Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

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Tuesday, 21 April 2026

Middle Powers' Tech Alliances

Middle Powers' Tech Alliances

Introduction

I write often about technology as more than a set of tools: it is a vector of power, leverage, and choice. Today I want to reflect on a clear trend rising from the cracks of great‑power rivalry: middle powers — states that are neither superpowers nor small states — are forming new, pragmatic technology alliances to preserve strategic autonomy, protect supply chains, and shape standards.

These coalitions are not about grand ideology. They are about risk management, capacity building, and influence in an era when semiconductor plants, AI compute, and mineral refining can become instruments of coercion.

Why now: incentive, vulnerability, and agency

Three dynamics converge:

  • Intensified great‑power competition has weaponized interdependence. Export controls, investment screening, and selective access to advanced chips make single‑source dependence risky.
  • Rapid diffusion of critical technologies (AI, quantum, advanced manufacturing, battery chemistry) means the ability to co‑produce, host, or regulate matters as much as the ability to invent.
  • Middle powers possess complementary capabilities — research ecosystems, mineral endowments, skilled labour pools, and diplomatic flexibility — that, when pooled, create resilient alternatives to dominant technology ecosystems.

This combination gives middle powers both incentive and opportunity to form minilateral partnerships that are technical, not strictly military or ideological.

Emerging patterns and examples

We are already seeing several practical models:

  • Tech triangles: Flexible, task‑oriented groupings that pool strengths. Analysts describe an Australia–Canada–India technology triangle (often framed as an effort to deepen cooperation on AI, semiconductors, critical minerals and green tech)Changing Geometries: The Rise of a Middle‑Power Tech Triangle.

  • Supply‑chain coalitions: Initiatives that coordinate investment and secure trusted supply routes for compute, minerals, and manufacturing capacity. Recent diplomacy around AI supply chains and coalitions of willing countries illustrates this approach.

  • Standards and governance coalitions: Groups that work together to set interoperable norms for data governance, AI safety, and export compliance so they can create trusted marketplaces.

These initiatives are practical: they prioritize joint R&D, co‑investment funds, shared procurement standards, and common compliance frameworks rather than binding security pacts.

Strategic logic: what middle powers gain

  • Diversified access: By pooling demand and co‑investing in regional compute and fabrication capacity, members reduce single‑point failure risks.
  • Governance leverage: Collectively they can influence international standards and norms when they present harmonized regulatory approaches.
  • Market creation: Joint procurement and investments create market scale that attracts private capital and gives domestic firms room to scale.
  • Diplomatic autonomy: Flexible minilateralism allows states to cooperate without full alignment to any single great power.

Policy and ethical considerations

These alliances present opportunities but also hard choices:

  • Data governance and privacy: Shared infrastructure and cross‑border data flows require harmonized rules. Without this, cooperation can normalize weaker privacy or surveillance practices.

  • Technology transfer and dual‑use risks: Cooperative R&D raises concerns about spillover into military applications. Clear, transparent safeguards and independent review are necessary.

  • Exclusion and fragmentation: If middle‑power coalitions harden into rival blocs, global fragmentation could accelerate, making innovation more costly and reducing interoperability.

  • Equity and capacity: Partnerships must be mindful that benefits do not concentrate only among a handful of firms or regions within member countries. Public investments, technology licensing conditions, and local capacity building matter.

Practical governance levers middle powers should prioritize

  1. Harmonized compliance: Standardize export controls, licensing processes, and supply‑chain due diligence across partners to reduce transaction costs without loosening security safeguards.
  2. Shared infrastructure: Jointly fund trusted data centers, regional fabrication capacity, and mineral refining projects with transparent governance and independent auditing.
  3. Open research consortia: Create multilingual, open platforms for safety research in AI and quantum, with clear rules on dual‑use research oversight.
  4. Inclusive procurement: Use sovereign procurement to create demand for small and medium enterprises in partner countries, with technology‑transfer clauses.
  5. Binding ethics frameworks: Adopt interoperable principles for privacy, surveillance limits, and human‑in‑the‑loop requirements for high‑risk AI systems.

Risks to watch

  • Great‑power coercion: Powerful states may pressure suppliers or use financial leverage to dissuade potential partners.
  • Commercial capture: Large corporations could dominate joint projects and steer them toward proprietary lock‑in rather than public good outcomes.
  • Regulatory divergence: If domestic political cycles change rules, alliance continuity can fray. Institutional endurance — permanent secretariats, legal agreements — helps.

Where I see continuity with my earlier writing

I have long argued that strategic partnerships around technology must be practical and action‑oriented, not just rhetorical. In earlier pieces I talked about the need to co‑develop and co‑produce technology ecosystems and to create searchable platforms that connect foreign partners with domestic producers and researchers (Co‑develop, co‑design, co‑produce in India for world: PM to US tech firms) and the value of convening around AI collaborations rather than becoming locked into binary blocs (India to partner with France, others at AI summit as US, China build walls). Those threads — practicality, marketplaces, and multi‑alignment — are visible in today’s middle‑power strategies.

A forward‑looking posture: what I would recommend

  • Start small and measurable: Pilot joint projects (a regional GPU cluster, a co‑funded mineral refinery) with public reporting on outcomes.
  • Build auditability into deals: Independent audits for compliance, privacy, and ethics should be contractual requirements.
  • Invest in people: Scholarships, exchange programs, and joint PhD networks will knit long‑term capability that outlasts political cycles.
  • Keep the door open: Alliances should be expandable and reversible; inclusion increases resilience and reduces the incentive to choose sides.

Conclusion

The turn by middle powers toward pragmatic tech alliances is a rational response to a more fragmented world. These coalitions can offer real resilience, create markets, and democratize governance of critical technologies — but only if designed with transparency, ethics, and inclusion at their core. I am optimistic: when states focus on shared technical problems rather than grand narratives, they often deliver results that improve lives and broaden choice.


Regards,
Hemen Parekh


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