UNLOCKING THE DIGITAL FUTURE THROUGH OPEN INNOVATION
Unlocking the Digital Future through Open Innovation
An Intellectual Capital Approach
A critical analysis of open innovation as structural capital
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Unlocking the Digital Future through Open Innovation
An Intellectual Capital Approach
A critical analysis of open innovation as structural capital Bruno M. Hoyer
UNLOCKING THE DIGITAL FUTURE THROUGH OPEN INNOVATION
This report is part of a series of publications by DG Information Society & Media. The Open Innovation Strategy and Policy Group, OISPG is an industry-led think tank advising on open innovation,especially service innovation in the knowledge society. The latest report is based on the EU actions stemming from the Digital Agenda for Europe (DAE), leading to strands linking these actions to societal drivers and means to reinforce the new innovation paradigms based on co-creation and open platforms and ecosystems. What is interesting is to see how the drivers from the DAE and the open environments and processes lead to increased structural capital beyond the usual notion of intellectual capital (excellence in silos). Fluid cross-fertilization seems to be essential if new innovation practices are to work, which requires the involvement of all stakeholders.We have clearly moved from the triple helix or even the quadruple helix innovation models to something which could be described as societal and multidisciplinary mashup. In the DAE we see many actions which have a strong impact on the digital future and intellectual as well as the structural capital growth,for well being and wealth in Europe. I wish the reader an interesting discovery to the converging strands.
Bror Salmelin Adviser to the Directorate H Information Society and Media Directorate General European Commission
Table of contents
FOREWORD INTRODUCTION I. A DIGITAL AGENDA FOR EUROPE – PLANNED ACTIONS Digital Agenda for Europe – the context The action areas of the Digital Agenda for Europe II. EU RESEARCH AND INNOVATION FUNDING – FROM FP7 TO CIP 5 7 7 10 27
III.OPEN INNOVATION – INCREASING THE EFFICIENCY AND EFFECTIVENESS OF THE INNOVATION PROCESS 39 1 Definition, categorization and trends around the concept of Open Innovation 1. Societal Capital and Creative Commons beyond the cross-licensing model 2 From the essence of ecosystems to digital ecosystems and innovation environments 3 Case studies mapping Open Innovation Ecosystems 4 Mapping the ecosystem - The cases of Apple, Deutsche Telekom, Philips, Audi, the Department of Defence (DOD) of Australia and Institut Telecom 5 Discussion IV. INTELLECTUAL CAPITAL MANAGEMENT SYSTEM – OPEN INNOVATION AS STRUCTURAL CAPITAL 1 Intellectual Capital – Intangible assets in the Knowledge Society 2 Human capital, Organizational (Structural) Capital and Relational Capital V. OPEN INNOVATION AND INTELLECTUAL CAPITAL – BRIDGING THE GAP REFERENCES LIST OF FIGURES ANNEX 1 ANNEX 2 41 43 49 51 63
67 67 71 75 78 83 85 88
Open Innovation Strategy and Policy Group (OISPG)
UNLOCKING THE DIGITAL FUTURE THROUGH OPEN INNOVATION
This report is part of a series of co-publications between the Directorate General Information Society and Media, Directorate for ICT Addressing Societal Challenges and the Open Innovation Strategy and Policy Group (OISPG). OISPG is an industry-led industrial group to support policies for Open and Service Innovation, towards open innovation ecosystems and user-centric service architecture, at the European Commission. Neelie Kroes, Vice President of the European Commission and EU Commissioner for the Digital Agenda for Europe (DAE), argues, "key to achieving many of our competitiveness and innovation ambitions in the coming years (…)" is "to embrace open innovation and platforms, so that we avoid wasteful platform competition,and anti-competitive lock-ins, as well as stimulating development and investment in new generations of online services" (Neelie Kroes, 2010). Henceforth, this report addresses the question: Can open innovation give rise to open, interoperable platforms and ecosystems enabling successful implementation of policies and actions outlined in the Digital Agenda for Europe? In short, it will be argued that from an intellectual capital perspective,open innovation presents the structural capital, while industry, academia and private users present the human capital.Both structural capital and human capital raise the relational capital which enables the intellectual capital, in this case the actions and policy formulations of the Digital Agenda, to be successfully delivered. The Digital Agenda for Europe was launched on 19 May 2010 as the first out of seven flagship initiatives under the ambiguous Europe 2020 Strategy which sets out the EU growth strategy for the coming decade to a smart, sustainable and inclusive European economy. In order to challenge the economic crises, slowed down economic and social progress and exposed structural weaknesses in Europe's economy, "the overall aim of the Digital Agenda is to deliver sustainable economic and social benefits from a digital single market based on fast and ultra fast internet and interoperable applications" (COM ,2010).To achieve this,the Digital Agenda proposes actions defining the role Information and Communication technologies (ICTs) will have to play if Europe wants to succeed to maximize the social and economic potential of ICT for the benefit of European businesses and citizens. Wider deployment and more effective use of digital technologies will enable European businesses to address key challenges and will provide Europeans with a better quality of life through,better health care, safer and more efficient transport solutions, cleaner environment, new media opportunities and easier access to public services and cultural content. In the broader context of the policies and actions outlined by the DAE,it appears as if,interoperability and standard setting both for inclusive digital services and e-Government services are in need of pan European platforms to coordinate cross border service creation in partnership. The remaining question, which has been largely neglected by the Digital Agenda till now, is how these emerging platforms can be aligned under common principles and common architectures to build a genuine single market ecosystem for services development and interaction between public,private sector actors, and people. It has to be noted; any open innovation approach to the development of cross border services has to deal with considerable challenges,especially since the open innovation argument to R&D might be a tough sell to some Intellectual Property lawyers.However,common agreement exists that,within the Digital Agenda framework,innovation processes need to be open,in order to avoid fragmentation. Therefore interoperability,standards and openness among actors involved are key requirements.
