Pre- and post-pandemic innovation and technology cooperation FIGURE 72022-23 averageKnowledge sharing indicators tend to be above pre-pandemic trend Index averages 0.600.651.20 2018-19 average0.45 0.50 0.55 0.60 0.65 0.70 0.75 0.80 0.85 0.90 0.95 1.00 1.05 1.10 1.15 1.201.05 1.00 0.900.95 0.80 0.750.85 0.701.101.15 45° line, where 2022-23 average = 2018-19 averageBattery priceInternet users Cross-border R&D Trade in IT goods International studentsTotal factor productivity (TFP)Cross-border patents Cross-border data ﬂowsTrade in IT servicesHigher post-2020 Lower post-2020 Sources: The Conference Board, International Telecommunication Union, BloombergNEF, Cisco, United Nations Trade and Development (UNCTAD), PATSTAT, Institute of International Education (IIE), Organisation for Economic Co-Operation and Development (OECD), McKinsey & Company analysis.This drop in price supported a growth of 30% in the deployment of this technology. Finally, in 2023, student flows started to rebound after their pandemic decline, although they remain below their pre-pandemic average. Despite these positive signs, there are major questions about the global fragmentation of frontier technologies as different economies strive to maintain their advantages. Important supply chains, such as semiconductors, have been impacted by increased measures to control flows of raw materials and advanced technologies.36 The transfer of some intangibles around the globe has also slowed. Cross-border patent applications fell in 2023, and cross-border R&D fell in 2022 (the latest year for which this data is available). All of these trends may be contributing to the worryingly stagnant trajectory of total factor productivity (TFP).37 While not the only indicator, TFP is a useful measurement of overall innovation. It measures the ratio of overall output (GDP) to overall inputs, with innovation being a key factor in increasing the productivity level. Looking ahead, as innovation becomes a frontline of geostrategic considerations, leaders will need to identify pathways for implementing common- sense security measures while not cutting off cooperation. For instance, sovereign AI – developing AI systems and attendant capabilities within national borders – can be pursued alongside the advancement of multilateral partnerships that set standards, establish guardrails and facilitate cross-border data flows38 The Global Cooperation Barometer 2025 Second Edition 15