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ICT drives 50% of EU growth, says Commission's annual report on the digital economy

by xavier last modified 2009-01-21 12:26

Public and private investment in information and communication technology (ICT) is bearing fruit, finds the Commission's annual progress report on i2010 – the digitally-led strategy for growth and jobs. Technology is fuelling innovation and productivity, and there are signs of fundamental change in markets and user behaviour, as Europe moves towards a knowledge-based economy.

A news from European Information's Society Thematic Portal

"Our integrated European policy for growth and jobs is now starting to pay dividends," said Viviane Reding, EU Commissioner for Information Society and Media. "However, let's not be complacent. ICT companies in Europe are still not able to profit from economies of scale in view of regulatory fragmentation that blocks the emergence of pan-European services and hurts the chances of e-communication operators and software companies to compete on the world market. The EU and its Member States need in particular to make a greater effort to remove the remaining impediments within internal markets for online services."

Each year, the annual report on i2010 – the EU's policy strategy to boost the digital economy by combining research, regulatory tools and public-private partnerships – assesses the economic impact of EU Member States' efforts to deploy ICT, and provides a benchmark on the effectiveness of the Commission's policy to build sustainable economic growth in such technologies.

The ICT sector continues to grow faster than Europe's overall economy, according to the i2010 second annual report. ICT contributed nearly 50% of EU productivity growth between 2000 and 2004, with software and IT services currently the most dynamic growth area (5.9% for 2006-2007).