European commission Directorate-General for Research Communication Unit B-1049 Brussels Fax (32-2) 29-58220 E-mail:
research-eu@ec. europa. eu Internet: http://ec. europa. eu/research/research-eu EUROPEAN COMMISSION Directorate-General for Research Directorate H Transport Unit H2 Surface Transport http://ec. europa. eu
Patrick Mercier Handisyde European commission Office CDMA 04/188 B-1049 Brussels Tel. 32-2) 29-68329 E-mail:
More information on the European union is available on the Internet (http://europa. eu). Cataloguing data can be found at the end of this publication.
from monitoring applications such as closed-circuit television (CCTV) security systems to more advanced applications integrating live data and feedback from a variety of information sources (e g. parking guidance, weather information).
Various forms of wireless communication for both short-range and long-range data exchange (UHF, VHF, Wimax, GSM, etc.;
and more costly microprocessors, allowing for more sophisticated applications such as model-based process control and artificial intelligence;
Sensing technology employing sensors to feed control systems with both vehicle-based data (from devices such as radar, RFID readers, infrared-and visible-band cameras) and infrastructure-based data
Information on the research relating to these wide-ranging aspects can be found in a number of publications issued by the European commission (see website:
European Sky ATM Research Programme), RIS for inland waterways (River Information system) and VTMIS for maritime transport (Vessel Traffic Management Information system).
and travel data; continuity of traffic and freight management ITS services in European transport corridors and conurbations;
/2004 Website www. cvisproject. org/download/roadsense. pdf Safety was a major focus of automotive research in the latter half of the 20th century,
and road/traffic data, including local roadworks. The in-vehicle technologies needed 3g telecommunications for the accuracy and speed of delivery to make services usable and useful
and that only really became possible a decade on.''A strong impetus to progress was given by establishment of the esafety Forum early in 2003, following consultation between the Commission, ERTICO ITS Europe, industry and public-sector stakeholders.
/2001 31/05/2004 Website http://www. transport-research. info/web/projects/Otherwise collectively described as Advanced Driver Assistance Systems (ADAS), these typically employ onboard sensors, together with digital maps and other computerised data,
Speed alert using satellite navigation data to signal that a vehicle is travelling too quickly when approaching a limited-speed road section.
Running on a PC, the model can be used to simulate different road, track, driver and tyre combinations,
Website http://www. transport-research. info/web/projects/As coordinator Luisa Andreone (CRF Fiat Research Centre) notes,
'Improved human-machine interface It became apparent from an early stage that, given the large and growing range of available data sources and types,
Over 95%of automotive accidents are estimated to involve a degree of human misjudgement or malfunction, due to factors such as excessive speed, fatigue, distraction (mobile phones,
Centralised processing of data on the natural and infrastructure conditions of a road network makes it possible to generate alerts,
and bridges can be combined with data from moving vehicles to provide operators, maintenance authorities and road users with rapid warning of emerging problems.
/end 01/03/2005 29/02/2008 Website http://intro. fehrl. org MISS Monitor Integrated Safety Systems.
Its innovative platform comprises a Unified Operative Centre equipped with fixed and mobile devices, and linked via a TETRA terrestrial trunked radio network with‘black box'sensing
/2007 Website http://www. transport-research. info/web/projects/REACT Realizing enhanced safety and efficiency in European road transport.
and transmits real-time data to a central server, where it can be analysed by sophisticated prediction and decision-making models.
Motorola (Israel) Total budget EUR 3. 70 million EU funding EUR 2. 00 million Start/end 01/01/2005 31/12/2006
Website https://www. eurtd. org/quickplace/project-react I N t E L L I G E N t t R A n s P O R T s Y
Communication systems benefit increasingly from the multi-channel wireless connectivity offered by mobile telecommunications, low cost satellite technology, dedicated short range communication (DSRC) and mobile wireless local area networks (WLAN.
but telecoms are unlikely to provide the split-second speed to react if a vehicle immediately ahead suddenly swerves or brakes.
‘Closing the loop by using the vehicles themselves to send data back to traffic control centres will bring great improvements in the efficiency of management and the safety of road users,
while also allowing much fuller coverage of the road systems than is possible today, 'says Vincent Blervaque, Director of Development and Deployment at ERTICO ITS Europe.‘
will permit content delivery to vehicles and twoway communications via onboard units interoperable with Galileo and UMTS systems.
SANEF (France) Total budget EUR 11.25 million EU funding EUR 7. 89 million Start/end 01/10/2009 30/09/2012 Website
Website www. sartre-project. eu EU (for which a deployment roadmap has been set out under the DG Mobility
For interurban networks and secondary roads, greater reliance on in-car systems to provide‘floating car data,
'in conjunction with smaller amounts of roadside hardware, would allow coverage to be extended at much lower cost in terms of installation and maintenance.
The basic idea is that vehicles be equipped with onboard units, routers and antennae, so that they can exchange data with roadside infrastructure,
display information to the drivers (or passengers on public transport) and communicate wirelessly with other vehicles and the infrastructure.
Whereas existing wireless communications technologies use different systems to tackle specific requirements, the new cooperative systems will provide a single, universal solution to many problems.
and the coordinated manner in which the data can be managed, will greatly increase the quality and reliability of personalised information available to drivers about their immediate environment and impending situations.
variable message panels and traffic light status displayed in their vehicles. New V2v interfaces would also enable them to exchange requests and recommendations,
as well as access to information and entertainment content delivered via the Internet. I N t E L L I G E N t t R A n s P O R T s Y S T E M S 1
Large-scale public demonstrations are advanced already well at project sites in Heathrow Airport (PRT), London, Rome's new exhibition centre (cybercars) and Castellón,
30/04/2011 Website www. citymobil-project. eu Following eventual take-up on a sufficient scale, traffic management systems will for the first time have the ability to communicate with individual vehicles,
The same data can also be used to extend the functionality of in-vehicle safety systems for example,
and watching a DVD or working on office matters until it is time for them to leave at a predetermined exit may be a long-term prospect.
However, an early application could be the overnight redistribution of car hire fleets e g. between city centres and airports or peripheral parking sites ready for pick-up by customers the following day.