This report is divided into four parts. The following chapter provides an introduction to the Digital Agenda and the different fields of action and policy with special attention to eHealth and eGovernment actions. The second chapter elaborates on EU programmes which have been established to enable a European research and innovation ecosystem such as the 7th Framework Programme, the European Institute of Innovation & Technology (EIT), the Competitiveness and Innovation programme (CIP) and the Future Internet PPP(P) programme. The third chapter defines and categorizes the open
innovation concept around developments such as user-centricity, digital innovation ecosystems, community based innovation and open platform architecture. In addition a series of case studies on open innovation ecosystems will be presented. The fourth elaborates on the Intellectual Capital Management System and the implications this framework of analysis provides when analysing the conditions for success of the Digital Agenda. This chapter will provide the theoretical framework on how open innovation can effectively unlock the actions proposed by the Digital Agenda.
UNLOCKING THE DIGITAL FUTURE THROUGH OPEN INNOVATION UNLOCKING THE DIGITAL FUTURE THROUGH OPEN INNOVATION
I. A Digital Agenda for Europe - Planned Actions
Digital Agenda for Europe – the context
The Digital Agenda for Europe (DAE) was launched on 19 May 2010 as the first flagship initiative under the Europe 2020 strategy.The European Commission, in consultation with different stakeholders,launched the Digital Agenda for Europe to exit the economic crises and to face societal challenges such as demographic change and global competition in all economic sectors. According to the White paper A Digital Agenda for Europe the objective,is to maximize social and economic potential of ICT, to provide European citizens and businesses with a better quality of life and sustainable economic growth. The Digital Agenda proposes actions that touch upon all aspects of daily life; thereby “wider deployment and more effective use of digital technologies will (…) enable Europe to address its key challenges (…) better health care, safer and more efficient transport solutions, cleaner environment, new media opportunities and easier access to public services and cultural content” more efficiently (ibid.). The Digital Agenda sets out 101 actions clustered in seven pillars; these actions shall ensure the emergence of a European digital single market and society. The seven clusters of action are “Vibrant Single Market, Interoperability and standards, Trust and security, Fast and Ultra fast internet access, Research and Development (R&D), Digital Literacy, inclusions eSkills and Societal challenges (public services,health, environment)”(ibid.).The seven fields of action link technological and societal innovation within a strong framework for the future knowledge society,which is based on ICT infrastructures. The efficient use of Information and Communication Technologies (ICT) plays a vital role in achieving the targets set out by the Europe 2020 strategy.As “the ICT sector is directly responsible for 5% of European GDP,with a market value of 660 billion euro annually, (…) it contributes far more to overall productivity growth (20% directly from the ICT sector and 30% from ICT investments” (ibid.p.4). The enormous potential ICTs bear for future European sustainable economic growth is reasoned in the “high levels of dynamism and innovation inherent in the sector,and the enabling role the sector plays in changing how other sectors do business” (ibid.). At the same time ICTs create new infrastructures and interconnectivity based on next generation Internet,which in the next decade will be visible in mobile and highly personalized communication services across European borders. Besides ultra fast Internet; broadband connection is considered to be the prerequisite to achieve the aims set out by the DAE.Basic broadband coverage should be available to all European by 2013, and by 2020 all Europeans should enjoy broadband connections of 30 Mbps or above, with 50% having access to Internet connections above 100 Mbps. According to the DAE White paper, the potential of ICTs can be examined through a well-functioning virtuous cycle of activity (see Figure 1).
Figure 1: Virtuous cycle of the digital economy
Figure 2: Fibre to the Home (FTTH) penetration in July 2009
The argument displayed in the virtuous cycle of the digital economy points out that “attractive content and services need to be made available in an interoperable and borderless Internet environment. This stimulates demand for higher speeds and capacity, which in turn creates the business case for investments in faster networks. The deployment and take-up of faster networks in turn opens the way for innovative services exploiting higher speeds”(ibid.).Enforced by this theoretical approach, it has been argued that the virtuous cycle of a digital economy relies on a pan European business environment that fosters investments, innovations and an entrepreneur attitude (ibid.).While,the transformation power of ICTs towards a European digital single market appears to be self-reinforcing, the aims set out by the DAE face fundamental challenges and limitations made up by consumer behaviour as well as the diverse and fragmented nature of European ICT and online markets. Among citizens across Europe, while they seem to enjoy sharing videos, images, music and opinions via for example social networks, at the same time they are concerned about security and privacy issues related to next generation Internet applications.
