5 An economy in transition: from digital to digitally-driven...8 Vision and objectives...13 Vision...
77 Benchmarking analysis...78 4 Foreword Digital technologies are one of the most important sources of growth for national economies.
They enable economies to create more jobs, improve people's lives and build better and greener societies.
and accelerate smarter use of‘digital'technology in various sectors of the European economy. Michel Catinat Head of Unit Key Enabling Technologies and ICT Enterprise and Industry Directorate-General European commission 5 A business landscape in transition The European business landscape:
the European economy is by far the leading economy worldwide. With almost 74%of the EU GDP, the service sector dominates,
SMES1 are the backbone of this service-driven economy. From Table 1, it is clear that the typical EU enterprise is a SME,
1 067 387 3 492 980 2 485 457%21.6%18.9%17.9%58.4%41.6%SMES are the backbone of the European economy,
this gap in‘entrepreneurial perception'between the two economies has reduced surprisingly as the image of European citizens towards entrepreneurs slightly improved(+4)
Nevertheless, in the EU a truly entrepreneurial climate is often lacking 8 said that an economy almost fully driven by (micro) SMES could be the ideal catalyst to make the most of the huge potential of digital technologies.
An economy in transition: from digital to digitally-driven There is no debate over whether digital innovation is a profound force in our economy.
The digital economy isn't just about speeding up communication across borders or changing the skills workers need;
in order to leverage the digital potential for Europe's SMEDRIVEN economy. 3 Definitions see Annex. Quenching customer insight:
These innovations are changing economies and markets, and reinventing relationships between organisations, suppliers and customers thus becoming critical elements for growth, innovation and job creation.
To foster a truly entrepreneurial culture to leverage the digital potential for Europe's SME-driven economy.
cover the transformation to a digitally driven economy, digital entrepreneurship5, high-tech skills and talent, access to finance
Governments and policy makers are recognising the important role of digital in the economy and efforts are being made to foster digital entrepreneurship.
Pillar 1 Increase industry digital transformation In order to increase the take-up of digital technologies and intensify the digitisation process in Europe's economy
and innovation-driven economy will have a clear dependence on technology, high-tech skills and human capital are required arguably also for successfully doing business in the digital age.
New competences and jobs for a greener and smarter economy 10 IDC (2009. Post crisis: e-Skills are needed to drive Europe's Innovation Society 11 See:
countries like Singapore and the UK have relaxed their visa requirements for highly skilled individuals willing to work in their national economies.
Green paper on long-term financing of the European economy 24 European commission (2013. Strengthening the environment for Web entrepreneurs in the EU Lack of information
Measuring Industry Digitisation-Leaders and Laggards in the Digital economy Generally, central and northern economies are more digitised
and those economies lead Eastern and Southern Europe in all but one industry(‘real estate, rental & leasing').
'The gaps between regions tend to be the largest in Europe's traditional, non-service oriented economies like‘chemicals'and‘basic manufacturing'.
Figure 15 illustrates clearly that it's not possible to speak about one digitally empowered single market in Europe as the European business landscape is a patchwork of national economies and Basic Manufacturing Utilities Business & Administrative Services Transportation & Logistics Consumer goods Real estate,
the U k. government commitment has articulated a strong vision for the U k. to emerge as a leading centre in the new high tech economy
and Sweden being connected the most economy in the World Role models and big exits were and are a source of inspiration for (future) entrepreneurs Due to‘limited'internal market opportunities,
research and innovation-sustainable, thanks to a decisive move towards a low-carbon economy, and inclusive, with a strong emphasis on job creation and poverty reduction.
with 1. 2 million jobs expected to be created in infrastructure construction in the short term, rising to 3. 8 million jobs throughout the economy in the long term.
and opening up international markets. 3. Access to finance and capital to improve lending to the real economy by better mobilising
the Small Business Act for Europe reflects the European commission's political will to recognise the central role of SMES in the EU economy.
