which to live and work. They improve Europe†s competitiveness, boosting growth and job creation. At the same time, research and innovation help make people†s lives
better by improving things like healthcare, transport and digital services In January 2014 the European union will launch Horizon 2020.
estimated by experts to be around â 800 billion in 2010 To date, one sixth of EU health research has been invested
22 million jobs (accounting for 9%of total employment in the EU and has the potential to reinvigorate communities in some of our
competitiveness and employment in jeopardy It is essential then for the EU to spark a new industrial revolution
Transport drives employment economic growth and global exports. It provides citizens, societies and economies with essential resources and means of mobility
holds significant potential for job creation Water is fundamental to human health food security, sustainable development and the environment.
to boost competitiveness and job creation in European economies What is EU Research and Innovation doing to
substantial potential for business opportunities and job creation while tackling important resource efficiency challenges Concerning waste, activities will focus on the whole production and
employment or training, are crucial challenges for the future of Europe. A rapidly changing world, characterised by the emergence of new economic powers
In 2013, EU research has focused on growth, employment and competitiveness (intangibles, youth, public finances), sustainable
Welfare, Wealth and Work for Europe in the long term? These are essential questions about Europe†s future that need
Welfare, Wealth and Work for Europe †WWWFOREUROPE Supported by a â 8 million contribution from the EU 7th Framework programme, WWWFOREUROPE includes 33
NEUJOBS is analysing future possible developments of the European labour market (s) under the main assumption
and territorial-that will have a major impact on employment, in particular for some groups in the labour force or
for growth and employment in the EU. In 2011, the security sector in the EU employed 180,000 people, with an annual turnover of
well this new software works. Researchers in the TABULA RASA project are looking into the growing phenomenon
•Workers lay an oil pipeline, Kazakhstan  Oleg Nikishin/Epsilon/Panos Pictures •Iridimi refugee camp in Eastern Chad for Sudanese people fleeing the violence in
For the poor, livelihood choices †in employment and entrepreneurship †are constrained by a wide range of interdependent obstacles, ranging from geographic isolation to market failures to
Creating Inclusive Business models Involving the poor as employees, entrepreneurs, suppliers, distributors retailers, customers, and sources of innovation in financially viable ways
and skills of employees, business partners, and members of the community Building Institutional Capacity Strengthening the industry associations, market intermediaries, universities
determine how well the economic opportunity system works and the extent to which it is inclusive of the poor
â€oefirms using ICT see faster sales growth, higher productivity and faster employment growth. †3
In developing countries, ICTS offer tremendous potential to eliminate or at least work around a number of critical obstacles to economic growth (see Box 1
ICTS collapse distance and time, overcoming geographic isolation and substituting for expensive travel and lost work
economy, as the salaried employees of others or as formal small business owner-operators. This will, inevitably
In developed countries, SMES contribute 60%of employment and 50%of gross domestic product (GDP. In developing countries, the figures are only about 30%and 17
Economists and development experts have attributed much of this difference to excessive or otherwise unsupportive business environment regulation in developing countries,
direct deposit by employers. 34 In Nigeria, Celtel has launched a new bundle of services explicitly targeting the SME market.
15,000 developers directly but works externally with more than 750,000. 39 Large ICT companies are undertaking a variety of efforts to expand these partner networks or ecosystems
Through 110 Innovation Centers in 60 countries, Microsoft works with local universities, industry associations, government agencies,
combining executive, R&d, production, distribution, marketing, and sales functions can be critical. External collaboration can be equally critical.
development strategies aiming to develop employees, business partners, and customers, both present and future The ICT sector has suffered always chronic shortages of technical
pipeline of potential employees and business partners BOX 4 HUMAN CAPITAL DEVELOPMENT EFFORTS IN THE ICT SECTOR
combinations of funding, curricula, hardware and software donations, employee volunteer time, and other resources according to local needs and goals.
employment, mostly with Sappi. 56 3. 3 Building Institutional Capacity ICTS fundamentally create institutional capabilities.
sector partners on different projects †including 40 ICT business incubators around the world †in its work
through SMART Padala, a service offered jointly by SMART and TRAVELEX to Overseas Filipino Workers
those wishing to work with its platforms, and it makes significant investments in them. Microsoft†s Enterprise
resources, experts, and facilities for collaboration and skills development. †72 They help â€oecustomers and partners
MIC staff usually include Microsoft employees responsible for management and program development, along with student interns or other employees †which Microsoft can co-fund †responsible for administrative support
However, Microsoft†s local subsidiaries make staffing decisions according to their own opportunities and needs and so configurations vary
Governments use the centers to support employment and new business formation strategies, particularly in the
Consultants might be on hand to help developers with proof-of-concept or to test for scalability †to see
they receive mentoring from Microsoft employees at headquarters and some of the larger subsidiaries 70%of the MICS are in emerging market countries.
struggling with youth unemployment or wanting to kick-start local software economies will often pay internship wages or first year salaries for graduates that obtain jobs.
for help transitioning workers into new positions, for example displaced auto workers in Detroit or furniture
workers in North carolina Other MIC offerings include basic business training; â€oesoft skills†training in presenting, teamwork, and other
employment. These are not people at the â€oebase of the economic pyramid, †but rather somewhere in the middle or
Microsoft generally considers its work done and does not track that person further Alternatively, if a user starts his or her own business,
employment and entrepreneurship in a high-skill, high-value industry sector for more than 50,000 students. In the process
Employees later learned the donation was going unused, because administrators lacked the resources to set up
schools†computer networks, they were also able to leverage those skills in the job market after graduation
expertise and support in the form of staff time or volunteers. For instance, UN Volunteers, through the United
nearly two thirds obtained employment, and more than 10%started their own businesses. 95 Alumni recommended even more assistance finding internships and jobs.
economies frequently forced graduates to relocate to find work. Fifty-nine percent, almost all of those that
Staff are justifiably proud of its social mission and record of achievement, and some have a strong desire to keep it â€oepure. †However, while
Founded in 1972 by a number of ex-IBM employees, SAP AG has become the world†s largest business software
is to work with thousands of small programmers and consultants around the world to spur â€oeinnovation via
ecosystem. †Now â€oeeiti is part of the ecosystem from which innovation can arise, †Farrar says
network of high-level advisers and a network of champions, including experts, practitioners, and activists. It is
business because of lack of financing is a major barrier for sustainable growth and job creation. ICTS have a
and hiring of Secretariat staff. The initiative has attracted many credible partners, such as the Development Gateway Foundation, Global Knowledge Partnership, Google, Inter
Making Business Work for the Poor. Report to the Secretary-general of the United nations. New york, NY:
How to create public private partnerships with NGOS that work in emerging markets. Cisco systems Internal White paper
Making Business Work for the Poor. Report of the Commission on the Private Sector and Development to the Secretary
Mr. Kramer†s work in the nonprofit arena followed a 30-year career as an entrepreneur, principally in the book industry.
