Europe's Future Growth Rests on Information and Communications Technology - 21 News Now, More Local News for Youngstown, Ohio -

Europe's Future Growth Rests on Information and Communications Technology

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE The Conference Board

To Revive Productivity and Avert Long-term Stagnation, the E.U. Must Make Good Its Digital Deficit

NEW YORK, May 22, 2014 /PRNewswire/ -- Information and Communications Technology (ICT) should hold the key to rescuing Europe from a bleak economic fate, reports Productivity and Digitalization in Europe: Paving the Road to Faster Growth, a special joint publication of The Conference Board and The Lisbon Council. The policy brief was authored by Bart van Ark, Chief Economist at The Conference Board, who will be presenting his findings today at the Europe 2020 Summit in Brussels. The event features keynote addresses by Jose Manuel Barroso, European Commission President, and Neelie Kroes, European Commissioner Vice-President and Commissioner for Digital Agenda.  

The report argues that a better use of ICT could provide a significant upside to an otherwise anemic projection of just 1.4 percent annual GDP growth for the EU-28 between 2014 and 2019, which is down from the pre-2008 average of 2.6 percent. "The most powerful way to improve structural growth conditions in Europe is to strengthen productivity growth," said van Ark. "Maximizing the contribution of digitalization to these gains could accelerate the EU's growth rate to 2 percent."

According to the policy brief, the root cause of Europe's weak growth outlook is not just the aftermath of the global financial and economic crisis. In fact, 2014–19 growth in the United States is expected to average a comparatively healthy 2.4 percent. The E.U.-U.S .discrepancy can be traced to a combination of slower demographic developments, weaker investment, and less productivity growth. The slowing productivity trend in Europe, which has been on the decline in the E.U. for nearly 30 years can be traced directly to the weaker role of technology:  Since the 1990s, ICT has accounted for a much smaller percentage of total investment, and the productivity which Europe obtained from ICT was much lower than in the U.S.    

"Like steam power and electricity before it, ICT is a true general-purpose technology," said van Ark. "Its initial impacts on productivity are concentrated in a narrow range of applications and industries. But as digitalization spreads, the uses compound and proliferate through scale and network effects, ultimately delivering disproportionately large benefits to societies positioned to take advantage. This underlines the urgency of developing smart policy now, at the E.U.-level."     

Among the policy brief's key findings:

  • For the European Union, achieving a true single market for digital services is critical for obtain the scale effects from ICT.
  • An improvement of Europe's 2014–19 growth outlook from the baseline of 1.4 percent to 2.0 percent might be achievable through smarter policies given room to productivity-enhancing applications.
  • Intangible investments in areas like training, organizational capital, and market research support materially support the impact of technology and innovation on economic growth.
  • There is no unique "European" problem making growth more difficult than anywhere else in the advanced world. In fact one group of EU member states, including Germany and the countries of Central and Eastern Europe are best positioned to achieve sustainable ICT-driven productivity growth, through a strongly integrated value chain. At the other end the Mediterranean countries and the U.K. - for different reasons-face the largest difficulties to be benefit more strongly from ICT.
  • Three key policy principles can help governments to pave a road to faster growth through productivity and digitalization:
    • Secure high-quality and affordable ICT infrastructure for all sectors
    • Make government and business work together to foster the skills and willingness to make better use of ICT and support overall ICT readiness;
    • Facilitate a regulatory environment in which businesses in the ICT and non-ICT sector can thrive.

For complete details:
http://www.lisboncouncil.net

Report:  Productivity and Digitalization in Europe: Paving the Road to Faster Growth
             (Policy Brief) 
             By Bart van Ark
             http://www.lisboncouncil.net//index.php?option=com_downloads&id=1026

About The Conference Board
The Conference Board is a global, independent business membership and research association working in the public interest. Our mission is unique: To provide the world's leading organizations with the practical knowledge they need to improve their performance and better serve society. The Conference Board is a non-advocacy, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.conference-board.org

About The Lisbon Council
The Lisbon Council for Economic Competitiveness and Social Renewal asbl is a Brussels-based think tank and policy network. Established in 2003 in Belgium as a non-profit, non-partisan association, the group is dedicated to making a positive contribution through cutting-edge research and by engaging politicians and the public at large in a constructive exchange about Europe's economic and social future. Its website is www.lisboncouncil.net.

Follow The Conference Board
Twitter| Facebook| LinkedIn

©2012 PR Newswire. All Rights Reserved.

  • More From wfmj.comMore>>

  • As US economy accelerates, Fed remains cautious

    As US economy accelerates, Fed remains cautious

    Thursday, July 31 2014 12:17 AM EDT2014-07-31 04:17:00 GMT
    After a dismal winter, the U.S. economy sprang back to life in the April-June quarter, growing at a fast 4 percent annual rate on the strength of higher consumer and business spending.More >>
    After a grim start to 2014, the U.S. economy has rebounded with vigor and should show renewed strength into next year.More >>
  • Deadly Israeli strikes hit UN school, market area

    Deadly Israeli strikes hit UN school, market area

    Wednesday, July 30 2014 8:26 PM EDT2014-07-31 00:26:47 GMT
    A Palestinian health official says 13 people were killed after tank shells hit a U.N. school in Gaza where hundreds of Palestinians had taken refuge from Israeli attacks.More >>
    Israeli artillery shells tore through the walls of a U.N. school crowded with sleeping war refugees and back-to-back explosions rocked a market filled with shoppers Wednesday as Israel's stepped up campaign against...More >>
  • Suing Obama: GOP-led House gives the go-ahead

    Suing Obama: GOP-led House gives the go-ahead

    Wednesday, July 30 2014 7:49 PM EDT2014-07-30 23:49:43 GMT
    Republicans are ready to muscle legislation through the House authorizing an election-year lawsuit against President Barack Obama that accuses him of exceeding his powers in enforcing his health care law.More >>
    A sharply divided House approved a Republican plan Wednesday to launch a campaign-season lawsuit against President Barack Obama, accusing him of exceeding the bounds of his constitutional authority. Obama and other...More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 Worldnow and WFMJ. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms