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

Dang Nguyen, Godefroy and Genthon, C. (2006) Has the European ICT sector a chance to be competitive? Bruges European Economic Policy (BEEP) Briefing 14/2006. [Policy Paper]

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    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.

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    Item Type: Policy Paper
    Uncontrolled Keywords: Information and communications technologies, industrial policy, competition regimes, knowledge based society, open source.
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > competition policy
    EU policies and themes > Policies & related activities > industrial policy
    EU policies and themes > Policies & related activities > information technology policy
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > College of Europe (Brugge) > Bruges European Economic Policy Briefings (BEEP)
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 17 Dec 2014 13:26
    Number of Pages: 30
    Last Modified: 17 Dec 2014 13:27

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