The Commission has examined the seven most significant obstacles to the aims set out by the Europe 2020 strategy and the Digital Agenda. It has been argued, “on their own or in combination, these obstacles seriously undermine efforts to exploit ICT, making clear the need for a comprehensive and united policy response at the European level” (ibid.p.5).It appears as if Europe is still lacking behind its worldwide industrial partners. According to data from the DAE White paper;“today there are four times as many music downloads in the US as in the EU because of the lack of legal offers and fragmented markets; 30% of Europeans have still never used the internet; Europe has only 1% penetration of fibrebased high-speed networks whereas Japan is at 12% and South Korea is at 15%; and EU spending on ICT research and development stands at only 40% of US levels” (ibid.) (see Figure 2). The Commission in partnership with the Granada Declaration and the European Parliament Resolution has identified seven major obstacles to the aims set out in the Digital Agenda. To start off,fragmented digital markets stress the need to establish regulatory frameworks to enable services and content to flow across European borders.Instead, Europe is conceived as “patchwork of national online markets”and telecoms sectors,which do not “facilitate electronic payments and invoicing, dispute resolution and customer trust” (ibid.) The desired digital single market is far from being achieved. In addition, a digital single market will be a hard one to sell to nation state governments and private telecom industries, since by nature; the telecom sector is deeply attached to nation state economic sovereignty and large financial interests by private sector industries.Any attempt of creating a European digital single market is most likely to face opposition from the member states. The second obstacle Lack of interoperability refers to pan European weaknesses
UNLOCKING THE DIGITAL FUTURE THROUGH OPEN INNOVATION
in “standard setting, public procurement and coordination between public authorities”(ibid.).According to the Commission: "Interoperable can be defined as the ability to exchange information and mutually to use the information which has been exchanged" (CEC,1991).In Europe,however,digital services and devices used by citizens and businesses across Europe are not interoperable,thus hindering societal and economic interactivity and connectivity. Therefore it is important to understand that “the Digital Agenda can only take off if its different parts and applications are interoperable based on standards and open platforms”(ibid.).Consequently,open,interoperable platforms and innovation ecosystems are necessary to deliver pan European services and products to the benefits of citizens and businesses. The next obstacle Rising cybercrime and risk of low trust in networks examines one of the most important issues related to the successful implementation of the Digital Agenda actions. Since, “Europeans will not engage in ever more sophisticated online activities, unless they feel that they, or their children, can fully rely upon their networks”(ibid.).The Digital Agenda actions will not be implemented successfully, if the implementation process fails to take the concerns and opinions of private users on board. It lies at the very foundations, that European citizens establish confidence in the institutions and next generation Internet networks. Nation states as well as EU institutions must be able to cope with rising challenges such as “cybercrime” and “cyber-attacks”. Closely attached to these issues,European citizens have growing concerns about privacy issues related to databases and new technologies storing data on all different aspects of citizen's daily lives. Again It is crucial to understand that the actions of the Digital Agenda will not have any positive spill over effects to economic growth or societal well being,if those who are in charge of policymaking and implementation do not communicate with citizens as well as small and medium size entrepreneurs to provide them with the feeling
that IT systems and networks are secure and can be trusted. Moreover the lack of investment in networks across Europe, is not acceptable; if one takes the ambitious timeline of universal broadband access by 2013 seriously. For this reason “more needs to be done to ensure the roll-out and take-up of broadband for all, at increasing speeds, through both fixed and wireless technologies,and to facilitate investment in the new very fast open and competitive networks that will be the arteries of a future economy” (ibid. p.6). In addition,in Europe we witness insufficient research and innovation efforts; “Europe continues to underinvest, fragment its efforts, under-use the creativity of SMEs and fails to convert the intellectual advantage of research into the competitive advantage of market-based innovations” (ibid. p.6). The Digital Agenda puts forward an innovation ecosystem approach, linked to “‘lighter and faster’ access of digital SMEs to Union research funds, joint research infrastructures and innovation clusters and the development of standards and open platforms for new applications and services” (ibid.). Moreover, European citizens have a lack of digital literacy and skills pointing towards “a growing professional ICT skills shortage and a digital literacy deficit” (ibid.), which needs to be addressed in partnership with private sector stakeholders and member states if Europe wants to build on ICT as a future economy. In this context even though having major buzz potential, the term “digital natives” might have an important role to play. The term “digital natives” refers to a generation, which possesses perfect knowledge of how to deal with ICT services and devices.While,there might have been a time somewhat a decade ago where ‘Nerds’and ‘Computer Freaks’have been looked at as
being a weird species of socially isolated geeks.In fact, what has become known as digital natives, describes a new generation of‘Rock stars’of the digital economy, which are highly demanded in all sectors of economy. While most companies,understood already some time ago what enormous potential digital natives bear for the companies success, it appears as if European governments and institutions are only in the starting phase of realizing that they need ‘digital natives’ to deal with future internet challenges. The last obstacle missed opportunities in addressing societal challenges; refers to ICTs addressing societal challenges such as e-government, e-health, demographic ageing, integrating people with disabilities, climate change and many more. The potential ICTs bear in addressing societal challenges needs, however, to be analyzed carefully and with keeping the citizens in mind. It makes no sense to develop at first sight fancy applications in the field of public services so called e-government, which at the end of the day no European citizen uses. Consequently, a user centric approach to ICTs addressing societal challenges is needed. The last section has examined the general context of the DAE as well as the seven obstacles to its success defined by the European Commission. The next section will examine the key areas of action, in particular focusing on actions of e-Government and e-Health.
It is time for a new single market to deliver the benefits of the digital era Achieving a digital single market based on next generation networks and platforms enabling cross border online content and services exchange, is fundamental to the virtuous circle of services demand and activity elaborated on above. It is believed that the creation of a European digital single market,“can achieve a fair, growing, and open playing ground for all actors” (Salmelin, 2011, p. 15). Key actions in the first pillar of the DAE A vibrant single market focus on “the creation of attractive online content and services and its free circulation inside the EU and across its border (…) single market legislation on eCommerce,eInvoicing and signatures”(DAE,2010, p.7) and intellectual property law on content,for consumers and businesses. In addition the lack of a pan European telecoms market,which is a major shortcoming to the basis for the Future Internet both for customers and businesses, needs to be challenged.. The Commission will therefore adopt four key actions in the fields of Opening up access to content, Making online and cross border transactions straightforward, Building digital confidence and Reinforcing the single market for telecommunications services.
The Opening up access to content action challenges the non-existence of a unified European market in the online content sector. In Europe “to set up a pan European service an online music store would have to negotiate with numerous rights management societies based in 27 countries” (ibid.). Since in the EU, rights are licensed on a national basis, in contrast to the licensing model applied in the US or in Asia. Hence, “the governance and transparency of collective right management needs to improve and adapt to technological progress. Easier more uniform and technological neutral solutions for cross-border and pan-European licensing (…) of cultural, journalistic and creative content” (ibid.), need to be improved to the benefit of citizens and businesses. It is, thus, also the role of public authorities and
The action areas of the Digital Agenda for Europe
This chapter presents the key actions of the DAE building the bridge to the next section,which examines e-Government and e-Health actions in closer detail. Within this text whenever a footnote or reference is mentioned, additional information to the particular actions or directives is available online in the Commission’s Directive database 1.
