State-industry relations and cybersecurity governance in Europe

Abstract

Recent analyses of international affairs highlight that states are increasingly exploiting the key position of some private industries in critical hubs of global economic networks to gain an advantage over their competitors. The key role of private companies in international competition has also significant implications in the cyber-domain, where private actors are the main owners of data and digital infrastructures. In contrast to those who see a transformative effect of cyber, this article draws on comparative political economy and defense policy to identify two different models of stateindustry relations in the governance of cybersecurity. The theoretical framework distinguishes between public and private governance ecosystems and identifies different hypotheses on how states and industries interact in cybersecurity governance in France and in the UK. The French public governance is characterized by the presence of formal and informal relations between state and industries, a high degree of public investment in the private sector and centralized institutions. France has also used the EU mainly to advance its industrial interests. In contrast, the UK private governance is characterized by more arm's length relations between the state and industries and a less centralized system. Moreover, the UK, differently to France, has not used the EU channel to advance its industryrelated preferences. These results confirm the macro-differences between public and private governance ecosystems and open new relevant avenues to investigate the interplay between political economy structures and European and international pressures in policy-areas with both economic and security implications.

From quiet to noisy politics: Varieties of European reactions to 5G and Huawei

“…If the political system configuration helps to identify which actor exerts more influence on policymaking, political economy acts as a key intervening variable that enables or constrains a country's set of policy options. In this article, I borrow a typology recently elaborated by Calcara and Marchetti (2021) that distinguishes between public and private governance ecosystems. This distinction combines the Varieties of Capitalism literature, and its focus on formal institutions and firm‐to‐firm interactions (Hall & Soskice, 2001), with research on state‐to‐firms interactions and informal patterns of coordination between public and private actors (Clift & Woll, 2012; Weiss, 2021).…”

“…Public governance ecosystems are characterized by strategic coordination between governments and corporate actors and firms depend more heavily on informal relationships to coordinate their endeavors with other actors. The gradual transformation of state‐owned network industries into private companies has not prevented the preservation of informal pathways of interaction between government and corporate actors, often oiled by educational and professional homogeneity (Calcara & Marchetti, 2021, pp. 4–5; Clift & McDaniel, 2021).…”

“…Orange's decision was clearly (geo)politically motivated, as admitted by the CEO Stephane Richard's declaration: "I absolutely understand that all our countries, and the French authorities, are preoccupied. We are too" (quoted in Busvine & Gwénaelle, 2018). Yet, Orange was continuing its partnership with Huawei in 5G network outside the French territory.…”

“…If the macro‐distinction between different political systems allows identifying who exerts more influence in moments of “noisy politics,” the article argues that the country's predominant model of political economy acts as an intervening variable, significantly impacting on government and corporate strategies in governing politically sensitive industries. Drawing on the analytical distinction between public and private governance developed by Calcara and Marchetti (2021), I expect strategic and informal coordination between governments and industries in countries with predominantly public governance of strategic sectors. In private governance ecosystems, I expect more reliance on formal contracts.…”