Digital economy in the EU: time to move up a gear

Today Information and Communication Technologies permeate all sectors of the economy, to the point that the growth of the digital economy is explosive and the Internet will become soon the central market place of the global economy for buying and selling goods and services of any kind.

The rising importance of the digital economy

The facts leave no room for doubt: Internet traffic is doubling every 2-3 years and mobile internet traffic every year. By the end of 2015 there will be 25 billion wirelessly-connected devices globally - double that in 2020. Every single minute, the world generates 1.7 million billion bytes of data, equal to 360 000 DVDs. This works out at over 6 megabytes of data per person every day.

Internet traffic is doubling every 2–3 years and mobile internet traffic every year. By the end of 2015 there will be 25 billion wirelessly-connected devices globally - double that in 2020.

But there is more: we are now in the early steps of the full implementation of ICT in different sectors. Indeed, Industry 4.0 is now present everywhere, with healthcare or intelligent energy sectors amongst the most visible - but there are many others.

The ICT sector is accountable for 5% of Europe's GDP, with an annual market value of 600 billion; it generates up to 25% of Europe's private investment in R&D and is directly responsible every year for 20% of the increase in productivity

Beyond that we should not forget the capacity of the digital environment to provide opportunities for disruptive business models. All-in-all the impact of the ICT sector is accountable for 5% of Europe's GDP, with an annual market value of 600 billion; it generates up to 25% of Europe's private investment in R&D and is directly responsible every year for 20% of the increase in productivity. But thanks to the growing implications of these technologies in all sectors daily, the real impact is much higher.

Investing in trust

We need to accelerate all the enabling factors to provide a rich environment for the competitiveness of the digital economy. At the same time we need to find solutions for new challenges that the digital environment brings about.

Next-generation broadband development is crucial to fully seizing all the opportunities

Beginning with trust, which is the matrix for the consistent development of the digital economy. It is deeply linked, on the one hand, to security and, on the other, to personal privacy. In both areas, the different industrial sectors and policy-makers are all looking for the best solutions.

Investing in ICT infrastructure

The road to a strong digital economy is paved by the deployment of the specific infrastructure needed. Next-generation broadband development is crucial to fully seizing all the opportunities. Currently, 4G is needed to guarantee a maximum speed; 5G, as a technology in development, will be crucial for the immediate future of connected cars, interconnected home appliances and optimal care assistance. All of this requires good decisions in spectrum management; it is crucial to address the conditions and procedures for granting spectrum licenses for wireless broadband communications, as well as the use of unlicensed spectrum.

A true digital single market is vital to developing the digital economy in Europe

A true digital single market is vital to developing the digital economy in Europe. A scaled digital economy is a must.

Europe cannot lag behind other regions in the world. Growth and jobs are at stake, there is no case for business as usual. On the contrary, it is time to move up a gear.