and industry 2017 benchmarking - ert€¦ · the european share of venture capital deals and...

EuropeanCompetitiveness

and Industry 2017Benchmarking

TRADE

CLIMATE

INNOVATION

COMPETITIVENESSEMPLOYMENT

DIGITISATION

PERFORMANCE

Overview

Foreword

Executive Summary

ECONOMIC PERFORMANCE AND COMPETITIVENESS

The growth outlook is mixed

Manufacturing competitiveness is under pressure

Labour productivity needs to rise

Low investment is constraining competitiveness

Private debt levels remain high

Industry remains the cornerstone of the EU economy

The nature of global competition is changing

European economies are ageing fast

GLOBAL TRADE AND INVESTMENT

The EU27 and UK economies are interdependent

The transatlantic relationship is essential

The global trade outlook is uncertain

Barriers to trade and investment are widespread

EU trade looks both East and West

EU leadership in FDI is being challenged

FDI supports jobs

The EU needs to catch up in digital services

01

02

05

06

07

08

09

10

11

12

13

14

15

16

17

18

19

20

DIGITAL ECONOMY

Data flows are important for the economy

Trust needs to be built in digital security

Europe is leading on cybersecurity

Artificial intelligence offers opportunities, but is disruptive

Smart cities: Europe’s leading position challenged

EU telecoms infrastructure needs investment

The market for spectrum is fragmented

ENERGY AND CLIMATE CHANGE

Europe is leading in reducing energy intensity and emissions

Carbon pricing is expanding, but limited outside Europe

Taxation is leading to disparity in electricity prices

EU leadership in renewables is being challenged

The circular economy offers great potential

21

22

23

24

25

26

27

28

29

30

31

32

INNOVATION

R&D spending needs to increase

The EU must maintain its position in science

Europe needs more venture capital

The disruptive potential of digitisation

European start-ups are being left behind

EMPLOYMENT, SKILLS AND EDUCATION

There is no room for complacency on income inequality

Economic inactivity among the young remains high

Lifelong learning is now essential

ICT skills need to increase

Bibliography

ERT Members

33

34

35

36

37

38

39

40

41

42

43

1

Foreword

The European economy is currently facing a long-awaited dynamic recovery. Consumer and business confidence is rising, and industrial production growth is accelerating. Even more encouragingly, the upturn is broad-based, driven not only by domestic consumption, but increasingly also by investment and export stimulus from a growing global economy.

However, these short-term successes should not disguise the long-term challenges facing the European economy. Therefore, the recent economic recovery gives no grounds for complacency. Instead, the opportunity must be taken to improve the potential for sustainable long-term growth in Europe. To do so, significant efforts must be devoted to strengthening the European innovation system. Europe and its policymakers must become more open to innovation and new technologies. Europe should embrace the many opportunities and manage the respective risks rather than banning or restricting technologies pre-emptively. More public and private investment in innovation is needed, and markets for risk capital need to become more efficient.

A positive climate for innovation is even more important in view of the fact that digitisation is currently transforming industrial production processes and business models worldwide. Utilising the great potential of digitisation for higher productivity and competitiveness requires an efficient digital infrastructure and an EU internal market without barriers but with harmonised high standards for data and cybersecurity. Educational systems must respond to the new requirements of digital economies on all levels.

International openness is a further prerequisite for the sustained growth of Europe’s industry, deeply integrated as it is in global value chains. However, public acceptance of globalisation and economic integration is fading. This is reflected in the political arena: Negotiations for a transatlantic trade agreement are stalling, and U.S. tax reform plans even contain significant new trade barriers for multinational players. But we need not look so far from home: European economic integration is at risk as well. European companies lack any orientation on the future relationship with the United Kingdom. Clarification of the conditions for further movement of goods, services, capital and people and on the length of a transition period to any new regime is urgently required to ensure that both the EU27 and the UK remain forceful and integrated players in global markets.

Finally, Europe also needs to champion industrial competitiveness when shaping energy, climate and environmental policies. Europe leads in these respective indicators and can therefore contribute more to global targets by exporting the best technologies rather than by unilaterally increasing domestic targets.

The 2017 edition of the ERT Benchmarking Report presents a comprehensive overview of the European position in the fields of economic performance, trade, digital economy, innovation, energy and climate, and labour markets.

We are confident that you will find it interesting to read.

Yours sincerely,

Kurt BockChairman of the ERT Competitiveness Working Group

Chairman of the Board of Executive Directors, BASF SE

2

Executive SummaryEconomic performance and competitiveness

Global trade and investment

Ensuring the competitiveness of established and new EU industry should remain a top priority for politicians and policymakers. The global corporate landscape is changing rapidly and European firms risk losing out to their American and emerging competitors. Europe must become a successful incubator for start-ups. This requires an innovation-friendly and stable regulatory framework.

We can no longer take for granted that European households and businesses will continue to enjoy the benefits from openness. The EU’s economic diplomacy must help to reverse the trend towards protectionism and government interventions intended to distort trade while taking appropriate measures to guarantee fair trade and to avoid any detrimental effect on European industry. We must also ensure Europe remains competitive as a destination — and a source — for market-based direct investment.

Politicians in the EU, the US, and elsewhere, must continue to make a strong case for openness to foreign investment — and fair and equal treatment for foreign investors — because it supports jobs, makes businesses more competitive, and benefits consumers by increasing choice and reducing the price of goods and services.

European policymakers, industrial companies and other stakeholders in European manufacturing must avoid complacency if Europe’s leading position in manufacturing is not to be further eroded. Productivity must increase if European manufacturing is to remain competitive. This requires investment in skills, efficient labour markets, capital investment and policy frameworks that are supportive of growth. Both the private and the public sectors have a role to play in this.

Industry continues to play a pivotal role in the EU economy as a major employer, supporting high value jobs. Industrial companies also indirectly support jobs and value added in other sectors. But European companies risk falling behind global competition. The European share of the largest companies by market capitalisation has decreased and is now well below the US. The European share of ‘unicorn’ start-ups is even weaker and far behind the US and China.

