You are on page 1of 24

April- 2012

NEW EUROPE

A New Europe Special Edition


In association with:

EUROPEAN BUSINESS

IL SK

OR SF L

WTH RO G

SPECIAL REPORT|APRIL 2012

02

NEW EUROPE

The ongoing financial crisis continues to hit Europe hard; but this does not mean that stagnation is the only possibility for the foreseeable future. There has been much controversy in many EU member states over austerity budgets, and arguments over is cutting budgets and streamlining public expenditure ultimately beneficial for Europes long-term economic goals. Certainly, some cutbacks seem inevitable, but more and more, citizens and analysts alike are looking for means of growth, not simply the scaling back of resources. One of the ways in which Europe can lift itself out of the crisis is by maximising its current potential for a skilled and engaged workforce. Accordingly, the theme of this years European Business Summit, its tenth edition, is Europes skills gap, and how can Europe formulate concrete solutions on the best way to move the EU out of the crisis and enhance growth through skills, including the necessity to find solutions for an ageing workforce, the mismatch between the current educational system and youth unemployment and ways to improve education. These are not easy questions to answer, but they certainly need to be addressed. Over the past decade, the European Business Summit has been engaged in these kinds of hard debates, sometimes in good times, but latterly in bad, and harnessing the skills potential of Europe is one way out of the bad times. With competition from overseas territorial markets, such as China and Korea, and with strong economies such as Australia and Canada, Europe cannot afford to find itself squeezed out of the global marketplace. Many countries in Europe find themselves with growing unemployment, particularly amongst the youth, and are also facing a problem of ageing, and a decline in the working population, which is set to lessen by 40 million people by 2050. Many are therefore advocating labour market reforms, as well as a reform of the education sector, gearing secondary and tertiary education towards science- and businessbased programmes, and encouraging entrepreneurship and development of the knowledge-economy and highly skilled graduates versed in the latest technological developments. These are just some of the arguments this years European Business Summit will hear. Over the past decade the event has looked critically and constructively at the business, employment and economic policy of the European Union. The answers to the above questions may not come too easlity, but without those questions being asked, then stagnation must surely remain.

NEWEUROPE

How can Europe formulate concrete solutions on the best way to move the EU out of the crisis and enhance growth through skills, including the necessity to find solutions for an ageing workforce, the mismatch between the current educational system and youth unemployment and ways to improve education?

EDITOR Cillian Donnelly cdonnelly@neurope.eu SENIOR EDITORIAL TEAM Kostis Geropoulos (Energy & Russian Affairs) kgeropoulos@neurope.eu Andy Carling (EU Affairs) acarling@neurope.eu Ivan Delibasic (EU Affairs) idelibasic@neurope.eu Ariti Alamanou (Legal Affairs) aalamanou@neurope.eu Stratis Camatsos (EU Affairs) scamatsos@neurope.eu Louise Kissa (Fashion) lkissa@neurope.eu Alexandra Coronakis (Columnist) acoronaki@neurope.eu

DIRECTOR Alexandros Koronakis akoronakis@neurope.eu MARKETING & ADVERTISING Panos Katsampanis pkatsampanis@neurope.eu EXECUTIVE LAYOUT PRODUCER Suman Haque suman@neurope.eu SUBSCRIPTIONS & DISTRIBUTION subscriptions@neurope.eu Subscriptions are available worldwide INDEPENDENCE New Europe is a privately owned independent publication, and is not subsidised or financed in any way by any EU institution or other entity.

BRUSSELS HEADQUARTERS Av. de Tervuren/Tervurenlaan 96, 1040 Brussels, Belgium Tel. +32 2 5390039 Fax +32 2 5390339 info@neurope.eu PUBLISHERS BRUSSELS NEWS AGENCY SPRL Avenue de Tervueren 96 1040 Etterbeek Belgium Tel. +32 2 5390039 info@neurope.eu EXTERNAL CONTRIBUTIONS
Signed Contributions express solely the views of the writers and do not necessarily reflect the opinion of the newspaper. NE is printed on recycled paper.

ISSN number: 1106-8299

2012 New Europe all rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form by any means, electronic or otherwise, without the permission of New Europe.

EPA/PETER STEFFEN

EPA/HERBERT KNOSOWSKI / POOL

EPA/LAJOS SOOS HUNGARY OUT

ADVERTISEMENT

eSkills:
THE REAL STAKES IN THE 2020 ECONOMY

European eSkills week 2012


The digital economy is switched on! Many of the jobs of tomorrow do not exist today. The future of work is affected by new technologies such as cloud computing, global trends and innovation. We recognise, however, an emergent gap between those who have the access, skills, and opportunities to be successful for the new labour market, and those who do not. The Europe 2020 agships including the Agenda for New Skills and Jobs, Youth on the Move and recently The Youth Opportunities Initiative call for greater partnership between industry, government and academia to prepare the next generation for the changing character of work. This year, the European eSkills Week on the 26-30th March 2012 will be a major focal point for such cooperation around Europe, and we look forward to be a leading partner in this initiative.

Europe needs a diverse & sustainable talent pool to achieve breakthrough


To reinforce our commitment to education, innovation and digital inclusion, Microsoft is investing in a variety of programmes: Partners in Learning reaches students from an early age through partnering with governments, school leaders, and educators around the world to help them take new approaches to teaching and learning, using technology to help students develop 21st century skills. Imagine Cup, the worlds largest student technology competition, empowers young people to use technology to nd solutions to real world issues, and to stay connected to the global marketplace. Microsoft IT Academies provide Microsoft training and certication for students, teachers and staff to equip them with the skills they need to compete in the 21st century global economy and workforce. They will help meet EU economic development objectives to capitalize on job and workforce demands, while preparing the next generation workforce of the EU for IT and IT-infused jobs across all industry sectors We look forward to further partnering with industry, governments, NGOs and national authorities. Together we are committed to bridge the opportunity divide among young people through technology and training that empowers them to realize their full potential. More information on eSkills for the new economy and the European eSkills week: http://microsoft.eu/skills http://eskills-week.ec.europa.eu

From the classroom to the workplace: eSkills matter!


To seize the opportunities that the DIGITAL economy presents in our daily lives, at home and across all sectors and professions, a shift in education is required. It is recognised that the technology gap in the classroom could later stall European jobreadiness. Microsoft provides comprehensive digital skills training, targeting all ages, from primary school to lifelong learners. The aim is to drive e-inclusion, target industry demand and broaden employment opportunities at all stages of the career. We deliver basic ICT competencies in addition to a portfolio of high level skills, such as cloudbased skills, relevant across a range of different careers and professions.

04
SPECIAL REPORT|APRIL 2012

NEW EUROPE
Improving digital skills through education Activating untapped talent

05

16

06

New skills for the green economy

A novel way to answer the grand challenges of today

17

07

Jobs for youth, skills for companies

Three lessons for Europe

18
A contract with the future

08

Putting faith in the next generation

19
Fuelling the European economy in 2012

09

Innovation at the heart of European recovery

20

11

Adaptability of the labour market key to inclusive growth in Europe

'Rising Asia' and 'Old Europe' need to work together

21

NEWEUROPE

14

From job creation to global competitive advantage through financing

Time to untap the potential of digital data

22

15

Managing (Un)employment: Jobs and Skills in the Crisis

NEW EUROPE

05

The European Union wants every citizen to have the opportunity to gain the skills and knowledge they need to build the life, family and career of their choice. Increasingly that means embracing a digital future. Our forecasts show that by 2015 90% of jobs will require at least basic e-skills. Education and training must address this reality to ensure people are equipped with the right skills and competences. One of the areas with the biggest job potential for the future is ICT. Indeed, there are very few areas in the economy now where ICT is not a fundamental need. It is clear that a workforce with good e-skills is essential for creating more jobs and growth. The Europe 2020 flagship initiatives 'An Agenda for New Skills and Jobs' and 'Youth on the Move' are a strategic contribution to developing the right mix of skills and improving the match between the requirements of the labour markets and the skills available. Digital competence is one of the core 21st century skills that people should acquire through education and training. What this means is that they need to be

able to make use of new technologies in a critical, creative and collaborative way. Education and training needs to be modernised in order to achieve these goals and to drive competitiveness. Educational systems must be encouraged to use new technologies in teaching and learning. More educational resources should be accessible through the internet and we need to ensure that education is responsive to technological developments and other changes in society. I'm in favour of developing 'creative classroom' projects, for example. The European Commission strongly supports efforts by Member States to embed digital competences in their teaching, curricula, pedagogy, learning outcomes and assessment. Recognition of digital competences will also be enhanced through the addition of an e-skills section in the popular EUROPASS job application form. Effective action requires good cooperation between education and business. Governments, schools, companies, organisations and the European Union as a whole will have to step up their efforts to equip Europe's youngsters with

the necessary skills, and specifically e-skills and digital competences. The Commission will also make proposals for a new European-wide action to support the use of innovative technologies in education in autumn 2012 and work with Member States to ensure its full support through the future programme for education and training, 'Erasmus for All'.

