ABSTRACT
This chapter is an analysis of the future role of the nation-state in a digitalized world. Building on a framework called the innovation loop, developed by the author, this study considers societal evolution largely to be a continuous adaptation to changed conditions brought by innovations. The analysis traces the development of the modern nation-state in the perspective of major human inventions. It addresses the topic of globalization and the changing role of the nation-state, with less autonomy on one hand but with a new position in an increasingly interconnected world on the other. Based on the fundamental aspects of digitalization as a driving force for change, three fields where the nation-state needs to adapt are identified – efficiency of services, alternative providers of services, and the structure of the democratic process. The threat from supra-states, localism, and cosmopolitanism is also discussed, and the study concludes that the nation-state still has a future as an important component of an international governance system, if it keeps changing. However, the rule of law, the monopoly of coercive power, and the control over a physical territory ultimately give the nation-state a significant power, which can provide extended time for implementing the necessary change.
