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Digitaleurope-A-Stronger-Digital-Industrial-Europe.Pdf 02 A STRONGER DIGITAL INDUSTRIAL EUROPE A STRONGER DIGITAL INDUSTRIAL EUROPE 03 TABLE OF CONTENTS Foreword 04 1. Framework for a European digital 12 transformation of industry 2. Open markets and fair global competition 14 3. Crucial aspects of digital transformation 18 4. Upscaling SMEs 26 5. Upskilling and Reskilling agenda 30 6. Sustainability goals to drive industrial 34 leadership DIGITALEUROPE Membership 38 04 A STRONGER DIGITAL INDUSTRIAL EUROPE FOREWORD The European industry stands at and trade facilitation, aligned in a a crossroads. We are global leaders in single European industrial strategy. many sectors, and our continent is home The clear aim should be to boost to thousands of world-leading companies. digital-driven competitiveness in sectors Equally, the European Green Deal and like manufacturing, transport, health, the Commission’s digital ambitions offer agriculture, construction, and public businesses and our society tremendous services. opportunities. Secondly, we need to put our money where For 20 years DIGITALEUROPE has advocated our mouth is. The EU’s spending priorities for Europe as a united, ambitious, and in the next long-term budget must mirror outward-facing continent. We are proud our digital and green ambitions. We know of Europe’s industrial past, and we wish that digital companies grow on average to see a Europe that punches at our two and a half times faster than non-digital industrial weight, that extends our industrial companies. So, money driving digital capabilities into the digital era and that competitiveness and adoption will be money gives smaller companies the opportunity well-spent. The EU budget is a powerful they need to grow both here and globally. tool that EU leaders have in their armoury to boost innovation, competitiveness, and The Commission has set out a great vision of inclusion. a Green Europe fit for the Digital Age. Now is the time! We need to increase investment in research and the deployment of technology. Areas We, as businesses, have a big role to play in with a high impact on growth are industrial working with European leaders to define a IoT and data sharing, artificial intelligence, common Industrial Strategy – and to execute 5G, and digital infrastructure. In addition, the plan. But we also need strong leadership digitally empowered citizens with the from the highest political levels of the EU right skills will be well placed to create that can bring Member States along with us. the innovative solutions of the future. The EU and the Member States should set an So, what should be done in the next five example by modernising, upgrading, and years? digitalising their public services, public safety organisations, defence, and security Firstly, we need to bring together the operations. different policies – regulation, investment, A STRONGER DIGITAL INDUSTRIAL EUROPE 05 Thirdly, we need to review and harmonise the existing regulatory framework in the EU, ensuring that we keep high regulatory standards but also that any new and existing regulations enable industry to prosper and innovate. Now is the time to consolidate and reinforce Europe’s position as an innovative, competitive, open economy that leads globally through highly digitalised industrial development. Markus Borchert NOKIA - DIGITALEUROPE President Cecilia Bonefeld-Dahl DIGITALEUROPE Director-General For 20 years DIGITALEUROPE has advocated for Europe as a united, ambitious, and outward-facing continent. We are proud of Europe’s industrial past, and we wish to see a Europe that punches at our industrial weight, that extends our industrial capabilities into the digital era and that gives smaller companies the opportunity they need to grow both here and globally. 06 A STRONGER DIGITAL INDUSTRIAL EUROPE Industrial strategy with digital transformation as its FOCUS 2020 will be a crucial year for Europe. To Europe can lead, but we make this vision a reality, we need to act now. need to do so based on To achieve the ambitious goals we set in our manifesto, we need to put the right policies in things that we excel at and place for our industry to succeed. the values we believe in. For a sustainable, prosperous and stronger DIGITAL Europe, a comprehensive European One year ago, DIGITALEUROPE launched its industrial strategy with digital transformation manifesto for a Stronger Digital Europe: Our as its FOCUS is essential. Call to Action towards 2025. This document contains DIGITALEUROPE’s Our vision is for a Europe where digital recommendations for an EU Industrial technologies, innovation, and artificial Strategy defining ambitious industrial policy intelligence can provide Europe’s people with goals for the next five years. competitive jobs, better health, and better public