Europe has a largely healthy set of bilateral trade relationships, with surpluses and deficits that reflect relative consumption preferences and production strengths. But Europe’s share of global trade is declining and our companies face barriers to trade and investment in many countries. Almost eight million jobs in the EU are supported by foreign investment from outside the EU. European leadership in FDI is also under threat from competition in Asia and elsewhere.

The US remains the single most important trade and investment partner for the EU, with the EU and the US highly dependent on each other as a source of investment, as an export market, and a source of intermediate inputs into production. Over three million American jobs are supported by EU investment.

Confidence is returning to the euro area, which is now experiencing a long-overdue cyclical recovery. But European manufacturing is losing global market share and export share, while labour unit costs in the euro area are increasing. Private investment has begun to recover, but public investment continues to fall.

3

Digital economyAs security threats multiply and evolve, there is a risk that consumers lose confidence in the privacy of their data, negatively affecting their ability to transact online. It is important that the regulation of cross-border data flows is not exploited for protectionist purposes while securing the trust of consumers and enabling businesses and society to innovate.

EU telecom rules and new legislation need to be reviewed to create an environment that is more conducive to investments in digital infrastructure. Aligning spectrum allocation policy with EU growth and jobs goals would boost the competitiveness of European companies relative to foreign giants. This would help to accelerate the investments necessary to seize digital opportunities.

Almost half of Europeans say security concerns are holding them back from some online activity, preventing people from reaping the full benefits of digital innovation. While Europe has a good record in addressing cybersecurity concerns, there is no room for complacency, as the number of attacks remains high.

Energy and climate changeEurope has shown global leadership in reducing energy intensity and CO2 emissions. Other countries must show similar commitments to ensure the Paris Agreement is fully implemented. This means following the European lead in establishing carbon pricing, both to increase the share of global emissions covered and to ensure a level playing field across regions and industries.

The European economy is substantially less energy-intensive and less CO2-intensive than the Chinese, Russian or American economies, while the European share of global CO2 emissions has fallen to just 10%. Carbon pricing initiatives are expanding outside the EU, but the pace is slow.

Exploiting the benefits of digital innovation in areas like artificial intelligence and smart cities requires more investment in digital infrastructure. Investments are hindered by declining revenues from telecoms services in Europe, while the data demands on infrastructure are growing rapidly. Moreover, due to the fragmented nature of spectrum policy in the EU, Europe has lost the lead in mobile broadband to other regions.

4

Innovation

Employment, skills and education

The digital single market is not yet supporting European start-ups so they can compete at scale with other major economies. More venture capital is required to allow companies to grow. More investment in R&D is now critically important, particularly as competition is increasingly driven by the development of new technologies.

Income inequality and social exclusion have been linked to populism. In an economy where the pace of innovation — and disruption to jobs — is high, it is essential to ensure the workforce’s continuous employability by better enabling lifelong learning. Embedded (“dual”) learning should become part of school curricula. A dialogue between government, schools and industry should also make sure students acquire the right skills and attitudes for the future.

The European share of large tech start-ups is below what is required to remain competitive with China and the US. Investment in R&D by the EU is below the OECD average and now lags behind major competitors, including China. The European share of venture capital deals and capital invested is falling, just as Asia has emerged as a major centre for high-value investment.

Income inequality is lower than in the US and has fallen since the financial crisis, but remains high, and has risen in the euro area. Europe is also creating relatively few mid-level jobs. The proportion of young people not in employment, education or training has fallen, but remains extremely high in many Member States.

5

Economic performance and competitiveness

0.0

0.5

1.0

1.5

2.0

2.5

2011 - 2013 2014 - 2016 2017 2018 - 2020

GDP growth rates of major advanced economies GDP growth rates in advanced and emerging economies

Source: IMF Source: IMF

euro area

Japan

UK

US

EU

0 1 2 3 4 5 6 7 8

20172018 - 2020

Advancedeconomies

Emerging &developingeconomies

Japan

World

US

EU

Brazil

Latin America

Russia

MENA

Africa

Asia

India

China

GDP (annual % change) in constant prices, regional aggregates purchasing power parity weighted

The growth outlook is mixedConfidence is returning to the euro area, which is now experiencing a long-overdue cyclical recovery, but the longer-term economic growth outlook remains tepid and points to a slowdown in some of Europe’s major economic partners.

The subdued outlook for growth in some key trading partners means that internal demand will be important to sustain the recovery in Europe. It could also render the political challenge of maintaining open markets and a global level playing field even harder.

6


Manufacturing sector performance Technological complexity of manufacturing

Source: UNIDO Source: UNIDO

Medium and high tech share in total manufacturing value added

Korea Germany E4*Japan ChinaItalyFrance BrazilIndiaUSUK

100%

50%

0%

*The average for Germany, Italy, France and the UK

2005

32.9%

11.6%

20.2%

11%7.3%

29.9%

23.5%

16.2%8.9%6.3%

2015

43.6%9.3%

8.9%

7.2%11.5%

2005

41.9%

18.4%

8%4.7%9.8%

2015

Share in world manufacturing value added

Share in world manufactured exports

China

US

Japan

Germany

India

Korea

Italy

France

Brazil

UK

Other

Manufacturing competitiveness is under pressure European manufacturing is losing global market share and export share due to strong growth of Chinese and other Asian producers. While the lost share of manufacturing value added is comparable to the US, the lost share of manufactured exports is much greater.

European manufacturing has many strengths, particularly in medium and high-tech sectors. But European policymakers and stakeholders must avoid complacency if Europe’s leading position in manufacturing is not to be further eroded.

7


GDP per hour worked ($)Change in real labour unit costs, 2006-2016

Source: OECD

Note: 2010 US$ prices, estimated at purchasing power parity

Source: Ameco

France Germany Italy euro area EU Spain US Japan Mexico

6%

4%

2%

0%

-2%

-4%

-6%

Increasing Decreasing

2006: 44.0 | 2016: 47.7

2006: 57.5 | 2016: 63.3

Labour productivity needs to riseLabour unit costs in the euro area are increasing, while they are shrinking in the US, Japan and Mexico. Productivity is increasing in Eastern European countries and in Spain, but this is insufficient to close the gap with the US in GDP per hour.