06

NEW EUROPE

How can we create new jobs? How can we find more growth? The transition to a low-carbon economy presents a huge opportunity to modernise our economies, stimulate growth and create jobs by building dynamic new industries based on innovative clean technologies and clean energy. This is an opportunity join the global market for low-carbon energy and energy-efficient technologies. This market is set to double, or even triple to 2.2 trillion dollars, between 2010 and the end of this decade. No major trading nation can afford to miss out on their slice of this expanding cake. Over the next 40 years this will require additional annual investment equivalent to 1.5% of EU GDP, or around 270 billion, on top of the 19% of GDP that Europe currently invests each year. This increase - for modernising electricity generation, building smart grids, upgrading transport equipment and improving the energy performance of buildings is not a net cost or a reduction in GDP, but an additional investment in the European economy that will bring multiple benefits. It will provide ample opportunities to create new jobs as well as preserving existing ones in manufacturing industries such as transport and energy equipment which are facing increased competition in

Green skills are becoming a part of almost every job, as IT skills did earlier
a rapidly globalising market. Greater low-carbon investment will also reduce Europe's energy bill and our dependency on fossil fuel imports, as well as air pollution and its associated health care costs. Europe's "eco-industries" sector is already larger than our aerospace and defence sectors. Employment in the eco-industries grew by an average of 2.7% annually in 2000-2008, with the total number of jobs increasing from 2.4 million in 2000 to 3.0 million in 2008 and forecast to reach 3.4 million this year. Europe's renewables sector added 320,000 jobs between 2005 and 2009, and it is estimated that meeting our 20% renewables target by 2020 will bring just over 400,000 more. In all, the employment potential from developing the renewable energy sector is estimated at 3 million jobs by 2020. Like boosting renewables, further improving energy efficiency is a vital aspect of Europe's climate and energy strategy for 2020. Again, this is a job driver. Implementing the full range of measures needed to raise energy efficiency by 20% could create or preserve two million jobs. One of the sectors that can benefit most from action in this area is construction, especially if existing buildings are renovated to make them more energy efficient. By definition this is work that can only be done here in Europe, creating jobs that cannot be performed elsewhere. Last month, European leaders called for agreement to be reached on the Energy Efficiency Directive by June. The directive is a unique opportunity. If we water down our efforts on energy efficiency, we water down the job potential as well. In the ongoing negotiations, Member States carry a big responsibility to ensure Europe makes the most of this opportunity. But the concept of green jobs is wider than environment-related sectors like renewable energy, waste management and environmental protection services. It also encompasses the transformation and creation of jobs in conventional sectors as they become "greener". Green skills are becoming a part of almost every job, as IT skills did earlier. It is crucial that workers in conventional sectors are trained and upgraded towards greener working methods and the wide range of climate mitigation and adaptation technologies and services that

are being developed. In this context the European Social Fund (ESF) can provide support for developing green skills and adapting existing ones to the requirements of a low-carbon economy. The Commission has proposed making climate change and energy efficiency a much stronger focus of EU cohesion policy. Overall, the climate-related share of the total EU budget for 2014-20 would be raised significantly to at least 20%. This would mean around 200 billion in climate-related expenditure out of a budget totalling roughly 1,000 billion for the period. It is crucial that this substantial sum be spent in ways that maximise its positive climate impacts. We look to businesses, the public sector and NGOs to propose good project ideas. Environmental taxes can also bring about a fiscal shift that enhances employment. The Commission has repeatedly underlined the positive job benefits that could result if governments taxed more energy and emissions and less labour. Fully recycling such revenues to reduce the costs of labour has the potential to increase employment in the EU by up to 1.5 million jobs by 2020. While our first priority must be to exit from the economic crisis, Europe's strategy must also provide the building blocks for a sustainable future. If Europe does not step up its green economy efforts, we risk losing an immense source of quality jobs. This is my very clear message today.

NEW EUROPE

07

Skills are a core strategic asset for Europe. Investment in skills is the basis for future growth and jobs. A stronger supply of relevant skills will increase Europe's innovation capacity and its position in the global competition for talent and offer young European citizens the opportunities to benefit from their talents. The Europe 2020 strategy translates into quantified goals the EU ambition to increase the skills supply. We need to steer the modernisation of Europe's education and training systems in order to increase the quantity, quality and relevance of skills supply for higher economic and social outcomes and to reduce youth unemployment. Europe's immediate concern is to deploy effective measures against youth unemployment: 5 million young Europeans are currently jobless. This has led the European Commission to call on Member States to prevent early school leaving, help youngsters develop skills relevant to the labour market, ensure work experience and on-the-job training, promote dual learning pathways and help young people find a good first job. In this context, the "Youth Opportunities Initiative" invites Member States to make better use of the European Social Fund to get the best out of various programmes financed directly by EU funds. Among these, the Youth in Action Programme supports non formal learning opportunities for young people, including through volunteering. In the context of the Youth Opportunities Initiative, a reinforced

Europe's immediate concern is to deploy effective measures against youth unemployment


budget has been allocated to the European Voluntary Service, which should make it possible for 10 000 young people to volunteer abroad in 2012. Member States expressed their willingness and commitment to strengthen their policies to combat youth unemployment through education and training and showed openness to consider the reorientation of structural funds to support such actions. Three areas emerged where ESF programmes could be refocused to respond to the crisis situation in terms of youth unemployment, while also taking into account the need to reform education and training systems to meet longer term objectives of promoting growth and employment: strengthening vocational education and training (VET) systems and promoting apprenticeships; combating Early School Leaving; and increasing trans-national learning mobility. The Member States' National Reform Programmes/National Job Plans should reflect this increased focus on youth unemployment, in line with the priorities set out in the 2012 Annual Growth Survey. The European "Agenda for new skills and jobs" also foresees mechanisms to improve the match between skills supply and skills demand. A number of instruments and initiatives such as the European Qualifications Framework (EQF), the European Credit System for Vocational Education and Training (ECVET), the European Quality Assurance in Vocational Education and Training (EQAVET) and EUROPASS have been developed in this field and they have inspired reforms in Member States. They are accelerating the shift to a competences-based approach and a move to more transparency in Europe. This year a supplement for Europass on e-skills will also be developed in order to meet the challenges of the digital age and make our young people a digital competent workforce. The European Commission has also been promoting intensified cooperation between the various stakeholders and partners of the worlds of education, work and research through Knowledge Alliances (between universities and business) and Sector Skills Alliances (between education and training providers and business). These are aimed at developing innovative teaching and training methods and putting the EU wide recognition instruments into practice. In the end, it is estimated that some 400 alliances will be created and 4 000 institutions involved thanks to the new Erasmus for All programme for the period 2014-2020. The

Commission is also taking steps to promote entrepreneurship education in education policy, but learning about entrepreneurship through youth participation is also important. Of course, still more needs to be done. Education and training systems are not adapting fast enough to pro-actively determine the skills most needed on the labour market. Delivering the right skills and competences for a more innovative economy calls for radical changes to education. Too often, school systems are not conducive to critical or creative thinking. They could also benefit more extensively from the experience of the dual systems, and adopt curricula that provide opportunities for pupils to get acquainted with the realities of companies at an early stage. All these actions require a new paradigm for education and imply that educational actors become convinced of the need to move to this new model of cooperation. It is why, in the coming months, the European Commission will publish a Communication on the contribution of education to growth. This Communication will address three key questions: What outputs should EU education and training systems generate? How can education and training systems enhance open and flexible learning? And how can governments and institutions fund modernisation in times of severe budget constraints? Its aim will be to help steer the modernisation of Europe's education and training systems in order to increase the quantity, quality and relevance of skills supply for higher economic and social outcomes.