Using real-time and context-specific data, trusted travel assistants will be able to plan each journey
/2009 Website www. i-travelproject. com Trip advisors Another important direction for ITS research is the promotion of multimodal door-to-door journeys,
based on data provided via RTTI services. For passenger transport, the envisaged systems embrace all types of mobility available to users buses, taxis, train, metro, walking, cycling, etc.
With increasing demand, especially in urban areas, it becomes more and more crucial to have ready access to accurate realtime data for pre-trip planning and on-the spot response to changing needs or conditions.
With the aid of cooperative systems, journey planners could ultimately provide real-time schedule data for individual bus stops or rail stations,
/2008 30/11/2010 Website www. access-to-all. eu WISETRIP Wide scale network of e-systems for multimodal journey planning and delivery of trip intelligent personalised data.
and are restricted in scale of coverage. Consequently, they do not respond to the need for multimodal travel.
Hellenic Telecommunications and Telematics Applications Company (Greece) Total budget EUR 2. 12 million EU funding EUR 1. 44 million Start/end
01/02/2008 31/07/2010 Website www. wisetrip-eu. org I N t E L L I G E N t t R A n s P O
01/05/2009 30/04/2011 Website www. conduits. eu I N t E L L I G E N t t R A n s P O R
/2010 31/12/2012 Website www. city-log. eu Intelligent freight distribution Optimisation of the movement of freight, both within the EU and in transactions with international trading partners
including digital mapping, the monitoring of dangerous goods and live animals, and interoperability of electronic fee collection for trucks.
'equipped with sensors to make them self-aware, context-aware and connected through global telecommunication networks that support a wide range of information services for transport operators, industrial users and public authorities.
/end 01/09/2006 30/06/2009 Website http://heavyroute. fehrl. org Damage limitation The high weight of long range trucks poses some threats to the surrounding environment,
/2010 Website www. simbaproject. org Research cooperation with countries beyond the EU itself in ITS,
which will facilitate data sharing and exchange from different sources and provide data processing and management to support a variety of services.
The project will integrate the open platform with local components and demonstrate its applications in Europe (Athens), Brazil (São paulo),
/2012 Website www. viajeo. eu STADIUM Smart transport applications designed for large events with impacts on urban mobility.
01/05/2009 30/04/2013 Website www. stadium-project. eu/site I N t E L L I G E N t t R A n s P O
On the positive side, ITS will enable connected vehicle-infrastructure communication systems to deliver real-time and context-sensitive information to enhance safety,
New generations of traffic management systems will integrate data from vehicles, to provide dynamic, predictive and adaptive control of traffic flows.
The evolution of mobile communication networks to 4g and beyond will deliver continuous connectivity to vehicles and travellers, giving access to on-line services via mobile Internet links.
Travel guidance, on-line booking and payment facilities will be combined with location-based Web 2. 0 applications to facilitate ride-sharing
data collection and information exchange via mushrooming social networking websites. C H A p T E R 8 Conclusions and the way forward I N t E L L
and transport data from various sources, with an emphasis on quality, standardisation and cost-efficiency;
development of demand-driven, easy-to-use and affordable services for all users, learning from the success of portable navigation systems and Web 2. 0 social networks;
GSM Global system for mobile communications HMI Human-machine interface I2v Infrastructure to vehicle ICPC International cooperation partner countries ICT Information and communication technologies ITS Intelligent transport
systems PRT Personal rapid transit RFID Radio frequency identification device RIS River information system RTTI Real-time traffic information SESAR Single European
trunked radio UHF Ultra-high frequency UMTS Universal mobile telecommunications system V2i Vehicle to infrastructure V2v Vehicle to vehicle VHF Very high frequency VTMIS Vessel traffic management information system WIM
Weigh in motion WIMAX Worldwide interoperability for microwave access WLAN Wireless local area network Glossary I N t E L L I G E N t t R A n s P
You can obtain their contact details on the Internet (http://ec. europa. eu) or by sending a fax to+352 2929-42758.
Priced publications: via EU Bookshop (http://bookshop. europa. eu; Priced subscriptions (e g. annual series of the Official Journal of the European union and reports of cases before the Court of Justice of the European union:
And third, there is a significant gap between the core countries of the European union and Central and Eastern europe and Southern Europe, both in the terms of research & development capacities and in innovation performance.
Hungary also intends to spend nearly one-tenth of the resources coming from the Structural Funds and the Cohesion Fund in the 2014-2020 programming period directly on research & development & innovation,
The spread of information technologies may be the best example of this: the development of these technologies has been limited to only a few small regions in the world,
and spread information technologies have also been able to achieve rapid economic growth. Consequently, the research & development & innovation strategy does
this amount will increase to EUR 81 billion in the next programming period3. So if Hungary would like to maximise its use of these resources,
The coordination of the instruments of Cohesion Policy and innovation policy has been set as a specific objective by the European commission for the 2014-2020 programming period.
Similarly there may be more resources available for developing the R&d infrastructure at the Union level in the next programming period.
Besides the coordination of and increase in development resources, new types of governmental interventions are to be expected in the next programming period both at the Community level and at national level:
from the demand-side programmes to the uniform patent and standardization package, from establishing a Union-level institutional system for venture capital to supporting the Joint Programming Initiatives. 10 The size of the research and development sector and its main
and at least for the seven years of the next programming period, So, if Hungary would like to use these funding resources in a more effective way then the country has to pay more attention to RDI than the EU average.
A new approach to coordination will feature in European union competitiveness policy in the next programming period,
This is also reflected by the participation data of the 7th Framework Programme: among the new member states the second highest number of successful applications was submitted from Hungary,
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Preliminary data R&d expenditure in Hungary
National Innovation Office, CORDA database R&d expenditure per company in Hungary between 2001 and 2011, by size classes (large enterprises and the average of all enterprises, HUF million
%and knowledge-intensive services exports (12%)according to additional data from the Innovation Scoreboard. Indicators in the fields of finance
80 60 40 200 Pharmaceutical industry Electronics (radio, TV and telecommunication equipment Motor vehicles Machinery product and equipment Computer services Other business service 2000 2001 2002
Nevertheless, according to the estimates of the European commission (based on data of the European Venture capital Association) a significant change has occurred in the field of venture capital investments due to JEREMIE funds:
Data of the Innovation Union Scoreboard, 2011 Hungary Figure 10 Medium and high-tech product exports Non-EU doctorate students Venture capital as a per cent of GDP 2pct patent applications
OECD Science, Technology and Industry Outlook 2012 identification of the problem and strategic alternatives 2 2. 1. SWOT-analysis Based on a detailed analysis, the strengths, weaknesses
Leading researchers use international sources, infrastructure and databases. Cutting-edge researchers capable of qualified and outstanding scientific performance;
in order to connect to the global networks. The digital divide existing at an international, interregional level and between different types of enterprises will still prevail.
