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Digitalisation Beyond Borders: a Case Study of Estonia and Finland's

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Digitalisation Beyond Borders: a Case Study of Estonia and Finland's Digitalisation Beyond Borders: A Case Study of Estonia and Finland’s Collaboration on Cross-Border Information and Communication Technology Development By: Rebecca Curry Student ID number: 1744828 Adviser’s name: Dr. Rod Dacombe Department of study: Political Economy Programme of study: MA Public Policy Word count: 15,480 2 Table of Contents I. Introduction I.1. Research question and hypothesis…………………………………………………….7 I.2. Justification……………………………………………………………………………8 I.3. Structure……………………………………………………………………………….9 I.4. Terms………………………………………………………………………………….9 II. Methodology II.1. Data collection……………………………………………………………………....11 II.2. Analysis…………………………………………………………………………….12 II.3. Limitations………………………………………………………………………….13 III. Literature Review III.1. Overview of multinational e-government Collaboration………………………….15 III.2. E-government information sharing, integration and interoperability……………...17 III.3. Central debates……………………………………………………………………..18 IV. Theoretical Framework IV.1. Underpinnings of the framework………………………………………………….20 IV.1.1 Border theory…………………………………………………………….20 IV.1.2 Collaborative governance theory…………………………………………22 IV.1.3 Inter-organizational cooperation theory………………………………….24 IV.1.4 Integration and interoperability theory…………………………………...25 IV.1.5. Value network theory……………………………………………………26 IV.2. ‘Multinational e-government collaboration, information-sharing, and interoperability’ framework……………………………………………………...27 V. Case Study V.1. Case: Estonia and Finland’s cross-border collaboration on ICT development……..30 V.1.1 Building Cooperation……………………………………………………...30 V.1.2 Nordic Institute of Interoperability Solutions……………………………..33 V.2. Application of Framework………………………………………………………….35 V.2.1. Collaboration……………………………………………………………...35 V.2.2. Value Network……………………………………………………………44 V.2.3. Cross-border factors……………………………………….……………...48 V.2.4. Integration and Interoperability…………………………………………..49 VI. Conclusion VI.1. Contribution to the literature………………………………………………………55 VI.2. Key Findings……………………………………………………………………….55 VI.3. Implications……………………………………………………………………….57 VII. References……………………………………………………………………………….59 3 VIII. Appendix………………………………………………………………………………...72 4 List of Tables and Figures Figure 1: ‘Theory of borderland studies’ framework (Brunet-Jailly, 2005: 645)…………21 Figure 2: ‘A model of collaborative governance’ (Ansell and Gash, 2008: 550)…………23 Figure 3: ‘Multinational e-government collaboration, information sharing, and interoperability’ framework (Navarrete et al, 2010: 7) ………………………...27 Figure 4: ‘Cooperation between Population Register Centre (Fi) and Information System Authority (EE)’ (NIIS, 2018a: 10)………………………………………………32 Figure 5: 2018 NIIS organisation chart (NIIS, 2018i) ……………………………………36 Figure 6: Ecosystem Value Map of the Nordic Institute for Interoperability Solutions (NIIS, 2018j)…………………………………………………………………….45 Figure 7: Factors that explain the emergence of multinational collaboration on ICT development and e-government between Estonia and Finland…………………56 5 Abstract The purpose of this dissertation is to examine the factors that led to the emergence of collaboration on ICT and e-government development between Estonia and Finland. I employ the ‘Multinational E-government Collaboration, Information Sharing and Interoperability’ framework to examine this new phenomenon of collaboration between countries to develop cross-border e-government solutions. I conclude that collaboration between Estonia and Finland was influenced by both technical and non-technical factors to include cross-border, value network, collaboration, and integration and interoperability. 6 I. Introduction The role of borders and governments requires closer inspection during a time of increased populist sentiments throughout areas of Europe and the rest of the world. The influx of asylum seekers and refugees to Europe in 2015 (Eurostat, 2018a) during the European migrant crisis, and the impending Brexit deadline, have sparked new debates over the European Union’s (EU) vision to operate as a single, borderless market. As migrants cross the Mediterranean Sea in search of safety and better lives in Europe, the Austrian Chancellor has threatened to reinstate border checkpoints along their border with Italy (Brandt and Reinert, 2018). At the same time, the United Kingdom’s (UK) decisive referendum on membership with the EU in June 2016 was largely focused on the level of control that the UK has over its borders and government, as exemplified by the leave campaign’s slogan of ‘Take Back Control’ (Vote Leave, 2018: 1). The debate has also spread to countries including Poland (Guyot, 2018), Italy (Binnie, 2018), and Germany (Escritt