08

NEW EUROPE

Europe is still in a crisis. We must not be lulled back into a business as usual attitude because stock markets are performing better or the EU is not holding crisis summits. Equally, the need for budgetary austerity must not be achieved without the economic growth which we so badly need. Europe must address loss of competitiveness, insufficient labour flexibility and fierce global competition by making the best use of its greatest asset: a skilled workforce. The Europe 2020 strategy, Horizon 2020, the agenda for new skills and jobs all say it: We need to boost Europes innovative potential. This mantra has been repeated so often that we run the risk of forgetting its significance. We must be more innovative because we are facing tougher global competition than before. We must be more innovative because we have competitive disadvantages in Europe in the form of high labour, regulatory and feedstock costs. We must be more innovative if we want the new technologies that address the challenges facing our societies to come from European companies and we must be more innovative if we want to keep industry and jobs in Europe. To achieve this innovative potential we need a strong industrial base in Europe, we need a highly skilled workforce and we need the right attitude: an entrepreneurial attitude. We must dare to try and

We must ensure we have the most highly skilled workforce for the whole of the 21st century
not be afraid of failure or stigmatised by it. Universities and businesses together must change young peoples attitudes so that they are willing to take such risks and succeed. We must also prepare them with the right skills to succeed. Our workforce is skilled today but we must ensure we have the most highly skilled workforce for the whole of the 21st century. We are facing a huge challenge in preparing young people for careers that may not exist yet in an economy which is being transformed by crises and huge shifts towards sustainability. This is being done using an education system which was conceived and created in the 19th century. Here are just a few examples of how to ensure we will have the skilled people we so badly need: We need to re-establish transversal intelligence. We live in a time of information overload. The challenge is not filling peoples heads with facts, it is in teaching them to integrate information, filter it, analyse it and use it well. Our current education system is creating brilliant experts going in to ever greater detail. A good education should enable bridge building across disciplines and favour analogical intelligence. Secondly we need to make life long learning a reality. 54% of EU citizens between the ages of 55 and 65 do not work. We cannot afford to repeat this trend with the next generations and we must get rid of negative assumptions about older peoples ability to learn and be retrained. In the short term, we must not allow the huge pool of knowledge that older workers represent go to waste. It takes a life times learning to become truly knowledgeable (as opposed to simply educated). We need this knowledge to build the future. Thirdly, we must get rid of the damaging hierarchy of academic and nonacademic education. Technical education is just as vital to our economy as univer-

sity degrees. The difference between the EU and Asia may not be the quality of their engineers but of the people working just below them: skilled and well trained technicians. We must convince people when they are young, even very young, of the value of pursuing certain paths. The looming retirement of the baby boom generation will create an urgent need for scientists and technicians who are also versatile enough to be businessmen and communicators. Universities and businesses also have every interest in engaging with governments to ensure a high quality of school leavers in order to have world class graduates leaving university. Just as the road to working life starts before university, a persons education should not end when they leave university. Companies and universities still have a role to play in constantly enhancing workers skills as Solvay does through its Corporate University. A skilled workforce is not a static object, it must be a constantly moving target. Just as we look for new technologies and innovations in industry so too must we constantly search for new ways to create the most skilled people in the world. I do not place my faith in new technologies to solve Europes problems, I put my faith in its people and especially its young generations. They must be able to reach their full potential in order for us to have the best companies and administrations in the world in the 21st century.

NEW EUROPE

09

Europe desperately needs to innovate by capitalising on its outstanding scientific and technological expertise

The EU has placed innovation at the heart of its Europe 2020 strategy for growth and jobs. Information and communication technology companies (ICT) such as Huawei have an important role to play in this strategy by providing new technologies that allow Europe to innovate products, services and business processes. At a time when the global economy continues to reel from the on-going financial crisis, political and business leaders increasingly look towards innovation as a source of recovery. In Europe, EUlevel innovation policy has led to remarkable achievements and improvements in the past but the current realities require new approaches and in order to restart its stagnating economy, Europe desperately needs to innovate by capitalising on its outstanding scientific and technological expertise. The European Commission has already identified innovation as a catalyst for growth and renewed prosperity and has placed its Innovation Union proposal at the heart of its Europe 2020 strategy for growth and jobs. This strategy contains some very ambitious goals to ensure a more cohesive and sustainable society for 2020 and beyond. Huawei is a strong supporter of this brave move to place innovation centre stage as the key topic of the European agenda. Since its establishment in Europe in 2000, Huawei has continuously invested in local markets and supported innovation in Europe, establishing a presence in 34 countries across the continent. The companys commitment to the European innovation agenda is also demonstrated by its sponsorship of the 10th European Business Summit in Brussels on 26 April 2012, the second year running that we have supported the event.

But Huawei wants more than just to get people talking about innovation in Europe. We want to get people working, using the powerful new network and enterprise solutions that are being created by the information and communication technologies industry to bring new products and services to global markets, to create new businesses and to invent entirely new business models. There are two specific fields where we believe that solid investment is needed networks and personal competencies. This is where we can create new possibilities for education and entrepreneurship, in order to equip and inspire a new generation of European innovators.

In regard to networks, data from the International Telecommunication Union (ITU) shows that international internet bandwidth has grown exponentially over the last five years, from 11000 Gbit/s in 2006, to close to 80000 Gbit/s in 2011. So far, Europe leads in broadband connectivity, with fixed- and mobile-broadband penetration reaching 26% and 54%, respectively. Yet, given the exponential growth of bandwidth traffic and the number of connected devices, questions remain. Is Europe investing enough to support its ambitious plans of providing 500 million EU residents with broadband access at speeds of at least 30 megabytes per second

by 2020? Is Europe ready to match rapidly developing ICT economies like South Korea and invest for the long term? Huawei believes that Europe is ready, and we are acting accordingly. The company has already established through partnerships with top R&D university centres in five European countries and is involved in 12 projects funded under the EUs FP7 Framework programme. These projects are designing the optical, energy-efficient networks of the future and building open platforms for user-centric services, for example. Thanks to such collaboration, Huawei has been able to develop leading technologies for LTE networks, the newest mobile-network standard, and to prepare the 100G technology to transmit large amounts of data wirelessly at ultra-high speeds. The roll-out of the results of this research to European industry and infrastructure will make a real contribution to fulfilling the ambitions of the EUs 2020 Digital Agenda.

The second critical factor in driving Europes recovery will be investment in peoples competencies. It is estimated that by 2015 90% of jobs will require e-skills, with rapid growth of the number of ICT practitioners in Europe. Unfortunately, at the moment there is a shortage of ICT specialists in Europe.

Huawei aims to elevate the overall level of technical competence by providing scholarships and internship opportunities to students and graduates of esteemed European higher-education centres. We are also joining stakeholders efforts to build e-competencies, by co-operating with academia to enhance students eskills. In addition to improving competencies, Huawei will continue to invest locally by creating 5,000 additional job opportunities in Europe within five years as we pursue our plan to make the EU the companys largest base outside China by 2015. To do this, we will have to attract the best talents Europe can offer, increasing our visibility among the general public by promoting what we do best pioneering innovative technologies, like the exciting new smart phones on show at our stand at this years EBS. We have learnt that the key to gaining a competitive edge in any market is joint innovation. By better understanding the environment and meeting its demands, and by investing in the local economy and cooperating with regional actors, Huawei can help foster innovation and help create jobs in Europe. We hope that by continually pushing the boundaries of what is possible in technology, we can inspire others to look beyond current difficulties and work towards a more stable and prosperous future for all.