UNLOCKING THE DIGITAL FUTURE THROUGH OPEN INNOVATION
Figure 3: Reasons for not buying online (% of individuals who have not ordered online in 2009) governments to promote open access to online content on a digital single market, not only for the benefits of citizens but also since doing so provides an enormous growth potential in the online services sector2. Second making online cross border transactions straightforward tackles the area of Business to Consumer eCommerce in the EU3. It points out that in Europe “electronic payments and eInvoicing is still fragmented along national borders” (ibid. p.10). Therefore the Commission aims at implementing the Single Euro Payment Area (SEPA) in time, which will provide a platform to launch e-payment applications. In addition the e-money Directive4 is believed to open up the market for innovative and mobile e-money solutions, which potentially foster cross border services in the field of electronic payment.In addition,further developing Electronic identity (eID) technologies and authentication services are needed, in particular through cross border e-Government services,ensuring “interoperability based on standards and open development platforms” (ibid. p.11)5. The third, action building a digital confidence, challenges the lack of trust by consumers and businesses in the European online environment.As can be seen in Figure 3 among the top five reasons why European consumers do not shop online three arguments relate to privacy, security or trust concerns. For this reason, it is of highest importance “to create technology neutral ways of enhancing trust and
confidence by strengthening citizens’ right” (ibid. p.12). The E-Commerce Directive 6, the Unfair Commercial Practices Directive7 and the proposed Directive on Consumer Rights8 aim at imposing transparency and confidence for consumers and businesses for cross border purchase actions. In addition, cross-border online transactions will be made easier by “increasing the high level of coherence of European contract law”as well as the launch of“a EUwide strategy to improve Alternative Dispute Resolution systems and propose a EU-wide online redress tool for eCommerce and improve the access to justice online” (ibid. p. 13)9. Finally, reinforcing the single market for telecommunications services formulates the strategic approach to the implementation of a regulatory framework introducing first measures towards a “Europe wide, numbering, licensing and spectrum assignment schemes”(ibid.), pushing towards improved harmonisation of business services across Europe, economies of scale in equipment and service markets,as well as investigating in 2011 in how far “the socio economic cost of nonEurope in telecoms market, outline the benefits of a better integrated market” (ibid. p. 14).
Interoperability Strategy and the European Interoperability Framework” (ibid.) which will be adopted by member states at national level by 201311.
We need effective interoperability between IT products and services to build a truly digital society The second cluster of DAE actions focuses on interoperability.It is believed that “Europe’s standard-setting framework must catch up with fast-moving technology markets because standards are vital for interoperability" (ibid.). To increase interoperability based on pan European ICT standards, the Commission will continuously review European standardisation policy following up on the modernising ICT standardisation in the EU10, White Paper. Public authorities need to focus on promoting better use of standards“when producing hardware, software and IT services”(ibid.p.15).The main focus of increasing interoperability “will be the Commission’s adoption of an ambitious European
Europeans will not embrace technology they do not trust – the digital age is neither “big brother” nor “cyber wild west” Security, privacy and trust towards online services is one of the crucial issues, the Digital Agenda for Europe deals with. Be it in sectors such as eHealth, eGovernment, eBanking or sexual exploitation and child pornography online – “security in the digital society is a shared responsibility – of individuals as much as of private and public bodies, both at home and globally”(ibid. p.16). The Commission pushes towards activities to establish consumer confidence and trust e.g. through educational activities and awareness campaigns both pan European and in member states. Initiatives such as the Safer Internet Programme provide guidance and information to families and children to online security and responsible usage of new digital technologies. From the policy perspective “privacy and (…) the protection of personal data are fundamental rights in the EU” (ibid. p.17), which are protected by the principle of Privacy by Design12, the Consumer Protection Cooperation (CPC) network, the EU action plan for the protection of critical information infrastructure 13 and the Stockholm Programme14. All these actions propose wide measures not only on data protection and security but also on network and information security and the fight against cyber crime (ibid.).
In this context, the Commission fosters “a well functioning and wider network of Computer Emergency Response Teams (CERTs)”(ibid.) to react efficient and fast to real time threats in Europe and the European institutions. The European Network and Information Security Agency (ENISA),will guide an operational approach to coordinate actions to tackle
UNLOCKING THE DIGITAL FUTURE THROUGH OPEN INNOVATION
issues related to cyber crime and security threats to Internet Governance.The proposed actions focus on a reinforced and high level Network and Information Security Policy,to combat cyber attacks against information systems15. In particular, actions aim at establishing a European cyber crime platform by 2012, jurisdiction in cyberspace at European and international levels by 2013,and the creation of a European cyber crime centre by 201116.
Commission will adopt a NGA Recommendation to encourage investment in competitive NGA networks through a regulatory framework. The Commission will examine and closely monitor the implementation of further legislative provisions towards an Open and neutral internet18.
We need very fast Internet for the economy to grow and to create jobs and prosperity, and to ensure citizens can access the content and services they want As pointed out above Fast and ultra fast internet access in Europe is vital to achieve the targets set out by the DAE.To avoid,concentration of“fast broadband networks concentrated in a few high-density zones with significant costs and high prices” (ibid. p.19), it is a top priority of the Commission to ensure wireless (terrestrial and satellite) broadband coverage of all areas within the member states of the EU. Therefore an efficient European spectrum policy is needed17 which facilitates access to radio spectrum,which is a key source to wireless internet access.In addition,EU and European Investment Bank (EIB) “funding instruments should be used for well targeted broadband investments in areas where the business case is currently weak”(ibid.), it is believed that such investments spur spill over benefits to society and economy and that therefore investment as well as coordination of broadband infrastructure is important to achieve.
