Verified Value Chains, Innovation and Competition

The paper addresses three issues: The first one is vulnerabilities in IT systems, the second is significant market power in hardware production, and the third is sovereignty of nations and manufacturers regarding their IT input. The paper reviews some recent developments towards open verifiable components, such as for open processors, hardware security modules, operating systems, and semiconductor production systems. These developments provide opportunities for new products. Even manufacturers in non-leading countries might be empowered to produce hard-to-attack products. Currently pending IT security regulation will not achieve such a level of security by itself. Open and better verified, ultimately provably secure components will foster more sovereignty. Technical limits and costs of the approaches are discussed. It is concluded that fighting vulnerabilities and providing space for new products and jobs justify further privately and publicly supported research.