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Advancing the European Information Economy: Opportunities and Challenges

Explore the evolution, impact, and challenges of the European Information Economy, shaping living standards, work patterns, education, and commercial activities. Discover the role of technology, globalization, media, and services in driving this transformation, along with key issues like security, privacy, and taxation. Delve into strategies to bridge the information divide, enhance competitiveness, and promote market-led developments within the EU.

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Advancing the European Information Economy: Opportunities and Challenges

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  1. Chapter Twelve The European Information Economy

  2. European Information Economy ` An economy in which the quality of life as well as prospects for commercial activity and economic change depends upon information and its exploitation’ Martin 1995

  3. European Information Economy • These changes will influence • nature of economy • Living standards • Patterns of work and leisure • Education • Nature of commercial transactions

  4. European Information Economy • Emergence indicated by: • emergence of the internet as a commercial tool • Rise of knowledge/information intensive industries • Importance of media • Information intensive products/services • Electronic communication/distribution channels

  5. European Information Economy • Emergence has been driven by: • Globalisation • Shifting competitive advantage • Improvements of technology • Rise of service sector Especially pertinent for Europe and other developed economies

  6. Information and Competitiveness • Aid decision making • Rationalisation of production and operations • Increased flexibility of organisation • Platform for further development

  7. Information and Competitiveness Key challenge Turning information into enterprise wide knowledge

  8. Links to globalisation • Makes skills and know how portable • Facilitate a more rapid response to globalisation • Eliminate barriers of distance • Reduce transaction costs involved in trade

  9. Links to globalisation • Time-space convergence • Cost-space convergence • Gradual abolition of geographical and political frontiers Thus overcome friction of distance

  10. Issues for Europe • EU @390 million users • Has lagged behind US and Japan in development of information economy • Slow growth of internet, electronic commerce • Poorer performance in information supply industries.

  11. Why has Europe lagged ? • Cost of internet access • Attitude of management • Education systems • Wait and see attitude • Poor state of liberalisation • Poor penetration of ICTs

  12. Generic Concerns • Security • Privacy • IPR • Content • Taxation issues • Legal framework

  13. An EU Strategy • People centred • Set in context of entrepreneurship and broad industrial policy objectives • Promote scale between separate states • Development should be market led

  14. An EU Strategy • Key issues • affordable telecoms • Respond to user needs • Secure adequate training • Increase awareness • develop products that are useful

  15. AN EU Strategy • Seek economies of scale in information supply • Commercial incentive to supply all parts of EU social body • Address issues of information have and have nots

  16. An EU Strategy • Supply side measures • regulatory measures • Research and development • deployment measures • Market creation

  17. An EU Strategy • Demand side measures • target specific groups (SMEs, unemployed, etc.) • Aid social cohesion • Aid employment • Regional cohesion

  18. Progress European information economy developing through • freer access to internet • Money to on-line ventures • E-commerce sales boom • Increased entrance by non-EU enterprises

  19. Developments • Northern Europe ahead of Southern Europe • Business is majority of EU e-commerce • Consumer e-commerce is emerging • Could be aided by single currency introduction

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