The European E-business Support Network for SMES (ebsn) was established in response to high-level political focus on the important role of ICT in boosting the competitiveness of the overall EU economy.
the ultimate beneficiary is the entire European economy. The first results are remarkable. The business benefits of digital supply chains lie in significant gains in efficiency
This section looks into options for policy action in all industries and sectors of the economy as there is potential
however, when looking into specific sectors of the economy, some differences are observed in the degree of digital transformation among traditional businesses and SMES or start-ups.
referring to lagging-behind other economies (primarily the US) in applying science into marketable technological applications.
-Emerging market needs, new business paradigms and their impact on the European economy. Develop a scorecard with indicators for monitoring the key aspects across Europe.
but are expected to have a high impact on the economy. These projects are described in Table 5. Table 5 Strategic investment projects Objective Action Description Pillar 1:
With a European economy, consisting of more than 60%of traditional, service-orientated companies there is a huge potential to be leveraged.
Governments and policy makers are beginning to recognise the important role of digital in the economy
Green paper on long-term financing of the European economy-European commission (2013. Strengthening the environment for Web entrepreneurs in the EU-European commission (2012.
New competences and jobs for a greener and smarter economy-OECD (2010. ICT Skills and employment 72 Annex Industry clusters Table 7-Industry clusters in Europe(%of total Member State workforce employed in particular cluster) Source:
The report sets out to illustrate the potentialadded-value to The irish economy by addinganother dimension to its ecosystem of innovation supports
Explain the global shift towardsdesign-driven innovation practices 10the design processas a tool of innovationexplain the global shift towardsdesign-driven innovation practicesnever before has innovation been so importantto The irish economy.
by export-orientated economies and as key enablers of innovation strategies. In October 2010, the European commission included design as a priority in the new Europe 2020 Flagship Strategy‘Innovation Union'stating that:
Ladder models of design propose that there is a range of rolesof design that are stepped from the bottom-up from no designuse to more integrated and sophisticated applications of designby firms. 9the Danish Model and theglobalizing Learning Economy, Bengt-Åke
the Danishgovernment adopted a four-year national design policy in 2003as one of five new strategic initiatives to promote economicdevelopment under the programme Denmark in the Cultureand Experience Economy.
and11finish Ministry of Employment and the Economy and the Ministry of Education and Culture (2012.
More than before designis associated with user-driven innovation activities by companies 56finish Ministry of Employment and the Economy and the Ministry of Education and Culture (2012.
In open-market countries where there is a particular reliance upon export-orientated economies e g. New zealand (Export-Orientated Economies;
Where market failure is evident and intervention is necessary, in the casewhere the allocation of goods and services by the free market is not efficient and effective i e. low export performance of SMES (Market Failure);
Given the size of New zealand's domestic economy and its lack of scale and critical mass,
Building a Balanced Economy ona Secure Manufacturing Base. 71 Intriguingly, a survey conducted in 2010 by the same organisation showed that the number of companies introducing
Support Programmes 75 Backgrounddesign Flanders is part of Enterprise Flanders a government agency charged with developing the economy and enterprises in Flanders
Meetings Heldlouise Allen, Head of Innovationprogrammes, Design and Craftscouncil of Ireland/Brendan Coogan, Assistant Principal, Economic Division, Department of Finance/Neil Cooney, Senior Economist
Building security, protection and trust within society and the economy...30 1. Greater online protection for citizens and companies...
we want to seize the opportunities that digitisation presents to strengthen Germany's role as an innovative and highly productive economy within the European union and across the globe.
Without confidence in the security and integrity of the digital world, we will not succeed in harnessing the true potential of the digital transformation for the benefit of our economy and society.
and therefore contributes more to the economy than the traditional industries such as mechanical engineering or automotive.
Meanwhile, the sinister threat of cyber espionage is ever present not only for our economy and citizens but also for the state.
but also to the business models on which the network economy is based. The use of encryption and other security mechanisms is necessary to ensuring Internet safety.
These changes are having a massive impact at the very heart of our economy. Networked production or Industry 4. 0 has the potential to recast value added chains
A cross-sectoral strategic approach can harness growth potential for the national economy and provide stimulus for social progress. 2 Supporting the young digital economy By bringing together established businesses and young, innovative enterprises under a future-oriented innovation and growth policy,
we are examining to what extent these rules must be developed to take account of the dynamically evolving technological and economic conditions of the global data economy.
Demographic trends are directly affecting the supply of labour and thus the performance of Germany's economy and social system.
