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IP/09/1221
Brussels, 4 August 2009
Digital economy can lift Europe out of crisis, says
Commission report
The European Commission's Digital Competitiveness report published today
shows that Europe's digital sector has made strong progress since 2005:
56% of Europeans now regularly use the internet, 80% of them via a highspeed connection (compared to only one third in 2004), making Europe the
world leader in broadband internet. Europe is the world's first truly mobile
continent with more mobile subscribers than citizens (a take up rate of
119%). Europe can advance even further as a generation of "digitally savvy"
young Europeans becomes a strong market driver for growth and innovation.
Building on the potential of the digital economy is essential for Europe's
sustainable recovery from the economic crisis. Today the Commission has
asked the public what future strategy the EU should adopt to make the digital
economy run at full speed.
"Europe's digital economy has tremendous potential to generate huge revenues
across all sectors, but to turn this advantage into sustainable growth and new jobs,
governments must show leadership by adopting coordinated policies that dismantle
existing barriers to new services," said Viviane Reding, EU Commissioner for
Information Society and Media. "We should seize the opportunity of a new
generation of Europeans who will soon be calling the shots in the European market
place. These young people are intensive internet users and are also highly
demanding consumers. To release the economic potential of these 'digital natives',
we must make access to digital content an easy and fair game."
The report published today outlines the results of five years of EU policy under the
Barroso Commission promoting the latest communication technologies, new
networks and services and creative media content. By 2008, 56% of Europeans had
become regular internet users, a leap of one third since 2004. Half of households
and more than 80% of businesses now have a broadband connection. A new
generation of Europeans mastering the web and ready to apply its innovations is
coming on stage. These "digital natives" hold great potential for Europe's growth.
People aged 16 to 24 are the most active internet users: 73% of them regularly use
advanced services to create and share online content, twice the EU population
average (35%) (see annex). 66% of all Europeans under 24 use the internet every
day, compared to the EU average of 43%. They also have more advanced internet
skills than the rest of the population, according to a Commission study on digital
literacy, also released today.
Although the "digital generation" seems reluctant to pay to download or view online
content like videos or music (33% say that they are not willing to pay anything at all,
which is twice the EU average), in reality twice as many of them have paid for these
services compared to the rest of the population (10% of young users, compared to
an EU average of 5%). They are also more willing to pay for offers of better service
and quality.
Internet use will soar as Europe's "digital natives" begin their professional lives,
increasingly shaping and dominating market trends. As traditional business models
stall, companies will have to offer services attractive to the next generation of users,
while legislators should create the right conditions to facilitate access to new online
content while also ensuring remuneration for the creators.
Europe also needs to act more to compete globally. Despite progress, a third of EU
citizens have never used the internet. Only 7% of consumers have shopped online in
another Member State. Europe is still behind the US and Japan in R&D investments
in information and communication technologies (ICT), high-speed broadband
communications, and developing innovative markets like online advertising.
Pro-active policy making across the EU must ensure that everyone has a high-speed
internet connection and that there is an online single market, where people can
easily use online services across borders.
Upcoming challenges for Digital Europe are raised in a public consultation launched
by the Commission today, open until 9 October 2009. This is the first step towards a
new European ICT strategy which the Commission aims to present in 2010 as part of
the next wave of the Lisbon Agenda.
Background:
The EU's "i2010" strategy to boost Europe’s lead in ICT and unlock the benefits of
the information society for European growth and jobs, adopted by the Commission in
July 2005 (IP/05/643) comes to a close this year. Endorsed by all EU Member States
and the European Parliament, the strategy aimed to strengthen the single market for
businesses and users and to stimulate ICT research and innovation. This policy of
stimulating competition and empowering consumers has delivered on concrete
issues and has engendered a wealth of innovative policies across the EU.
Commissioner Reding called, on 9 July (SPEECH/09/336), for a new "Digital
Europe" strategy as policy approach for a single and consumer-friendly market for
online content where ICT will be driving innovation, full connectivity, and a greener
economy.
The Digital Competitiveness report, factsheets, and the public consultation can be
found at:
http://ec.europa.eu/information_society/newsroom/cf/itemlongdetail.cfm?item_id=5146
Study "Public policies and stakeholders initiatives in support of Digital Literacy":
http://ec.europa.eu/information_society/eeurope/i2010/benchmarking/index_en.htm
Results of five years of EU ICT policy under the Barroso Commission:
http://ec.europa.eu/i2010
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Nine questions on the future of the Information Society identified for
the public consultation:
1. How can ICTs be unleashed to drive economic recovery and contribute to the
Lisbon growth and jobs agenda?
