<p>How does the digital revolution affect the context of economic policy? Can Federico Caffè’s philosophy to economic policy guide us in finding solutions? Following a discussion of a theory of why firms become transnational which focuses on advantages of transnationality in bargaining with other economic agents, the paper considers the role of digital technologies in transnationalization and in externalization processes. Changing perceptions and approaches to stakeholders in companies’ activities in the same decade when the traditional definition of corporations and TNCs was being challenged. The paper links these developments to organizational changes via the externalization of production which weakens the bargaining position of many stakeholders. Digital TNCs and how they are achieving a higher sales return from their foreign assets compared with returns from their total consolidated assets. The results are explained via the characteristics of digitalization and of intangible investments. Characteristics such as scalability and spillovers may lead to possible sub-optimal levels of demand for investment and to stagnation: policy implications. AI: opportunities and problems; the productivity debate. New context of economic policy seen to be shaped by the interaction between trasnationalization and digitalization and the related increase in the number of stakeholders in weak position. Federico Caffè’s philosophy of economic policy applied to the new context.</p>