Page 39 - IMDR Journal 2025

Research Article
OBJECTIVES (Source: Market Research Future (2023).
● To see how deep tech helps countries gain power. “Deep Tech Market Trends and Forecast 2023-2030."
www.marketresearchfuture.com )
● To study what the U.S., China, EU, and India are doing to
lead in tech. The competition for deep tech dominance is closely linked
to national security concerns, economic strategies, and
● To understand how trade rules and copyright laws affect geopolitical influence. A study by Kissinger et al. (2021)
progress.
underscores the role of AI and emerging technologies in
● To look at issues like cybersecurity and privacy in deep reshaping military capabilities and governance structures,
tech. fueling tensions between technological superpowers. The
● To offer ideas on how countries can balance growth and ongoing U.S.-China technology rivalry exemplifies this,
safety. with trade restrictions, intellectual property disputes, and
efforts to secure critical supply chains dominating policy
agendas. According to McKinsey Global Institute (2022),
SCOPE the U.S. and China have collectively invested over $400
This study looks at how deep tech connects to global billion in AI and quantum computing (Fig. 2),
politics. It focuses on AI, quantum tech, chips, and biotech.
It compares top countries and their plans, using reports and
research. It doesn’t collect new data but studies what’s
already out there to understand the big picture.

Figure 2 Investment in AI & Quantum Computing
(U.S. & China, 2023)
(Source McKinsey Global Institute (2022).
Figure 1 Global Deep Tech Market Growth (2022-2030) "AI and Quantum Computing Investments:
Global Trends and Strategies." www.mckinsey.com )
LITERATURE REVIEW
The global race for deep tech leadership is fundamentally illustrating the scale of their deep tech ambitions. As nations
reshaping geopolitical and economic structures, with strive for technological self-reliance, the semiconductor
nations aggressively formulating strategic policies to gain industry has become a focal point, with the U.S. passing the
an edge in artificial intelligence, quantum computing, CHIPS and Science Act and China accelerating its
semiconductors, and biotechnology. As deep tech semiconductor independence efforts through extensive
increasingly serves as a cornerstone for national security and government subsidies. Fig. 3 presents the impact of trade
economic resilience, countries such as the United States, restrictions on semiconductor exports, showing a 35%
China, the European Union, and India have ramped up their decline in U.S.-China semiconductor trade between 2019
investments, policy frameworks, and international and 2023.
collaborations to enhance their technological leadership.
Porter (1990) emphasized that technological
competitiveness relies on national policies that drive
innovation, talent development, and industrial
collaboration. Similarly, Mazzucato (2013) highlighted that
state-led investments play a crucial role in the advancement
of breakthrough technologies, reinforcing the idea that
governments must actively support deep tech ecosystems to
maintain a competitive edge. Breznitz and Murphree (2011)
analyzed different national models of deep tech
development, indicating that while the U.S. follows a
venture-driven approach, China relies on state-backed
investments, and the EU prioritizes regulatory-driven Figure 3 U.S.-China Semiconductor Trade Decline
strategies. The scale of investments in deep tech is (2019-2023)
staggering, with the global deep tech market expected to (Source Statista (2023). "Semiconductor Trade Between
reach $3.2 trillion by 2030, growing at a compound annual U.S. and China, 2019-2023." www.statista.com)
growth rate (CAGR) of 17% (Fig. 1).

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