustainability at the Department of Technology Management and Economics at Chalmers University of Technology. His research interests include technology assess- ment, industrial ecology, climate policy, innovation systems and sustainability transitions, with a special focus on advanced materials, transport, electricity systems and the circular economy. L f ist of igures Fig. 3.1 A system-dynamics visualization of the development of wind power. The figure illustrates how events in the context increased the legitimacy of wind power and how several self-reinforcing processes led to a better technology and a larger market. Government policies influenced the dynamics in this case through R&D support (down to the left) and market support, for example, feed-in laws (up to the right). (Source: Author) 71 Fig. 4.1 Reproduced from Iyad Rahwan’s ‘Society-in-the-Loop: Programming the Algorithmic Social Contract’ (2018) 96 Fig. 4.2 From AI HLEG (2019b). Seven requirements for the realisation of trustworthy AI 101 Fig. 6.1 Structural transformation in the business sector: explanatory factors. (Source: Heyman et al. 2016) 141 Fig. 6.2 Illustration of job polarisation. (Source: Translation of Fig. 2.2. in Heyman et al. 2016) 148 xi