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This report analyzes four digital innovations that have the potential to disrupt global value chains: the Internet of Things (IoT); blockchain; artificial intelligence (AI); and advanced manufacturing. While advances in information and communication technology have largely worked in concert in the past to support the expansion and fragmentation of global value chains the impact of these innovative digital technologies are unlikely to be uniform. The report evaluates these new technologies in the context of financial, pharmaceutical, and automotive industries to arrive at three key takeaways. First, the private sector’s competitiveness will increasingly depend on an ability to collect, store, organize, and analyze data. Second, regional value chains will emerge as global trade orients more around regional poles. And third, big tech firms could disrupt global value chains, although it appears as likely that they will collaborate with existing firms in established markets. The report was published by the Atlantic Council and written by Jack Daly and Nick Brown, related experts Bart Oosterveld and Ole Moehr.
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