Building security, protection and trust within society and the economy VI. BUILDING SECURITY, PROTECTION AND TRUST WITHIN SOCIETY AND THE ECONOMY 31 The Federal government has set itself the task of ensuring that the network is secure
in order to reap the full benefits of digitisation for German society and its economy. People will not trust new digital services
and offerings unless their data is protected and they can operate with maximum security on the Internet.
and economy. zzwe will modernise and harmonise European data protection law in the digital internal market in order to strengthen the rights of citizens in the networked world
and want to play our part in protecting society and the economy in the digital age.
she worked as a research assistant employing large-scale data analysis tools to analyse the impact of foreign-born workers in the US economy.
People with more advanced ICT skills can take advantage of an even wider range of opportunities brought about by the growth of the app economy
In the developing world, as much as two-thirds of the young population is underutilized in some developing economies,
2012p 2013p 2014p 2015p 2016p WORLD 12.7 11.6 11.7 12.6 12.7 12.6 12.7 12.7 12.7 12.7 12.7 Developed Economies & EU
or training (NEET) is one of the main challenges policymakers in developed economies face. In Japan and the United states, NEET rates were 9. 7 and 15.6 per cent respectively in 2010,
locale=en. 0 10 20 30 40 50 60 70 80 90 WORLD Developed Economies & EU Central & Southeastern Europe (non
and consumption of services and the possibility for emerging economies to contribute for the first time to the world's services industry,
and knowledge process outsourcing (KPO) as well as industry specific services. 72 73 Offshore services are a potential vehicle for low-and middle-income countries to participate in the global knowledge economy
A common way through which an economy can enter the offshore services value chain is by establishing call centre operations.
This creates an opportunity for low-income countries to enter the knowledge economy. 2. Upgrading within the business process segment:
and how the emerging app economy 83 might generate new employment opportunities for young people around the world.
Knowledge Map Of The Virtual Economy Converting the Virtual Economy into Development Potential,(Washington, D c.:
and Vodafone. 83 The app economy refers to the range of economic activity surrounding mobile applications.
The app economy encompasses the development of and sale of apps ad revenue or public relations generated by free apps,
and the hardware devices on which apps are designed to run. www. techopedia. com/definition/28141/app-economy.
and Ernkvist, Knowledge Map Of The Virtual Economy, 28. Digital opportunities: Innovative ICT solutions for youth employment 20 Microwork Microwork is a series of small tasks that have been broken out of a larger business process
the app economy has generated roughly 752 000 app related jobs in the United states alone as of July 2013.92 The figure is 530 000 jobs in the 28 European union countries. 93 Apps
However, the verdict is out in terms of how sustainable the app economy will be, and whether it will produce enough revenue in emerging markets to support this new generation of entrepreneurs.
Sizing the number of jobs generated by the app economy is difficult. Any particular app could be created by a single teenage programmer,
or by a large team at a big company. 92 Michael Mandel, 752,000 App Economy jobs on the 5th anniversary of the App store,(Progressive Policy Institute, July 2013), www
. progressivepolicy. org/2013/07/752000-app-economy-jobs-on-the-5th-anniversary-of-the-app-store/93 Andreas Pappas,
The EU App Economy: 530,000 jobs and rising,(Vision Mobile, September 2013), www. visionmobile. com/blog/2013/09/report-the-eu-app-economy-530000-jobs-and-rising/94
Vision Mobile, Developer Economics 2012: The New App Economy,(June 2012) 4, www. visionmobile. com/blog/2012/06/report-developer-economics-2012-the-new-app-economy/.
/Digital opportunities: Innovative ICT solutions for youth employment 22 Jobs in the app economy can be categorized as follows:
IT-related jobs that use app economy skills the ability to develop, maintain, or support mobile applications.
Non-IT jobs (such as human resources or marketing) which support app developers in the same company.
The following is a list of types of app economy employers95 Large, medium, and small app developers, who may be creating apps for themselves or for clients.