ADVERTISEMENT

10

TH

EUROPEAN BUSINESS SUMMIT


EUROPES KEY MEETING PLACE FOR BUSINESS LEADERS AND DECISION MAKERS

The European Business Summit is an initiative of

SKILLS FOR GROWTH


EBS 2012
Human Growth Excellence
duction thanks to Benet from a re

Reductio .eu/registration w w.ebsummit w

NEW R : PE EUcodeOSQMR766 n

WITH Gerhard F. Braun, CEO, Braun GmbH & Co. KG - Michael C. Camuez, Assistant Secretary, US Department of Commerce Jo Deblaere, COO, Accenture - Connie Hedegaard, Commissioner for Climate Action, European Commission - Christian Jourquin, CEO, Solvay, Chairman, EIT Foundation - Kris Peeters, minister-president of Flanders - Dominique Reiniche, President, CocaCola Europe - Herman Van Rompuy, President, European Council - Christophe Weber, President Designate, GSK Biologicals,

REGISTER NOW ON | http://w w w.ebsummit.eu/registration


Strategic Partner Main Partners

Knowledge Partners

Broadcasting Partners

Venue Partner

NEW EUROPE

11

Entrepreneurship is of paramount importance to boost innovation and job creation

The economy is changing and the way that business and government look at the labour force must change with it. If not, Europe runs the risk of being left behind and losing its competitive edge internationally. The effects of globalisation have been compounded by the financial and economic crisis, creating some of the highest levels of unemployment in recent memory. This situation is even worse for youth: the average level of youth unemployment in Europe stands at 20%, with some countries registering levels as high as 40%. This is a huge waste of talent. To remedy this situation, not only does the way that our labour markets are governed needs to change, but also the way that we equip our workers with the skills essential for adapting to changing circumstances. The American Chamber of Commerce to the European Union (AmCham EU) welcomes the work being done by the European Commission in this regard, but it is clear that business must be involved. American business supports 4.2 million direct jobs in Europe and represented 1.7 trillion in investment in Europe in 2010. It therefore has a strong interest in ensuring that the EUs workforce is world class and equipped with the right skills to make Europe more competitive. A skilled workforce is a critical driver towards a competitive, knowledge-based economy in Europe. However, the reality shows gaps and shortages between the skills offered by workers and those in demand by employers. An innovative and collaborative approach from all actors involved governments, business, academia, workers and students is required to

guarantee that Europe remains competitive in the manufacturing, services and technology sectors in a globalised world. Short-term actions are needed to build the skill levels of both the unemployed and employed and to fill current vacancies through vocational and other types of educational programmes. Medium and longterm actions are also needed to better forecast the qualifications and skills needed for current and future jobs (e.g. green jobs), aligning the expertise and resources from all actors to equip new generations entering the labour markets with the necessary knowledge to fill the vacancies. Meanwhile, investment in life-long learning, with special attention to groups such as older workers, women, migrants and people with disabilities, must be continued. The skills forecast, Skills supply and demand in Europe: medium-term forecast up to 2020, produced by the European Centre for the Development of Vocational Training (CEDEFOP), shows that in addition to raising skills through education and training, employers should also better utilise the skills and talents of their staff. Moreover, AmCham EUs study, Europe 2020: Competitive or Complacent? states that highly skilled foreign workers account for only 1.7% of all workers in the EU, compared with 9.9% in Australia, 7.3% in Canada and 3.5% in the United States. This puts Europe at a disadvantage when trying to fill positions

that require a high level of expertise that is not immediately available locally. Mobility of workers and students could be a valuable conduit for knowledge transfer. Exchanges of students, teachers and researchers should be encouraged and administrative burdens should be eased to facilitate the free movement of workers between Member States and from third countries, including intra-corporate transferees. All of these measures would help attract and retain a talented and highly qualified European and foreign workforce. Research and innovation are at the heart of developing sustainable and smart growth in Europe. Achieving the Europe 2020 Strategy objective of 3% GDP investment in R&D and innovation and creating policies that encourage entrepreneurship are critical to maintaining and creating jobs in Europe. To remain a competitive and innovative economy in a globalised world, it is crucial to increase investment and cooperation in R&D and innovation through the value chain, reduce discrepancies among EU countries and sub-regions, develop innovation clusters and protect intellectual property. The Europe 2020 Strategy has set the goal of investing 3% of the Member States GDP in R&D and innovation. However, the data collected by Eurostat shows a more gloomy landscape: in 2008, R&D intensity (i.e. R&D expenditure as a percentage of GDP) in the EU27 stood

at 1.90%, up from 1.85% in 2007, but still below the 3% target set for 2010 by the Lisbon Strategy. According to Europe 2020: Competitive or Complacent?, boosting EU R&D investment to 3% of GDP could create 3.75 million jobs and increase annual EU GDP by up to 795 billion by 2025. Entrepreneurship is of paramount importance to boost innovation and job creation. Some of the most innovative businesses are small and medium-sized enterprises. According to the European Commission, SMEs provide two out of three private sector jobs and contribute to more than half of the total value-added created by businesses in the EU. Supporting SMEs can thereby be an important part of any job creation strategy. It is therefore essential that Europe adopt regulations that protect innovation and create a climate in which SMEs can thrive. American business has a very real interest in ensuring that workers are equipped with the skills that they need to adapt to labour market changes. AmCham EU welcomes the inclusion of the Agenda for New Skills and Jobs as part of the Europe 2020 Strategy and we have recently issued New Skills and Jobs: Working Towards a Brighter Future for Europe, a brochure that explains our priorities. The business community stands ready to engage with the European Commission and other stakeholders to shape the labour market of tomorrow.

12

NEW EUROPE

NEW EUROPE

13

14

NEW EUROPE

SMEs would go beyond business in the EU and thus would make the Union competitive as a whole

Access to finance is a well-known and documented problem for EU based SMEs. Any study on SMEs in the EU will mention this as one of the top 3 issues that they face. As a young entrepreneur and SME owner who has benefited from SME finance initiatives, I will try to give my perspective on their success and on what I believe should be the next step in the process. Icarus Sailing Media was selected for funding by a Young Entrepreneurship Support program in 2009. The funds of the program came mainly from the European Regional Development Fund and were targeted at innovative firms created by young entrepreneurs. Our innovative, in-house developed technologies are focused on media coverage of sailing events, which have been traditionally very difficult and expensive to cover due to the element of the sea. The received funds helped in covering 50% of our initial capital investments and allowed us to go from an idea to running a profitable company. Today, 3 years later, we work with many large corporates such as ESPN and Eurosport in media and Corum, Nespresso, Allianz, Volvo and many tourism authorities in sports marketing. The EU support was very important in making the company take-off. As far as job creation goes, one can label this as a success-story. Nevertheless, I believe that Icarus Sailing Media, along with many other SMEs, has an opportunity to go beyond job creation. Looking at SMEs in the US reaching scale very quickly and achieving global presence and competitive advantage, one will think about many similar EU based firms that could achieve the same. Global

competitive advantage would mean that the SMEs would go beyond business in the EU and thus would make the Union competitive as a whole. The question is: Can access to bank lending or funds like the one that supported our company be enough to create global competitive advantage? Most entrepreneurs would agree that collateralized debt from banks, low interest rate loans backed up by the EU or partial funding of capital expenditures can definitely help a company grow, but not fast enough in order to compete with US firms backed up by VCs. The barrier again is access to a very specific kind of finance: risk capital. Using the recent, extreme case of Instagram as an illustration, one can see that its global success and its acquisition by Facebook for $1 billion after about only 1.5 year of operation could very well be due to the considerable VC funding they received, even before launching their product. Starting from $500K in seed funding, they built up their product and user base and went on to secure $7 million and then $50 million in subsequent Series A and B funding. Lets keep in mind that this startup had only 13 employees at the time it was sold (a typical SME!), that its zero revenues could not help it finance itself in any way and that there were many similar photosharing applications out there. However, they managed to grow their user base faster than anyone else, because they had the available funds to get the best people, invest heavily on their product features and scale. Icarus Sailing Media has a proven ability to innovate and offer high-quality services, which allow the company to

build local sports properties of high value. However, in order to get to the next
ADVERTISEMENT

level of building up global sports properties and becoming a top global player in sports media and marketing, using the same exact technology and skills, it requires significant funding, that goes beyond bank lending and capital co-financing. However, the VC market in the EU at this point in time is nowhere near the one in the US. According to the European Commissions Staff Working Paper on the subject, both the European Venture Capital Association and the European Business Angel Network agree that investments in Europe are at 20-25% of the ones in the US. The future looks better. Im thrilled to see that, according to the latest action plan proposal of the European Commission, improving the regulatory framework for venture capital, enhancing access to it and stimulating the activity of Business Angels are at the top of the list. I believe that with the support of VCs and Angel investors, European entrepreneurs can go from job creation to giving EU a global competitive advantage.