The SME sector will remain weak and cannot create serious demand for RDI or build capacities.
The support for and encouragement of participation in the European Innovation Partnerships (EIP) and Joint Programming Initiatives (JPI) in the strong national RDI areas. 3) The securing of a more efficient access to the EU programmes
way in the 2014-2020 programming period. 7) The better inclusion of the Hungarian processes of the Enterprise Europe Network into the strategy.
IT-based national innovation service system with regard to the international best practices. 2) The operation of a central RDI information evaluation and service database
which favours in a limited scope the innovative SMES by public tenders) 26.5) The provision of incentives for spreading new, web-based social innovation solutions (crowdfunding and crowdsourcing).
and copyright protection (e g. designs, database protection. 5) The implementation of the intellectual property protection strategy of the Hungarian Intellectual Property Office and its inclusion into the RDI strategy. 1) The support for establishing
and social network. 8) The funding programmes shall be suitable for supporting early stage innovation. 9) The modernization of the Act on venture capital and clarification of the incentive mechanisms. 36 3 vision and objectives The specific objectives related to
and providing benefits (network modernization, network connection, fit software houses to task and size). 2) The development and use of innovative ICT applications and knowledge in the fields of RDI and corporate management,
and advancement of their co-operation. 3) The development of content service. 4) The promotion of digital literacy supporting innovation and creativity and the increase in private computer and mobile penetration. 39 vision
this region is eligible to use EU resources only in a very limited way in the programming perdiod 2014-2020,
Since the primary goal of the Structural and Cohesion Funds in the new EU programming period is to mitigate the economic differences between regions,
According to 2011-2012 data almost 70%of research and development expenditure was financed by the business sector and 15-15%was financed from abroad
The 2014-2020 EU programming period is a good opportunity to establish an efficient tax-side incentive mechanism.
According to current EU programming companies will be able to use a significant part according to preliminary analysis,
if an average annual funding of HUF 100 billion is available for RDI in the programming period. 44 The gradual enforcement of competitive practices is desirable
and interministerial co-ordination, monitoring the implementation of the strategy (the professional data collection and data analysis background
and the demands of the 2014-2020 programming period to bring smart specialization into prominence.
The compilation of strategic-level indicators and the collection of related statistical data is a task of the RDI Observatory.
panel data evidence for the OECD countries. OECD Economic Studies No. 33,2001/II. http://www. oecd. org/economy/productivityandlongtermgrowth/18450995. pdf Baumol, William (2005:
http://www. eurada. org/site/files/Smart%20regional%20specialisation-E. pdf. download on 6 june 2011 Eurada (2011/b:
10-11 march 2011 in Brussels. Brief Summary of the workshop. http://www. eurada. org/site/files/Snapshot-E. pdf. download on 6 june 2011 Fraunhofer (2012:
Empirical Evidence from Firm-level Panel Data. Institute of technology and Regional Policy-Joanneum Research. http://www. tip. ac. at/publications/schibany0304 rd%20financing. pdf Sveikauskas, Leo (2007:
o intersectoral (business-research organisation) cooperation, o establishment of an experimental development environment (living lab) based on nongovernmental initiatives, o support for open innovation models (in case of proper
o recognition of RDI activities by awarding RDI prizes, o ensuring media coverage of the corporate social responsibility activities (CSR) of innovative companies.
the indicator is certified based on data (e g. it is measured by an independent and trustworthy organisation or it is carried out administratively with a minimum chance for errors etc.).
KSH data until 2010 1, 4 1, 2 1, 0 0, 8 0, 6 0, 4 0, 2 0, 0 2
KSH data until 2010 1, 4 1, 2 1, 0 0, 8 0, 6 0, 4 0, 2 0, 0 2
KSH data until 2010 70 000 60 000 50 000 40 000 30 000 20 000 10 0000 Target value:
56,000 researchers and developers employed Figure 31 Since the values in the databases are updated not (the Register includes data on headcount from 2008 and 2009)
and sometimes they are not suitable for measurement (due to the ambiguous responses of data providers) the Register will be updated by the RDI Observatory in 2013
The number of the research institutions operating research infrastructures whose research personnel exceed the given number of researchers (according to 2008-2009 data) at least as many researchers are employed at the research organisation 10 15 20
The disciplinary classifications can be filtered from the database of the NEKIFUT project; however, these categories cannot always be brought into line with the disciplines in the Strategy a solution for the problem will be sought
The baselines of the larger research and technological development groups are determined according to the data of the NEKIFUT Register
and the databases of the Strategic Research Infrastructures (hereinafter referred to as SRIS) in the first instance (subsequently,
and nonliving material, data banks, information systems and services that are essential for scientific research activities and the dissemination of results.
The related human resources form an integral part of RIS that enable the professional operation, use and services.
Community Innovation Survey data The STI programme of measures was fulfilled by reviewing and evaluating 32 measures;
and Forfás and the most recent data was released by the CSO on 19 february 2013. This survey examines R&d activities performed across the business sector in 2011.
Forfás survey data is represented in the following charts by a perforated line. If you require further information about this survey please contact:
and below the OECD average of 1. 58 per cent. 1 Where data for 2011 was unavailable the next closest year was used 0. 16%0. 16%0. 17%0. 23
Comparing 2011 data from Figure 12 and 13 shows the occupations spending most of their time on R&d (as determined by FTES divided by headcount) are Phd researchers (87 per cent), other researchers (84 per cent),
or likely to recruit at Diploma level (down from 38 per cent in 2009) FORFÁS BERD 2011/2012 ANALYSIS 23 3. Number of R&d-performing firms In this section data gathered on the number of R&d-active companies
Outlook and Strategic Plan to 2015 Forfás July 2013 Annual Report 2012 Forfás July 2013 National Skills Bulletin 2013 EGFSN July 2013
Trends in Education and Training Outputs 2013 EGFSN July 2013 Annual Business Survey of Economic Impact 2011 Forfás July 2013 Global Entrepreneurship Monitor
2012 Global Entrepreneurship Monitor July 2013 Annual Employment Survey Forfás July 2013 Ireland's Competitiveness Performance 2013 Forfás May 2013 Making
January 2013 A Review and Audit of Licenses Across Key Sectors of The irish Economy Forfás December 2012 Global Entrepreneurship Monitor (GEM) 2011 Global Entrepreneurship Monitor
. ie To sign up for our email alerts contact us at info@forfas. ie or through the website.