Large tech companies who develop essential infrastructure and complementary technologies for the app economy. Accounting and IT consulting firms,
and people in these regions become more engaged. 95 Mandel and Scherer, The Geography of the App Economy, 15.96 Vision Mobile, Developer Economics 2012:
The New App Economy, 73. Digital opportunities: Innovative ICT solutions for youth employment 23 Figure 9:
Emerging app economies have potential markets that are much larger than that of English speaking regions and Europe.
For economic growth in the app economy, it is crucial for developers to be able to continuously update their technical skills,
Knowledge Map Of The Virtual Economy, p51. 103 Gold Farming refers to when individuals play a multiplayer online game to acquire in-game currency that other players purchase in exchange for real-world money.
Knowledge Map Of The Virtual Economy. Digital opportunities: Innovative ICT solutions for youth employment 26 4. 6 Mobile phone repair and computer assembly Mobile phone repair as well as computer maintenance and assembly continue to be important areas of youth job
It is estimated that a shift to a greener economy could generate 15 to 60 million additional jobs globally over the next two decades
and lift tens of millions of workers out of poverty. 106 A recent OECD report argues that promoting ICT skills in the green and smart economy pays a double dividend by encouraging job creation
national and local levels. 108 The United nations Environment Program's 2011 Green Economy Report makes the claim that economic progress
and that the green economy will deliver green jobs and thus lead to decreased unemployment rates.
Economy,(Geneva: International Labour Office, 2012). 107 OECD, ICT Skills and Employment: New Competences and Jobs for a Greener and Smarter Economy, OECD Digital economy Papers, No. 198,(OECD Publishing, 2012), http://dx. doi. org/10.1787/5k994f3prlr5-en
. 108 Angelica Valeria Ospina, The Outcome of Rio+20: An ICT Perspective on‘The Future We Want,'Notes on ICTS, Climate Change and Development, http://niccd. wordpress. com/2012/06/27/the-outcome-of-rio20-anict-perspective-on-the-future
/109 United nations Environment Programme, Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication,(Nairobi, Kenya:
111 4. 7. 1 Green jobs and ICTS Data centres and other ICT infrastructures are increasingly vital for all sectors of the economy,
Other green jobs will be related to greening the economy, such as working on the systems that operate wind farms,
Other areas of employment in the green economy that involve a range of ICTS from geographic information systems to satellite imagery
In emerging economies and developing countries, the gains are likely to be higher than in industrialized countries,
Green Economy, Renewable Energy: Investing in Energy and Resource Efficiency,(UNEP, 2011). 111 OECD, ICT Skills and Employment:
New Competences and Jobs for a Greener and Smarter Economy. 112 United nations Environment Programme, Transition to Green Economy Could Yield up to 60 Million Jobs, UNEP News Centre, May 31
Innovative ICT solutions for youth employment 28 4. 7. 2 Green jobs for youth The dialogue around ICTS and the green economy has centered largely on food security, sustainable agriculture, and energy efficiency.
Interestingly, youth participation in the green economy has not been an area of focus; however in the context of the 2012 Rio+20 conference on sustainable development, youth advocacy groups lobbied that young people should be seen as an asset for a green economy that would in turn generate youth employment. 113 Youth have expressed a strong interest
in renewable energy and fighting climate change as evidenced in local, regional and international youth climate movements. 114 Many surveys of youth show their desire to create green jobs for the future.
YMCA volunteer Upgrading youth ICT skills will be a key factor in their ability to participate in and benefit from the green economy.
As shown, there is a wide range of ways that ICTS are revolutionizing all sectors of the economy
Authors 151 International Labour Office, Apprenticeship in the Informal Economy in Africa,(Geneva: ILO, 2008.
Apprenticeship in the Informal Economy in Africa. Geneva: International Labour Office, 2008. International labour organization.""China Youth employment Report."
Working Towards Sustainable Development Opportunities for Decent Work and Social Inclusion in a Green Economy.
Knowledge Map Of The Virtual Economy: Converting the Virtual Economy into Development Potential. Washington, D c.:
infodev, Information for Development Program, 2011. www. infodev. org/en/Publication. 1076. html. Lewin, Tamar.
emc=eta1 Mandel, Michael. 752,000 App Economy jobs on the 5th anniversary of the App store.
New Competences and Jobs for a Greener and Smarter Economy. OECD Digital economy Papers, No. 198.