The next step to very fast internet is to foster the deployment of NGA networks.According to the Commission a significant indicator on the state of next generation networks “is the level of fibre to the home penetration,which is very low in Europe and far below leading G20 nations (ibid.p.20).To start off the deployment of NGA and to “encourage market investment in open and competitive networks” the
Europe must invest more in R&D and ensure our best ideas reach the market The fifth cluster of actions stresses the need for further investment in research and innovation. According to the DAE:“Europe continues to under-invest in ICT related research and development.Compared to major trading partners such as the US,R&D in ICT in Europe is not only a much smaller proportion of total R&D spend (17% compared to 29%, but in absolute terms represents around 40% of US expenditure 37 billion euro versus 88 billion in 2007)” (ibid. p.22). Consequently, the Commission has kicked off the Innovation Union flagship initiative under the Europe 2020 Strategy.Under the slogan step up efforts and efficiency: the Innovation Union sets out “a comprehensive research and innovation strategy (…) building on the European strategy for leadership in ICT” (ibid. p.23) by further development and investment in eInfrastructures across Europe. Along these lines importance lies on public and private partnerships across Europe to foster comprehensive management towards a knowledge society based upon Open Access publication of scientific data and publication under a creative commons license.In this context the Commission puts forward industry-led initiatives for open innovation “since: “industry is increasingly in need of open and interoperable solutions to exploit ICT across all sectors". Therefore "industry-led initiatives aiming at standards and open platforms for new products and services” (ibid.) are highly important to develop collaboration platforms for stakeholders involved in research agendas around concepts such as the Internet of Things and key ICT technologies like cloud computing. Within the context of industry-led initiatives for open
innovation,the Commission plans to leverage investment through commercial procurement and public private partnerships as well as EU funding for research and development through structural funds such as the framework programme seven19.
The digital era should be about empowerment and emancipation; background or skills should not be a barrier to accessing this potential As has been stated above, one of the prior obstacles towards targets set out by the DAE and Europe 2020 is the lack of digital literacy and skills among European citizens but in particular among the 30% of European citizens who have never used the Internet. This is a major problem “as more daily tasks are carried out online,from applying for a job to paying taxes or booking tickets using the Internet has become an integral part of daily life for many Europeans” (ibid.).
In addition in the future,e-Government,e-Health or e-Learning services will be available online; these services require basic digital skills of citizens to deal with them. Consequently, it is important to educate “European citizens to use ICT and digital media and particularly to attract youngsters to ICT education” (ibid. p.25). Along these lines especially the group of approximately 30 million young women in Europe between the ages of 15-24 present a great potential of future employees in the ICT sector.Since “the supply and education of ICT practitioner and e-business skills, i.e. the digital skills” are very much needed and necessary to create sustainable growth in the future ICT based economy, “increased learning, recognition about digital competences in formal education and training systems, as well as awareness raising and effective ICT training and certification outside formal education systems, including the use of online tools and digital media for re-skilling and continuing professional deployment”are important processes to bridge the digital divide in society but also to educate as many male and female ICT prac-
titioner as possible to respond to the demand of the growing IT job market in Europe. Furthermore inclusive digital services will develop into more and more fields ofcitizen’s daily lives.It is thus important to guarantee universal access to all citizens across member states to electronic content and services.For this reason, the Commission will examine the role of universal services and potentially will add further proposals to the Universal Service Directive20 adopted in 2002. Within this context it is of particular importance to bring public websites and online services in the EU “in line with international web accessibility standards” (ibid. p.26) to make sure that no own is excluded21.
Smart use of technology and exploitation of information will help us to address the challenges facing society like climate change and the ageing population The use of ICTs in Europe is crucial to address policy objectives in societal and economic key areas such as "an ageing society, climate change, reducing energy consumption,improving transportation efficiency and mobility,empowering patients and ensuring the inclusion of persons with disabilities" (ibid. p.27). It is believed that by the right deployment of ICTs in the above mentioned fields, a digital society will be created with benefits for all actors involved.
The upcoming section will provide a detailed analysis of potential benefits ICTs can enable for society.It will be examined how the Digital Agenda promotes further R&D in the fields of eHealth, eEnvironment, Intelligent Transport Systems and eGovernment.
ICT for environment
The deployment of ICT is becoming a critical element in addressing climate change.So far,"the EU has committed to cutting its greenhouse gas emissions by at least 20% by 2020 compared to 1990 levels and to improving energy efficiency by 20%" (ibid.). ICT for environment presents large potential to develop and implement less resource intensive products
UNLOCKING THE DIGITAL FUTURE THROUGH OPEN INNOVATION
and services,for example,in buildings and electricity networks but also in the field of less energy consuming intelligent transport systems (ibid.). For this reason ICT for environment, has a cutting edge role setting standards and measurement frameworks for ICT services and products targeted at reducing energy use and greenhouse gas emissions across Europe. With regards to a fast deployment of ICTbased solutions for smart-grid and meters,near-zero energy buildings and intelligent transport systems; cooperation and partnership between industries,public authorities and other sectors is of vital importance to enable citizens "and organizations to reduce their own carbon footprint" (ibid. p.28). ICT solutions are needed to further monitor, analyze and visualize energy consumption and emissions of buildings, vehicles, companies, cities and regions. In particular smart grids are considered to lead towards a low carbon economy.ICT solutions such as open transmission-distribution infrastructures,communication platforms and control panels therefore ensure cooperation and interoperability between different grids. The actions set out by the DAE to ICT for environment focus on "assessing by 2011 whether the ICT sector has compiled with the timeline to adopt common measurement methodologies for the sector's own energy performance and greenhouse gas (GHG) emissions and propose legal measures if appropriate" (DAE Action 69). Furthermore action 70, sets out the aim to strengthen "partnerships between the ICT sector and major emitting sectors (e.g. buildings and construction, transport and logistics, energy distribution) to improve the energy efficiency and greenhouse gas emissions of these sectors by 2013". The Commission will by 2011 assess "the potential contribution of smart grids to the decarbonisation of energy supply in Europe and define a set of minimum functionalities to promote the interoperability of Smart Grids at European level by the end of 2010". Action 72 by the DAE promotes a Green Paper on Solid
State Lighting (SSL) to explore the barriers (for the wide deployment of SSL technology) and to put forward policy suggestions; it will parallel support demonstration projects under CIP". Solid State Lighting (SSL) refers to technologies with intelligent light management systems,to achieve emissions reductions. In addition, while, action 73 sets out the aim that member states agree by the end of 2011 on the common additional functionalities for smart meters (ibid).Action 74 focuses on the "member states to include specifications for total lifetime costs (rather than initial purchase costs) for all public procurement of lighting installations".The next section will examine ICT for eHealth.