+353 1 607 3000 Fax:++353 1 607 3030 www. forfas. ie
PAGE 1 Raising European Productivity Growth Through ICT BY BEN MILLER AND ROBERT D. ATKINSON JUNE 2014 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Most
commentary on Europe's economy focuses on its precarious financial system and anemic employment recovery since the Great Recession.
PAGE 2 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Around two-thirds of U s. total factor productivity growth between 1995 and 2004 was due to ICT,
the right to be forgotten legal provision can significantly raise the cost of doing business for a wide range of data providers,
Moreover, Europe's much higher proportion of small firms makes it hard for firms to surmount the high fixed costs of many PAGE 3 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 ICT investments.
Trade policy can play a role, particularly through an expanded Information technology Agreement. Fifth, European firms would be better able to take advantage of ICT
and grow PAGE 4 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 quickly, but many other types of small firms are simply inefficient organizations that have been protected from competition.
PAGE 5 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 The diverging productivity trends also reflect important industry-level differences.
S. convergence divergence PAGE 6 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Four countries Finland, Greece, Sweden,
S. PAGE 7 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Figure 4: EU-15 productivity percent growth rate relative to U s. area of circle is relative size of country GDP) 16 Figure 5:
PAGE 8 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 $16. 7 trillion. 20 Or from a different perspective,
software. The lion's share of productivity growth for almost all nations, especially larger ones,
PAGE 9 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 On the level of individual industries, productivity gains can occur in three different ways:
in other words, the use of more and better machinery, equipment, and software. Indeed, new growth economics accounting suggests that the lion's share of productivity stems from the use of more and better tools. 30 PAGE 10 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 And in today's knowledge-based economy,
the tools that are most ubiquitous and most effective in raising productivity are based ICT. These digital tools are more than simply the Internet,
although that itself drives growth. 31 They include hardware, software applications, and telecommunications networks, and increasingly tools that incorporate all three components in them,
such as computer-aided manufacturing systems and self-service kiosks. These tools and can be used in the internal operations of organizations (business, government and nonprofit;
transactions between organizations; and transactions between individuals, acting both as consumers and citizens, and organizations.
Indeed, ICT has enabled the creation of a host of tools to create, manipulate, organize, transmit, store
and in both goods-and services-producing industries. 38 Firm level studies have shown also that PAGE 11 THE INFORMATION TECHNOLOGY
Wilson finds that of all types of capital, only computers, communications equipment, and software are associated positively with multi-factor productivity. 44 Hitt
and Tambe find that the spillovers from IT nearly double the impact of IT investments. 45 Rincon, Vecchi,
including cloud computing, Internet of things, data analytics and big data, IT-powered robotics, intelligent agents, mobile commerce, improved self-serve kiosks, 3d printing, location awareness, and machine learning.
THE IMPACT OF ICT ON EUROPEAN PRODUCTIVITY A principal reason the EU has had lower productivity growth than the United states
since the emergence of the Internet age is that it has had lower productivity gains from ICT.
OECD data show that from 1985 to 2010 ICT capital contributed 0. 53 percentage points to the average annual GDP growth rate in the United states and 0. 56 percentage points in the United kingdom,
PAGE 12 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Germany. Figure 6) Similarly, a 2011 report from Coe-Rexecode finds that
but France and The netherlands under 50 percent. 52 0. 00.10.20.30.40.50.6 PAGE 13 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Figure 7:
the benefits of Internet and computer use for productivity are established also well. A large number of studies in the late 1990s and early 2000s confirmed at a micro level that ICT has a positive effect on firm productivity in both the United states and Europe. 57 Varian et al.
and Germany increased revenues 8. 6 percent and decreased costs 2. 6 percent through the use of Internet business systems;
and labor productivity. 59 But studies have continued to show the benefits of ICT after the initial years of the Internet boom as well.
and standardized data exchange with trading partners contributed to significant increases in labor productivity. 60 Similarly,
THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 of national growth. 63 Also in Italian firms Hall, Lotti,
and globalization. 67 Another study found that 29 percent of Danish small manufacturers surveyed indicated that their competitive position was strengthened a great deal by doing business online. 68 Studies examining Swedish firms found that access to broadband Internet
PAGE 15 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 WHY HAS GAINED EUROPE NOT AS MUCH FROM ICT?
Brynjolfsson and Mcafee's Second Machine Age both argue that technological progress is becoming problematic for exactly the other reason
PAGE 16 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Amount of ICT Investment firms in Europe do not invest as much in ICT as firms in the United states. Higher levels of ICT investment drive higher
PAGE 17 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Figure 9: Gross fixed capital formation (investments) by type as a percentage of GDP (EUR-W is weighted average of major European countries) 89 Figure 10:
but quintupled in the United states. PAGE 18 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Figure 11:
ICT assets as percentage gross fixed capital formation, 201196 ICT investment shows up in survey data on ICT use as well.
The 2013 and 2014 World Economic Forum's Networked Readiness Index survey shows that the EU-15 and EU-13 trail behind the United states in ICT adoption, business-to-business Internet use, business-to-consumer Internet use,
S. EU-15eu-13 PAGE 19 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 EU private service sector productivity grew only one-third as fast
reducing the revenue for websites that rely on ad-based business models. 106 This appears to be one reason the EU lags behind the United states in Internet companies.