/Pappas, Andreas. The EU App Economy: 530,000 jobs and rising. Vision Mobile. September 2013, www. visionmobile. com/blog/2013/09/report-the-eu-app-economy-530000-jobs-and-rising/Partnership for 21st Century Skills."
"P21 Framework Definitions.""Last modified December 2009. www. p21. org/storage/documents/P21 framework definitions. pdf Plan CEIBAL, The.
Green Economy, Renewable Energy: Investing in Energy and Resource Efficiency. Nairobi, Kenya: UNEP, 2011. United nations Environment Programme.
Towards a Green Economy: Pathways to Sustainable Development and Poverty Eradication. Nairobi, Kenya: UNEP 2011.
Transition to Green Economy Could Yield up to 60 Million Jobs. UNEP News Centre, May 31, 2012. www. unep. org/newscentre/default. aspx?
The New App Economy. 2012. www. visionmobile. com/blog/2012/06/report-developer-economics-2012-the-new-appeconomy/.
That is in part because economists have legitimized the idea that to provide societal benefits companies must temper their economic success. In neoclassical thinking,
The ability to create shared value applies equally to advanced economies and developing countries, though the specific opportunities will differ.
In advanced economies, demand for products and services that meet societal needs is rapidly growing.
economies develop, and societal priorities shift. An ongoing exploration of societal needs will lead companies to discover new opportunities for differentiation and repositioning in traditional markets,
Clusters are prominent in all successful and growing regional economies and play a crucial role in driving productivity, innovation, and competitiveness.
The benefits of cluster building apply not only in emerging economies but also in advanced countries. North carolina's Research Triangle is a notable example of public and private collaboration that has created shared value by developing clusters in such areas as information technology and life sciences.
To quote the social economy Strasbourg Declaration of 16 january 2014:''Europe's social model needs to reinvent itself.
and environmental sphere (Social Economy & Social Entrepreneurship, 2013). The Innovation Union supports social innovation,
An Introduction iforewordin just three decades, the internet has evolved from an experimental tool for researchers to a pervasive, omnipresent backbone for society and the economy.
or of the economy are oriented towards the creation of and the engagement with effective experiments of social innovation, promoting their scalability
Contribute to a low-carbon economy, for instance by lending, exchanging and reusing goods at scale, across geographic boundaries (collaborative consumption).
25 Figure 2caps Stakeholders 26 Citizens and initiatives active in commons-based peer production and sharing economy (e g.
New Economic Modelsthe transformation of societies and economies following the diffusion of digital technologies, with increases in productivity, the redistribution of international divisions of labour,
and the emergence of new professions, has questioned the way the world economy has been organised, the way business can be done,
and economy by linking it to the Internet of things (Iot), sensor network and cloude services in order to support open online social media and distributed knowledge co-creation thus maximising the network effect,
resilient societies and economies, deploying ad hoc networks of citizen experts around client's needs. 16.
Society, economy, and even human psychology itself are undergoing an irreversible change, which we as citizens and policymakers are still struggling to understand.
with least activity around DSI science and technology projects (110) and DSI finance and economy solutions, such as crowdfunding for social good projects (104).
the collaborative economy, cities and public services; open tools and distributed architectures; and citizen engagement and direct democracy. 2. Make it easier to grow and spread DSI through public procurement:
in particular campaigning sites such as Avaaz and parts of the collaborative economy and the maker movement.
3) collaborative economy;(4) new ways of making;(5) open democracy; and (6) acceleration and incubation.
and incubation Open democracy Open access Collaborative economy Awarness network Open Networks Open Knowledge Open Data Open Hardware Organisations More Filters Screenshot of the crowdmap www
the collaborative economy, local exchange and trading systems, digital currencies, and awareness networks that incentivise experimentation with new models in a variety of domains.
We are undergoing a transformation that involves society and the economy, driven by the fast evolution of ICT.
Health and Wellbeing, Finance and Economy, Energy and Environment, Education and Skills, Culture and Arts, Work and Employment, Participation and Democracy, Neighbourhood Regeneration,
Economy Open Democracy Funding Acceleration and Incubation The organisations and projects identified to date can roughly be grouped within six broad domains.