ICT for eHealth
In December 2010,in Washington DC,in the context of signing a memorandum of understanding on a common approach to the interoperability of electronic health records and on education programmes for information technology and health professionals, Neelie Kroes,EU Commissioner for the Digital Agenda for Europe stated: "Nothing makes more of a difference to people's lives than good health" (IP/10/1744). Thus the Commission has recognized the importance of healthcare to European citizens as well as the tremendous potential ICT bear for stimulating market growth and innovation in healthcare systems and pharmaceutical and medical devices throughout Europe. According to the European Commission's Directorate General Information Society and Media: "eHealth covers the interaction between patients and healthservice providers, institution-to-institution transmission of data, peer-to-peer communication between patients and/or health professionals. Examples include health information networks,electronic health records,telemedicine services,wearable and portable systems which communicate, health portals, and many other ICT based tools assisting disease prevention, diagnosis, treatment, health
monitoring and lifestyle management" (…). Through the implementation of eHealth infrastructures, "Europe can improve the quality of care, reduce medical costs and foster independent living, including in remote places" (DAE. p.29). The DAE subscribes huge importance to accomplishing its eHealth targets "in order to create sustainable healthcare and ICT-based support for dignified and independent living. Prerequisite to eHealth creating benefits for all, however is, the removal of "legal and organisational barriers, particularly those to pan-European interoperability, and strengthen cooperation among Member States" (ibid.). It is without a doubt; healthcare in the member states is heading towards crises, an ageing population in relation to a decrease in financial resources and increasing costs of medical treatment require a structural shift in healthcare organisation towards ICT enabled eHealth based on standardisation and interoperability of electronic health records and equipment. As DAE Action 77 puts it, one of the key tasks is to "foster EU-wide standards, interoperability testing and certification of eHealth systems by 2015 through stakeholder dialogue". For this reason the Digital Agenda introduces actions to build upon a concrete strategy on eHealth, in line with the targets of the Europe 2020. To begin with, the eHealth Lead Market Initiative22 pays special attention to further promotion of interoperability and standard setting of eHealth practices across member states. By fostering the creation of eHealth services and products "new telemedicine services such as online medical consultations, improved emergency care and portable devices allowing monitoring the health condition of people suffering from chronic disease and disabilities". As a result patients in the EU will experience an ability to move freely across borders, receiving cross border treatment inside the EU.
In this vein,one of the key actions of the Commission, within the European Innovation Partnerships (EIP) framework, focuses upon activities ensuring Europeans can access their medical health data secure online by 2015 as well as widespread deployment of telemedicine services by 2020. According to DAE action 76 in consultation with member states, competent authorities and all stakeholders interested; the minimum amount of health related patient data to be included in electronic patients records (EPR) as well as access to EPRs will be examined through large scale pilots by 2012.In addition the recommendation on a minimum set of patient data will be put together in consultation with epSOS, the first European open eHealth project pilot analyzing patient summary and electronic prescription,in 12 member states. As DAE Action 75 concludes: "The Commission will work with Member States,competent authorities and all interested stakeholders to: Undertake pilot actions to equip Europeans with secure online access to their medical health data by 2015 and to achieve by 2020 widespread deployment of telemedicine services" (…). eHealth actions put forward in the DAE,therefore push for EU-wide implementation of standards and interoperability by 2015, in cooperation with the lead market initiative, a new eHealth Action Plan by the Commission due to 2011, R&D frameworks such as the European Commission's FP7 project and a new adopted EU standardisation framework. A first concrete pilot action has been announced in October 2010, within the European Innovation Partnership (EIP). The ambiguous slogan of the EIP on Active Health Ageing (AIM) is to add 2 years to the average healthy lifespan in the EU by 2020. In order to achieve this goal, the EIP Active Health Ageing aims at developing innovative products and services for longer healthier lives, making social and healthcare systems sustainable, encourage competitive markets and spur innovation. The EIP aims
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at prevention and health promotion by advancing medical technology,medicines and treatment for agerelated chronic diseases and other. The focus lies on integrated health and social care for the elderly, improve home-based care and self-care; and new large scale, innovative solutions for long-term care of the aging population,thereby,ensuring independent active living for elderly people, supported by innovative products, devices and services. At the end of January 2011, a consultation was closed on barriers to innovation and future ideas and existing initiatives of the EIP Active Health Ageing, which at the moment is being reviewed. Along this vein, the Commission has adopted the Ambient Assisted Living (AAL) joint programme allowing old people and persons with disabilities to live independently and to be active in society.As DAE Action 78 states: "Its overall aim is to enable a triple win through ICT based innovation:1) continued independent living and active ageing of older people 2) increased efficiency of the care systems " and to " 3) promote a flourishing industry in Europe for independent and active ageing". It appears as if there is no doubt that eHealth (the use of information and communication technology in the health sector) has the potential to create benefits for all actors in society. However eHelath by far does not present a salutary approach to the structural shift in healthcare that seems to be inevitable.As Mars (2010) argues "policy makers face critical challenges as they attempt to develop borderless eHealth policy amid competing demands on funds and resources" (p.239). Which as consequences might broaden the digital divide between those capable of using and participating in the digital society and those remaining excluded. This not only links to digital literacy of Europeans, but indeed challenges eHealth and the lack in uniformity of healthcare policies across the 27 EU member states. As no common responsibility to eHealth exists among the
member states policy makers.Mars (2010) points out how "in thirteen countries the main health policy makers differ from those who set eHealth policy. For eHealth policy,multiple ministries and or national stakeholders are involved in planning policy" (p.241).In addition,eHealth policy targets vary across member states resulting in a "lack of adherence to seemingly common goals" (ibid.) which leads to very poor universal policy implementation outcomes on the member state level, lacking any real-life practice.As Martin Denz, president of the European Health Telematics Association stated in 2008: "eHealth is as much about policy framework as it is about a large scale infrastructure and a precondition to apply health care with modern tools. The vast majority of EU countries have eHealth strategies but they are absolutely not connected to the health care delivery reality" (ibid.) Departing from this, it seems as if EU member states,at least at the moment have some form of eHealth strategies but little commonality in what they want to achieve. Even though there is only little doubt that further R&D on eHealth will stir technologies, applications and services facilitating the emergence of a pan European eHealth sector. There is a huge danger that eHealth applications and services are implemented without increasing at the same time digital literacy among patients as well as medical staff. It is thus of most importance to take citizens on board already in the early development stages of eHealth applications and services to make sure that technology is user friendly and functional. With regards, to research; R&D frameworks need to be adopted with a strong focus on security policies, practices and broadband services. eHealth policy making, should thus be embedded in the general context of eGovernment services like eBusiness,eLearning,eInclusion,eSecurity and many more.To make sure that developments and policy making is not excluded from other fields of eGovernment services,which may be working on the same issues in different development stages.