15 MAY 2012 - EUROCONFERENCE 2012


OPENING SESSION: Building Condence in Europe: the Practitioners views
Keynote speech: Guntram Wolff, Deputy Director Bruegel Thrse de Liedekerke, Managing Director Business Europe Benjamin Angel, Head of Unit DG ECFIN European Commission Representative from the Danish Permanent Representation Karl Cox, Vice President, Public Policy and Corporate Affairs EMEA, Oracle Moderator: Julian Oliver, EurActiv Foundation

BREAKOUT SESSIONS INCLUDE:


Trends in Lobbying
Lyn Trytsman Gray, Senior Vice President, European Affairs RTL Group Dr. Susanna Di Feliciantonio, Head of EU Public Affairs, The Institute of Chartered Accountants in England and Wales (ICAEW)

How to successfully combine digital and traditional media in your organizations communication strategy
Florence Ranson, Head of PR & Communications, European Banking Federation (EBF) Lisa Boch-Andersen, Senior Director for Communications Europe, Microsoft

Human Resources in Associations


Mella Frewen, Director General, FoodDrinkEurope Jan Van Gysegem and Gunter Valkenborg, partner, Claeys & Engels

PLENARY SESSION:
E&A Survey on the Leadership of European Business Associations
Marc Dober, Senior Director, Ellwood & Ateld

CLOSING SESSION:
Strategic Planning: Best Practices & Case studies
Anna Mc Nally, Communications Director, AmCham EU Jean Pierre Houri, former Secretary General, International Fragance Association (IFRA)

Programme and more information on www.kelleneurope.com/euroconference


WHERE: SOFITEL BRUSSELS EUROPE WHEN: MAY 15TH, 2012 Early bird rate: 125 instead of 150! For any additional information or questions please contact us on euroconference@kelleneurope.com or at +32.2.761.16.00

NEW EUROPE

15

Halting and reversing Europes escalating employment crisis is the top priority for the European Trade Union Confederation (ETUC) and its members who represent millions of workers across Europe. There is no simple solution however, the ETUC is absolutely clear about one thing: without the right macro-economic and labour policy mix to kick start the economy and ensure that the recovery is sustainable and brings with it decent and equally sustainable jobs, Europe will continue down a path of high unemployment, rising poverty and inequality, precariousness and insecurity, threatening social cohesion and ultimately the European project that we have building for over 50 years. A highly qualified and well trained labour force is, without question, an essential element for European competitiveness. However, with the increasing focus on skills shortages and mismatches, there may be a tendency to forget that Europe has a highly-skilled, well-educated and talented workforce. Educational achievement and qualification levels continue to rise across Europe, particularly among young people and women and the EU is on course to reach its targets to raise qualification levels even further. The ETUC is convinced that learning without setting appropriate socio-political objectives will ultimately fail. We therefore call on the European Union, Member States and employers throughout Europe to invest more in lifelong learning. Whilst our workforce is better educated than ever, Europe nevertheless faces a multiple skills challenge as illustrated by CEDEFOP and others. How do we minimise the immediate and longer-term effects of the crisis? How do we anticipate future skills needs? How do we equip existing and future workers for the jobs of the future? In the current climate of austerity, how do we ensure the proper investment in education, training and skills development which is a prerequisite for a modern labour market? It is essential that we find the correct responses to these questions. Our fear, however, is that the crisis and the focus on austerity will result in a lack of investment in these very areas at a time when it is urgently required, to contribute to the economic recovery, ensure its sustainability and that people are equipped with the skills they will need to take up those new jobs when eventually created. This concern is also reflected in the European social partners (ETUC, BUSINESSEUROPE, CEEP and UEAPME) joint statement on the Europe 2020 Strategy which states: Insufficient in-

In the current climate of austerity, how do we ensure the proper investment in education, training and skills development
vestment in innovation and further education is exacerbating economic problems and affecting labour productivity. The debate on skills and jobs must not, however, be seen in isolation but in the wider context of the type of economy and jobs we want for the future in Europe and also further afield. The world of work is growing ever more complex: restructuring, changing work patterns, swift technological advances, pressure to reconcile professional and private lives, existing and emerging health and safety risks are but some of the varied issues confronting the 21st century workplace. A strong social dialogue and the involvement and participation of all stakeholders are a vital aspect of that debate. Globalisation offers significant opportunities but correspondingly, presents us with a range of important challenges. European businesses are striving to remain competitive faced with the intensification of international competition and the rise of the emerging economies. For the ETUC, the keys to competitiveness both within and outside the European Union are quality and innovation. Europe must invest in its future and move towards a green and sustainable economy. We also need a common European industrial policy and urgent action to develop a strategic and pro-active approach to anticipating and managing restructuring based on a European legal framework. Europes labour markets already have a high degree of flexibility. But, the quest for ever-increasing flexibility has led to an increase in worker insecurity often linked to the rise in atypical forms of em-

ployment. There are many examples where companies, working with trade unions, have been able to bring about positive and innovative changes to help them adapt to the transforming global economic landscape. During the initial stages of the economic crisis, the social partners were able to agree on and implement solutions in the interest of companies and workers. However, there are far too many instances where this is not the case: the current trend that we see emerging across Europe of attacks on collective bargaining and the resistance at European level to strengthening workers involvement is counter-productive and should be a source of concern for business and trade unions alike. To meet the employment and skills challenge, both in the current crisis and looking beyond, it is imperative that all the relevant actors take up their responsibilities and work in a coordinated and complementary fashion. The social partners have a significant role to play along with Governments and the European institutions to ensure that we help Europes citizens to maximize their potential. The European social dialogue offers us a key vehicle to do this and the ETUC remains a committed partner in this process.

16

NEW EUROPE

As panelist in the session Activating Untapped Talents at the European Business Summit 2012 my message will be:

Through social entrepreneurship, employment models and a national change in mindset Europe can activate untapped talents of people who are challenged by todays labour market.
The message is based on my experience as social entrepreneur assessing/training and employing high functioning people with Autism Spectrum Disorder (ASD). The challenge for society In accordance with EU 2020 strategy EU thrives to become a smart, sustainable and inclusive economy by 2020. We believe that much can be achieved by improving Europes capability to make the most out of diversity and activate resources overseen by todays labour market. The challenge for people with untapped resources My youngest son was diagnosed with Autism Spectrum Disorder (ASD) at the age of three. It was an eye opening experience for us as parents to realize the consequences and how rigid our society has become in the requirements of social skills. Our son is not good at creating friendships but he has some fantastic skills in other areas like systemizing data. How would life be for our son if no employer would respect his special personality and appreciate his valuable skills? We found out that we are not alone. More and more people are having challenges by todays labour market where everyone has to excel in networking, teamwork and flexibility. Many people do not live up to the social skill requirements of the labour market and receive diagnoses such as ASD or Attention Deficit/Hyperactivity Disorder (ASHD). In the US new studies from the Center of Disease Control indicate that the prevalence of ASD is 1:88. With Europe's population of 710m - this ratio will mean that approximately 8m people would qualify for a diagnosis within the

autism spectrum. Most of these people struggle to find an understanding and accommodating employer and the unemployment rate is staggering. Among people being diagnosed with ASD there is a large amount of high intelligent people with business resources which remain untapped as employers do not have the knowledge to provide the needed accommodation to make these people thrive and excel in the workplace. The untapped pool of potentially valuable resources does not only consist of people with ASD. People with a number of other invisible disabilities face the same. As an example ADHD probably affects 3-7% of any population. A lot of these people have a normal intelligence but are challenged by todays labour market. Showcase I founded Specialisterne (The Specialists) in 2004 in Denmark as a for-profit company with the purpose to provide the needed understanding and accommodation in order to make high functioning people with ASD feel comfortable and able to excel in the work place. Specialisterne provides education, assessment/training and employment of people with ASD and has become a case study at Harvard Business School for the way we harness the skills and accommodate work environments where these

