Competition in the Digital Economy from the Perspective of Technonationalism: A Power Structure Model

Abstract

As one of the most important technological sectors in the new wave of industrial revolution, the digital economy is fundamentally reshaping strategic competition between nations. Specifically, the digital economy plays a dual role in shaping national security, economic development, and social stability. On one hand, the digital economy has become the most dynamic and influential engine of global economic growth. On the other hand, the dual-use nature of digital technologies poses serious national security risks in the absence of effective regulatory oversight. As a new economic paradigm, competition in the digital economy not only relies on technological innovation but also involves competition for market dominance and rule-making authority. To gain an advantageous position in global digital economic competition, countries must master core digital technologies, expand global market reach, and build robust digital infrastructures. Moreover, actively participating in the formulation of international digital rules — particularly in data governance and privacy protection — is essential. Only countries that achieve a balance between technology, market, and regulatory power can secure leadership in the global digital economy. The competition in the digital economy, as a key battleground of the new industrial revolution, has driven the rise of technonationalism, which profoundly influences the strategic orientation of national digital economic policies. Digital technology issues are increasingly securitized. With the ongoing development of digital technologies and the rising importance of the digital economy in global economic processes, interactions and competition among nations in the digital domain are becoming a new feature of great power rivalry.