PAGE 20 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Privacy regulations not only limit business models they also increase the cost of doing business for firms,
which requires search engines to delete certain links based on individual requests, is likely to raise compliance costs significantly.
or 16 percent to 40 percent of IT budgets. 109 Other examples of costly regulations that limit the effectiveness of IT investment include the new law requiring websites to obtain explicit consent before placing web cookies,
or legal effects. 110 The former policy is both overly ambiguous and burdensome, particularly to smaller websites,
while the latter is likely to delay progress in the emerging area of big data analytics. Regulations don't just increase costs poorly-designed
such as 4G LTE mobile broadband networks. The European union has been hampered by regulatory mandates that specified the technologies that carriers could use in their allotted spectrum,
and LTE was allowed not initially by these mandates; a similar problem occurred with the European 3g rollout.
Moreover, the United states was the first nation to take advantage of the digital dividend from the digital TV transition.
In contrast, the process of allocating new spectrum for LTE and modifying regulations to permit LTE use on previous allocations is still underway in Europe.
As a result, consumers and businesses in Europe can rely on a less robust mobile communications infrastructure.
Labor market regulations have a large negative impact on ICT investment and the benefits firms can obtain from it.
and while it caught up to the United states in total outsourcing spending after the Great Recession, U s. firms remain far ahead of European firms in terms of outsourcing and offshoring core business functions. 115 Again,
PAGE 21 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Land use regulation is a third area of regulation that leads to reduced ICT benefits, particularly in the retail sector.
Taxes on general consumption in the United states and European union, 2009121 Because the EU signed onto the 1997 Information technology Agreement (ITA),
despite Europe's higher tax 051015202530hungarydenmarkswedenestoniafinlandsloveniaaustriagermanypolandczech Republicfranceportugalbelgiumnetherlandsslovak Republicgreeceluxembourgirelandunited Kingdomitalyspainunited States%GDP%total taxation PAGE 22 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 overall.
a recent cross-country study found that for Apple's ipad, on average 14 percent of the purchase price went to taxes,
Recently several European countries have proposed data mining and data collection taxes, directed specifically at large internet companies such as Google
and Facebook. 125 Higher taxes on ICT-producing companies may raise the price of ICT goods and services for everyone else.
Moreover, the existing proposals are designed poorly and could easily penalize or deter startups: The french tax on data collection would tax companies based on the number of users they collect data on, apparently with no regard to the actual market value of the data.
Another important channel through which tax policies influence investment is depreciation rates the rates at which corporations can write off capital investments for tax purposes. 126 Accelerated depreciation decreases tax revenues in the United states by 6. 6 percent,
For example, it can cost the same to develop an ERP (enterprise resource planning) PAGE 23 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 system for a mid-size firm as a large one,
the increased provision of software through cloud-based services may change that somewhat, but scale benefits are not likely to disappear,
PAGE 24 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Europe's second challenge regarding scale is the issue of market size.
Firms do not simply plug in computers or telecommunications equipment and achieve service quality or efficiency gains.
Instead they go through a process of organizational redesign and make substantial changes to their service
and a firm's outsourcing potential depends largely on the ability of a firm to reorganize itself around its core competencies. 141 These organizational effects of ICT end up facilitating more significant productivity gains than firms would achieve simply by optimizing individual processes.
and PAGE 25 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 developing new analytical capabilities, whereas in Europe the primary concern is straightforward cost cutting. 144 Such differences are obviously harder to influence through public policy than factors like regulation and taxes,
many European countries have focused recently on building their own domestic data centers, rather than ensuring that European ICT users have access to the cheapest and highest quality cloud data providers.
This focus on the ICT-producing sector appears to be misplaced. Rohman finds that the beneficial effects of the ICT sector for the broader European economy declined after the year 2000.149 Other recent evidence has shown that most of the productivity gains from ICT are due to ICT-using sectors.
With the great success of some of the world ICT leaders, such as Apple, Google, Intel,
but it still leads to efforts to get a cloud data center in rural France, instead of helping French EU firms have been less willing or able to reengineer business processes around the use of ICT.
PAGE 26 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 companies embrace the cloud and engage in disruptive productivity growth.
PAGE 27 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Focus on Raising Productivity Many European officials see increasing jobs
so that they were covered no longer by the WTO's Information technology Agreement that was supposed to eliminate tariffs ON IT products.
cameras, multi-function printers, set-top boxes, and liquid crystal display (LCD) computer monitors. 159 The intent was to boost the production of these high-value products in Europe,
but the impact would have also been to limit ICT adoption. Fortunately, a World trade organization panel ruled in 2010 that the European union's imposition of duties on these products violated the ITA
since the agreement was reached in 1996 meant that some products were now consumer goods rather than information technology goods. 160 In cases like this,
and PAGE 28 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 whether promotion of the former through higher tariffs or other restrictions (like on cross-border data flows) will be detrimental to the latter.
Any government policy that makes computers more expensive will discourage use and reduce the possible benefits of IT.
as well as in a host of technology industry areas such as high-speed broadband telecommunications, smart cards, radio frequency identification devices (RFID), geographic information systems, mobile commerce,
and the Internet of things. In these cases, EU governments should use a wide PAGE 29 THE INFORMATION TECHNOLOGY
& INNOVATION FOUNDATION JUNE 2014 array of policy levers, including tax, regulatory, and procurement policies, to spur greater ICT innovation and transformation.
including broadband telecommunications, Internet usage, and data. They should allow companies to more rapidly depreciate ICT investments for tax purposes,
and Belgium, stand in need of reforms to more fully open their service sectors with the rest of Europe. 171 In PAGE 30 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 particular,
PAGE 31 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 due to emerging data nationalism the idea that data must be stored domestically
Data nationalism is a false promise because it is unlikely to deliver the expected benefits of privacy and security,
data nationalist policies are already a reality in some countries: both the Norwegian and Danish Data protection Authorities have issued rulings to prevent the use of cloud computing services by municipalities
when servers are located not domestically (although the Norwegian decision was rescinded). 183 There has been talk as well by European leaders of building a European network for communication so that data never physically crosses the Atlantic. 184 By definition,
the result of these kinds of policies will be to raise the costs of ICT services for firms in these nations,
reducing their ICT adoption and productivity. European firms should have free access to the best in breed and best value IT goods and services,
The responsible use of data can lead to productivity gains and innovation. However overly stringent privacy rules limit the ability of enterprises to obtain these gains. 185 For example,
less effective advertising reduces available revenue for websites and can cripple the growth of useful services.
