Impact of Technological Innovation (5G) on the Growth of the Digital Economy

IMPACT OF TECHNOLOGICAL INNOVATION (5G) ON THE GROWTH OF THE DIGITAL ECONOMY
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Impact of Technological Innovation (5G) on the Growth of the Digital Economy
The fifth-generation (5G) of wireless technology plays a pivotal role in the growth of the digital economy. The high data rate and low latency of 5G will enable a wide range of new applications and services, including autonomous vehicles, AR/VR, and the internet of things (IoT) (Cambell et al., 2017). 5G is expected to create new opportunities for businesses and entrepreneurs. For example, 5G will make it possible to develop new types of services that rely on real-time data, such as retail and health care applications. In addition, 5G enables new forms of market competition, such as virtual reality (VR) and augmented reality (AR), which is expected to impact the digital economy’s growth positively (Ganichev and Koshovets, 2021). The technology will provide consumers with enhanced mobile experiences and faster broadband speeds (Gault, 2019). Overall, 5G is expected to accelerate the digital economy growth upward.
With the rapid 5G, big data, and cloud computing development, there is an engine for promoting technological innovation and the high-quality development of an economy. The digital economy is based on digital technologies. It is constantly evolving as new technologies are constantly being developed and adopted. It has led to many innovative applications and business models in the digital economy. Third, the digital economy is globalized (Teece, 2018).
Huawei owns the most number of 5G patents worldwide, followed by Qualcomm (USA) and Samsung (KR). That is why it has always been controversial because of its digital innovation. To suppress Huawei’s development in the 5G field, the United States has been using various means, including lobbying its allies to ban Huawei products, the prosecution of Huawei executives on charges of espionage, and the imposition of trade restrictions. The first round of US sanctions against Huawei was announced in May 2019 (Siriwardhana et al., 2021). US companies were prohibited from doing business with Huawei without a special license from the Commerce Department. Round 2: The second round of US sanctions against Huawei was announced in November 2019, where US citizens were prohibited from doing business with these companies, and any assets they had in US financial institutions were frozen. The third round of US sanctions against Huawei was announced in February 2020, where...