and Poltz, 2018). While a range of countries in Western, Southern, and Central Europe debate the level of control over their respective national borders, Europe’s Baltic Sea region has increasingly participated in cross-border cooperation projects since 1990 (Scott, 2002) and worked with the EU on transnational cooperation initiatives that foster further European integration (Interreg, 2018). A prominent Cross-Border Cooperation programme of the EU is the Interreg Baltic Sea Region Programme. The programme consists of twelve countries that border the Baltic Sea and operates on a transnational scale to ‘support…integrated territorial development and cooperation for a more innovative, better accessible and sustainable Baltic Sea region’ (Interreg Baltic Sea Region, 2018). Programmes such as the Interreg Baltic Sea Region have evolved out of the EU’s desire for increased integration across the continent. The EU describes itself as a union of ‘sovereign and independent member states…[that] have decided to pool some of their “sovereignty” in areas where it makes sense to work together’ (European Commission, 2018a: 7). Since the creation of the European Economic Community - the predecessor to the EU – with the Treaty of Rome in 1957, a main focal point of EU policies 7 has been eliminating barriers to progress within Europe (Treaty of Rome, 1957). The 1986 ratification of the Single European Act further cemented the EU’s desire for integration with the establishment of a single market for free movement of ‘goods, services, money and people’ (European Union, 2018a: 1) void of ‘internal frontiers’ (European Union, 1987: 7). Pursuant with the EU’s vision for an integrated Europe, a current priority for the EU is to converge towards a ‘Digital Single Market’ in which ‘data’ becomes the fifth pillar of free movement (European Commission, 2018b). The EU has been actively pursuing a Digital Single Market since 2015 (European Commission, 2015a). EU officials recognise that technology plays a growing role in people’s lives and envision a union in which European countries can easily digitally connect across borders and synthesize their data infrastructures (European Commission, 2016a). They argue that a Digital Single Market will result in economic growth, improved conditions for businesses, and an upgrade in digital access for citizens (Ibid). While the EU is still in the process of making integration and data sharing through the Digital Single Market a reality (European Commission, 2018c), the integration of the data economy is already independently emerging within the Baltic Sea region. The EU member countries of Estonia and Finland have embarked on collaboration to exchange data and develop Information and Communications Technology (ICT) for e-government across borders (Population Register Centre, 2018a). Estonia and Finland developed the Nordic Institute for Interoperability Solutions (NIIS) in March 2017 to manage the cross-border development of ICT and interoperability solutions (Nordic Institute for Interoperability Solutions [NIIS], 2018a). NIIS is a self-proclaimed ‘network and cooperation platform’ (NIIS, 2018b: 1) with an aim to create ‘digital society solutions and cross border cooperation’ (NIIS, 2018b: 1). This non-for- profit association asserts that it has a ‘unique’ operating model in comparison to other institutes around the world (Ibid). I.1. Research Question and Hypothesis Within this context, this paper explores the following research question: What factors explain the emergence of collaboration between Estonia and Finland for the joint development of ICT and electronic government solutions? 8 This author’s hypothesis posits that Estonia and Finland’s collaboration on ICT development has emerged from an environment of both favourable technical and non-technical factors, to include cross-border, value network, collaboration, and integration and interoperability. I.2. Justification This paper will offer insight into the emergence of collaboration between Estonia and Finland to develop ICT and share data across borders. The Chief Information Officer (CIO) of Estonia, Siim Sikkut, remarked in 2016 that Estonia is attempting to create a blueprint for Europe of how electronic government can surpass state borders (Sander, 2016). Estonia and Finland’s new collaboration has been understudied and under-discussed by academics and policymakers, yet can provide vital insight into the realities and implications of a Digital Single Market and moving beyond state borders for collaboration on digitalisation for state governments. Estonia and Finland are each considered very high in their level of electronic government, also known as ‘e-government’ (United Nations Department of Economic and Social Affairs [UNDESA], 2018). In the United Nation’s 2018 e-government survey, both Estonia and Finland ranked in the top
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