skills can be put in action. The European perspective In 20008 I founded the not-for-profit Specialist People Foundation with the aim to respond to requests for help from 50+ countries from parents with children with ASD. Specialist People Foundation now owns Specialisterne DK. The vision of Specialist People Foundation is a world where people are given equal opportunities in the labour market. The goal is to enable one million jobs for specialist people being people with ASD and similar challenges with a business potential. The strategy is to replicate Specialisterne globally as showcases of turning disabilities into specialist abilities and make it attractive for the corporate sector and other stakeholders to use our management/mentorship model be able to accommodate specialist people and realize the value of a huge amount of untapped skilled resources. As the knowledge base grows we will work with stakeholders to enable job opportunities for people with a business potential who have other challenges than ASD. Specialisterne is now represented in five European countries and in planning mode for representation in additional 10 countries. As part of an EU grant Accelerating

the employment of people with Autism Spectrum Disorder in Real Business we are doing disseminating activities right now presenting our findings which are in short: Individuals with ASD want to work but do not find that the needed understanding and accommodation is available in the labour market Despite high unemployment there is often a shortage on resources with a specialist profile. Despite different welfare systems, cultures, religion and tradition it is possible to plan for sustainable Specialisterne showcase operations in Europe. The time for change is now We believe that the time for making a change now. We have a track record, a replicable concept, a vision and a strategy which involves all stakeholders who are ready for a change for the benefit of individuals, the corporate sector and the welfare states in Europe. Specialist People Foundation is dedicated to work with stakeholders and funders to contribute to the EU 2020 ambition for Europe to become a smart, sustainable and inclusive economy by activating untapped resources. We look forward to engage with stakeholders at European Business Summit to discuss skills for growth.

NEW EUROPE

17

One of the most important roles that universities fulfil is to provide the necessary knowledge and resources that is needed to solve the great challenges that we as society face today. This is commonly done through research and the dissemination of research as well as educating students that matches the needs of the labour market. At Aarhus University we have developed a new way of answering societys call for new solutions to increasingly complex challenges and the minds that put the solutions to work. Traditionally, universities have been based on a model called the triple helix in order to deliver knowledge and well educated students to society: The classical Humboldtian integration of education and research combined with the contemporary emphasis on knowledge exchange with society. Aarhus University has developed this approach, encompassing talent development, into a four-pronged approach, a quadruple helix: through a consistent focus on talent development as a new and fourth dimension, we are making it possible to combine the quality mass and elite university. Through a proactive and strategic integration of talent development into the universitys activities, we create the conditions for an increase in interdisciplinary research and teaching, both in order to stay competitive for

Today employers demand a labour force that can address issues from the perspective of a more than a single discipline
grant funding and to explore novel solutions to the above mentioned grand challenges. Talent development must have a broad focus on the wider labour market, and an element of this is expanding access - that is, developing more talent. Furthermore, talented young researchers bring new ideas and innovation to the university, they influence education and achieve research results. When they leave Aarhus University, these young researchers contribute to the development of an important international network both inside and outside academia. For this reason, Aarhus University considers talent development as a key to university development. Another area that Aarhus University considers strategically important is interdisciplinarity. Interdisciplinarity is needed to solve many of the societal challenges we face today as they are so complex that they do not allow for a solution created a single scientific approach. However, an interdisciplinary approach also provides the student body with competencies that match the demand of the labour market. Today employers demand a labour force that can address issues from the perspective of a more than a single discipline. Students at Aarhus University has the possibility to combine courses from all disciplines through the creation of an internal market for education. Finally, Aarhus University has focused on providing students with an entrepreneurial mindset. In 2010, Aarhus University was singled out to become "Denmark's Entrepreneurial University" (DEU) as a natural extension of AU's focus on building a university that combines in-depth professional competence with interdisciplinary collaboration, in close and flexible interaction with the world around us. DEU is organized around three key activities: Research in and dissemination of knowledge on entrepreneurship education across disciplines. Development of courses in entrepreneur-

ship or embedment of various didactical and pedagogical elements of enterprise and entrepreneurship into existing activities in collaboration with relevant teachers and researchers at Aarhus University. Student incubator activities tailored to every level of ambition. The overall goal of DEU is to unleash the value creating potential of students with various academic competences and disciplinary backgrounds through entrepreneurship. DEU embraces the creation of multiple forms of value which can be applied in multiple walks of life, not only restricted to the creation of economic value through new venture creation. DEU activities are carefully organized in cooperation with lecturers and researchers with relevant disciplinary backgrounds. This creates an environment that takes advantage of the students academic and personal competences as well as their everyday practices are is the starting point of the entrepreneurial activities offered by Aarhus University. We believe that these initiatives give our students a better understanding of the society they are supposed to support for many years, both through practical application of their skills in the labour market and through development of tomorrows talented researchers. In addition, our continued effort within research and interaction with our surroundings helps answer the grand challenges facing society today, in a new way.

18

NEW EUROPE

As we all reflect on what we've learned in recently, let me share with you three things I've witnessed this year, and why, even today, they give me hope for the future. First, I've seen some of the amazing people in Europe. A new generation of world class entrepreneurs, full of new ideas to make our lives better, fairer, more connected. People who know there are no limits to how modern technology can be applied; people who aren't afraid to try out innovation in every area, and see failure not as a deterrent, but as a way to learn. Meeting those people really inspired me. With a resource like this, I know we can innovate our way out of the current crisis. Second, I've seen some of the many ways that applying new technology can make our lives better. Helping people save money through instant access to price comparisons, and benefit from tailored, on demand service. Helping you to improve your public administrations whether it's crowdsourcing to tell your council about a pot-hole, or finding out about and accessing government services. And helping health and

social care - from social media platforms to show wheelchair accessible buildings, to technology that helps people with severe motor disabilities interact, communicate, and lead independent lives. Third, I've been all around the world, and seen how powerful and flexible a tool Information and Communications Technology can be; flexible enough to help people of all backgrounds. In Nairobi, Kenya, in some of the poorest slums in the world, I saw computers offered by private initiatives opening new horizons for the most disadvantaged children. People without bank accounts using mobile phones to transfer money cheaply and easily. Software used to train rural nurses - in a country plagued by medical shortages, HIV and malaria. All of this made me hopeful that Information and Communications Technology can give everyone, everywhere, the tools to change their lives for the better. Every person is unique, with unique hopes, and unique aspirations. But whoever you are, whatever you do, remember: you can achieve what you want to achieve. Technology does not achieve that dream for you, but it can help you get there. Because Information and Communications Technology gives you not just

Information and Communications Technology can give everyone, everywhere, the tools to change their lives for the better
new products, and new gadgets. But new tools to share, to refine, and to market your ideas. In every walk of life, any field you want. Not just information and entertainment, but education, transport, environment, or supporting democracy itself, you name it! I know that people have fears for the future. For the younger generation, the fear that the future will not offer high-quality jobs. While others may fear other things as they age - the prospect of isolation, loss of function, loss of independence. You can use Information and Communications Technology to overcome all these issues. To build future growth and jobs. And to develop smart care and independent living solutions, solutions capable of coming to market and making people's lives better. Next year I will be continuing my work to ensure we get this right. I want to deliver real innovations for the health and social care sector. I want to open up Europe's public sector, to unlock the treasure trove of public data. And I want to make the most of our single market. Both so our entrepreneurs can market to 500 million without dealing with 27 rulebooks. And so our citizens can use their mobile devices wherever they travel in Europe, with fair roaming prices. Because I want to put the powerful tool of Information and Communications Technology in your hands: so you can help change the world for the better. Even in this difficult time, we should not shield ourselves from the future, but embrace it, and invest in it. So wherever you are, whatever your ambitions in life, I know you can find the tools to achieve them.