As an international development consultant, Mr. Kramer has worked with global companies, NGOS, and think tanks
Our work is influencing the way business leaders think about markets, profit, poverty and the environment WRI's Markets and Enterprise Program produces economically sound policies, bold vision,
vocational training institutions, technology centres and transfer agencies) and the structure of the regional econ -omy (dominant industries, availability of service firms
â€oesme†is defined as a firm with less than 250 employees and no participation of a larger company accounting for more than 25
Employment was the more important objective than competitiveness. Due to labour hoarding the nationalized companies†pro
consequence, employment decreased significantly lead -ing to serious labour market problems in the early 1990s Overall, the recovery after the crisis has been successful
but the metal-and-steel sector and, as a result, the whole manufacturing sector is smaller today.
employment) within the sample of respondents corre -sponds approximately to the regional economy. As far
large firms, especially regarding human resources. In Upper Austria the average innovation budget in relation to turnover is 11.0%,the average innovation staff in
relation to employment is 15.6%in the case of SMES Large firms, for comparison, have average ratios of
10.3%and 8. 3%,respectively. SMES usually cannot be organized in a way which allows them to benefit from
of the employees SMES are engaged less often in research than large firms. In Upper Austria, research is performed by only
-sons who are preoccupied with day-to-day work, diffi -culties in adopting high technology, a lack of advanced
well as manpower) to innovation activities than the aver -age However, it is not only the lack of relations with inno
small number of employees in SMES who are able to act as nodes establishing and maintaining links to innovation
experienced employees as well as a lack of time in the case of the few adequately qualified persons due to rou
-tine and administrative work. Market research, for example, is very rare in Upper Austrian SMES (17
-works. Technology intensive firms are usually more involved in innovation networks, both on local and inter
smallest SMES (with less than 10 employees) and those dedicating an above-the-average-share of their financial
Third, manpower bottlenecks seem to be most serious in the case of firms engaged in
SWP) and Research and Training Centre for Labour and Technology Steyr (FAZAT. The other four †Incu
employees, some are even only one-person firms. Most of the firms are spin-offs of former research projects
This number comprises both the employees of the firms and the personnel of the research institutes
The Research and Training Centre for Labour and Technology (FAZAT) is located in one of the old indus
less than 10 employees), and belong predominantly to software, data processing, and consulting services. There are hardly any manufacturing companies and only a few
small staffs available for the centre management and market-oriented activities. Services or functions which
The Austrian Industrial Research Promotion Fund Forschungsfoâ rderungsfonds fuâ r die gewerbliche Wirt -schaft, FFF), 2 located in Vienna, supports research and
-ners†(trade union, chamber of labour, chamber of commerce) and major Austrian companies Basically, the FFF pursues a bottom-up strategy which
employees account for nearly 75%of the supported firms, but it has to be considered that this is clearly less
external experts are involved not. The decision to support a project and the extent of support
Manpower effects: funds for personnel 44.9 11.5 Manpower problems: lack of qualified personnel, lack of
time Strategic effects: market information, support for 9. 0 9. 0 Strategic problems: marketing and commercialization, no
manpower. Surprisingly, bottlenecks regarding human resources †lack of qualified personnel, technical know -how, and time †were indicated rarely by the firms.
International Institute for Labour Stud -ies, Geneva Saxenian, A.,1994. Regional Advantage: Culture and Competition in
-works, Innovations and Local Development in Industrialised Countries†(edited jointly with E. Bergman and G. Maier
List of experts interviews...76 Appendix II: Internet links for further information on †good practice†regions...
This report is part of the work undertaken to realise Work Package 2 within the CRIPREDE project.
The work package†s main objective is to identify current regional policies fostering innovation and technology transfer as well as †good practice†policy
through selected interviews with experts within identified good practice regions The report is structured as follows: Chapter 2 presents an overall conceptual frame
-work for identifying good practices on RTD and regional development, outlining dimen -sions of RTD, factors and processes influencing regional RTD and current policy initia
2 As outlined in the description of work of the CRIPREDE project, originally we aimed at identifying and
inherent division of labour between enterprises and institutions, in short: the overarching innovation systems. The main characteristics of any such system are its enterprises
•Location becomes increasingly important as the local highly skilled labour market expands, thus contributing to regional capabilities and knowledge.
by labour mobility within the region, allowing for knowledge spillover between firms an element which has been recognised by proponents of collective learning as an
the need for a skilled labour force on both high and intermediary levels, as both levels of qualification are needed for companies
These include, for example, a well-educated labour force and professional labour markets (Simmie et al. 2003), attractive and †fashionable†places to live with high social
which help in attracting knowledge workers and leading-edge high technology industries (e g.,, Florida 2004, 2005a), places which
economies, fungeability, labour market dynamics, quality of life and environmental amenity, and the role of regional and local governance
labour mobility, the creation of spin-offs and dense networks, for example between firms, customers and suppliers (e g.,
•Labour mobility can enhance technology development through diffusion of informa -tion and skills, as employees transfer both their tacit and firm-specific knowledge to
new jobs. A similar mechanism happens with spin-offs which could foster know -ledge transfer through bringing knowledge and experiences from previous working
qualified labour and a generally good infrastructure of business support institutions However, although infrastructure can create the context for an innovative region, infra
-works, while simultaneously providing shortcuts to information and knowledge (Elfring and Hulsink 2003. Uzzi (1997) pointed out that strong ties contribute to †economies of
For example, relationship promoters often had a full time job and a central position within the network. In this context, the works on the creative milieu
suggest that high communicators play an important role for network development at re -gional level.
-works to legitimate themselves To sum up, with regard to regional R&d, key actors are an important factor for a re
Similarly focused on labour mobility, migration patterns and their effects on em -beddedness and regional development, recent studies by Richard Florida (2004
process by enhancing learning abilities of workers, firms and †systemsâ€. This philosophy also is the basis for the more recent concept of territorial innovation systems, which
being overcritical of Florida†s works, their policy framework offers valuable insight into how regions might go about fostering RTD. 13
-tions, where he points out redundancy in the form of †fail-safe network circuitry†as com
labour relations of trust and reciprocity, but also competition between actors (Lorenz 1992, Dei Ottati 2005. Examples of well-known industrial districts in Italy include the
on a pool of qualified labour; they can obtain a good overview of customers†needs
share a need for a uniquely skilled labour force, regardless of their business struc -ture Each cluster might take a variety of generic structural forms, based on either power
motion picture industry, where climate and cheap labour played a triggering role; pools of specific expertise,
from literature and expert interviews (for a list of interviewed experts see appendix I 4. 1. Criteria for identifying Good Practice Regions
human resources Bangalore (and India as a whole) has comparative low labour costs 37 of course. Not only price for labour is an advantage but also the quality of the work
-force: The Indians are seen as ambitious and capable people who are international mobile with high qualifications.
-works) that supported the settlement of foreign enterprises. In Bangalore subsidies were given on an enterprise level (e g.,
Route 128 is no newcomer to prosperity or industrial action (Herbig and Golden 1993). ) Between 1975 and 1980 225,000 new manufacturing jobs were created, mostly
Bremen†s employment is divided into two main sectors: 29.9%of the workforce is employed in industry and 69.3%in services.
15,500 employees and 300 automotive industry suppliers. Furthermore, Bremen is one of the leading centres of the German aerospace and aeronautics industry.