Another example is the right to be forgotten rule implemented by the European union. 186 The rule allows citizens to request that any information about them held by search engines be removed. 187 Such a rule might sound good in theory,
PAGE 32 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 States has taken already and proven successful,
ENDNOTES 1. The Conference Board, Total Economy Database: January 2014 (total GDP EKS, labor productivity per hour worked EKS;
accessed April 2, 2014), http://www. conference-board. org/data/economydatabase/;/author calculations following Marcel P. Timmer et al.
A Comparative Industry Perspective, International Productivity Monitor 21 (2011): 3 23.2. The Conference Board, Total Economy Database. 3. Ibid. 4. Ibid. 5. Ibid. 6. Mary O'Mahony and Bart van Ark, eds.
EU Productivity and Competitiveness: An Industry Perspective (European commission, 2004), 8. 7. See: Jack E. Triplett and Barry P. Bosworth,‘Baumol's Disease'Has been cured:
The Conference Board, Total Economy Database: January 2014 (Table 5; accessed April 2, 2014), http://www. conference-board. org/data/economydatabase/.
/10. Ibid. 11. Ibid. 12. Ibid. Note that EU-28 productivity actually decreases due to the less-productive EU-13 increasing their share of GDP. 13.
Data unavailable for Croatia, Estonia, Latvia, and Slovenia. 16. Ibid. 17. Ibid. Data unavailable for Croatia, Estonia, Latvia and Slovenia;
Romania excluded because its extremely low initial productivity makes it an outlier. 18. Robert D. Atkinson, Competitiveness, Innovation and Productivity:
Clearing up the Confusion (Information technology and Innovation Foundation, August 2013), http://www. itif. org/publications/competitiveness-innovation-and-productivity-clearing-confusion. 19.
The Conference Board, Total Economy Database: January 2014 (total GDP EKS, labor productivity per hour worked EKS;
accessed April 2, 2014), http://www. conference-board. org/data/economydatabase/;/Timmer et al. Productivity and Economic growth in Europe.
The Conference Board, Total Economy Database. Assuming 1. 6 percent productivity growth. 21. Ibid. Assuming yearly productivity growth for EU-15 after 1995 was the actual rate for the United states,
and the Ugly of Innovation Policy (Information technology and Innovation Foundation, October 7, 2010), 27-30, http://www. itif. org/publications/good-bad-and-ugly-innovation-policy;
PAGE 33 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 27. Chad Syverson, What Determines Productivity?
Guidelines for Collecting and Interpreting Innovation Data (OECD, 2005). 29. Robert D. Atkinson, Competitiveness Innovation and Productivity:
Clearing up the Confusion (Information technology and Innovation Foundation, August 2013), http://www2. itif. org/2013-competitiveness-innovation-productivity-clearing-up-confusion. pdf. 30.
and Daniel Castro, The Internet Economy 25 Years After. com (Information technology and Innovation Foundation, March 2010), http://www. itif. org/publications/internet-economy-25
Internet Matters: The Net's Sweeping Impact on Growth, Jobs, and Prosperity (Mckinsey Global Institute, May 2011). 32.
and Kenneth L. Kraemer, Information technology and Economic Performance: A Critical review of the Empirical Evidence, ACM Computing Surveys 35, no.
1 march 2003): 1. 37. For several of the numerous literature surveys, see: Dedrick et al. Information technology and Economic Performance, 12;
Mirko Draca, Raffaella Sadun, and John Van Reenen, Productivity and ICT: A Review of the Evidence (discussion paper no. 749, Centre for Economic Performance, August 2006), http://eprints. lse. ac. uk/4561/;
A Survey of the Literature, OECD Digital economy Papers, no. 195 (2012), http://dx. doi. org/10.1787/5k9bh3jllgs7-en;
and Eric Shih, Information technology and Productivity in Developed and Developing Countries, Journal of Management Information systems 30, no.
Measurement, Evidence and Implications (OECD Publishing, 2004), 96, http://www. oecd-PAGE 34 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 ilibrary. org/docserver
/download/9204051e. pdf? expires=1398953382&id=id&accname=ocid43017007&checksum=04b30d1bfc36e957bcfd995ccb443898. See also: Robert D. Atkinson and Andrew Mckay, Digital Prosperity:
Understanding the Economic Benefits of the Information technology Revolution (Information technology and Innovation Foundation, March 2007), http://archive. itif. org/index. php?
and Jon D. Samuels, A Prototype Industry-Level Production Account for the United states, 1947-2010 (presentation to the Final World Input-Output Database Conference, Groningen, The netherlands, April
2013), 24, http://www. worldklems. net/data/notes/jorgenson ho samuels. USPRODUCTIONACCOUNT. pdf. 42. Ibid. 30; David M. Byrne, Stephen D. Oliner,
and Daniel E. Sichel, Is the Information technology Revolution Over?(SSRN Scholarly Paper, March 27, 2013), 22, http://papers. ssrn. com/abstract=2240961;
Comments on‘Is the Information technology Revolution Over?''International Productivity Monitor 25 (2013): 37 40.43. S. Gilchrist, V. Gurbaxani,
and R. Town, Productivity and the PC Revolution (working paper, Center for Research on Information technology and Organizations, 2001);
Robert K. Plice and Kenneth L. Kraemer, Measuring Payoffs from Information-technology Investments: New Evidence from Sector-Level Data on Developed and Developing Countries (working paper, Center for Research on Information technology and Organizations, 2001;
Mika Maliranta and Petri Rouvinen, Productivity effects of ICT in Finnish business (discussion paper no. 852, Research Institute of the Finnish Economy, 2003). 44.
Lorin M. Hitt and Prasanna Tambe, Measuring Spillovers from Information technology Investments (proceedings of the 27th International Conference on Information systems, Milwaukee, WI, 2006), 1793.46.
