The weaponization of innovation
Global technology trade is fragmenting along political lines. The U.S., EU, and China now each maintain distinct standards for semiconductors, telecom, and AI. Canada — deeply tied to U.S. defense tech and European data regulation — must navigate a tightening lattice of rules.
| Sector | Global Market Share (2024) | Dominant Bloc | Source |
|---|---|---|---|
| Semiconductors | 76% Asia | China/Korea | IMF 2025 |
| 5G & telecom | 68% Asia | China | OECD |
| AI & cloud services | 71% U.S. | U.S. | WEF 2025 |
Canada’s position
- Home to AI research excellence (Montreal, Toronto) but limited commercialization.
- Dependent on foreign chips and telecom equipment.
- Emerging as a neutral “bridge” nation in digital governance.
What leaders can do
- Localize strategic tech capabilities. Reduce supply dependence.
- Engage in multi-bloc compliance planning. Operate across U.S., EU, and Asian standards.
- Invest in secure cloud infrastructure. Data jurisdiction is a competitive advantage.
- Build diplomatic technology alliances. Influence rules before they’re written.
Arcus Insight: Technology is the new terrain of diplomacy. Canada’s neutrality can be its most valuable export — if paired with execution.