All European countries must increase their productivity if European manufacturing is to remain competitive. This requires investment in skills and capital, as well as the design of efficient labour markets and policy frameworks that are supportive of growth.

8


EU gross fixed capital formation, % of GDP Gross fixed capital formation 2006-2016, % of GDP

Source: Ameco, own calculations Source: World Bank

2001 2006 2011

China

India

Japan

France

Russia

Germany

Spain

US

EU

Italy

UK

Brazil

20160%

5%

10%

15%

20%

25%

Private sector Total Government

0 10 20 30 40 50

20162006

Low investment is constraining competitivenessThere has been a sharp drop in investment since the financial crisis, particularly among the countries worst affected by the debt crisis that followed. While private investment has begun to recover slightly, public investment continues to be sluggish.

In some countries investment rates were unsustainable before the crisis. But investment rates are now too low if Europe is to remain competitive, particularly in new technologies. Both the private and the public sectors have a role to play in this.

9


Household debt, % of GDP Corporate debt, % of GDP

Source: CEIC Source: BIS

2007 2016 2007 2016

Poland EU

German

yIta

ly

France

Greece

Spain

Portugal UK

China

Japan US

Poland

German

yIta

ly

euro

area

Greece

Spain

Portugal

FranceUK

China

JapanUS

120

100

80

60

40

20

0

240

200

160

120

80

40

0

+14 -2 -8 +4 +7 +13 -18 -7 -10 +26 0 -18 +30 -10 +4 +22 +8 -13 -39 -11 +36 -16 -3 +95

Private debt levels remain highWhile household debt has fallen marginally in the EU, corporate debt has edged up in the euro area. Both household and corporate debt remain high in many European countries, which have not seen debt deleveraging at the same pace as the US.

A sustained rise in confidence, consumer spending and investment requires that the finances of both households and companies are healthy. The relatively high levels of indebtedness in many EU countries are a concern.

10


Industry share of total employment in 2016* Industry share of total gross value added in 2016*

Source: OECD, own calculations Source: OECD, own calculations

Poland

Germany

Italy

Korea

EU

Japan

Spain

France

Sweden

UK

US

Netherlands 10%

11%

11%

11%

14%

14%

17%

17%

17%

20%

21%

24% Korea

Poland

Germany

Japan**

Sweden

EU

Italy

Spain

US**

Netherlands

France

UK 13%

14%

15%

16%

18%

19%

19%

20%

23%

26%

26%

33%

*Includes mining, manufacturing and utilities but not construction **Data for 2015

Industry remains the cornerstone of the EU economyIndustry continues to play a pivotal role in the EU economy as a major employer, supporting high value jobs. Industrial companies also indirectly support jobs and value added in other sectors of the European economy.

Ensuring the competitiveness of EU industry should remain a top priority for politicians and policymakers.

11


Source: CB Insights, Forbes

37%

51% 51%

25%18%

6%8% 11%

33%

6% 5%0%

1% 2% 5%

23%13%

4%

2011 2017 2017

The US dominates both established firms and unicorn start ups

Share of largest 500 companies by market cap:

Share of unicorn start-ups by market cap

China is the only real competitor for the US in unicorn start ups

Europe has a strong presence among established firms but not unicorns

Rest of the worldNote: a unicorn is defined as a start-up with an estimated valuation above $1bn

United States

European UnionChina inc. HK

Japan

India

The nature of global competition is changingEuropean industry risks falling behind global competition. The European share of the largest companies by market capitalisation is falling and is now much lower than the US share. The European share of ‘unicorn’ start-ups is far behind the US and China.

The global corporate landscape is changing rapidly and European firms risk losing out to their American and emerging competitors. Europe must become a successful incubator for start-ups. This requires an innovation-friendly regulatory environment.

12


The old-age dependency ratio* Projected change in the old-age dependency ratio

Source: UN

* Defined as the ratio of people older than 64 to the population aged 15-64.

0%

10%

20%

30%

40%

50%

60%

1980 1990 2000 2010 2020 2030

EU28 range US Russia China

India Japan EU

+6.2

+9.6

+4.9

+8.9

+4.9

+6.1

+7.7

+8.1

+6.0

+3.1

+6.8

+3.3

+4.2

+6.0

+8.3

+3.8

+7.9

+6.6

+9.7

+10.2

+10.7

+10.2

0 10 20 30 40 50

Romania

Czech Republic

United Kingdom

Poland

Sweden

EU

France

Netherlands

Spain

Germany

Italy

2010 Change to 2020 Change to 2030

European economies are ageing fastThe old-age dependency ratio is set to remain higher than in many other large economies. The size of the problem varies significantly across Member States, with some of the worst affected also having high public debt.

A combination of migration, productivity improvement, retraining and social security reform is required to address the challenge presented by an ageing population. Many policy changes have long lead times before they are effective.

13


Source: Eurostat, ONS

40%

39%

41%

41%

40%

39%

47%

7%

6%

6%

9%

11%

9%

6%

0

0

0

Intensity of economic ties between the EU and UK The EU trade balance with the UK, broken down in 2015, €bn

Source: ONS, own calculations

... good exports*

... services exports*

... outward FDI stock**

... inward FDI stock**

... total foreign companies***

... employment by foreign companies***

... value added by foreign companies***

*Figures for 2016 **Figures for 2015 ***Figures for 2014

200

7

200

8

200

9

2010

2011

2012

2013

2014

2015

120

100

80

60

40

20

-20

-40

Goods

Trade balance

Finishedmanufactured

goods

Semi-manufactured

goods

Services

-26.4

-8.4-5.0

15.8

22.9

-9.5

15.6

14

25.0

Other finished manufactured goods

Motor cars

Other semi-manufactured goods

Chemicals

Basic materials

Food, beverage and tobacco

Oil and oil products

Other

Other

Travel

Transport

Financial

Other business services

Insurance and pension

Intellectual property

ICT

47.7EU share of UK … UK share of EU …

The EU27 and UK economies are interdependentThere is a strong mutual dependence between the UK and EU27 economies, with two-way trade flows and investment across sectors that is supporting jobs and helping to maintain European competitiveness.

It is important that unnecessary disruption to trade and investment relationships — and the jobs that these support — is avoided, which means economic interests must be considered alongside political interests in Brexit negotiations.