Information technology and Productivity in Developed and Developing Countries for a cross-country study, or for specific examples see Geoff Walsham, ICTS for the Broader Development of India:
An Analysis of the Literature, The Electronic Journal of Information systems in Developing Countries 41 (2010), http://www. ejisdc. org/Ojs2/index. php/ejisdc/article/view/665 and Jyoti
Vig, Information technology and the Indian Economy (Phd diss. University of Minnesota, March 2011), http://conservancy. umn. edu/bitstream/104630/1/Vig umn 0130e 11796. pdf. For public sector literature examples, see:
Luis Garicano and Paul Heaton, Information technology, Organization, and Productivity in the Public sector: Evidence from Police departments, Journal of Labor Economics 28, no.
and Gilles Koleda, L'économie Numérique et La Croissance (working paper, Coe-Rexecode, 2011), http://www. persee. fr/web/revues/home
PAGE 35 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 53. Van Welsum et al. Unlocking the ICT Growth Potential in Europe. 54.
and Pekka Ylä-Anttila, Finland's Path to Global Productivity Frontiers through Creative Destruction, International Productivity Monitor 20, no. 10 (2010): 68 84.57.
The Projected Economic Benefits of the Internet In the United states, United kingdom, France, and Germany, Version 2. 0 (Cisco systems, Inc.,January 2002), http://www. netimpactstudy. com/Netimpact study report. pdf;
Donald A. Johnston, Michael Wade, and Ron Mcclean, Does E-business Matter to SMES? A Comparison of the Financial Impacts of Internet Business Solutions on European and North american SMES, Journal of Small Business Management, 45,3 (July 2007): 354-361.59.
Irene Bertschek, Helmut Fryges, and Ulrich Kaiser, B2b or Not to Be: Does B2b E-commerce Increase Labor Productivity?
Evidence from Firm-Level Data, Electronic commerce Research 9, no. 3 (2009): 173-81.61. Philipp Koellinger, Impact of ICT on Corporate Performance, Productivity and Employment Dynamics (European commission Enterprise and Industry Directorate General, December 2006), http://ec. europa. eu
firm-level evidence using data envelopment analysis and econometric estimations, OECD Science, Technology and Industry Working papers, no. 2002/13 (September 2002), http://dx. doi. org
and R. Sabater-Sánchez, Information technology and learning: Their relationship and impact on organisational performance in small businesses, International Journal of Information management 26, no. 1 (2005): 16-29.
PAGE 36 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 67. Paul-Antoine Chevalier, Rémy Lecat,
and Nicholas Oulton, Convergence of Firm-Level Productivity, Globalisation and Information technology: Evidence from France, Economics Letters 116, no.
A Study of Technological Diffusion and Economic growth under Network theory, Telecommunications Policy (2014), doi: 10.1016/j. telpol. 2013.12.003.75.
Where America's Broadband Networks Really Stand (Information technology and Innovation Foundation, February 2013), http://www2. itif. org/2013-whole-picture-america-broadband-networks. pdf. 82.
OECD, Country Statistical Profile 2012 (Investment Data and Shares of ICT Investment in Total Nonresidential GFCF;
The Conference Board, Total Economy Database: January 2014 (Table 5; accessed April 2, 2014), http://www. conference-board. org/data/economydatabase/.
/85. National Science Foundation, Science and Engineering Indicators 2014 (Figure 6-7, ICT business and consumer spending as a share of GDP;
PAGE 37 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 89. Ibid. Major European countries included in this chart are:
on the World Economic Forum website, accessed May 7, 2014, http://www. weforum. org/issues/global-information-technology. 98.
OECD Statextracts, Productivity Database By Industry 2012. Growth of labour productivity, in per cent, Business Services Sector;
The Role of Information technology and Regulatory Practices, Labour Economics 11, no. 1 february 2004): 33 58, doi:
The Economic Importance of Getting Data protection Right: Protecting Privacy, Transmitting Data, Moving Commerce (European Centre for International Political economy/U s. Chamber of commerce, March 2013), https://www. uschamber. com/sites/default
/files/legacy/reports/020508 economicimportance final revised lr. pdf. 109. L. Christensen et al. The Impact of the Data protection Regulation in the EU (Intertic, 2013), http://www. intertic. org/new site/wp-content/uploads/Policy%20papers/CCER. pdf. 110.
Mike Butcher, Stupid EU Cookie Law Will Hand the Advantage to the US, Kill Our Startups Stone Dead,
/Meg Leta Ambrose, The Law and the PAGE 38 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Loop (Proceedings of the International Symposium on Ethics in Engineering science,
Key Information technology and Management Issues 2011 2012: An International Study, Journal of Information technology 27, no. 3 (2012): 198 212;
Talking points, Information Services Group, February 2013, http://www. isg-one. com/web/research-insights/talking-points/archive/1302. asp. 116.
Kevin Sneader et al. From Austerity to Prosperity: Seven priorities for the long term (Mckinsey and Company, London/Mckinsey Global Institute, November 2010), https://www. mckinsey. com//media/Mckinsey/dotcom/Insights%20and%20pubs
and Economic growth by Expanding the ITA (Information technology and Innovation Foundation, March 2012), http://www. itif. org/publications/boosting-exports-jobs-and-economic-growth-expanding-ita. 123.
Greg Sterling, France Wants To Tax Facebook, Google‘Personal data Collection,'Marketing Land, January 21, 2013, http://marketingland. com/france-wants-to-tax-facebook-google-personal data-collection-31196;
Jacob Albert, France Wants to Tax Data mining, and It's Not a Bad Idea, Quartz, January 22, 2013,
http://qz. com/45764/france-wants-to-tax-data-mining-and-its-not-a-bad-idea/.
ZEW-Zentrum für Europäische Wirtschaftsforschung/Center for European Economic Research, June 2012), http://citeseerx. ist. psu. edu/viewdoc/download?
Data for the EU Member States, Iceland and Norway (Luxembourg: European commission-eurostat, 2013). 130. Lorin M. Hitt, D. J. Wu,
Business Impact and Productivity Measures, J. of Management Information systems 19, no. 1 (2002): 71 98.131.
+OECD, Entrepreneurship at a Glance 2013, Table 2. 2. PAGE 39 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 133.
and Kirsten Jäger, European Productivity Growth Since 2000 and Future Prospects, International Productivity Monitor 25 (2013): 65 83.139.
See for example the sectoral focus on this European commission website: European commission: Enterprise and Industry ICT for Competitiveness & Innovation,(accessed May 16, 2014) http://ec. europa. eu/enterprise/sectors/ict/.
An Input-Output Analysis, Telecommunications Policy 37, no. 4 5 may 2013): 387 399, doi: 10.1016/j. telpol. 2012.05.001.150.
or Uber, or Google, or...Bloombergview, February 12, 2014, http://www. bloombergview. com/articles/2014-02-12/france-loves-tech-but-not-amazon-or-uber-or-google-or.