To conclude,private-public-people partnership and consultation is vital to address the development of eHealth services with a real life approach.As stated by Neelie Kroes: "To fully realise the potential of Europe's digital future we need to full commitment of Member States, the ICT sector and other vital economic player". The next section examines DAE actions to promote cultural diversity and creative content across Europe.
Promoting cultural diversity and creative content The 2005 UNESCO Convention on cultural diversity which has been ratified at EU level in 2006, aims at promoting and protecting global cultural diversity through digital environments.With regards to an emerging digital society and the rise of digital media; it is believed that: "New digital media can permit a wider distribution of cultural and creative content, because the reproduction is cheaper and quicker and creates more opportunities for authors and content providers to reach new and larger – even global – audiences" (DAE, p.30). Digital environments provide to all actors in the digital society the opportunity to access a wide range of information. While previously individuals might have been excluded from sharing their opinion on issues, this new pluralism enables individuals to participate actively in debates.
Departing from this, the internet presents a crucial tool to ensure the creation,sharing and promotion of cultural diversity and creative content across borders. Hence, Digital Agenda Action 80 proposes measures to support Europe wide cultural and creative industries by 2012, following the results of the consultation on the Green Paper on "Unlocking the potential of cultural and creative industries". One example of promoting online cultural diversity and creative content in Europe is digital cinema. While this promising technology has been taken up slower then expected,due to" technical (standards) and eco-
nomic (business model) issues" across Europe, it appears that action by the Commission is needed to enable the digitisation process of the cinema to ensure and safeguard cultural diversity (ibid. p.30). In this vein, action 81 of the DAE formulates an issue recommendation by the Commission to ensure "the collection and preservation of cinema in digital format for future generations, as well as the projection of digitally-born or digitised film in cinematheques or art cinemas".According to the Commission, "fragmentation and complexity in the current licensing system also hinders the digitisation of a large part of Europe's recent cultural heritage" (ibid.). The Commission aims at improving rights clearance and strengthening of the European public digital library – Europeana. Action 79 of the DAE proposes the development in cooperation with member states, of a strong and sustainable funding model for the Europeana digital library service,providing advanced translation technologies. So that by the end of 2012, the Commission will have proposed a sustainable model for financing the Europeana digital library, to ensure in cooperation with private partners,accessibility of Europe's common heritage and cultural diversity online. Furthermore, the Audiovisual Media Services Directive23 sets out "EU-wide coordination of national legislation on all audiovisual media; both traditional TV broadcasts and on-demand services. It includes provisions for the promotion of European works both in TV-like and on-demand services" (DAE, p.30). To ensure the swift implementation of the Directive, the Commission adopted Action 82 of the DAE which states "the Commission will ensure the implementation of the provisions of the Audiovisual Media Services Directive concerning cultural diversity, where appropriate through co- and self-regulation and request information from Member States on their application by the end of 2011" (ibid.). The next section will examine ICT for eGovernment actions in the Digital Agenda for Europe.
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ICT for eGovernment
Broadly speaking,eGovernment which often is referred to as "eGov,digital government or online government (Misuraca, 2009, p.408) refers to services enabled by a new ICT environment. eGovernment services offer a cost effective route to better services, for business and citizens and significantly reduce time, cost and administrative burdens for public administrations.In Europe,some eGovernment services are already available in most member states; however huge differences exist between the levels of take up amongst member states.According to the Commission,in 2009, "only 38% of EU citizens used the internet for accessing eGovernment services,compared to 72% of businesses" (DAE, p.31). Hardly any public services are accessible neither across border nor across different industrial sectors within member states. For this reason European governments push for a swift implementation of user-centric, personalised and multiplatform eGovernment services by 2015. According to Action 91 of the DAE member states are supposed to agree by 2011 on a common set of public services to be implemented across member states from 2015 onwards.These public services should allow businesses to establish and run business everywhere in Europe independently of their original location. At the same time these public services should enable citizens to study, work, reside and retire anywhere in the European Union. To ensure the swift implementation of public services, the Services Directive24 aims at the elimination of national barriers to cross border services in the EU by 2009. The "Services Directive obliged member states to establish "Points of Single Contact (PSCs) by the end of 2009) 25, the purpose of PSCs is to act as eGovernment centres enabling businesses to complete procedures and formalities with public administrations online. Within the Digital Agenda, Action 90 focuses on further actions to be taken by the Commission in 2011.The Commission will carry out
a study on PSCs to identify the main problems, and will continue, in cooperation with member states, to work on PSCs, by launching pilots in the fields of eDocuments, eDelivery and content syndication to improve cross-border use. The main prerequisite for seamless cross-border eGovernment services in a Digital Single Market however is,the interoperability of eGovernment services which are accessible by businesses and citizens across borders. In order to challenge the acknowledged lack of interoperability of public services, the Commission proposes DAE action 89 which aims at the implementation of fully interoperable eGovernment services, enabling businesses and individuals to benefit from an open service environment. Along these lines, pushing for the empowerment of users and small businesses in Europe, DAE Action 83 proposes to adopt by 2012 a Council and Parliament Decision to ensure mutual recognition of e-identification and e-authentication across the EU based online 'authentication services' offered in all member states. These online 'authentification services" will offer the most appropriate official citizen documents – issued by the public or private sector, thus resolving electronic barriers to public services and enable citizens to benefit from an open services environment in the digital single market. In addition Action 84 of the DAE aims at supporting seamless cross-border eGovernment services through the Competitiveness and Innovation Programme (CIP) and Interoperability Solutions for European Public Administrations (ISA) Programme. The Commission aims at challenging the lack of crossborder public service applications usually reasoned in different technical solutions used in the member states, by driving towards pan European public services solutions. In order to do so, "Europe needs better administrative cooperation to develop and deploy cross-border public online services" (ibid.).