14


The EU’s top investment partners in 2015

Source: Eurostat Source: OECD

Share of total extra - EU outward FDI stock

Importance of US in ranking of export markets in 2016:*

Importance of EU for US in ranking of exportmarkets in 2016

Share of total extra - EU inward FDI stock

2%4%

5%12%

37%

40%

2%3%

4%11%

41%

39%

China

Other

Canada

Brazil

Switzerland

US

Other

Brazil

Japan

Canada

Switzerland

US

Inward FDI

Outward FDI

US

*The rankings are based on extra-EU exports only.

1

Ireland

Romania

Czech Republic

Poland

Netherlands

Belgium

Spain

EU

Greece

Sweden

France

UK

Germany

Italy

Portugal

Slovakia

1

3

1

2

1

1

1

1

2

2

1

1

1

1

1

1

The transatlantic relationship is essentialThe US remains the single most important trade and investment partner for the EU, with each highly dependent on the other as a source of investment, as an export market, and a source of intermediate inputs into production.

There is a strong mutual dependence among manufacturers on both sides of the Atlantic. The ability to invest in production in each others’ market and draw on transatlantic supply chains is essential for maintaining global competitiveness in all manufacturing sectors.

15


Global trade as a share of GDP Share of total world merchandise trade*

Source: World Bank Source: WTO

0

10

20

30

40

50

60

70

1975 1980 1985 1990 1995 2000 2005 2010 2015

1999

2007

2016

Goods Services Total trade

+25 percentage points 1987 - 2007 18% 21% 4% 9% 48%

17% 15% 10% 6% 52%

50%15% 15% 15% 5%

EU China JapanUS RoW

*Excluding intra-EU trade

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

The global trade outlook is uncertainThe period 1987-2007 saw a near doubling of the openness of the global economy to trade, but over the past ten years that trend has stopped, as goods trade, in particular, has become more volatile. Europe’s share of global trade is declining rapidly.

The expansion of global trade has brought benefits for producers and consumers, as global supply chains have become more efficient, allowing better products to be produced at lower cost. Due to increasing protectionist tendencies, we can no longer take for granted that these benefits will continue.

16


Trade and investment barriers recorded at the end of 2016

Source: European Commission

Russia Brazil China India Indonesia SouthKorea

Argentina USA Turkey Australia Thailand Vietnam Chile Mexico Malaysia Nigeria

Num

ber o

f bar

riers

Note: This figure shows the number of active trade and investment barriers recorded in the European Commission’s Market Access Database.

33

23 23 23

17 17 16 16 1513

11 11 10 10 9 9

0

5

10

15

25

20

30

35

Barriers to trade and investment are widespreadEuropean companies face barriers to trade and investment in a wide range of advanced and emerging economies. These measures are found both at the border and behind the border. The top-10 most restrictive markets are all members of the G20.

European economies remain among the most open in the world for trade in goods and in services. It is essential that all major economies reverse the trend towards protectionism seen in recent years and open up their markets.

17


EU trade balance, €bn*

Source: Eurostat

China Russia US RoW

-164

-155

-34

-80

125

77

236

117

2016

0 100-100 200-200 300-300 400-400 500-500

2011

Agriculture Manufacturing Energy Services Other

-17

-21

284

267

-212

-430

130

135

-22

9

2016

2011

163

-41

163

-41

EU trade looks both East and WestThe EU’s two biggest trade relationships are with China and the US. They are also the most unbalanced relationships, with the EU running a surplus with the US, but a deficit with China. Overall the EU enjoys a surplus in manufacturing and services, with a deficit in energy.

Europe has for the moment a healthy set of trade relationships, largely thanks to lower energy prices, with a combination of surpluses and deficits reflecting consumption patterns and production strengths. It is essential that public interventions either at or behind the border don’t distort this.

18


Total FDI flows ($ millions), 2005-2007 versus 2014-2016

Source: UNCTAD

*East and South-East Asia

0

500

1,000

1,500

2,000

2,500

0

500

1,000

1,500

2,000

2,500

EU US Asia* Other2005-2007

2014-2016

EU US Asia* Other

INFLOWS

OUTFLOWS

EU leadership in FDI is being challengedThe EU remains the single most important region for both outward and inward foreign direct investment, but increasingly it is Asia and the rest of the world that accounts for the bigger share of flows, meaning European leadership in this area is under threat.

It is essential for European industry that the EU remains competitive as a destination — and a source — for direct investment. Government and EU policies can help or hinder investment flows, but are rarely neutral. This is a priority for the EU’s economic diplomacy.

19


Direct employment in the EU and member states by foreign,non-EU controlled companies, 2014

Source: Eurostat, IMF, own calculations

*Excluding the financial sector

Manufacturing Wholesale, retail trade Information and communication Administrative and support services Professional, scientific, technical Other

UK Netherlands EU Germany France Poland Italy Spain

Total personsdirectly employed (th)

0%

2%

4%

6%

8%

382

2,182

7,9221,431

665 369482 343

Shar

e of

em

ploy

men

t in

the

priv

ate

sect

or*

Shar

e of

em

ploy

men

t in

the

priv

ate

sect

or

Switzerland Turkey Russia Korea Japan India China

Total personsdirectly employed (th)

0%

2%

4%

6%

8%

Norway

185

267

US

3,227

307544

89 172 1,5941,000

Direct employment outside the EU by a�liates of EU enterprises, 2014

FDI supports jobsForeign investment supports jobs, both in Europe and around the world. Almost eight million jobs in the EU are supported by foreign investment from outside the EU, while over three million American jobs are supported by EU investment.

Politicians in the EU, the US and elsewhere, must continue to make a strong case for openness to foreign investment — and fair and equal treatment of foreign investors — because it supports jobs, makes businesses more competitive and benefits consumers.

20


Captured digital potential by country EU trade balance with the US in ICT and potentially ICT-enabled services in 2015 (% of GDP)

Source: McKinsey Global Institute, US Bureau of Economic Analysis, Eurostat

*weighted average of the six European countries shown here

Note: The captured digital potential is the extent to which the digital capabilities and practices of the overall economy match those of the digital frontier, defined as the US ICT sector.