-152. Miller and Atkinson, Are Robots Taking Our Jobs, or Making Them? 153. Nicholas Oulton, Long term Implications of the ICT Revolution:
PAGE 40 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 157. Miller and Atkinson, Are Robots Taking Our Jobs, or Making Them?
A Policymaker's Guide to Crafting Effective Innovation Policy (Information technology and Innovation Foundation, October 2010), 70, http://www. itif. org/publications/good-bad-and-ugly-innovation
and Nirvikar Singh, Information technology and Broad-Based Development: Preliminary Lessons from North India, World Development 32, no. 4 (2004): 594.
Jason Dedrick and Kenneth L. Kraemer, India's Quest for Self reliance in Information technology: Costs and Benefits of Government Intervention,(University of California, Irvine:
Graduate school of Management and Center for Research on Information technology and Organizations, December 30, 1992), http://crito. uci. edu/papers/1993/pac-005. pdf. 163.
Kenneth L. Kraemer and Jason Dedrick, Payoffs From Investment in Information technology: Lessons from the Asia-Pacific Region (University of California, Irvine:
Graduate school of Management and Center for Research on Information technology and Organizations, April 13, 2001), http://www. crito. uci. edu/git/publications/pdf/pac-037d. pdf. 164.
Kenneth L. Kraemer and Jason Dedrick, Information technology and Productivity: Results and Policy Implications of Cross-country Studies (working paper, University of California, Irvine:
Center for Research on Information technology and Organizations, February 1999), 25, http://www. crito. uci. edu/itr/publications/pdf/it-productivity-2-99. pdf. 165.
Rob Frieden, Lessons from Broadband Development in Canada, Japan, Korea and the United states, Telecommunications Policy 29, no.
Understanding the Benefits of the IT Revolution (Information technology & Innovation Foundation, October 1, 2008), http://www. itif. org/publications/digital-quality-life-understanding-benefits-it-revolution. 167.
Hitt and Tambe, Measuring Spillovers from Information technology Investments, 1793; Xavier Sala-i-Martin, 15 Years of New Growth Economics:
Stephen Ezell and Robert D. Atkinson, How ITA Expansion Benefits the Chinese and Global economies (Information technology and Innovation Foundation, April 2014), http://www. itif. org/publications
and Growth in the EU (Oxford Economics/AT&T), accessed October 3, 2013, http://www. corp. att. com/bemoreproductive/docs/capturing the ict dividend. pdf. PAGE 41 THE INFORMATION TECHNOLOGY & INNOVATION
Small companies create 85%of new jobs, Enterprise and Industry, European commission website, last modified January 16,
Part 1, Innovation Files (blog), June 22, 2012, http://www. innovationfiles. org/in-praise-of-big-business-part-1/.175.
accessed April 4, 2014), www. oecd-ilibrary. org/sites/entrepreneur aag-2013-en/02/02/index. html. 177.
Daniel Castro, The False Promise of Data Nationalism (Information technology and Innovation Foundation, December 2013), http://www2. itif. org/2013-false-promise-data-nationalism. pdf. 183.
Processing of sensitive personal data in a cloud solution, Datatilsynet, February 3, 2011, http://www. datatilsynet. dk/english/processing-of-sensitive-personal data-in-a-cloud-solution,
/and Will not Let Norwegian Enterprises use Google Apps, Datatilsynet, January 25, 2012, http://www. datatilsynet. no/English/Publications/cloud-computing/Will not-let-Norwegian-enterprises-of-Google-Apps/.
/184. Merkel Proposes Secure European Web, BBC News, February 15, 2014, http://www. bbc. com/news/world-europe-26210053.185.
For example, Catherine Tucker has found that the EU privacy directive lowered online advertising effectiveness by 65 percent relative to the rest of the world.
Catherine Tucker, Economics of Privacy (MIT Sloan and NBER, November 15, 2012), http://www. ftc. gov/sites/default/files/documents/public events/fifth-annual
David Jolly, European union Takes Steps Toward Protecting Data, New york times, March 12, 2014, http://www. nytimes. com/2014/03/13/business/international/european-union-takes-steps-toward-protecting-data. html. 187.
David Streitfeld European Court Lets Users Erase Records on Web, New york times, May 13, 2014, sec. A. 188.
Ibid. 189. Bauer et al. The Economic Importance of Getting Data protection Right. 190. Mark Scott, Uber Faces Rebukes in Europe, Bits (blog) New york times, accessed April 18, 2014,
http://bits. blogs. nytimes. com/2014/04/17/uber-faces-rebukes-in-europe/./191. Pillar I:
Digital Single Market Digital Agenda for Europe, Enterprise and Industry, European commission website, accessed May 15, 2014, http://ec. europa. eu/digital-agenda/en/our-goals
/pillar-i-digital-single-market; Pillar VII: ICT-Enabled Benefits for EU Society Digital Agenda for Europe, PAGE 42 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 Enterprise and Industry,
European commission website, accessed May 15, 2014, http://ec. europa. eu/digital-agenda/en/our-goals/pillar-vii-ict-enabled-benefits-eu-society.
PAGE 43 THE INFORMATION TECHNOLOGY & INNOVATION FOUNDATION JUNE 2014 ACKNOWLEDGEMENTS The authors wish to thank Stephen Ezell, ITIF,
and Jon Aronoff, The Research Board, for providing input to this report. Any errors or omissions are the authors'alone.
ABOUT THE AUTHORS Robert Atkinson is the founder and president of the Information technology and Innovation Foundation.
He is also author of the books Innovation Economics: The Race for Global Advantage (Yale, 2012) and The Past And Future Of America's Economy:
Ben Miller is an economic growth policy analyst at the Information technology and Innovation Foundation. He has a Master's degree in International Development and Economics from Johns Hopkins School of Advanced International Studies.
ABOUT ITIF The Information technology and Innovation Foundation (ITIF) is a Washington, D c.-based think tank at the cutting edge of designing innovation strategies and technology policies to create economic opportunities
FOR MORE INFORMATION, CONTACT ITIF BY PHONE AT 202.449.1351, BY EMAIL AT MAIL@ITIF. ORG,
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