The internet and new technologies are transforming our societies and economies, just as steam power and electricity did in the past.
The internet and new technologies are transforming our societies and economies, just as steam power and electricity did in the past.
We often talk about the "fourth industrial revolution" to give a name to this new reality of supercomputers, smart networks and unprecedentedly huge amounts of "big data".
Industry is a pillar of the European economy – the manufacturing sector in the EU accounts for 2 million companies and 33 million jobs. It also contributes significantly to productivity growth. Innovation and technological progress are essential for our industry to remain globally competitive. And this is true for every industrial sector, be they healthcare, energy, space, transport or car industry.
Many parts of our economy have been quick to turn digital, both in their technologies and working methods. But some traditional sectors - like construction, food, textiles or steel – are lagging behind. This is also true for many small and medium-sized enterprises. Recent studies estimate that the digitisation of products and services will add more than €110 billion per year in revenue for European industry in the next five years.
Innovation requires investment and global competition to attract private investment in digital innovation is fierce. We cannot afford to fall behind. Back in May 2015, the European Commission adopted a Strategy to support Europe’s role in the global digital economy by building a real Digital Single Market. This strategy is one of our key political priorities.
This is why today we are presenting our plans to help EU industry – from large factories to smaller businesses – researchers, and public services make the most of digital opportunities.
Most EU Member States have understood the importance of digitising their industry, and have launched initiatives to encourage and accompany this transformation. This is the case of the Regional Operational Programme of Western Greece (2014-2020) in Greece. However, in the face of globalisation, one country alone cannot meet the challenges at stake.
We need to act at the European level
Today we are proposing to link up existing initiatives at national and regional level, so that they reinforce each other. It is important to mobilise public and private investment in a strategic way, as we successfully did with the €315 billion Investment Plan. We also want to give Europe's workforce the digital skills necessary to fill future jobs.
In a world where billions of devices such as phones or computers are increasingly interconnected, it is essential that they communicate safely and seamlessly with a common language: standards. We are proposing measures to make the standard setting process faster and more focused. Common standards on 5G, cloud computing, the internet of things, data and cybersecurity will boost the development and take-up of new technologies such as smart grids, mobile health services or connected cars.
Building on existing infrastructures, we will create a European cloud: a unique platform for sharing and using large amounts of data. Initially the cloud will be available for researchers, who increasingly work in a collaborative, digital and cross-border way to be able to achieve the big innovation breakthroughs that will contribute to Europe's knowledge economy and to solve global challenges such as the Ebola and Zika epidemics. Over time, we will expand the use of the European cloud to include businesses and public services.
But it's not just industry and researchers who need to embrace the digital world. Public services – and ultimately taxpayers – stand to gain a lot from reducing administrative costs and raising efficiency and service quality. To support the transition to e-government, we will present measures to support fully paper-less online provision of common administrative procedures such as business registration, calls for tender and official signatures. In the future, companies wishing to operate in several EU Member States should be able to fill out paperwork in one European country only. It is the goal of a "pilot project" we will launch this year with administrations that will apply this "once-only" principle for businesses across borders.
Europe has been at the forefront of every industrial revolution so far. Let’s join all our forces to make sure it also leads the "fourth industrial revolution".