Note: Potentially ICT-enabled services are outputs that can be delivered remotely over ICT networks.

US UK Netherlands Sweden E6* France Germany Italy

18%17%

15% 15%

12% 12%

10% 10%

ICT services Other potentially ICT-enabled services

-0.8%

-0.6%

-0.4%

-0.2%

0.0%France Poland Italy Spain EU Netherlands

The EU needs to catch up in digital servicesEuropean economies have only just started to reap the potential benefits from digital innovations. The US enjoys a large trade surplus with the EU in ICT and potentially ICT-enabled services, suggesting that European companies are lagging behind US firms in exploiting the commercial opportunities from digitisation.

European institutions and Member States need to put the right framework in place to ensure European industry invests in the opportunities offered by digital innovation. Europe should take a global lead in establishing industry standards.

21

Digital Economy

Data localisation measures implemented globally The potential cost from national data localisation requirements

Source: ECIPE Digital Trade Estimates 2016 Source: ECIPE 2016, Eurostat, own calculations

0

10

20

30

40

50

60

70

80

90

2000 2008 2016

Implemented by EU member states Implemented by others

Num

ber o

f mea

sure

s

Tota

l cos

ts, €

bn

9.6 9.4 6.8 6.8

3.7 2.7 1.6 11.1

Germany France Italy UK

Spain Netherlands Poland Others

Data flows are important for the economyCross-border data flows have grown sharply, particularly as digital providers seek to tailor their services more to the individual. The enforced localisation of data disrupts this, even within the EU, and is costly for European economies.

There are important privacy and security reasons for regulating cross-border data flows. But there are also circumstances where policymakers, in Europe and beyond, are exploiting this for protectionist motives, which is damaging for businesses and consumers.

22

Digital Economy

Security concerns inhibiting online activity by consumers in the EU Security concerns inhibiting online activity across countries in 2015

Source: Eurostat Source: Eurostat

Prop

ortio

n of

con

sum

ers

0%

10%

20%

30%

40%

50%

Accessingpublic

services

Usingpublic

wifi

Bankingactivities

Mediadownloads

Buyingservices

Socialnetworking

Any of theseactivites Netherlands

Note: Shield shows change since 2010

2010 2015

+10

France -2

Germany +3

Poland -5

United Kingdom -10

Spain -9

Italy -20

0 10 20 30 40 50 60 70

Trust needs to be built in digital securityAlmost half of Europeans say security concerns are holding them back from some online activity. The picture is not significantly worse than it was five years ago. It is worrying as it will constrain Europe from reaping the full benefits of digital innovation. The level of concern varies across Member States.

As security threats multiply and evolve, there is a risk that consumer confidence in the privacy of their data, and their ability to transact online, is compromised. European policymakers and businesses must innovate and learn from best practice, while securing the trust of consumers.

23

Digital Economy

Global Cybersecurity Index 2017

Source: ITU Global Cybersecurity Index 2017

Ave

rage

pill

ar s

core

for c

ount

ries

in e

ach

regi

on

Note: The Global Cybersecurity Index is a survey-based measure of the commitment of the 134 ITU members to addressing cybersecurity under each of the five pillars and based on consultation with a group of experts.

0

0.2

0.4

0.6

Legal Technical Organisational Capacity Building Cooperation

AfricaAmericasArab StatesAsia PacificCISEurope

Legal institutions and frameworks dealing

with cybersecurity and cybercrime

Technical institutions and frameworks dealing

with cybersecurity

Policy coordination institu-tions and strategies for

cybersecurity development at the national level

R&D, education and training programmes; certified professionals and public-sector agencies fostering

capacity building

Partnerships, coopera-tive frameworks and information sharing

networks

Europe is leading on cybersecurityEuropean countries are judged to be among the most committed globally to addressing cybersecurity concerns. This is shown across all five pillars used by the International Telecommunications Union in its assessment, with Europe leading under the technical pillar.

There is no room for complacency on cybersecurity by either policymakers or companies, as the number of breaches remains high, with the potential to undermine consumer confidence.

24

Digital Economy

Estimated potential economic gains from artificial intelligence by 2030*

Source: PwC

*This is the estimated additional static economic benefit by 2030. This is not an estimate of the impact on the growth rate.

Tota

l val

ue o

f gai

ns, $

tn

1.2

0.50.70.9

1.8

3.7

7.0

0

1

2

3

4

5

6

7

OtherLatinAmerica

SouthernEurope

DevelopedAsia

NorthernEurope

NorthAmerica

China

Why the potential gains are larger for some

Companies in North America are thought more likely to be early adopters of new AI technologies that boost productivity. Advanced applications are already available today and consumers are considered to be relatively open to new ways of business.

China will need more time to benefit from AI, because it still has to develop the required advanced technologies and expertise. However, its large manufacturing sector ensures the potential benefits from productivity increases are huge.

% of GDP 6%5%12%10%10%14%26%

Artificial intelligence offers opportunities, but is disruptiveArtificial intelligence (AI) offers a big opportunity for Europe between now and 2030, potentially adding over ten percent to the size of the economy. Achieving these gains will inevitably involve disruption to the types of job that people do and how work is rewarded.

The global economy is only just at the start of a process where new technologies, such as artificial intelligence, have the potential to profoundly change the world of work. Policymakers and businesses must work together to ensure there is broad support for this change.

25

Digital Economy

Innovation Cities Index in 2016-2017

Source: 2thinknow Innovation Cities™ Index, 2016-2017

Note: The Innovation Cities Index shows each city's potential as an innovation economy, based on an analysis of 162 indicators.

New York

Montréal

Chicago

DallasAtlanta

London 60

Amsterdam

Munich

Berlin

53

53 52

Barcelona52 51

Boston

51

51

Toronto54

Paris 54

Seoul53

Vienna53

San Francisco56

Los Angeles55

Singapore54

Tokyo

5653

Sydney53

5659

Location of top-50 cities in the Innovation Cities Index

USAsia Other

EU

19 16 87

Increased since 2012-2013

Decreased since 2012-2013

Smart cities: Europe’s leading position challengedWhile some European cities are among the most innovative, most of the world’s ‘smartest’ major cities are found outside Europe. The ranking of many of Europe’s cities has also declined in recent years.

