Weekly Roundup: R&D Policy on Self-Destruct
Plus data sovereignty around the world and a U.S. litigation roundup
Energy security is being stymied by poor R&D Policy.
The PRC is leading the way in energy security by multiple metrics:
It’s pouring hundreds of billions of dollars into putting renewable sources like wind and solar on its grid, manufacturing millions of electric vehicles, and building out capacity for energy storage, nuclear power, and more. This investment has been transformational for the country’s economy and has contributed to establishing China as a major player in global politics.
Meanwhile, in the US, a massive new tax and spending bill just cut hundreds of billions in credits, grants, and loans for clean energy technologies. It’s a stark reversal from previous policies, and it could have massive effects at a time when it feels as if everyone is chasing China on energy.
It’s more than unfortunate that energy security policy has become a victim of the culture wars. The policy disasters go far beyond solar. Small modular reactors (SMR) could be a great renewable and secure energy source for the EU and the U.S..
[…] Small modular reactors (SMRs), which are essentially compact versions of nuclear power plants fit for industrial, urban, military, and other applications. They produce up to a third of the energy of a traditional, large reactor.
SMRs’ main advantages are that, due to their size, they can be transported either as whole units or in modules and later assembled at the final destination, thereby reducing the cost of installation from which conventional reactors suffer. Another advantage is that existing designs are based on passive systems to ensure their safety, thereby minimizing the chances of radioactive leaks.
Yet both the EU and the U.S. are not putting the money in the necessary places to secure this energy future. Fusion energy, another promising technological development, still lacks the required capital investments and falls far behind the PRC’s investment in the technology.
It is becoming increasingly apparent that, even if we were investing in energy security at the rate we should, the current administration’s immigration policy is driving away talent. Every time masked armed officers conduct a raid on a farm or Amazon warehouse, it scares hard-working people out of the workforce, and high-skilled labor takes notice.
American immigration policy, which used to attract the best and the brightest from around the world, is no longer the R&D haven it used to be.
Since the end of World War II, federal funding has helped U.S. companies dominate the cutting edge of computing, space exploration and medicine, delivering an economic tailwind for the nation. It made the country a dream destination for aspiring researchers, engineers and entrepreneurs from around the world.
Now that’s changing—quickly.
A March 2025 survey by the journal Nature of more than 1,600 scientists in the U.S. found that three-quarters have considered leaving the country. Respondents specifically cited the Trump administration’s hostility to scientific research and those who practice it.
Historically, three-quarters of international students who earn a Ph.D. in the U.S. have stayed long-term. America’s ability to retain these workers—who are not just highly trained but expensive to educate—has been one key to the country’s pre-eminence in innovation.
The America First Alone policy is doomed to failure. There is no reason that we should not be investing in talent and infrastructure domestically at the same rate that we import it. Making America inhospitable to the world’s best and brightest is to give away a strategic advantage unnecessarily.
Digital sovereignty, global self-determination
On Wednesday, France, Italy, Germany and the Netherlands signed founding papers for an organisation where they plan to collaborate on building sovereign digital infrastructure.
European public administrations are highly dependent on software and services made by US tech giants, such as Microsoft’s Office suite – with rising concern this makes Europe vulnerable to geopolitical shifts. (EURACTIV)
Digital sovereignty is the idea that a nation, or group of nations, controls the data, hardware, and software that they rely on every day. Think “friend-shoring” or “reshoring” for the internet. While this has generally been spurred by a difference in data privacy laws or regulations, the EU is clear that it no longer wants to rely on the U.S. or the PRC for its digital future.
This battle isn’t just in the EU, however. This Rest of World story highlights the African struggle for digital sovereignty. Here are some of the significant efforts, but the linked story has more on the obstacles.
Most of the data gleaned from African internet users reportedly sits in data centers in Europe and the Middle East.
In April, Nigeria asked Google, Microsoft, and Amazon to set concrete deadlines for opening data centers in the country.
Other developing countries, including India, South Africa, and Vietnam, have also implemented similar rules demanding that companies store data locally.
India’s central bank requires payment companies to host financial data within the country, while Vietnam mandates that foreign telecommunications, e-commerce, and online payments providers establish local offices and keep user data within its shores for at least 24 months.
South Africa is the only African country where Amazon, Microsoft, and Google have built their own data centers[…] the South African data center market could attract investments of as much as $3.7 billion […]
Appeals court strikes down ‘click-to-cancel’ rule (The Verge)
A rule enacted by the previous FTC chair that would have given subscribers an easy way to cancel services was struck down in a federal appeals court, likely ending the rule altogether.
Last fall, industry groups representing companies that benefit from subscription revenue — including cable providers, entertainment studios, advertising companies, and home security firms — sought to block the rule in court, arguing the FTC aimed to “regulate consumer contracts for all companies in all industries and across all sectors of the economy.”
But in a unanimous ruling by a three-judge panel for the Eighth Circuit, the court found that the FTC under former Democratic Chair Lina Khan erred so gravely in its roll-out of the rule that it needs to be thrown out altogether. “While we certainly do not endorse the use of unfair and deceptive practices in negative option marketing, the procedural deficiencies of the Commission’s rulemaking process are fatal here,” the court wrote…The Eighth Circuit found that the agency skipped steps to issue the rule, including depriving stakeholders of “a notable opportunity to dissuade the FTC from adopting the Rule as proposed.”
Tech Policy Press published two worthwhile reads last week.
June 2025 Tech Litigation Roundup- This tracker includes not only a short synopsis of major tech cases, but also extended analysis at the end of the tracker.
How Free Speech Coalition v. Paxton Will Change Tech Policy- This is a good summary of the various political positions on either side of this case. It’s an easy read without a lot of the complex technicalities of legal analysis. While there are legitimate concerns about overreach on age identification laws—ones that can be sorted out in court—the lack of flexibility and policy solutions on the “anti-ID law” side is still troubling. I have yet to see a solution that opposes ID laws that protects children in the same way that age-verification does. I have also yet to see a convincing analysis that the harms, potential or otherwise, outweigh the negatives of the policy. If you have read anything like this that will change my mind, please send it my way!
Another free speech story this week:
France launches criminal investigation into Musk’s X over algorithm manipulation
Beware the Robots: AI-Enabled Sanctions Evasion is Here (Royal United Services Institute (RUSI))
This commentary provides an overview of AI-enabled sanction evasion. The two big takeaways:
AI is enabling adversaries to create shell companies rapidly, find loopholes, and alternative ways to comply with sanctions faster than regulators can keep up.
AI is allowing adversaries such as North Korea to bypass facial recognition technology and other hiring safeguards by creating synthetic personalities.
Some other cybersecurity news
Cybersecurity infrastructure, programs, and databases are all under fire in the U.S., making it difficult for the government to assist the private sector in combating vulnerabilities.