40%of all German employees in this sector (e g.,, Airbus 380, Spacelab, Columbus Space laboratory. Bremen is also Germany†s †Brand Capital†in food and semi
2. 550change of employment in the 14 lead and growth sectors absolute (2000-2004 6number of sectors in which the district/town is ranked among the Top 25 in Germany
100) Index of employee development in the 14 lead and growth sectors 2000-2004 40,4
%33,7%)Share of the 14 lead and growth sectors in all employees In brackets: Reference value Germany
93. 500number of employees in the 14 lead and growth sectors 1, 20 1, 0
2. 550change of employment in the 14 lead and growth sectors absolute (2000-2004 6number of sectors in which the district/town is ranked among the Top 25 in Germany
100) Index of employee development in the 14 lead and growth sectors 2000-2004 40,4
%33,7%)Share of the 14 lead and growth sectors in all employees In brackets: Reference value Germany
93. 500number of employees in the 14 lead and growth sectors 1, 20 1, 0
responsible for all innovation promotion programmes. Overall, the institutional ar -rangements are characterised by a limited amount of intermediary actors, few redun
background and a weaker influence of trade unions compared to traditional industry re -gions. Within France, Montpellier has one of the lowest overall costs of employment
salary levels are at least 10%below The french national average There are some external factors that triggered the development from an agricultural
high qualified working population (†cadresâ€) made a shift from a traditional conservative dominated society to a modern, dynamic and visionary one possible.
He and his (intellectual) staff can be seen as visionaries and key persons for Montpellier†s development.
founded in 1986, responsible for the development and promotion of the †pã'les†(Voyer 1998). 13 business parks, 6 incubator and technology parks (the flagships are †Cap Al
today it has 13,000 students and 1, 700 employees (Pedersen and Dalum 2004. It has a priority area in ICT sector,
-dents†project work, have created skills highly demanded in product development inten -sive firms†(Dalum et al. 1999: 184.
-ferences in laws and institutions (e g. in taxation rules, labour law, traffic regulations opening hours) hinder the regional development in this regard.
employment growth in high-tech sectors in the UK. †(Lawton Smith et al. 2005: 455 53
The high-tech orientation shows itself also in the employment structure: Oxfordshire has a comparably very high proportion of employment (4. 9%)in R&d activities (Ox
-fordshire County Council 2005 Knowledge and science is of great importance for Oxfordshire†s economy.
for high qualified employees but also as research establishments with linkages to local industries (e g.,, by collaborative projects), attractors for external monies and birth
-perienced an extraordinary increase of the number of establishments and textile work -ers based on the foundation of numerous new SMES and a constant inflow of
-ments and workers compared to the 1980s. In terms of turnover and industrial em -ployment Prato†s local system ranks second in Tuscany after the Florentine area and it
-side the district, often from countries with a lower level of labour costs. Furthermore the firms reacted to the crisis by upgrading
-ditionally, while the employment in the industry sector decreased an expansion of the service sector occurred (Dei Ottati 1996b,2005.
extensive division of labour. This means the enterprises are highly dependent on one another to be able to carry out their own tasks.
employees work in detail, therefore personal trust plays a major role in intra -organisational relationships as well. According to this, in Prato†s enterprises an atmos
also formal institutions like the local government, trade unions, and trade associations are being helpful by †sustaining
enterprises employ more than 20 employees, and more than 200 enterprises do not have any employees at all.
Because of the high specialisation and concentration there is also high competition within the cluster (Nadvi and Halder 2005;
cheaper production cost due to a lower level of labour costs for Tuttlingen†s producers But on the other hand this could foster increasing competition and the danger of loos
Tuttlingen†s employees work in lead and growth sectors compared to only 33.7%in overall Germany (Prognos 2006;
1, 100change of employment in the 14 lead and growth sectors absolute (2000-2004 2number of sectors in which the district/town is ranked among the Top 25 in Germany
100) Index of employee development in the 14 lead and growth sectors 2000-2004 55.6
%33.7%)Share of the 14 lead and growth sectors in all employees In brackets: Reference value Germany
27, 200number of employees in the 14 lead and growth sectors 1. 65 1. 0
1, 100change of employment in the 14 lead and growth sectors absolute (2000-2004 2number of sectors in which the district/town is ranked among the Top 25 in Germany
100) Index of employee development in the 14 lead and growth sectors 2000-2004 55.6
%33.7%)Share of the 14 lead and growth sectors in all employees In brackets: Reference value Germany
27, 200number of employees in the 14 lead and growth sectors 1. 65 1. 0
Devices & Healthcare Managementâ€, the Vocational training Centre (Berufliches Bildungszentrum Tuttlingen †BBT) provides qualification in surgical instrument making
skilled labour Policies for up -grading skills R&d policies policies for up -grading skills Attitude to
universities on macro level, educational and vocational training institutions on meso level and specific R&d support and education programmes as well as measures fostering re
by policies aimed at attracting highly skilled labour. This could include remigration policies as in the case of Bangalore, where the Indian government fostered the remigration of
-works highly dependent on each other, the potential problem of reciprocal ties that stronger firms might have to back up weaker firms
-tute for Labour Studies, Geneva, pp. 37-51 Becattini, G. 1991: The industrial district as a creative milieu.
-stitute for Labour Studies, Geneva, pp. 10-19 Cainelli, G. and R. Zoboli (eds.:The Evolution of Industrial Districts:
Development bodies, networking and business promotion in North Jut -land. European Studies †Series of Occasional Papers, 28.
Qualified Labour Migration and Regional Knowledge Economies. In: R Hayter and R. Leheron (eds.:Knowledge, Territory and Industrial Space.
-works: A Comparative Study of Success and Demise. Administrative Science Quarterly 45 (2), 327-65
Why Butterflies don†t leave †Spatial Development of new Firms. Paper presented at ERSA 2005. econpapers. repec. org.
Clusterpreneurs-Promotion of high-tech clusters in low-tech re -gions. Aalborg Stoerring, D. and B. Dalum (2006:
List of experts interviews Expert Interview by Place & Date Themes Prof. Dr. Harald Bathelt Susanne Kolb, personal interview
Sebw continues the successful work of the E-business W@tch which since January 2002, has analysed e-business developments and impacts in manufacturing
and Mr Dolf Tuinhout, independent consultant, who are members of the Advisory board in 2007/2008, for their valued feed back, suggestions and
Employees with internet access at their workplace...86 3. 9 Summary and conclusions of ICT and e-business deployment...
