Whether AI applications, cloud services, or operating systems: Companies use digital technologies as naturally as electricity or the internet. At the same time, digitalisation is increasing the dependencies on specific technologies, providers, and global supply chains. If digital services are restricted, critical components become scarce, or access is blocked due to geopolitical conflicts, innovation may slow down, and supply chains may be disrupted. In extreme cases, production could come to a standstill. This makes the issue of digital sovereignty increasingly important and will have an increasing impact on the future ability and competitiveness of Germany as a business location.

Digital independence is a key location factor

Seemingly trivial but practically crucial factors can become problematic for companies: For example, if switching from one software or cloud provider to another becomes complicated or very expensive because file formats are not compatible, or interfaces do not function properly, companies are stuck in dependency.

Geopolitical risks are also a factor. Many European companies use, for instance, AI models or digital service systems that are developed and operated outside Europe. If export restrictions are tightened, computing capacities are prioritised, or access to certain AI technologies is restricted, this can have immediate consequences for innovation and competitiveness.

It is clear: Digital sovereignty is not a purely IT topic but is crucial for the location and competitiveness. What initially sounds like technical issues can quickly determine German companies' ability to innovate, deliver, and access international markets.

Self-determined use and design

At the same time, digital and technological sovereignty cannot and should not be equated with autarky. Europe will continue to be part of global innovation and value creation networks. Rather, it is about ensuring that companies or even public authorities can remain capable of action at any time.

The decisive factor is to create the right framework conditions for innovation, scaling, and investment. Then Europe can reduce technological dependencies and strengthen its competitiveness in the long term. The DIHK has summarised what is specifically needed in a corresponding position paper. The key points:

• Scale key technologies: Europe has excellent research and strong industrial capabilities. However, innovations should be transferred more quickly into marketable products and business models – especially in AI, quantum technologies, and industrial data applications.
• Expand digital infrastructure more quickly: Digital sovereignty requires a powerful infrastructure. Data centres, fibre-optic and mobile networks, and secure and affordable energy supply form the basis for digital value creation. Accelerated approval procedures and competitive energy prices are necessary for this.
• Strengthen open standards and interoperability: The public sector should consistently promote open standards and interoperable solutions. This facilitates data exchange for companies, reduces provider dependencies, and mitigates lock-in effects.
• Strengthen the role of designer: Europe should not only regulate digital developments but actively shape them. This includes greater participation in international (standardisation) bodies or greater supply security for semiconductors and critical raw materials.
• Expand digital skills: Technology alone does not create sovereignty. Companies need professionals who understand, apply, and further develop digital technologies. Digital education and continuous qualification are therefore essential. 

Building on good conditions

There is hope in the fact that the starting position is better than often assumed. Germany and Europe have excellent research institutions, innovative companies, and strong industrial ecosystems. What is most important now is fast action – because the time to act is now.