Kroes highlights Europe's ICT shortcomings

Kroes warned that Europe is slipping behind its international competitors

The vice president of the European Commission responsible for the Digital Agenda has warned that Europe's productivity growth will continue to lag behind that of the US until there is "bigger and better investment" in information and communication technologies (ICTs).

Speaking at the European Business Leaders Convention in Brussels yesterday, Neelie Kroes promoted the European Digital Agenda, one of the flagships of the Europe 2020 strategy aimed at sustainable growth.

Kroes explained that ICT investments across all sectors had delivered 50 per cent of the region's productivity growth over the past 15 years.

"You probably also know that US productivity growth is higher than Europe's. And the lion's share of that gap is due to their bigger and better investment in ICTs," she said. "Would you say this is acceptable? I certainly do not think so. "

Kroes argued that the main problems that need addressing include the lack of investment in networks, rising cyber crime, fragmented digital markets, poor digital literacy and insufficient R&D.

The European Commission's ICT R&D budget is smaller than Google's, Kroes explained, while Israel has launched more companies on the Nasdaq IT stock exchange in the past 20 years than all of Europe.

Kroes also talked up a "digital single market" aimed at striking a blow against piracy.

"Having gone to the brink of disaster in the [financial] crisis, I know that we can also pull together to deliver this Digital Agenda," she said.

"That is our way forward. There's no money for a second round of bail-outs. And there's no time to rest as Asia and Brazil and others race ahead."