Therefore,the Commission has launched DAE Action 87 to publish by 2011 a White Paper on actions, challenges and options of e-procurement and how to inter-connect e-procurement across the member states in a digital single market which can act as facilitator for single market developments. Along these lines, linking to the previous section, eEnvironment applications, as a category of eGovernment services, are still not sufficient implemented on member state level but instead strongly fragmented along national borders. It is believed that ICT technologies supporting environmental policies of the Commission can contribute to reduce risks of climate change,natural or manmade hazards by ICT enabled sharing of environmental data and information. Therefore, Action 85 of the DAE stresses the need of constant monitoring and revision of public access to Environmental Information Directive 26, (which focuses on stronger development of cross border eGovernment services both for business and citizens in the environment sector). Based on the evaluation of the application of the Directive, the Commission will if necessary present proposals for amending the Directive.In this vein,DAE Action 86 points out that with continuous advances and developments of ICT solutions,the Commission aims at implementing cross border eEnvironment services in support to the EU environmental policy objectives.Thereby,making eEnvironment services available by the end of 2016 overcoming administrative and jurisdictional boundaries,offering by 2020 inter-operable eEnvironment public services to contribute to achieve the EU environmental policy goals on a pan European level.
published as 'The European eGovernment Action Plan 2011-2015 – Harnessing ICT to promote smart, sustainable & innovative Government'27,proposes key priorities to realise the objectives on eGovernment approved unanimously by the 5th Ministerial eGovernment Declaration,also known as the Malmö Declaration. By 2015 European public administrations will be recognised for being open, flexible and collaborative in their relations with citizens and businesses. They use eGovernment to increase their efficiency and effectiveness and to constantly improve public services in a way that caters for user's different needs and maximises public value, thus supporting the transition of Europe to a leading knowledge based economy. The Malmö Declaration puts forward four key priorities for European public administrations to be achieved by 2015. First, eGovernment is supposed to empower citizens and businesses to use user friendly and tailored public services enabling them to increased access to "public information, strengthened transparency and effective means for involvement of stakeholders in the policy process" (Action plan 2011-2015, p.4). Second, businesses and individuals should enjoy mobility in the single market as well as seamless cross border eGovernment services. Third, effective use of eGovernment services will "reduce the administrative burden, improve organisational processes and promote a sustainable low carbon economy" (ibid.). Finally, the underlying prerequisite for these three actions to happen is as the fourth action points out the establishment of legal and technical preconditions. Overall these priorities push towards more resource efficient usage as well as engagement with citizens.The use of ICT with "innovative technologies such as service-oriented architectures (SOA), or clouds of services, together with more open specifications which allow for greater sharing, re-use and interoperability
The European eGovernment Action Plan 2011-2015 Departing from the various actions on eGovernment services elaborated on above, action 88 of the DAE proposes the creation and implementation of an eCommission 2011-2015 action plan.What has been
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reinforce the ability of ICT to play a key role in this quest for efficiency in the public sector. The eGovernment action plan, thus, complements the Europe 2020 Strategy as well as the DAE by aiming at the implementation of cross border eGovernment services for businesses and citizens by 2015,which by then shall be used by 50% of EU citizens and 80% of businesses. The Commission, in cooperation with member states, aims at setting targets, develop, improve and create conditions which are most likely to spur rapid innovation and adoption of transparent and interoperable public services. Key priorities of the Malmö Declaration push for user empowerment "by increasing the capacity of citizens, businesses and organizations to be pro-active in society through the use of new technological tools" such as social networking and collaborative tools (e.g. Web 2.0).In this vein,according to the Commission,"public services can gain in efficiency and users in satisfaction by meeting the expectations of users better (ibid. p. 6) and delivering services designed around users needs and inclusive services via multiple channels, (e.g. online,mobile,TV,telephone).In order to design collaborative production of services, social networking and collaborative tools enabled by Web 2.0 technology play a strong role in creating so called public services 2.0 to engage with citizens,businesses and civil society. The Commission wants to increase the accessibility and re-use of public sector information, by pushing forward the implementation and revision of the public sector information directive28 and the Commission decision on the re-use of Commission information29. Linked to the successful implementation of eGovernment services is also the improvement of transparency to build the trust of individuals and accountability of policy makers. Within this field of actions, a hot topic is personal data protection of data stored at the public administrations. Actions in these fields should be dealt with most carefully and in accordance with the Data Protection Directive30.
The Action plan 2011-2015 sets a milestone for involvement of citizens and businesses in policy making processes. Member states in cooperation with the Commission are committed to explore ICT solutions for new tools of eGovernment enabling closer dialogue with citizens and businesses who can forward their ideas for policy actions in the member states and the EU. R&D in this field is launched under the Competitiveness and Innovation Framework Programme (CIP) as well as the seventh EU Framework Programme. Further user-centricity in the decision making procedures is a key priority of the eGovernment action plan 2011 – 2015. Seamless services for businesses, personal mobility, EU-wide implementation of cross-border services, improving organisational processes,reduction of administrative burdens,green government and open specifications and interoperability in an innovative environment present the coherent framework of actions in eGovernment services to be addressed by 2015 and beyond. Within the context of the DAE,the Commission puts much hope in next generation eGovernment services not only for the empowerment of citizens and businesses but also as economic driver for the emerging digital single market in the EU. The implementation of public services 2.0 is rather complex and multifaceted. According to Bicking (2006) eGovernment's "future is difficult or even impossible to predict" (p.402).What can be observed, however is,the notable increase in studies and resea