4. 1. 3 ICT impact on labour productivity growth...99 4. 1. 4 Summary: ICT impact on output
employment in the EU (see Section 2. 2 The fast growth of freight transport †driven to a
-butes to growth and employment but also causes congestion, accidents, noise pollution increased reliance on imported fossil fuels, and
*figure for TLS total (EU-7) weighted by employment 13%of all companies from the sector
accounting for 21%of employment) said that they used Voice-over-IP services. It can be
reorganisation of work processes. It appears that the availability of qualified personnel with specialised skills is limited quite in the transport
+*figure for TLS total (EU-7) weighted by employment Use of specific software systems for transport & logistics management
*figures for TLS total (EU-7) weighted by employment Deployment of e-standards With regard to the deployment of standards for
employment) felt that at least"a good deal"of their exchanges with business partners were conducted electronically (in 2007;
"*weighted by employment (read:""companies representing x%of employment "E-commerce and e-marketing in the transport & logistics industry
"E-commerce"can mean different things in the TLS sector (see Section 3. 6). In passenger
employment) said they accepted orders from customers online. There is practically no difference between companies from the various
*figures for TLS total (EU-7) weighted by employment ICT adoption by European vs. US
employee skills and IT know-how Statistical regressions also found evidence that ICT adoption is linked with innovation, out
TLS firms with highly skilled employees in adopting and using ICT. The picture that emerges from the survey is that ICT skills
The analysis is based on literature, interviews with industry representatives and experts company case studies and a telephone survey among decision-makers in European
marketing, procurement, ICT and e-solutions, and human resources managers Study structure The study is structured into six main sections.
Chapter 4 assesses the impact of the developments described in Chapter 3 on work processes and employment, innovation and productivity,
and †at sector level†on value chain characteristics. This chapter has been developed mainly by economists from DIW
technologies, human resources (notably e-skills) and new business models"."4 The i2010 policy, a follow-up to eeurope, also stresses the critical role of ICT for
5"i2010 †A European Information Society for growth and employment.""Communication from the Commission, COM (2005) 229 final
In parallel to the work of the Sebw, the"Sectoral Innovation Watch"(see www. europe -innova. org) analyses innovation performance and challenges across different EU sectors
8 The 2006 ICT Standardisation Work Programme complements the Commission's"Action Plan for European Standardisation"of 2005 by dealing more in detail with ICT matters
and human resources management. Companies in all sectors use ICT, but they do so in different ways.
developed by standards communities to underpin their practical work Examples include Business:""a series of processes, each having a clearly understood
an Expert Group on Defining and Measuring Electronic commerce, in order to compile definitions of electronic commerce which are policy-relevant and statistically feasible.
regard to employment, competitiveness, economic growth, transport safety efficiency and possible cost reductions (distribution costs), technological innovation and for entering into new markets
Accounts include measures of economic growth, productivity, employment creation, capital formation and technological change at the industry level for 25 EU
NSIS were available (e g. for hours worked by labour type. Various series were linked in order to bridge different vintages of the national accounts according to a
variables (like the percentage of employees with internet access at their workplace and analyse their main characteristics in terms of e-business adoption and results
Mr Dolf Tuinhout, Independent consultant Three meetings of the Advisory board were held, in addition to informal exchanges with
5%of employment in the EU The growth of goods transport within the EU, at a rate of 2. 8%per year since1995†2004
decisions †contributes to growth and employment but also causes congestion, accidents noise pollution, increased reliance on imported fossil fuels,
employment Share in total freight transport Share in total passenger transport Growth between 1995 and 2004 Expected
promotion of intelligent transport systems and new technologies for a more environ -31 DIRECTIVE 2005/44/EC of the European parliament and of the Council of 7 september 2005
of business activities and employment away from Europe Following consultation with stakeholders, the European commission has presented an
Promotion and best practices Statistical data Simplification of transport chains Simplification of administrative compliance Single transport
promote minimum labour standards for the sector; protect passengers and citizens innovate in support of the above aims;
41 Commission Staff Working Document, Annex to the COM (2006) 336 final 42 European commission (2006.
Improvement of Living and Working conditions ICT for goods Tracking and tracing Route+load optimisation Delivery optimisation
By share of employment, firms representing 99%of the sector workforce are connected to Internet A relevant indicator is the existence of broadband connection.
employees with internet access in firms â€<144 kbit/s â€<144 kbit/s †2
-sector) representing 75%of employees operate a LAN However, the deployment of the Wireless LAN technology only reach 22%of the sector
%Remote access means that employees can access data from the company's computer system remotely, e g. when working from home or travelling.
firms (comprising about half of the sector's employment) enable remote access. This infrastructure indicator is quite common among large firms (74%)and medium-sized ones
13%of all companies from the sector (accounting for 21%of employment) said that they
percentage of employees that uses ICT in its daily work routines has increased. The competitiveness of European industry is dependent on both the effective use of ICT for
and new employees. The raising of ICT skills within the EU will form part of the means by
the source of growth in the competitiveness of the economy, labour force and in the quality of life.
shows that in the transport and logistics industries, high-skilled labour is more important than either medium-or low-skilled labour for productivity increases (see Section 4. 1
To a large extent the demand comes from SMES, which often face substantial difficulties in attracting qualified ICT and e-business professionals in competition with larger players
Employment of"ICT practitioners "The e-Skill Forum, established by the EC in March 2003, defined, in the one hand, ICT
innovation and the share of employees with an university degree. The result leads to the
conclusion that changes in share of employees with a higher university degree positively affect the likelihood of conducting ICT-enabled innovations
Exhibit 3. 2-2 Average percentage of employees with a college/university degree (by firm size
ICT training for employees Obtaining e-skills is not a one-off event †the speed of technological change requires that
Employers are now less likely to see training just as a cost but also as an investment
They also recognize that it is not enough to just have IT workers who are trained in one
rather workers must be engaged constantly in learning and upgrading their skills profiles. About one third of the TLS companies (representing 45%of the sector
While 33%of micro enterprises with up to 9 employees confirmed this asseveration, it is true for 61%of large-sized firms (see Exhibit 3. 2-1
The delivery of e-skills training can benefit from the development of work-based training
value of high-educated employees compared to other sectors included in the 2007 E-business Watch Sectoral
%Exhibit 3. 2-3 Employees with university degree (by sectors 18 11 11 14 26
labour market segments and national or regional contexts Concerning countries, Spain shows the lowest average of firms having outsourced any
technology is used actually in business processes to innovate work processes and business routines with support of ICT.
quarters of the sector†s employment, said that they have invested in ICT in 2007†more
Data for TLS total weighted by employment (read "firms representing x%of employment"),data for
size-bands in%of enterprises Source: Sectoral E-business Watch Survey 2007 Figures related to the TLS sector shows
Team Experts: http://www. cen. eu/cenorm/tc278. pdf E-business in the transport & logistics industry
2003-2004 Work programme of FP6 82 The European commission has taken several strides towards encouraging the development of
workplace computer The first level includes a core system with the inventory management, the master data
experts. The cost is very low, but it has to take into account the learning curve and the
In the TLS industry, only 4%of firms (representing 8%of employees) reported the use of
employment) reported that they had such rules. Figures shown in Exhibit 3. 3-4 appear to
standard, work still need to be done to achieve this end-goal Results from the present Sebw survey show a very limited use of RFID technologies yet
sector's employment (Exhibit 3. 3. 5), have declared that they do use this technology. By
Data are weighted by employment (read:""firms representing x%of employment"in the sector Base: all companies
Exhibit 3. 3-6: RFID application areas(%of RFID users applying it for a given purpose
companies organising information that is relevant for employees in a way that they can easily retrieve and use it.
