Since the European Commission first introduced its ambitious proposal for a Digital Single Market strategy nine months ago, much has been said about the potential of the digital economy to boost European growth and prosperity; from reducing public spending and fostering new business models, to equipping people with ICT skills and digitizing traditional industries for tomorrow’s global marketplace.
But amidst the broad, high-level discussions, it’s important not to overlook the power of technology to transform specific local regions, if the right policy frameworks are put in place. The reality is that to date, the dissemination of digital solutions across Europe has been uneven to say the least. While northern Europe mirrors the United States and Japan in investing a significant share of GDP into technological innovation, the south of Europe has benefited far less from such types of investments.
Italy, for instance, encapsulates this disparity, even within its own borders. There is a worrying divide with regards to broadband penetration: while 65.4% of Internet users in the centre-north of the country have access to high-speed broadband, this figure drops to a mere 50.5% in the south. As the European Committee of the Regions outlined in its report on challenges and opportunities with regards to the Digital Single Market, local and regional authorities have a key role to play in increasing the availability and quality of ICT infrastructure; from releasing public funding for this purpose and identifying cost reduction measures, to enhancing competition among ICT operators.
However, infrastructure alone is not enough. The real added-value of technology is generated from the creation of services and applications whose uptake drives demand for better broadband (the “virtuous cycle” of connectivity), as well as creating new business streams. In the south of Italy, for instance, this might mean developing new, smart services which showcase the region’s creative, intellectual and cultural wealth for tourists and locals alike – such as the “Up Calabria” app which young entrepreneur Beatrice Viotti designed to promote her region.
Europe’s communities and regions need the tools to write their own success stories. As the President of the Committee of the Regions Markku Markkula highlighted just a few days ago at the launch of this year’s Startup Europe Week, local policymaking has a key role to play in enabling European start-ups to establish themselves and thrive. This means creating a regulatory environment which is digital-by-default, with ICT solutions themselves facilitating increasingly streamlined policymaking processes.
This is a viable possibility thanks to new and emerging technologies. Across Europe, several local and regional authorities have already turned to solutions such as cloud computing and big data analytics to drive cost savings and efficiency gains, particularly in relation to deploying eGovernment services. These advantages extended to local businesses too – by working in the cloud, a local start-up can benefit from technological infrastructure on a par with multinational enterprises, which not only saves money, but also allows them to concentrate on scaling their core business beyond local borders.
Technology also brings citizens closer to the policymaking processes, helping them play an active role in shaping their communities.
By making data relating to specific communities publically available – “open data” – anyone from an civic-minded individual, to a local start-up or municipal authority, can develop new services rooted in technology which serve the local economy. In this way, technology can act as a true social equalizer. Knowledge of ICT no longer has to be restricted to a few engineers and experts, and can instead be a collective asset available to all.
However, to make this a reality we need to make a concerted effort to bridge the digital divide which currently excludes too many Europeans, young and old, from making the most of technology. This means giving people the digital skills they need to generate value from their local areas and to translate their ideas into reality, moving their communities into the 21st century along the way.
After a long period of economic instability, it seems that Europe is finally turning the corner and returning to growth and employment. Yet vast disparities remain. If recovery is to be sustained, we cannot afford to overlook the importance of investing in local communities and regions. The Digital Single Market strategy may have been drafted in Brussels – but it should benefit the entire continent.
This blog was inspired by an article on the role of technology in powering regional development, which first appeared in Urbanistica Informazioni. Click here to read more (in Italian).