1. Riga 3rd June 2009 Is there a case for a Latvian version of the Obama broadband package? Alf Vanags

2. Riga 3rd June 2009 The facts (1) Latvia is in deep recession Infrastructure spending is classical approach to boost demand and achieve useful improvements In Latvia we have programme improve heat insulation

3. Riga 3rd June 2009 The facts (2) Obama is spending 37 billion USD on digital related infrastructure UK: Digital Britain initiative France: France Numerique 2012 What is the case for a Latvian programme?

4. Riga 3rd June 2009 The facts (3) Latvia has low productivity in many sectors Micro-level policy should be aimed at increasing productivity Arguably, LV policy of prioritising sectors is wrong Broadband development offers horizontal policy

5. Riga 3rd June 2009 Productivity in manufacturing relative to EU-27

6. Riga 3rd June 2009 Productivity in services relative to EU-27

7. Riga 3rd June 2009 Productivity in real estate, renting and business activities in 2007, % of EU-27 average

8. Riga 3rd June 2009 Productivity in financial intermediation sector in 2007, % of EU-27 average

9. Riga 3rd June 2009 Studies on productivity impact of broadband Brookings in US Fornefeld, M, Delaunay G, and Elixmann D (2008) The impact of broadband on growth and productivity A study for the EU Composite indicators: –Infrastructure (13 indicators) –Readiness (7 indicators) –Use (14 indicators)

10. Riga 3rd June 2009 Broadband readiness IT skills, innovation, home equipment Use of on-line services E-government, e-commerce, other Economic impact GDP, productivity, employment Broadband infrastructure Penetration, coverage, bandwidth Theorising the economic impact of broadband development

11. Riga 3rd June 2009 Relative role of infrastructure and readiness 66% of change in use explained by change in infrastructure 34% explained by readiness

12. Riga 3rd June 2009 Development of broadband by country DFE use cluster analysis to define 4 country groups Advanced knowledge societies Austria, Belgium, Denmark, Finland, Luxembourg, the Netherlands, and Sweden. Large industrial countries: France, Germany, Italy, Spain and the UK. Quickly developing: Ireland, Czech Republic, Estonia, Hungary, Malta, Lithuania, Portugal and Slovenia.. Less developed broadband: Bulgaria, Greece, Cyprus, Latvia, Poland, Romania, and Slovakia.

13. Riga 3rd June 2009 Broadband penetration rate: number of broadband access lines per 100 inhabitants 2002200320042005200620072008 EU-27:::::18.221.7 Denmark7.410.415.622.029.637.237.4 Estonia::7.611.116.620.023.6 Latvia::1.53.76.811.616.3 Lithuania::2.55.08.412.716.1 Slovakia::0.41.54.06.99.6 Finland3.06.611.018.724.928.830.7 Sweden4.68.612.117.122.928.332.5 United Kingdom1.63.77.413.519.223.827.5

14. Riga 3rd June 2009 % of households with broadband connection 200320042005200620072008 EU-27:1523304249 Denmark253651637074 Estonia:2030374854 Latvia:514233240 Lithuania2412193443 Finland122136536366 Sweden::40516771 United Kingdom111632445762 Iceland:4563727683 United States20::55:

15. Riga 3rd June 2009 % of enterprises with broadband connection 200320042005200620072008 EU-27:4662737781 Denmark6980828380 Estonia:6867767888 Latvia:4548595762 Lithuania:5057 5356 Luxembourg394864768187 Poland:2843465359 Romania:7:313744 Finland657181899192 Sweden62:83898789 United Kingdom275065777887 Iceland20::95:99

16. Riga 3rd June 2009 % of enterprises having received orders on-line in previous 12 months 200320042005200620072008 EU-27:1312141516 Denmark182532343320 Estonia:8814711 Latvia::1226 Lithuania:56131422 Portugal3697919 Romania:::233 Finland1817 1415: Sweden132023242719 United Kingdom182925302932 Iceland12::22:21 Norway13 26283230

17. Riga 3rd June 2009 % of households with access to internet by regions of Latvia 20042005200620072008 LATVIA14.730.542.250.552.8 Riga region21.242.352.660.4 Pieriga region1030.447.559.557.8 Vidzeme region18.826.737.4...43.6 Kurzeme region13.423.841.648.152.8 Zemgale region12.319.433.848.450.3 Latgale region621.424.132.339.5

18. Riga 3rd June 2009 Possible programme Use the opportunity of the recession to create a 21st century digital infrastructure Increase broadband infrastructure, readiness, use to EU average levels or better eParvalde at RAPLM could be organising institution Finance – structural funds +public private parnership

19. Riga 3rd June 2009 Economic impact No Latvian research Cornwall programme: increase in SME broadband penetration fromless than 1% to 47% resulted in more than 10% increase in productivity in business services.