In 2007, about a fifth of firms (representing about 44%of sector employment) in the TLS
employment say they have an SCM system. The use of SCM systems is clearly a domain
33%of employment in the TLS industry say they send e-invoices, and about 46%receive
e-invoices (accounting for 55%of employment. Among SMES, about 24%send and 53 %receive e-invoices (Exhibit 3. 4-3). This is an example confirming the overall impression
+Data for TLS total weighted by employment (read:""firms representing x%of employment "data for size-bands in%of enterprises.
Base: all companies E-business in the transport & logistics industry 70 3. 5. 1 B2b online trading:
employment; data for size-bands in%of firms Source: Sectoral E-business Watch (Survey 2007 Case studies about WMS in France
employees. Geodis posted nearly â 3. 8 billion in net sales in 2006. The second case study
manufacturers, consultants and various trade associations The negative aspects of urban freight growth are most visible in all European urban
This includes policies and processes, front-of-house customer service, employee training marketing, systems and information management
employment; data for size-bands in%of firms Source: Sectoral E-business Watch (Survey 2007 The relatively low diffusion of CRM technology within micro and small firms should not
Employees with internet access at their workplace In this section we perform an advanced cluster analysis on the survey results using the
percentage of employees that have internet access at their workplace as the main clustering analysis. With this type of analysis we use the clustering data analysis
technique to group the different transport and logistics sector companies in order to have three different clusters of similar companies based on the percentage of employees that
have internet access at their workplace. Then we try to assess statistical relationships between the different internet access and usage by employees at the work place clusters
and different variables In the following table we have the clustering algorithm results for the variable â€oepercentage
of employees that have internet access at their workplaceâ€. We also include the means for each cluster for the variables of percentage of firms having a LAN, A w-LAN and their
on website Exhibit 3. 8-1: Cluster centres (means) and number of cases for the percentage of employees
that have internet access at their workplace Clusters Number of firms in each cluster Percentage of
employees that have internet access at their workplace Percentage of firms having a LAN Percentage
of firms having A w -LAN Percentage of firms having their own website Weighting:%%of firms%of firms%of firms%of firms%of firms
1. Low 374 9 52 19 22 2. Medium 257 44 48 29 20 3. High 440 98 71 38 35
The table shows the results for the three clusters of Percentage of employees that have
internet access at their workplace, in the low cluster the mean of percentage of employees that have internet access at their workplace is 9,
%the medium cluster has a mean of 44%of employees that have internet access at their workplace and the high
cluster 98%of employees that have internet access at their workplace Exhibit 3. 8-2 shows a clear correlation between the percentage of employees that have
internet access at their workplace clusters and the means of variables like percentage of firms having a LAN, A w-LAN and their on website.
Showing that the level of internet access among the employees (and the implied computer usage) is related to the LAN, W
-LAN and own company website adoption In Exhibit 3. 8-3 we analyse the relationships between clusters
and number of employees of the companies by groups(%of firms weighting. The chart reveals that mid sized
groups tend to have relatively more companies in the low cluster compared to small and
those with 1 to 9 employees E-business in the transport & logistics industry 87 Exhibit 3. 8-2:
Clusters of percentage of employees that have internet access at their workplace vs. LAN and W-LAN and company website usage variables (means of
percentages of firms 9 44 98 5452 48 71 59 19 29 38 29 22 20
%of employees with internet access at their workplace %of firms with a LAN %of firms with A w-LAN
Clusters of percentage of employees that have internet access at their workplace vs. company size groups (percentage of companies
32 53 54 44 35 25 20 17 20 24 43 28 29 37 41
1-9 employees 10-49 employees 50-249 employees 250+employees 'Total 1. Low 2. Medium 3. High
Exhibit 3. 8-4 shows that the TLS sector with a bigger relative percentage of companies in
the low cluster is the Goods transport sector, with 42%of the companies in the low
cluster. On the contrary, the Logistics services sector has a relatively bigger percentage of firms in the high internet usage by employees cluster.
The passenger transport sector is in an intermediate position regarding the cluster distribution. So with this cluster
Clusters of percentage of employees that have internet access at their workplace vs. Transport and Logistics sectors (percentage of companies
42 26 18 25 24 22 33 50 61 0 10 20 30 40 50 60 70 80 90 100
can conclude that being in the medium cluster in terms of percentage of employees that have internet access at their workplace is positive to improve the competitive position of
the company in the transport and logistics sectors. Both of the'extreme'clusters, low and
Exhibit 3. 8-6 shows that being in the medium cluster of percentage of employees that
have internet access at their workplace also yields more relative probabilities of increasing the turnover (in the last financial year.
Clusters of percentage of employees that have internet access at their workplace vs. Increase or decrease in market share of companies in the last 12 months
percentage of companies 36 60 34 41 56 38 59 53 8 2 7 6
Clusters of percentage of employees that have internet access at their workplace vs. Increase or decrease in turnover of companies in the last 12 months
percentage of companies 42 51 42 44 53 41 50 49 6 8 8 7
*weighted by employment("firms representing x%of employment say that †"Source: Sectoral E-business Watch (Survey 2007
"*weighted by employment("firms representing x%of employment say that †"Source: Sectoral E-business Watch (Survey 2007
size of the company in employees. In particular Internet browsers (including Mozilla and Firefox) based on OSS appear to be used widely by companies from the
109 EU-KLEMS is a database on measures of economic growth, productivity, employment creation capital formation and technological change at the industry level for all European union member
composition and the demand for labour, most importantly with regard to knowledge and skills. All these characteristics determine the level of competition in the industry
influence the demand for labour and its composition. It may also further shape the relationships with suppliers and customers, for example with regard to collaboration
found to have positive effects on labour productivity and total factor productivity (Pilat 2005). ) An important finding is,
i e. on a company's ability to innovate its work processes and business routines with support of ICT.
workforce educational level (80%of the employees don†t have high school studies ALSA has detected some resistance to the changes
growth accounting, such as labour and intermediate inputs. Therefore, it can be expected that total factor productivity growth jointly accelerates with higher investment in ICT
towards skilled workers, reducing demand for unskilled labour and increasing wage 111 TFP is a measure for disembodied technical change in a production process.
while skilled jobs for educated workers are being created at a faster pace in most countries (Pianta, 2004.
for skilled labour and decrease the same for unskilled labour (†digital divideâ€. The analysis will therefore focus on the interdependence of ICT investments with skill
on employment dynamics in a more nuanced way than just assessing the net impact on
total sector employment. The following hypothesis addresses this issue Hypothesis P. 3: ICT and high-and medium-skilled labour have a positive impact on TFP
growth in the transport and logistics sector The analysis to confirm or reject these hypotheses has been conducted in the following
-capital and non-ICT-capital, working hours and labour quality by means of growth accounting
2. Section 4. 1. 3 looks at the overall development of labour productivity growth in the
-capital investment on labour productivity growth (in terms of gross production value per total hours worked), based on an econometrically estimated stochastic production
Hours Worked Labour composition ICT Capital Non ICT Capital Total factor productivity Source: EUKLEMS database, GGDC;
4. 1. 3 ICT impact on labour productivity growth Labour productivity growth in the transport and logistics sector
The EU KLEMS data contains consistent annual data for a subset of the EU-27 (typically
Data on labour input are available in terms of labour productivity employment, average hours worked per employee and total working hours.