Civic authorities and industry in Europe need to work together to ensure that leading technologies are deployed in order to seize the potential benefits which smart cities offer, both commercially and for public services.

26

Digital Economy

Telecom services revenuein the EU and the US

Data trac in the EU

Source: IDATE

2010 20102016 2016Mob

ile d

ata

tra�

cG

B/u

ser/

mon

thFi

xed

data

tra�

cG

B/l

ine/

mon

th

revenues in €mn

2015 2016 2017 2018 2019 2020

60.2 71.8 85.8 102.7122.9 142.5

2015 2016 2017 2018 2019 2020

1.11.6

2.53.7

5.57.4

EU US

254,772

220,483

283,000

308,900

EU telecoms infrastructure needs investmentRevenues from telecoms services are falling in Europe — and the gap with the US is widening — just as the data demands that are being placed on telecoms infrastructure are growing rapidly.

Telecoms infrastructure needs more investment in Europe if the increasing demand for services is to be satisfied. Telecom rules and new EU legislation need reviewing in order to create an environment that is more conducive to competitive investment.

27

Digital Economy

The US and EU frameworks for spectrum compared

Source: GSMA

Markets Regulators Jurisdictions Spectrum assignment Scope

1 2 1) 1 1 Coverage of population

28 292) 293) 294) Coverage of population and area

1) One government regulator (NTIA) and one commercial regulator (FCC)2) Independent regulators from member states and European Commission3) 28 member states and EU law4) Spectrum assignments in the EU are not coordinated between member states and the European Commission

The price paid for spectrum in European countries

Austria France Ireland Netherlands Belgium Sweden Denmark Italy UK Spain Germany Portugal

€ p

rice

per M

Hz

per p

erso

n Total price paid (€mn)

0.0

0.2

0.4

0.6

0.8

1.02,015

2,640 8553,802

360

197100

3,945

2,722 1,600 4,384 372

Note: this shows the price paid by all operators for all spectra in all bands sold at the same time as the 800 MHz band

The market for spectrum is fragmentedIn Europe, Member States allocate radio spectrum via uncoordinated national auctions. Such mechanisms generate high costs and limit market access beyond national borders and hence hinder investment and innovation in telecom infrastructures.

Aligning spectrum allocation policy with EU growth and jobs goals would boost the competitiveness of European companies relative to foreign giants. It would also accelerate the investments necessary to seize digital economy opportunities.

28

Energy and climate change

Energy intensity* CO2 intensity (gramme per $ GDP) Share of global CO2 emissions Tonnes of CO2 emissions per capita

Source: BP, World Bank, own calculations

EU

India

US

Russia

China

0.12

0.09

17%

10%

8.4

6.8

0.12

0.09

4%

7%

0.9

1.7

0.18

0.13

25%

16%

21.2

16.5

0.30

0.19

6%

4%

10.1

10.4

0.22

0.15

276

188

367

282

461

311

716

423

717

460

14%

27%

2.6

6.6

*Million tonnes of oil equivalent of primary energy consumption/GDP (PPP constant 2011 $ billion)

In tonnes per year/GDP (PPP constant 2011 $ billion)

20002016

0 0 0% 0 5 10 15 20 255% 10% 15% 20% 25% 30%0.05 100 200 300 400 500 600 700 8000.10 0.15 0.20 0.25 0.30 0.35

Europe is leading in reducing energy intensity and emissionsThe European economy is substantially less energy-intensive and less CO2-intensive than the Chinese, Russian or American economies, while the European share of global CO2 emissions has fallen to just 10%.

Europe has shown global leadership in reducing energy intensity and emissions in the past — and must continue to do so. All countries will have to show similar commitments to ensure the Paris Agreement is fully implemented.

29


The share of global greenhouse gas emissions covered by carbon pricing initiatives*

Source: World Bank, Ecofys

*There are other forms of carbon regulation, which may impact on emissions, that are not covered by pricing schemes.

Note: by 2017 the other countries and regions with carbon pricing initiatives are – in declining order of the share of the country or region’s total emissions covered – Australia, South Africa, Mexico, Ukraine, Kazakhstan, Ontario (Canada), Alberta (Canada), Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, Vermont (US), Quebec (Canada), Washington (US), Colombia, Chile, British Columbia (Canada), New Zealand, Norway, Switzerland, Tokyo and Saitama (Japan), Iceland and Liechtenstein.

0%

2%

4%

6%

8%

10%

12%

14%

16%

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

EU ETS EU carbon taxes Japan carbon tax California CaT Chinese pilot cities ETS Korea ETS Other

Carbon pricing is expanding, but limited outside EuropeCarbon pricing initiatives are expanding outside the EU, but aggregate coverage is still less than one sixth of global emissions. The share of global emissions covered by EU initiatives is much higher than by any other economy.

Many countries have followed the European lead in establishing carbon pricing. There is still a long way to go before global coverage matches the EU share of emissions covered. Policy needs to ensure a level playing field across regions and industries.

30


EU electricity price for industrial consumers* (€ per MWh) Variation of electricity prices* across the EU in 2016 (€ per MWh)

Source: Eurostat

* The price shown is for industrial consumers using between 500-2,000 MWh

Note: data is bi-annual and the values shown are for the second half of the year. Note: Data in the chart does not follow the 2016/1952 regulation, which alters the composition of di�erent items for electricity prices. For some specific countries this e�ect might be relevant and data should be considered purely indicative.

2008 2010 2012 2014 2016

Total electricity price

0

50

100

150

200

0

50

100

150

200

Excluding taxes and levies VAT and other recoverable taxes Other taxesGer

many

Italy UK EU

Irelan

d

Belgium

Portugal

Slovakia

Greec

eSpain

France

Poland

Romania

92.3

22.1

10.4

90.9

28.1

94.1

21.6

89.2

29.2

31.4

80.1

27.6

33.9

23.3

14.2

124.8 128.4

143.8149.8

141.6

Taxation is leading to disparity in electricity pricesTax now accounts for 43% of the electricity price for industrial users in the EU and contributes to sustaining prices at high levels even though wholesale prices have fallen back.