services. We believe that five key areas require action by decisionmakers from industry as well A strong, unfragmented, DIGITAL Europe as government leaders, and public sector that takes leadership in creating digital institutions: Inclusion, Green growth, Innovation, Trust, Agile mission-based policy making that drives prosperity and creates benefits for the European society and leads globally in an open economy. A STRONGER DIGITAL INDUSTRIAL EUROPE 07 ramework for a European digital transformation F of industry O pen markets and fair global competition C rucial aspects of digital transformation U pscaling SMEs and upskilling the workforce S ustainability goals to drive industrial leadership 08 A STRONGER DIGITAL INDUSTRIAL EUROPE Framework for a European digital transformation of industry The European Commission would need to We also need to accelerate the development shift its digital policy focus towards driving of Artificial Intelligence (AI) technologies. the digitalisation of industry. This means building upon Europe’s strengths in areas This requires a targeted and ambitious like manufacturing, mobility, and health and Multiannual Financial Framework (MFF): areas of common good like the environment, digital skills, connectivity, and cross-border On the investment side, it is vital that data spaces for public data. This is a crucial we safeguard the proposed funding for contribution to successfully addressing the the Digital Europe programme, and if demographic and environmental challenges possible, increase it. This is essential for of our time. digital transformation and to boost the role of Digital Innovation Hubs (DIHs), The digitalisation of our industry is a making them more visible and accessible. pre-condition to reach the Green Deal climate targets and enable sustainable Funding authorities should prioritise manufacturing, transportation and ensure EU spending on digitally transforming better use of energy and infrastructure. programmes and initiatives. This includes money earmarked for other areas like This means that we need a consolidated transport, agriculture, and regional European Industrial Strategy under a development. common plan. Research, investment, and innovation must go hand in hand. To do this, we need common metrics on how digital will enable decarbonisation and reduce energy consumption. Open markets and fair global competition Strategic coordination between industrial Europe needs to focus and build our and trade policies is vital. Each policy capabilities in digital and in key sectors, to action must take into account the reciprocal be able to act from a position of strength. relationship between the two. A STRONGER DIGITAL INDUSTRIAL EUROPE 09 We can maintain our core values while at This also requires Europe to take the lead on the same time boosting our competitive World Trade Organization (WTO) reform, on Framework advantages through the development of new global digital trade rules and ensuring emerging technologies. a level playing field. To do this, we should promote new instruments to encourage We can support the industry by aligning trading partners to open up their markets, digital standards and rules globally. such as the International Procurement Instrument. aspects of digital transformation Europe’s success will hinge on five essential elements of digital transformation: Research AI research and companies developing The EU must have the courage to commit and implementing AI solutions should at least 3% of its GDP to fund research and be supported financially, e.g. in Horizon innovation, particularly to support digital Europe, and especially the Digital Europe technologies. programme, and through other investment enhancing initiatives. AI and Emerging Technologies For SMEs in particular, the EU must provide AI will never replace human beings’ creativity guidance, tools, and resources to help them and ability to make ethical judgements. understand the benefits of AI as well as to navigate them through the applicable Overall, broad AI regulation would be regulatory framework. difficult and could be limiting AI uptake. It is better to focus on limited, high-risk Europe should build on its strengths and applications. We also need to tailor our reinforce the leadership role of the public approach depending on the sectors – sector. It is a huge area of the EU market many already adhere to heavy regulation and effective policy-making there can be requirements and adding new rules on top an ideal way to fund and develop projects would be burdensome. with up-and-coming AI start-ups, as well as showcase trustworthy AI. Open Any new development of AI regulation from Member States and the European In summary, the use of AI can bring industry Commission must involve both industry and to a new level in
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