The latter is further broken down in different skill categories (low, medium and high Exhibit 4. 1-3 shows that pattern of labour productivity growth varies a lot across the EU
member countries. Only a few countries exhibit negative growth in this sector, mostly in 113 Namely Austria, Denmark, Spain, Finland, Germany and the UK
Labour productivity growth in the transport and storage sector in the EU-15,1980-2004 annual average growth rates in%,various sub-periods
acceleration in labour productivity growth similar to that reported for the U s. Gordon 2004; Jorgenson et al.
) High average growth in labour productivity can virtually only be detected for Greece (with remarkably high average labour productivity growth
regarding common labour productivity growth patterns in the transport and storage sector Exhibit 4. 1-4 reports the employment growth figures.
Again, a rather heterogeneous picture can be detected, partly due to the negative figures of several member countries
the growth rates for employment were highest in the period from 1995-2000. Overall, employment growth in the transport and storage sector
has been rather modest, with few exceptions Exhibit 4. 1-5 shows the comparison among the EU-15 countries in terms of average
working hours per employee. Again, the picture is not very clear and steady trends rare
Employment growth, transport and logistics services in EU-15 member countries, 1980-2004 annual average growth rates, various sub-periods
Average working hours per employee in transport intermediation services, EU-15 member countries, 1980-2004 (annual average growth rates, various sub-periods
The impact of ICT on labour productivity growth Based on the secondary intermediate inputs and the two primary input factors (i e
and labour input measured in working hours, broken down into three different types of skills),
except of the ICT capital stock and medium-skilled labour intensity, all other parameter values in Exhibit 4. 1-6 are significantly different from zero at the 5%significance level. 116
Low-skilled labour and non-ICT-capital intensities are included not here since we found them to be insignificant even at the 10%-level
intensity (0. 22) and the high-skilled labour intensity (0. 21) are found to be a key
components of labour productivity growth. With respect to skill levels, high-skilled labour has a positive impact on productivity increases in the EU transportation sector
while both, medium-skilled and low-skilled labour does not have a significant impact. 117
sectors, we found that labour skills play a more important role in influencing productivity in the transportation sector than in the steel industry,
In contrast, physical ICT-capital investment does not have a significant impact on labour productivity.
2000) who found a high impact of ICT capital on U s. labour productivity growth. 118 Finally, no significant average annual rate of technical progress for the common
117 For medium-skilled labour the estimated coefficient is not only insignificant but also exhibits a negative sign
High-skilled labour intensity and intermediate inputs intensity are found to be key drivers for labour productivity growth (measured as gross production value per
working hours No significant average annual rate of technical progress towards the estimated production possibility frontier was found
intermediate inputs as key drivers of labour productivity growth. Ã ICT by itself is not
Only high-skilled labour had a positive growth impact à indicates a skill-biased technological change with ICT-capital as its
possibility frontier revealed that, due to greater detailed structure on the labour inputs decomposed on skill-classes and the inclusion of intermediate inputs, the direct positive
link between ICT-capital investments and labour productivity growth is probably much weaker. Rather, the share of high-skilled labour and the intermediate inputs intensity
appear to be of higher importance With regard to Hypothesis P. 2, the growth accounting analysis in section 4. 1. 2 has not
Figures for sector totals are weighted by employment("firms representing x%of employment in the sector/country"),figures for size-bands in%of firms
the skills composition of a company (measured as the percentage of employees with a college or university degree
high levels of worker skills have better firm innovation performance. Thus, the following hypothesis can be formulated
Firms characterised by a higher share of employees with a university degree are more likely to conduct ICT-enabled innovations, in comparison with their peer
main explanatory variable is the share of employees with a higher university degree. To additionally account for the effect of internal capacity on innovation, a variable controlling
share of educated employees, all independent variables are dummy variables, taking a value of â€oe1†if a specific characteristic is identified,
relationship between ICT-enabled innovation and the share of employees with a university degree, a probit regression was run. 120
Changes in share of employees with a higher university degree positively affect the likelihood of conducting ICT-enabled innovations.
Effect of employee skills on ICT-enabled innovation activity Independent variable a Coefficient Standard Error %of employees with higher university degree (G11) 0. 005**0. 002
IT practitioners (E1) 0. 920***0. 117 Less than 249 employees (Z2b)- 0. 014 0. 230
Firm founded before 1998 (G2)- 0. 046 0. 103 Model diagnostics N=845 R-squared=0. 09
Firms with>250 employees, founded after 1998 and based in the USA a Questionnaire reference.
Less than 249 employees (Z2b)- 0. 183 0. 185 Firm founded before 1998 (G2)- 0. 016 0. 098
Firms with>250 employees, founded after 1998 and based in the USA a Questionnaire reference.
Less than 249 employees (Z2b)- 0. 128 0. 184 Firm founded before 1998 (G2) 0. 007 0. 093
Firms with>250 employees, founded after 1998 and based in the USA a Questionnaire reference.
employees working in them. Outsourcing also implies organisational changes; this subject is dealt however with in the section about value chains below
took time and required considerable involvement of resources and employees. Today ICT allows companies to embed business innovations
of work, such as banking (Mcafee, 2006. ICT facilitates firms†innovativeness by propagating innovations that are structured less than business processes.
firm and includes the share of employees with an internet access at their workplace internet connection capacity and the use of LAN, Intranet and Extranet
employees with a higher university degree, firm size, age and country of origin. To analyse the relationship between ICT-enabled innovation and the use of electronic data
%of employees with higher university degree (G11) 0. 003 0. 004 Less than 249 employees (G2)- 0. 312 0. 338
Firm founded before 1998 (Z2b)- 0. 071 0. 174 Model diagnostics N=651 R-squared=0. 05
Firms with>250 employees, founded after 1998 and based in the USA a Questionnaire reference.
ICT applications and in particular IT-skilled employees are the major drivers of organisational changes. This together with the previous result indicates that ICT
Less than 249 employees (G2)- 3. 637***0. 471 Firm founded before 1998 (Z2b)- 0. 148 0. 239
Less than 249 employees (G2)- 0. 073 0. 315 Model diagnostics N=872 R-squared=0. 02
Firms with>250 employees, founded after 1998 and based in the USA a Questionnaire reference.
Less than 249 employees (G2) 0. 050 0. 237 Firm founded before 1998 (Z2b) 0. 211*0. 125
Firms with>250 employees, founded after 1998 and based in the USA a Questionnaire reference.
Productivity and employment Regarding the role of ICT capital in the transport and logistics sector, the economic
between) ICT capital in terms of boosting labour productivity growth Little evidence for convergence of the EU Member Countries in terms of common
patterns regarding GVA and labour productivity growth With regard to the hypothesis formulated, we can make the following two conclusions
linkage between ICT investment and labour productivity may actually be much weaker than the evidence from more aggregate studies suggests.
complementary assets such as employee skills and IT know-how On the impacts†side, the following issues draw one†s attention:
applications and IT-skilled employees are the major drivers of organisational changes Hardware infrastructure, in contrast, offer companies less potential to create a
competitive advantage compared to software applications and skilled employees Second, ICT usage has a positive impact on company performance,
online access for both, clients and employees. The main benefit of this solution is a superb †justin-time†performance at the firm
No. of employees: 388 Sector: Transport Main business activity: Road Passenger Transport. Regular. Urban and Interurban
regular bus lines, with a total of 388 employees. The vehicle fleet of AISA consist of 192
which manages the timetables of all individual workers and automatically links these data to the payroll application.