Energy prices, including electricity prices for industrial users, are a major driver of competitiveness in many industrial sectors. Energy Union and industrial policies must be closely aligned to maintain competitiveness. Minimise and harmonise regulatory costs accross the EU.

31


New renewable energy investment around the world ($bn) The European countries that saw the largest investment in 2016

Source: UN Environment, Bloomberg New Energy Finance in: Frankfurt School, Global Trends in Renewable Energy Investment 2017

Note: renewables include marine energy, biomass and waste-to-energy, geothermal energy, liquid biofuels, solar energy, wind energy and hydropower

0

50

100

150

200

250

300

350

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Europe US BrazilOther Americas Middle East and Africa ChinaIndia Other Asia

24

13.2

2.9

2.6

2.5

2.2

1.8

1.7

1.5

1.3

6.1

UK

Germany

Belgium

France

Denmark

Norway

Italy

Sweden

Turkey

Netherlands

Other

($bn)

EU leadership in renewables is being challengedEurope remains a global leader in renewable energy investment, but China is now the world’s biggest investor and Europe’s lead over the US has fallen. Within Europe there is a significant variation in the level of investment across countries.

The global energy transition and the deployment of new renewable technologies is a major opportunity for European industry. EU policy (trade, innovation,etc.) should be shaped to boost industry’s chances to take advantage of these opportunities.

32


The circular economy has the potential to substantially increase GDP and household income, while reducing CO2 emissions, by avoiding waste and increasing productivity at home, in the office and for industry.

The opportunities from the circular economy are clear, but harnessing them is more difficult. It requires innovation by businesses, policymakers and households. Policy must be developed in consultation with stakeholders if unintended consequences are to be avoided and the full potential of the circular economy is to be realised.

Treatment of municipal waste in 2015 The potential of the EU circular economy,percentage point di�erence*

Source: OECD Source: McKinsey

Korea*

German

y

Asutra

lia

Sweden

Switzer

land

UKPolan

d

Norway

Italy

US*Fran

ce

Japan

*

Spain

58%

48%42%

32% 32%27% 26% 26% 26% 26%

22% 20%17%

0%

20%

40%

60%

80%

100%

* Data for 2014

* Excluding Croatia** Only covers mobility, food, and built environmentRecycled Composted Incinerated for energy recovery

11

20

712

Householddisposable income

GDP

-9-15 -17

-22

2030 2050 2030 2050

Direct consumer costs** CO2 emissions

The circular economy offers great potential

33

Innovation

Gross domestic spending on R&D, % of GDP Spending on R&D by type in 2015, % of GDP

Source: OECD Source: OECD

2.0

2.8

3.3

4.2

2.1

2.4

0

1

2

3

4

2000 2005 2010 2015

EU US Japan Korea China OECD

0 1 2 3 4 5

Poland

Russia

Spain

Italy

UK

EU

Netherlands

China

France

Belgium

US

Germany

Austria

Sweden

Japan

Switzerland

Korea

Israel

Business enterprise R&D Other R&D

R&D spending needs to increaseChina is now investing more in R&D as a share of GDP than the EU. Investment in R&D by the EU is significantly below the OECD average and now lags behind major competitors. The gap for business enterprise R&D is even higher than other sources of R&D.

In a world where competition is increasingly driven by the development of new technologies, investment in R&D is critically important. More needs to be done to close the gap between the worst and the best in Europe.

34

Innovation

Number of scientific researchers, 2015 Number of patent applications*

Source: OECD Source: OECD

0.0 0.5 1.0 1.5 2.0

Italy

Spain

France

UK

Korea

Germany

Russia

Japan

US

China

EU

Full-time equivalent, millions

*filed under the Patent Cooperation Treaty

Business enterprise researchers Other researchers

0

5,000

10,000

15,000

20,000

China US Japan EU Korea Russia

0

2,000

4,000

6,000

US EU Japan China Korea Russia

20152015

ICT sector

Biotechnology sector

2005

The EU must maintain its position in scienceEurope is a leading global centre for scientific research, employing over 1.8m scientific researchers. The EU lags behind the US in patent applications in key sectors and behind China and Japan in the ICT sector.

Scientific research in universities, research foundations, public bodies and by the private sector is essential if the European industry is to remain competitive, particularly in the most highly-innovative sectors. This should be a priority for the EU’s next Framework Programme.

35

Innovation

Number of venture capital deals

Capital invested in venture capital deals

Source: KPMG

25% 25% 25% 26% 26% 24% 23% 0

5,000

10,000

15,000

20,000

2010 2011 2012 2013 2014 2015 2016

Europe US Asia Rest of world

20% 16% 17% 17% 14% 13% 13%0

30

60

90

120

150

2010 2011 2012 2013 2014 2015 2016

2016 30%

12%10%7%

41%

2016 27%

11%10%

16%

36%

UKNordic Region Rest of Europe

Germany France

Europe US Asia Rest of world UKNordic Region Rest of Europe

Germany France

$bn

Europe needs more venture capitalEuropean venture capital deals and capital invested declined in 2016, with the European share of the global total continuing to decline. While the US dominates the global market, Asia has emerged as a major centre for high-value investment.

Venture capital financing is important for a vibrant, innovative economy, both because it allows the most innovative businesses to get access to capital and because of the experience that investors bring to those businesses.

36

Innovation

Machine-to-machine mobile cellular subscriptions, Dec 2016

Source: OECD

0

10

20

30

40

50

60

0

10

20

30

40

50

60

70

80

90

M2M

car

ds, p

er 10

0 in

habi

tant

s

M2M

car

ds, m

illio

ns (

rhs)

87.2

Swed

en

Nethe

rland

sIta

ly

France UK

SpainCze

ch

Repub

licPolan

d

Greece US

Japan

Korea

Mexico

Projected growth in IoT units within the EU, 2025 versus 2015

Source: IDATE, own calculations

Electronics

Retail

Transport

Healthcare

Security

Logistics

Agriculture

Smart city

Utilities

Wellness & sports

Other manufacturing

Smart home

Automotive +2,237%

+1,116%

+731%

+591%

+395%

+361%

+347%

+324%

+262%

+214%

+68%

+65%

+21%

The disruptive potential of digitisationThe internet of things offers the potential to transform business models and consumer experiences. The most digitally-advanced Member States are ahead of the US and Japan, but many other European countries are lagging behind.