1) New ways of making,(2) Open democracy,(3) The collaborative economy,(4) Awareness networks enabling sustainable behaviours and lifestyles,(5) Open Access
Hexegan schematic of the 6 areas of DSITHE collaborative economy and the many other umbrella terms used to describe the rise of digital marketplaces for people to make transactions and share skills,
The Collaborative Economy has been documented by organisations like the P2p Foundation, Nesta, and Ouishare. Across the world the burgeoning field of collaborative consumption is using digital platforms to change how people share resources and exchange goods and services,
It is now setting up branches in the UK and USA COLLABORATIVE ECONOMY New collaborative socioeconomic models that present novel characteristics,
Growing a Digital Social Innovation Ecosystem for Europe 25 Ouishare SHARING ECONOMY NETWORK Ouishare is a global collaborative consumption network founded in January 2012.
The overarching aim of Ouishare is to shift the focus of the economy to one that can find new ways to connect,
Ouishare. net and collaborative economy events. Ouishare. net is an online community where members can post articles on collaborative consumption
which brings together the global collaborative economy community. The 2014 event took place in Paris
or interested in, the collaborative economy. In parallel thousands of alternative currencies are focused in use some on localities (e g. the Brixton Pound in the UK or Chiemgauer in Germany;
Bitcoin) 7. Some of these have encouraged deliberately a changed awareness of how economies work for example, valorising labour time equally,
Goteo SHARING ECONOMY NETWORK A vibrant ecosystem of makers is developing across Europe and globally.
and sharing economy platforms like Peerby are creating new forms of relationships and services. Inspired by the open-source movement, individuals, self-organising groups
including crowdfunding and P2p lending that has been documented deeply by Nesta in the UK14 36 Growing a Digital Social Innovation Ecosystem for Europe Case studies categorised into the 6 different types of DSI COLLABORATIVE ECONOMY FUNDING ACCELERATION
-based knowledge economy. The project is a joint research effort sponsored by the Coordinating Ministry of Knowledge and Human Talent, the Senescyt,(Secretaria National de Educacion Superior, Ciencia, Tecnologia e Innovacion) and the IAEN
FINANCE AND ECONOMY EMPLOYMENT SMART PUBLIC SERVICES ENERGY AND ENVIRONMENT Health and Wellbeing Finance and Economy Energy and Environment Participation and Democracy Smart public services Science and technology Education and skills Culture and Arts Work and Employment DSI AREAS AREAS OF SOCIETY New
ways of making Funding acceleration and incubation Open democracy Open access Collaborative economy Awarness network TECHNOLOGY AREAS Open Hardware
Open Networks Open Knowledge Open Data 47 45 44 41 40 38 34 25 18 17 15 12 6 5
AND ECONOMY ENERGY AND ENVIRONMENT PARTICIPATION AND DEMOCRACY NEIGHBOURHOOD REGENERATION SCIENCE EDUCATION AND SKILLS CULTURE AND ARTS WORK AND EMPLOYMENT 254 251 164 163 162 138
The collaborative economy and open knowledge is the specialty of the second largest but also more scattered community (7. 41 per cent), consisting of Esade, the IRI,
and Horizon 202022 present an integrated approach to help the EU economy become more competitive,
and the collaborative economy. These platforms based on open technology can gather and integrate information in order to allow participation and citizens'feedback,
In Seoul, the Mayor has designed programmes for the sharing economy and citizen engagement. Colombia set up a centre for social innovation within its government,
The competition invited Europeans to come up with new solutions to reduce unemployment and minimise its corrosive effects on the economy and society.
therefore allowing for innovation in the wider economy based on the Future Internet users must be able to come (no barriers to entry)
This focus could be on four key areas of opportunity in DSI. a. Collaborative economy b. Digital social innovation in cities and public services c. Open tools and distributed architectures
health authorities and universities to pilot large-scale DSI experiments around collaborative economy, direct democracy, distributed energy, civic health and bottom-up smart city solutions.
Within the single digital social market it should be easier for digital social innovations such as collaborative economy
'Technology and Society Magazine, IEEE 31.4 (2012): 54-62.5 http://www. nesta. org. uk/publications/making-sense-uk-collaborative-economy Manchester
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