NEW EUROPE

19

This year is above all a contract with our individual and collective future. The future is not determined by law but all of us have a strong responsibility in constructing the pillars of a more positive and innovative society. Back to the future, without forgetting the experience of the past, we as individuals that have a responsible role in a more demanding society are giving a central contribution to a better world. This is the most interesting challenge we face the next years. We must be able to have success in such a tremendous challenge. Today we are already the future. Our contract with the future must be supported by the values of freedom, social justice and development. This is the reason to believe that a new standard of Democracy, more than a possibility, is an individual and collective necessity for all of us, effective global citizens. Karl Popper is more than ever present the difference of this new world will be in the exercise of the capacity of the individual participation as the central contribution to the reinvention of the collective society.
ADVERTISEMENT

Society must be able to be the real Platform of a more entrepreneurial attitude

Our contract with the future is not determined by law. It is effectively constructed by all the actors in a free and collaborative strategic interaction. The Reinvention of the world is the reinvention of its people and institutions. An active commitment, in which the focus in the participation and development of new competences, on a collaborative basis, must be the key of the difference. This is purpose of the New frontiers. Our contract with the future must also be developed by a permanent flow of ideas. Ideas demand a permanent colaboration between the different actors, with the strategic challenge of reinforcing the central competences of society and qualifying them as the unique ways of cre-

ation of value and modernity. Europe is facing also a unique opportunity. The ideas must be the difference of a proposal we must be aware that is the best key for our ambition of excellence. Our contract with the future demands also a commitment of partnership in order to build a real Strategy of Confidence in the implementation of the different policies. The focus on Innovation and Knowledge as the drivers of creating added value with international dissemination is a unique challenge that may be the answer to a new way of interaction between those who have the responsibility of thinking and those that have the responsibility of producing goods and services.

Our contract with the future demands also a new competitive attitude. We need people to have a new challenge. Society must be able to be the real Platform of a more entrepreneurial attitude, centered in new areas of knowledge and new sectors of value. In a Modern and Active Society, the key word is Co-creation. To promote a dynamic and active creation process involving each citizen is the big challenge for the next years in the future. The future is the right place to say we are in, we want to be in, we want to be the right solution to the global problems we face. Our contract with the future must be a confidence in Excellence. Excelence must be the new competitive advantage of a new society of the Ideas pushed by the enablers of Modernity, Added Value and Excellence. A very clear idea that suits the big challenge that our society really faces and that requires new answers for different questions. The act of global participation in such a demanding society is an exercise of commitment between the individual creativity and the collective cooperation. This is our contract with the future.

20

NEW EUROPE

While the debt crisis has clearly dominated headlines over the past year, from a technology point of view Europe saw its fair share of milestones and breakthroughs which have the potential to greatly contribute to the European economy. In 2011, the first two satellites in Europe's Galileo global positioning system (GPS) were successfully launched, marking the start of a high-precision positioning system independent from the US and Russia, which could bring in an extra 90 billion to the EU economy over the next 20 years. Also, the take-off of cloud computing, a technology solution that gives everyone access to scalable computing power and resources, was given a boost by Vice-President Kroes, who promised to make Europe cloud-active. So in light of this potential- how will technology feature on the 2012 European agenda? I see the use of information communication technology (ICT) by governments during 2012 as a key factor in achieving European economic growth. As the largest consumers of IT services in Europe, government agencies and departments can lead by example. Europe is already reaping some of the dividends of a decade of ICT investment, with ICT now driving 25% of GDP growth in the European Union (EU) and 50% of EU productivity growth, and seven of the ten most innovative ICT economies in the world operating here in Europe. In February 2011 a prominent study from the Centre for Economics and

Business Research estimated that cloud computing could contribute 736 billion to major EU economies over the next five years. Through a smooth transition to the cloud the public sector can provide a blueprint for private sector counterparts, showcasing the cost savings, flexibility, productivity, and new means of communication and collaboration offered. Special attention here must also be paid to SMEs. They account for 99% of businesses and 80% of employment in the EU, but only use cloud services for 25% or less of core business applications. Establishing suitable framework conditions for the creation of a strong cloud eco-system for start-ups and SMEs in Europe will provide them with access to state-of-the-art software and data storage, originally only available for large companies. In light of the potential for cloud technology to boost the European economy, the continued deployment of broadband infrastructure across Europe in 2012 is crucial. McKinsey & Company estimates that a 10 percentage point rise in broadband household penetration increases a countrys GDP from 0.9% to 1.5%. Likewise, a quantitative analysis conducted by the OECD indicates that the expansion of broadband significantly improves labour productivity. One of the reasons for this is remote working- where companies can source the best workers regardless of their location, whilst workers find it easier to balance their work and family life. And for those in the creative industries, ultrafast internet access through broadband

Citizens want to be in charge of their personal data and we at Microsoft certainly support that
will offer greater opportunities to generate content which can ultimately become a source of income. As such, the European Commission report on Member State progress in developing national broadband strategies that meet the coverage and speed targets defined in the Europe 2020 Strategy, due in 2012, will be a significant benchmark to assess future economic growth opportunities in Europe. Overall, I want to highlight the amazing changes to our everyday lives that have been introduced by the ICT sector. Taking just one example, in the last twenty years the mobile phone has progressed from a clunky means of making a phone call on the move, to second generation devices which could take photos and access media content, to the third generation which incorporated broadband high speed internet access, to the fourth generation which handles voice calls as just one data stream among many. During this technological journey, sectors have found innovative ways to bring their benefits to the widest audience- such as mobile banking and mHealth applications, while the devices themselves can improve the way we enact with our environment through RFID tags. Indeed, at the current rate of sales growth the expectation is that smartphones will be in use by half of the European population by the middle of 2012. I see a similar journey for cloud computing, though the trust and awareness factors relating to new technologies must be addressed. Data protection is among the key concerns. Microsoft believes that strong data protection and data security will build up consumer trust and therefore greatly benefit ICT growth in general and the uptake of cloud computing in particular. The EU Data Protection Directive revision, to be presented in January by Commissioner Reding, will go a long way to answer privacy concerns raised by consumers and businesses alike. Citizens want to be in charge of their personal data and we at Microsoft certainly support that. As history has shown, opportunities can emerge in times of crisis. My hope is that 2012 will be the year that the potential benefits ICT innovations can bring to society will be recognised and realised as a critical solution for sustained economic growth in Europe.

NEW EUROPE

21

Tempting as it may be, it would be wrong to write off Europe as yesterdays power. Europe still matters even though this is not the message some EU policymakers have been sending out to a watching world. The impression that Europe is too busy dealing with internal challenges to play a strong global role is especially strong in Asia. True, China gets a great deal of EU attention. And the EUs outreach on trade remains strong. But there is more to Asia than China - and trade and investment agreements must not be made a substitute for a more pro-active EU foreign policy. The EU must engage more strongly with South Asian and Southeast Asian countries on foreign policy and security questions, not just trade. This means toplevel EU participation in Asian security fora such as the ASEAN Regional Forum (ARF). It means showing up and seriously participating in ministerial meetings with Asian countries such as the EUASEAN gathering of foreign ministers in Brunei in April. It also requires regular and consistent high-level conversations on global and regional challenges with India and other South Asian nations.
ADVERTISEMENT

