ICT for growth: a targeted approach. Bruegel Policy Contribution 2012/10, June 2012

This Policy Contribution assesses the broad obstacles hampering ICT-led growth in Europe and identifies the main areas in which policy could unlock the greatest value. We review estimates of the value that could be generated through take-up of various technologies and carry out a broad matching with policy areas. According to the literature survey and the collected estimates, the areas in which the right policies could unlock the greatest ICT-led growth are product and labour market regulations and the European Single Market. These areas should be reformed to make European markets more flexible and competitive. This would promote wider adoption of modern data-driven organisational and management practices thereby helping to close the productivity gap between the United States and the European Union. Gains could also be made in the areas of privacy, data security, intellectual property and liability pertaining to the digital economy, especially cloud computing, and next generation network infrastructure investment. Standardisation and spectrum allocation issues are found to be important, though to a lesser degree. Strong complementarities between the analysed technologies suggest, however, that policymakers need to deal with all of the identified obstacles in order to fully realise the potential of ICT to spur long-term growth beyond the partial gains that we report.

New ICT sectors: platforms for European growth? Bruegel Policy Contribution 2012/14, August 2012

Europe's failure to specialise in new ICT sectors and firms is likely to hold back Europe’s post-crisis recovery. Europe lacks in particular leading platform providers, who are capturing most of the value in the new ICT ecosystem. • In-depth analysis of some specific new emerging ICT sectors shows that the problem in Europe appears not to be so much in the generation of new ideas, but rather in bringing ideas successfully to market. Among the barriers are the lack of a single digital market, fragmented intellectual property regimes, lack of an entrepreneurial culture, limited access to risk capital and an absence of ICT clusters. • The EU policy framework, particularly the Innovation Union and Digital Agenda EU 2020 Flagships, could better leverage the growth power for Europe of new ICT markets. The emphasis should move beyond providing support for infrastructure and research, to funding programmes for pre-commercial projects. But perhaps most important is dealing with the fragmentation in European digital markets.

Net Neutrality and Mandatory Network-Sharing: How to disconnect the continent. CEPS Policy Brief No. 309, 18 December 2013

A lively debate emerged on the proposed “Connected Continent” legislative package presented by the European Commission in September 2013. The package contains a proposed rule on the ‘open Internet’, which was heavily discussed in European Parliament hearings in early December. This commentary argues that while the proposed rule is in principle balanced and appealing, it is utterly impractical due to the enormous uncertainty that its application would entail. At the same time, the rule is very far from what neutrality proponents have argued for almost a decade: rather than the place for internet freedom, it would transform the Web into a place requiring constant micro-management and tutoring of user behaviour. Both arguments lead to the conclusion that the current proposal should be at once reformed and analysed under a more holistic lens. On the one hand, Europe should launch an ambitious project for the future, converged infrastructure by mobilising resources and reforming rules to encourage investment into ubiquitous, converged, ‘always on’ connectivity. On the other hand, enhanced legal certainty for broadband investment could justify a more neutrality-oriented approach to traffic management practices on the Internet. The author proposes a new approach to Internet regulation which, altogether, will lead to a more balanced and sustainable model for the future, without jeopardising user freedom.

Has the European ICT sector a chance to be competitive? Bruges European Economic Policy (BEEP) Briefing 14/2006

In this paper we try to present the main trends of evolution of the ICT sector. Its dynamics, supported by a constant technical progress in ICs, compounded with “non convexities” such as network effects and high sunk costs, may either lead to a Schumpeter Mark I or Schumpeter Mark II competition regime. This means that in some segments, the market will be more competitive (Mark I), while in other it will be more monopolistic (Mark II). But a key trend is also the so called “convergence”. But digitization makes it cost effective to integrate different communications, information processing and entertainment systems and devices. Hence, Schumpeter Mark II grows at the core where software production dominates, while Schumpeter Mark I is established at the periphery. In this context, the European ICT industry is potentially smashed between two forces: the cost advantages of Asian countries on one hand, the inventiveness and dynamism of the US industry on the other hand. The way out of this very difficult situation is to create in Europe the conditions of restoring knowledge accumulation in a key sub-sector of ICT, that is software production. To do this, Europe can rely on its tradition of cooperation and knowledge sharing and on a set of institutions that have shown their ability to stimulate inter-regional cooperation. By concentrating on an ambitious project of open source software production in embarked systems and domestic networks, Europe could reach several objectives: to make freely accessible an essential facility, to stimulate competition, to help reaching the Lisbon objectives and to restore the European competitiveness in ICT.