Human resources Vehicles Services Cash management Accounting systems Reporting systems Ticketing systems (sales The system has been customised to the company needs for reporting, accounting
The main changes concern tasks and responsibilities of the personnel, internal work processes, and some personnel changes.
The system has had some implications for the company's office workers (about 50 employees). ) As processes and applications are now running in remote mode (and no
longer in local mode), files have to be saved on the server and not in the local hard drive
Employees have been trained to use the new system properly The Telemat system of RFID chip for fuel subsidy has very positive impacts in the cost
Due to these improvements in work flows and information management, and the resulting improvements in cost efficiency, the system contributes to the competitiveness of AISA
The elimination of manual processes and duplications of work has improved greatly company operations, planning and decision making.
No. of employees: 42 Main business activity: Transport and logistics Primary customers: Companies Year of foundation:
Continuously training of its staff to keep abreast of new information technologies and logistics management Offering innovative solutions based on know-how, pro-activity and dynamism
The warehouse employees are in charge of loading the truck (or register the truck that will unload the goods). Warehouse employees performing these tasks are still very paper
oriented at AIT; therefore the list of goods is transmitted on paper to them. They sign the
Therefore employees had no choice and even perceived the new solution as a kind of rescue
No. of employees: 3, 633 Sector: Transport Main business activity: Road passenger transport Primary customers: Administration, final users and companies
of the largest ones in Spain, with a total of 3. 633 employees. ALSA operates in different
10 of them internal IT workers and 10 external workers. The project is very profitable, and a proof of this is that ALSA is going to create the 4th generation website
also it gives real-time information to the drivers, coordinating the work with the traffic chiefs.
for employees to ensure the best possible use of the systems. This reflects that the way
these complex systems are used actually in the daily work is more important than the mere adoption of the technology itself to achieve positive impacts
ALSA managed to increase the labour productivity through the use of these ICT systems. The resource planning system in particular has led to a big resource
optimisation and spectacular productivity increases, in specific work areas of 200%(i e one employee can now accomplish the work
which required three employees before the system was introduced. This productivity gains translates into an increase in
competitiveness. The reduction in the number of operation errors is another positive impact of this system, making production processes more reliable and effective
employment side, requiring more specialised and professional workers who are capable of taking full advantage of the ICT systems.
Sometimes this point is also a challenge for companies such as ALSA which operate in a traditionally low technology sector.
as the employees reckon the company efforts to improve the processes and competitiveness of the company via these
implementation was finding the right employees for the development and operation of the system. For this task, ALSA used both internal and external workers.
The development and maintenance of certain parts of the system, like some final web interfaces have been
i e. the workers. The planning tool is adopted highly in the company, and it has a lot of users.
and skilled worker to use it correctly. The training programs are crucial to prepare the users for the new tools
changes in the organisation of work by some employees (80%of the employees don†t have high school studies.
the employees, analysing the usefulness of the applications to ensure the most efficient and optimal adoption of the systems
Number of employees: 270 Turnover in last financial year: about â 230 million Primary customers: B2b (various sectors
The terminal employee manually enters the complementary information filled by the customer into the CEMAT
The terminal employee enters the data into the CEMAT transport management system and gives the signed paper to the
CEMAT employees and the majority of CEMAT customers are glad about the new process. The recent implementation of the solution and the progressive adoption of the
processes leading to less errors and simplifying the process for employees Standardisation of the check in/checkout process for all CEMAT terminals
employees have adapted well to the new process and IT solution. CEMAT has the full support of the terminal directors who were the key persons to introduce the new
Terminal employees were used already to use information technology and the new process has simplified their working tasks.
Number of employees: 17,078 Turnover in last financial year: about â 685 million Primary customers: Romanian rail passengers
inquiry (entered by a CFR employee into the computer) to the reservation system which checks if a seat is available.
as well as to equip train staff with mobile devices connected to the systems to sell and print tickets in the train.
employees in charge of ticket selling. Since the working processes for ticket selling and reservation needed to be redesigned completely, approximately 5000 CFR employees
working in this area have been affected heavily. Before the deployment of this solution there was a manual system in place
For example, employees working at the selling points had to spend a lot of time at the end of the day to count the tickets sold
employees on the new business processes. The training sessions lasted between two to four weeks, depending on the job of the employee
E-business in the transport & logistics industry 147 There was no resistance from employees towards the new e-ticketing & e-reservation
system since they were pleased very with the new solution: it improved their working conditions and significantly reduced manual work.
For example, all selling points have been equipped with new furniture and air condition. Before the solution deployment the
sales people had to work overtime at the end of the day to count the tickets sold, a non
employees following the implementation of the solution contributed to this good user adoption The feedback from CFR employees and CFR customers about the solution is very
positive. The lack of data available before its implementation as well as its recent deployment does not allow the company to quantify the benefits achieved so far but the
Another benefit is the reduction of manual work and the optimisation of working process which leads to a more efficient production mode of the ticket selling
external consultant to analyse the existing process model and the to-be model together with the developer team
one member of the project team should be accomplished an expert for this type of business.
Number of employees: 166,000 (SNCF Turnover in last financial year: 6, 595 million euros Primary customers: Fret SNCF serves only business clients, main
higher the average speed of the trains, the fewer wagons, locomotives and staff are needed.
The project team was composed of SNCF employees from the customer service marketing and IT departments. Sales and invoicing were involved also.
employees. Before the implementation of the solution, the majority of employees had to concentrate their efforts on the correct operation of the transport.
With e-services, the management and correctness of the information is as important as the rail service itself.
is quite difficult to change the mindset of employees who have worked in a specific way
take time until the new working modes will be adopted fully by the majority of employees The service has been a success on the customer side as the number of connections is
the employees trained and the quality of information improved E-business in the transport & logistics industry
The sales persons at Fret SNCF manage the promotion of e-services. If they do
employees. Geodis posted nearly â 3. 8 billion in net sales in 2006. It is listed on
Number of employees: 26,000 Turnover in last financial year: about â 3, 785 million (revenues Primary customers:
Self-managed employees. With system-directed operations available to the users supervisory intervention is held to a minimum.