Apart from trips to China, EU foreign policy chief Catherine Ashton has been a rare visitor to the rest of Asia. Her decision to stay away from the ARF last year, for a second year running, was a serious faux pas. Not surprisingly, Asians have put Europes request to join the East Asia Summit the regions prime security club on hold and insist that Europeans must first prove they are ready for a serious conversation with Asia on security. European policymakers are selling Europe short. Asia cannot take Europe seriously unless it does a better job of communicating with the region and gains better understanding of what makes increasingly self-confident Asians tick. Dealing with a changing and rising Asia will require that the EU engages in new courtships and new alliances with governments, businesses and civil society leaders in the region. The name of the game has to be partnership between Rising Asia and Old Europe. But by failing to engage seriously and consistently with Asia, Europeans are propagating a myth of European weakness and irrelevance. The reality of Europe the eurozone crisis notwithstanding is different. Given its experience in turning enemies

into friends, voluntarily pooling sovereignty and achieving economic and political integration, the EU has a wealth of experience to share with Asia on future frameworks for global governance. More so, it scarcely needs saying, than the United States. Asians pressing ahead with their own efforts at regional integration and crossborder co-operation still look at the EU for inspiration. Interestingly, this is still the case although Europes practice of lecturing ASEAN on the subject has irked many Asians. The EUs predominance in world trade is undiminished. EU-Asia trade is booming and is crucial both for Europes economic recovery and ensuring that Asian growth remains on track. The EU-Korea free trade agreement is the first in a series of trade-expanding deals that Europe is negotiating with Asian partners, including India, Malaysia, Singapore and Vietnam. Europe is the biggest source of foreign investments in Asia. Today, the eurozone crisis has made Europes frontier-free single market even more of a magnet for Asian investors. A recent survey underlined that 45 % of businesses in Asia are either currently doing or looking to make strategic acquisitions in Europe in the

next 12 months, compared with just 14 % cent in the Middle East and 7 % in North America. Although Asian exporters and businesses may complain about Brussels heavy-handed ways, the EU has fostered the development of high-quality rules and standards which help shape global norms in areas such as food and consumer products, cars, chemicals, aircraft emissions. European companies are leading innovators in clean and green technologies that Asia needs to meet the challenge of lowcarbon growth and urbanisation and realise their plans for increased connectivity among nations. It is the coming overhaul of the many aspects of the EU rulebook from financial services to climate issues that will maintain the EUs clout and influence. Neither Europe nor Asia can work alone to tackle threats to global stability that range from resource competition, nuclear proliferation, overpopulation to climate change. Europe isnt indifferent and certainly not irrelevant to Asias rise. As the US speaks of the Asia Pacific Century and seems to reinforce its presence in Asia, Europe must develop its own blueprint for improved engagement with the region.

25 WORLD LP GAS FORUM


CONFERENCE & EXHIBITION
11th -13th September 2012
International Convention Centre Westin Resort Nusa Dua Bali Indonesia

th

SAVE ! ATE THE D

www.wlpgas2012.com

22

NEW EUROPE

Advances in our society during recent years have been largely boosted by great leaps in technological innovation, especially in the ICT sector. The technological race has proved to be catalytic for economic development and has transformed traditional business models; in addition, it has influenced our lives extensively. Certain technological breakthroughs from recent years will continue to drive business transformation during 2012. Indicative examples are cloud computing now entering a more mature phase the proliferation of broadband, the extensive use of smart devices gathering real-time data from the field, and the evolution of Human-Computer interaction involving new and innovative means and devices, such as mobile phones and TV sets. When brought together creatively, these innovations provide new applications that empower users in various domains and contribute to a more connected, digital world. One could consider these technologies as enablers for a leap forwards. They offer an opportunity to gather, transmit, store and manipulate vast amounts of heterogeneous data in a way that was previously unthinkable. But it is the utilization and efficient handling of these data that can give business insight, create substantial value and refuel technological advancements in a different context. Based on enabling technologies, the efficient use of data can make our world smarter, leverage knowledge and offer completely new opportunities in almost every individual economic sector. Nowadays, digital data is everywhere. Every single company is able to produce and store enormous quantities of information that exceed in size even the biggest traditional libraries. For instance, the healthcare industry and financial institutions are among the heaviest producers of digital data. Moreover, individuals are creating user-generated content at ever-increasing rates; it is worth mentioning that 35 hours of video are uploaded to YouTube every minute, while over 35 billion photos are added to Facebook each year. On the other hand, digital sensors, smart appliances and other end devices gather data from the field ceaselessly; manufacturing (e.g. production & supply chain) and utilities (e.g. smart metering) are indicative examples. Last but not least, public administrations and agencies are sitting on an unexploited wealth of digital information created every day through their transactions with citizens, as well as internal operations. Despite the vast amount of data being produced, human beings have definite limitations regarding their ability to combine them to create meaningful information and consequently turn diverse information into knowledge. Thus, being able to automate gathering, storing, aggregation and combination of huge quantities of data and then use the results to perform deep analysis will become a key dif-

ferentiator in everyday business. It can substantially improve decision-making, minimize risks, and unearth valuable insights that would otherwise remain hidden. In order to reach this target, a whole new world of technologies and practices is already present and continuously evolving; new forms of file systems and non-relational databases, distributed storage and computing techniques, in-memory computing, content aggregators and mush-ups, business intelligence and analytic tools, as well as deep vertical business knowledge are joining forces to tame the beast of large-scale data. It is hugely fascinating how many technological breakthroughs and discrete elements are needed as prerequisites, in order to effectively exploit all these data and produce meaningful results. But the results are compensation for the effort. Consider for example the new paradigm of computational biology: analyzing and understanding the patterns of the human genome is expected to soon offer new inroads to predicting diseases and providing a personalized, preventive and well focused treatment to every individual. Another impressive example comes form the energy domain: real time sensing and analysis of various parameters from the electricity network, as well as data related to weather conditions and consumer demand, will allow the seamless integration of Renewable Energy Sources into micro-grids. On the other hand, in the retail sector, segmentation and analysis of customer data from various transactions could provide valuable insight into price optimization, cross selling, location-based marketing etc. Regarding Europe, apart from any private initiative, the largest and perhaps the most valuable source of information is the public

Unveiling the prospects of large-scale data utilization represents a major challenge for the years to come. It constitutes an untapped potential for the European economy, which can provide substantial competitive advantage, both for its businesses and for its administrations
sector itself. Public data are produced at all levels of government national and at EU level. Examples are geographical information, statistics, weather data, data from publicly funded research projects, and digitized books from libraries. This information has a significant, currently untapped potential for re-use in new products and services, and for efficiency gains in administrations. In fact, Europes public administrations are sitting on a goldmine of unrealized economic potential: the large volumes of information collected by numerous public authorities and services. According to the Commission, opening up this resource could amount to an economic gain of 40 billion per year. In order to exploit this potential, the Commission has launched an open data strategy for Europe. The strategy is three-fold: firstly the Commission will lead by example, opening its vaults of information to the public cost-free through a new data portal. Secondly, a level playing field for open data across the EU will be established. Finally, these new measures are backed by the 100 million which will be granted in 2011-2013 to fund research into improved data-handling technologies. Through these initiatives, it is expected that the public sector will gradually undertake the role of content provider, while more and more private initiatives will emerge to carry out the role of service provider based on public content. When this comes true, it will have a remarkable impact on the overall e-Government landscape, transforming business models and the value chain of G2B and G2C services. I strongly believe that unveiling the prospects of large-scale data utilization represents a major challenge for the years to come. It constitutes an untapped potential for the European economy, which can provide substantial competitive advantage both for its businesses and for its administrations. It is quite impressive that even today digital data are not yet widely recognized as a key competitive asset by many business leaders and policy makers. As technology evolves and content is generated at even higher rates, more and more enterprises will understand the assets that they hold, or which they could have access to, and will adapt their strategy respectively.

ADVERTISEMENT

ADVERTISEMENT

Inspiring youth for Europes digital future


E-Skills Week is a valuable initiative to raise awareness of the importance of information and communications technology (ICT) skills not only to stimulate innovation and growth in Europe but also to bridge the digital divide. Europes economic struggles have highlighted the worrying gap that has formed between skilled and unskilled labour. This e-skills gap must be addressed. At Huawei, our priority is to ensure everyone has access to broadband, even in the most remote areas. As part of our corporate social responsibility to bridge the digital divide and promote harmonious and sustainable development of the economy, society and environment, we work together with governments, schools and universities to improve e-skills training and education. In the United Kingdom, France and Italy we work with local universities to train students, including a mentoring and exchange programme with information technology professionals in China. The 2012 Huawei UK Undergraduate Work Experience Scheme, for example, will enable young people to gain concrete work experience abroad. The ICT sector offers tremendous opportunities to stimulate socio-economic development and to create a more sustainable world. We believe companies like Huawei have a role to play together with local partners to take the necessary steps to help boost youth employment. The economic challenges facing Europe today necessitate more investment in one of the most important economic assets Europe possesses, human capital.

You might also like