On Incentives in Technology Policymaking: What the EU Can Learn from U.S. Developments. CES Germany & Europe Working Papers, No. 07.7, 1997

This paper explores the incentives political and bureaucratic actors face in the institutional setting of EU technology policy. In examining the implications and assumptions of neoclassical and evolutionary theories of technological change, it tries to answer why certain theories do not obtain importance in the political wor1d. By focusing on the positive approach to policymaking, the paper examines why policy learning does not occur m certain institutional settings. In referring to EU technology programs, I show which conceptual and functional shortcomings limit the policies in question. As evaluation and oversight mechanisms have not been sufficiently developed and accepted within the institutional setting, there is much room for inefficiency. I discuss this setting within a simple agency model using two political actors and two firms performing R&D. It is easy to show that when asymmetric information applies, the firms receive positive rents and the political agent gains reputation. The outcome suggests changing the evaluation practices and embedding results in political decision making. Regarding this point, recent U.S. developments seem to have led to more efficiency. Moreover, the paper suggests delegating technology policy to other actors and discussing the empowerment of different principals on the political plane.

Antitrust, Regulation and the Neutrality Trap: A plea for a smart, evidence-based internet policy. CEPS Special Report No. 104/April 2015

When they look at Internet policy, EU policymakers seem mesmerised, if not bewitched, by the word ‘neutrality’. Originally confined to the infrastructure layer, today the neutrality rhetoric is being expanded to multi-sided platforms such as search engines and more generally online intermediaries. Policies for search neutrality and platform neutrality are invoked to pursue a variety of policy objectives, encompassing competition, consumer protection, privacy and media pluralism. This paper analyses this emerging debate and comes to a number of conclusions. First, mandating net neutrality at the infrastructure layer might have some merit, but it certainly would not make the Internet neutral. Second, since most of the objectives initially associated with network neutrality cannot be realistically achieved by such a rule, the case for network neutrality legislation would have to stand on different grounds. Third, the fact that the Internet is not neutral is mostly a good thing for end users, who benefit from intermediaries that provide them with a selection of the over-abundant information available on the Web. Fourth, search neutrality and platform neutrality are fundamentally flawed principles that contradict the economics of the Internet. Fifth, neutrality is a very poor and ineffective recipe for media pluralism, and as such should not be invoked as the basis of future media policy. All these conclusions have important consequences for the debate on the future EU policy for the Digital Single Market.

Why is Europe lagging on next generation access networks? Bruegel Policy Contribution ISSUE 2015/14, September 2015

Why is Europe lagging on next generation access networks? Fibre-based next generation access (NGA) roll-out across the European Union is one of the goals of the European Commission’s Digital Agenda strategy, however, there remains considerable uncertainty about how the roll-out goal can best be achieved. The underlying differences between the economics of copper-based and new fibre-based broadband infrastructures should lead to a revision of the regulatory framework for telecommunications markets. While the current regulatory measures have been useful in the past decade to sustain competition and facilitate entry into a market with already-existing infrastructures, the need to create new, much faster broadband networks calls for a rethink of the scope and strictness of regulation.

The puzzle in the bits: Cybersecurity, digital warfare and the future of Internet governance. CEPS Commentary, 26 June 2013

CEPS Senior Research Fellow Andrea Renda persuasively shows in this new CEPS Commentary the extent to which the global economy has become heavily reliant on the Internet, but observes that this phenomenon is becoming increasingly insidious. It is efficient, no doubt: but he asks whether it is also secure?

Fundamental Rights of workers in the Digital Age: A methodological approach from a case study. WP C.S.D.L.E. "Massimo D'Antona" .INT - 89/2011

The relationship between employer and worker is not only obligatory but above all, as Sinzheimer said, a ‘relationship of power’. In the Digital Age this statement is confirmed by the massive introduction of ICT in most of the companies that increase, in practice, employer’s supervisory powers. This is a worrying issue for two reasons: on one hand, ICT emerge as a new way to weaken the effectiveness of fundamental rights and the right to dignity of workers; and, on the other hand, Spanish legal system does not offer appropriate solutions to ensure that efficacy. Moreover, in a scenario characterized by a hybridization of legal systems models –in which traditional hard law methods are combined with soft law and self regulation instruments–, the role of our case law has become very important in this issue. Nevertheless, despite the increase of judicialization undergone, solutions offered by Courts are so different that do not give enough legal certainty. Facing this situation, I suggest a methodological approach –using Alchourron and Bulygin’s normative systems theory and Alexy’s fundamental rights theory– which can open new spaces of decision to legal operators in order to solve properly these problems. This proposal can allow setting a policy that guarantees fundamental rights of workers, deepening their human freedom in companies from the Esping-Andersen’s de-commodification perspective. With this purpose, I examine electronic communications in the company as a case study.

The Determinants of Investment in Information and Communication Technologies. Bruges European Economic Research (BEER) Papers 16/March 2010

In this paper we investigate the determinants of ICT investment at the macro level for a panel of ten countries over the period 1992-2005. We argue that, since ICT is a General Purpose Technology, its diffusion can be understood only considering the interaction with institutional and structural factors. The empirical results are in line with this view: facilitating factors such as changes in regulation, human capital and the sectoral composition of the economy are relevant determinants for increasing ICT investment.