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.

Explaining and Comparing - Improving United States and European Union-Africa Economic Relations: Policy Memo. ACES Working Papers, 2012

As evidenced by the disparities seen in the world, development does not occur uniformly around the world. Global superpowers like the United States and the European Union collectively dominate other parts of the world simply because of their ability to develop at a faster rate. With the rise of globalization and the increasing connectivity of the world economy, the world has reached a time where it is imperative that those nations and unions holding power to commit to elevating their fellow nations through supportive policy ties. The United States and the European Union, as leading global nations, have an important role in developing the economies of other countries; by taking various policy measures, the US and EU can create stronger economic ties to Africa and create a advantageous relationship for all the regions involved.