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