Workers do need not to take the manager away from his/her primary job. Rather the Warehouse management system directs the employee's actions based on the
E-business in the transport & logistics industry 158 user profile and location within the facility.
sizable labour efficiencies ICT has contributed in increasing the competitiveness of logistics companies in significantly reducing operational costs, optimising the efficiency of warehouse
No. of employees: 396 Main business activity: Independent intermodal transport operator Primary customers: Haulers, logistic companies, carriers
A â€oeconfirmation message†is sent each time a train arrives or leaves a terminal. A â€oepunctuality message is sent
The information of the â€oegoal†system is accessible for Hupac employees only who then decide what information is provided to the customer
solutions in place, the impact of this solution on the employees previously in charge of searching information on the different railway information systems was significant.
internal change management including involvement of employees in the project and communication and training, the transition happened in a smooth way
Nevertheless, even if the technical solution works well, it is important to outline that this solution is dependent on the availability of the GPS and network.
and employees. The main benefit of this solution is a superb †justin-time†performance
No. of employees: 50 Sector: Transport & Logistics Main business activity: Transport, distribution, Warehousing Primary customers:
senior management and consultants of the supplier company which was developing the software The project commenced with a 6-months analysis phase for defining the application
customer over the Web or entered into the system by the Cammack employee), putting them into a diary and allow the traffic planner to easily put the jobs together on the screen
An employee will monitor the job, accept it and send an acceptance receipt to the customers.
employees. The system automatically groups jobs together. It also gives the information E-business in the transport & logistics industry
which disables users from carrying out work for customers who have a bad credit record 5. 9. 3 Impact
working culture at N c. Cammack & Son especially for employees in charge of managing the traffic plans.
management team all employees were convinced quickly about the benefits of the solution for their daily working process, mainly resulting in
Son is able to perform more jobs today with the same number of employees. â€
gathering new customers through word of mouth promotion done by their current clients Customers are impressed particularly by the quality
resistance from their employees, the company achieved great results with the implementation of the solution that can be summarised in a time saving and operation
employees constant. Being able to monitor the costs of each truck and compare it with its
No. of employees: 1400 employees Sector: Logistics Main business activity: Logistics and forwarding services Primary customers:
All sectors Year of foundation: 1993 (Saima bought Avandero Turnover in last financial year (â: 675 million
and trace solution, a team of three employees of the IT department developed and deployed a flexible solution in a timeframe of about 6 months.
and trace solution includes the cost for three full time employees over 6 months for the development, deployment and training.
a Saima Avandero employee has to enter it into the central system. This creates a lot of additional work.
One employee is assigned to manage the supplier relationships on a full-time basis The quality of data received from the suppliers is an important issue for Saima Avandero
Sometimes the quality of data is poor and sometimes data is not even available at all
Since Saima Avandero works with a multitude of small suppliers (sometimes up to five suppliers for one single transport) it is very difficult to get them engaged to provide the
Another important issue is the additional work generated by the solution. The manual work generated by the data collection from suppliers
The best would probably be to deploy a solution that works independently on the different suppliers,
No. of employees: 75 Sector: Transport Main business activity: Information provider to public transport passengers Primary customers:
and do marketing and promotion for their companies. Trafikanten today is the dominating information service provider due to the fact that users can compare different
from Trafikanten assisted by an external consultant. Since the project had a big impact on
Trafikanten and their habit to work with them, the project went very smoothly The project is considered to be a great success and the citation of this case in the media
counts about 55 employees and its central office is located in Munkfors In order to include the planning of the traffic,
No. of employees: 55 Main business activity: Operation of public bus and train transport Primary customers:
The company does not own any vehicles but works with different transport operators that own the vehicles.
Nordic port is in charge of the maintenance and support of the solution and 2 employees
It has been observed that ICT together with high and medium-skilled labour has a positive impact on TFP growth.
firms with highly skilled employees in adopting and using ICT Therefore, investments in training and skill-formation are at least equally important as
the ability to empower the work force is a necessary complementary measure to ICT adoption.
companies representing about 80%of employment in the sector expect ICT to matter in all these fields in the future (see Exhibit 6. 2-2
*Data weighted by employment("firms representing â€%of employment in the sector expect that ICT will have
 Provide incentives for ICT training of employees  Improve skills related to the reorganisation of working
employees in adopting and using ICT The European e-Skills Forum, established by the European commission and the CEN
The European commission is supporting the work on ICT standards and interoperability, including the interoperability of networks,
and economic variables such as productivity and employment dynamics. Instead, ICT has indirect effects that occur via innovations that are carried out
Technical change, inequality and the labour market. Journal of Economic Literature 40 (1), 7-72 Allen et al, University of Westminster, January 2003, Modelling policy measures and company initiatives
Innovation and Employment. Edward Elgar Cheltenham and Northampton EEA Report No 1/2007: Transport and environment:
Impact of ICT on Corporate Performance, Productivity and Employment Dynamics. Special study by E-business W@tch, available at www. ebusiness-watch. org
Innovation and employment. In: Fagerberg, J.,Mowery, D. and Nelson, R. eds..The Oxford Handbook of Innovation.
†Market Structure and the Employment of Scientists and Engineersâ€, in The American Economic Review, vol. 57, pp. 524-531
Living and Working conditions Shapiro, C and Varian, H r. 1999. Information Rules: A Strategic Guide to the Network Economy
Experts: http://www. cen. eu/cenorm/tc278. pdf Terwiesch, C. and Wu, Y. 2004. The Copy-Exactly Ramp-Up Strategy:
Oxford Handbook of Work and Organisation, ed. Ball, R.,Tolbert, P. and Ackroyd, S.,Oxford university Press, Oxford
only companies with at least 10 employees were interviewed. For the retail and transport sector in Project 2, the population also included
micro-companies with fewer than 10 employees, reflecting their important contribution see Exhibit A1. 2). Sector totals are therefore not directly comparable between the two
with at least 10 employees) that were active within the national territory of one of the eight countries covered,
employees and use computers 761 Project 2 †Retail and transport 2. 1 Retail 52 1, 151
Micro enterprises (up to 9 employees)--up to 30 %Small companies (10-49 employees) up to 40-50%*at least 30
%Medium-sized companies (50-250 employees) at least 40-45%*at least 25 %Large companies (250+employees) at least 10-15%*at least 15
%*depending on sector 129 NACE Rev. 1. 1 was replaced by the new version NACE Rev. 2 in January 2008.
Nonetheless when the survey was conducted, sectors still had to be defined on the basis of NACE Rev. 1. 1
1. 7 No answer on no. of employees 0 8 0 1 9 1 6 24
1. 9 Company<10 employees (manufacturing only) 90 30 7 0 78 0 670 21
by employment and by the number of enterprises. 130 Weighting by employment: Values that are reported as employment-weighted
figures should be read as"enterprises comprising x%of employees"(in the respective sector or country.
The reason for using employment weighting is the predominance of micro-enterprises over other kinds of firms.
If the weights did not factor in the economic importance of different sized businesses, the results would
be dominated by the percentages observed in the micro size-band Weighting by the number of enterprises:
with a few employees and a large company with thousands of employees both count equally The use of filter questions in interviews
where employment-weighting is implicit 131 The EU-7 are composed of those countries which were covered by the survey.
) Confidence intervals for employment-weighted data are highest for the steel industry, due to the small number of observations and because this sector†s structure
Employment-weighted data for this industry therefore have lower statistical accuracy than for the other sectors
employment unweighted Sectors (aggregate, EU-7 Chemical, rubber and plastics 10%8. 0%-12.4%6. 5%-15.0%8. 4%-11.9
impact factors on labour productivity. However, through modifying the variables, i e through dividing them by total working hours (TWH),
allows to draw conclusions about the contribution of single variables on labour productivity If, given the factor input set, the produced output level stays below the potential maximum
Gross Value Added, Labour Input and Labour Productivity in the transport and logistics sector (1980-1995,1995-2000 and 2000-2004
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