2. How can ICTs assist the transition to a more sustainable low carbon economy?
3. How best to create a 100% connected economy that offers open and high speed
internet for all?
4. How can Europe raise its performance in crucial ICT research and innovation?
5. How to reinforce the digital single market in order to bring growth, innovation and
new services?
6. How can online services and tools, such as web 2.0, better promote user
creativity, content production and services provision?
7. How can the web aid modernisation of public services so that they are easily
accessible to all EU citizens?
8. How can ICTs improve the quality of life of EU citizens by unlocking the
storehouses of cultural heritage by bringing them on-line and by putting ICT at
the centre of citizens' life?
9. How can the EU increase its weight in the international arena of the worldwide
web and the global information society?
The public consultation is open until 09 October 2009.
More information:
http://ec.europa.eu/information_society/eeurope/i2010/index_en.htm
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Annex
Percentage of individuals by age group that have used Internet, in the last 3 months,
for advanced communication services, EU27 (2008)
80%
73%
70%
60%
50%
51%
40%
30%
35%
35%
35-44
All individuals
26%
20%
17%
10%
7%
0%
65-74
55-64
45-54
25-34
16-24
Source: Eurostat Community Survey on ICT Usage by Households and by Individuals
Percentage of individuals who accessed the Internet, on average, every day or almost every day in
the last three months
100
100
90
90
80
80
70
70
60
60
50
50
40
40
30
30
20
20
10
10
0
0
RO
EL
BG
CY
PT
CZ
PL
ES
IT
EU AVG
MT
LT
IE
SI
LV EU27 HU
16-24
SK
EE
EU27 avg
FR
AT
BE
DE
UK
LU
FI
NL
SE
EU27 16-24
Source: Eurostat Community Survey on ICT Usage by Households and by Individuals
4
DK
NO
IS
Paying for content (2008, %)
In the last 3 months, I paid for online audiovisual content
4,8
9,8
In the last 3 months, I didn't pay for online audiovisual content
59,6
28,8
The following would make me pay for online audiovisual content - Nothing, no willingness to
pay*
47,5
48,8
The following would make me pay for online audiovisual content - More advantageous prices
compared to offline content*
29,6
27,6
The following would make me pay for online audiovisual content - Wider range of choices,
content more easily available*
21,7
21,4
The following would make me pay for online audiovisual content - Better quality of paid content
than free services*
22,0
21,1
The following would make me pay for online audiovisual content - Lack of free available content*
22,4
20,8
The following would make me pay for online audiovisual content - Right to share legally
protected content*
16,3
15,8
The following would make me pay for online audiovisual content - More convenient payment
methods*
15,9
15,0
3,8
4,6
The following would make me pay for online audiovisual content - Other motivation*
0
10
20
* % of individuals not having paid for online audiovisual content in the last 3 months
30
40
50
All individuals
60
Aged 16-24
Source: Eurostat Community Survey on ICT Usage by Households and by Individuals
Broadband Performance Index, July 2009
0,90
Socio-economic context
0,80
Take up of advanced services
Speeds
0,70
BB price
0,60
BB competition*coverage
BB coverage in rural areas
0,50
0,40
0,30
0,20
0,10
0,00
CY
PL
EL
BG
RO
IT
IE
LT
SK
HU
ES
SI
MT
LU
IS
Source: Commission services
5
EE
FI
AT
LV
CZ
PT
DE
BE
NO
FR
UK
DK
NL
SE
70
End-user spending on ICT by Region
(% change on previous year)
10
8
6
4
2
0
-2
-4
-6
-8
-10
2008
2009
Worldwide
2010
Western Europe
2011
Eastern Europe
Source: Gartner
R&D spending in millions of euro
1,940
4,328
3,972
1,761
4,391
3,975
4,070
1,635
9,721
2004
2005
2006
12,218
9,194
2003
11,708
3,908
9,627
2001
10,417
2000
11,573
13,072
5000
12,442
10000
3,985
2,989 1,339
3,193 1,241
3,721
3,040 1,211
3,386
3,035 1,130
3,369
2,990 1,107
3,544
15000
3,520
20000
2,634 1,138
25000
2007
2008
Software
Telecom operators
Semiconductors
Telecom equipment
0
2002
Source: Annual reports of a sample of the EU top ICT companies in R&D spending representing 90% of total
R&D spending recorded by the 2008 Scoreboard
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Online advertising market
14
12
Billion €
10
8
6
4
2
0
2005
2006
2007
EU 27
Source: IDATE
7
2008
USA
2009e