Businesses and consumers alike need to embrace the potential of the internet of things. But businesses and policymakers must also consider how to mitigate the disruptive consequences, which are potentially very large in some sectors.

37

Innovation

The number of unicorns created by year and by country/region Total unicorns and their valuations by country/region

Source: CB Insights Source: CB Insights

0

20

4040

60

80

US China RoW EU

2015

16%

2009

0%

2017

10%

2016

2%

2014

5%

2013

0%

2012

0%

2011

33%

2010

0%

US

China

RoW

EU

0

1

2

3

4

5

6

0 20 40 60 80 100 120 140

Total number of unicorns

Note: Bubble size indicates total value.

Num

ber o

f uni

corn

s

Ave

rage

val

ue, $

bn

Note: A unicorn is a company valued $1 billion or more.

European start-ups are being left behindThe European share of tech start-ups, either by number or value, is very low, and far short of what should be expected of the European economy, if it is to remain competitive with China and the US.

The digital single market has yet to deliver an environment in which European tech start-ups can grow to compete at scale and in sufficient number with other major economies.

38


Gini coe�cient for disposable household income after taxes and transfers*

Change in employment in the EU by social-economic group,2011-2016, millions

Source: OECD, Eurostat Source: Eurostat

* A higher coecient indicates higher income inequality.

0.20

0.25

0.30

0.35

0.40

UKSpain Ita

ly EU

euro

area

Nethe

rland

s

Poland

France

German

y

Belgium US

Japan

Canad

a

2007 2014

+4.33

+2.35

-1.09

+0.04+0.33

+2.14

Managers andprofessionals

Techniciansand associateprofessionalemployees

Smallentrepreneurs

Clerks andskilled service

employees

Skilledindustrial

employees

Lower statusemployees

There is no room for complacency on income inequalityIncome inequality remains high and has even risen in the EU and the euro area since the financial crisis. Europe is also creating relatively few mid-level jobs. However, the EU average is lower than in the US.

Income inequality has been linked to the rise in populism that has been seen on both sides of the Atlantic. In an economy where the pace of innovation — and disruption to jobs — is high, it is essential to ensure the workforce’s continuous employability by better enabling lifelong learning.

39


The proportion of young people, aged 15-29, not in employment, education or training (2016)

Source: OECD

*Latest figure from 2015; **Latest figure from 2014

0%

5%

10%

15%

20%

25%

30%

Italy Greece Spain France Ireland* Portugal Hungary Poland Estonia Finland UK Belgium Czech Rep Germany Sweden Netherlands EU US Japan**

11.7 23.5 19.6 10.1 7.9 5.1 6.211.1 8.8 7.84.86.8 4.0 7.04.1 6.0 8.5 4.9 3.1

TOTAL UNEMPLOYMENT RATE 2016

37.8 47.4 44.5 24.6 17.2 13.0 17.627.9 19.9 20.113.013.5 10.5 18.87.1 10.8 18.7 10.4 5.2

YOUTH UNEMPLOYMENT RATE

-0.08-4.92

-5.47

0.84 -3.04 -1.70 -5.30 -1.89 -0.260.89 -2.39 -1.92

-1.61-0.07

-1.13 -1.03

-1.88

-1.01

reference to changes compared to 2013

Economic inactivity among the young remains highThe proportion of young people not in employment, education or training has fallen, but remains extremely high in those Member States that have suffered the most protracted economic problems.

It is essential both to prevent social exclusion and to ensure Europe’s long-term competitiveness that a higher share of young people remain in either education, training or employment. Embedded (“dual”) learning should be part of school curricula, also in other areas beyond vocational education and training.

40


The percentage of 25-64 year old adults in education or training (by employment status)

Source: OECD

Finland Netherlands Sweden UK Germany Belgium Spain Poland France Italy Greece US Korea Japan Turkey

Note: For Greece and Turkey the year of reference is 2015. For all other countries, year of reference is 2012. Data for Belgium refer only to Flanders and data for the United Kingdom refer to England and Northern Ireland only.

0%

20%

40%

60%

80%

100%

Employed Unemployed Inactive

Lifelong learning is now essentialThe EU rate of investment in adult skills is similar to international peers, while varying considerably across Member States, with the share of those in employment and participating in education or training in some cases more than double than in others.

In an economy that is rapidly changing (ageing, digitisation) there is a constant need for adults to keep reinvesting in skills through lifelong learning. This is as true for those in employment as it is for those who are unemployed or inactive.

41


ICT proficiency rates among 16-65 year-olds

Source: OECDSource: OECD

Nethe

rland

s

Swed

en UK

German

y

Poland

Irelan

d

Russia

Israe

l

GreeceUS

Korea

Austri

aJa

pan

Turke

y

0

10

20

30

40

50

Advanced Very advanced

OECD average = 31.1

Austra

lia

Singap

ore

Manufacture of food, textile, leather, wood & paper products

Accommodation

Transportation and storage

Total manufacturing

Wholesale and retail trade

Electricity, gas and water

Manufacture of computers, electricproducts, machinery & motor vehicles

Professional, scientificand technical activities

Information and communication

EU enterprises that recruited or tried to recruit ICT specialists in 2016

ICT share ofhard-to-fillvacancies

Source: Eurostat

0% 20% 40% 60%

Proportion of enterprises

60%

25%

25%

20%

33%

29%

38%

40%

47%

All enterprises 44%

ICT skills need to increaseICT proficiency varies across Europe. There is a high demand for ICT skills across sectors and many firms are finding it hard to recruit sufficient ICT specialists, and not only in the ICT sector itself.

More investment in ICT and digital skills is required to capture the full potential from the so-called Fourth Industrial Revolution. Business and schools have a shared responsibility to ensure the pipeline of skilled staff is strong (e.g. updating teaching methodologies and curricula).

42

BibliographyREPORTS

BP, Statistical Review of World Energy 2017

EC, Report from the Commission to the European Parliament and the Council on Trade and Investment Barriers, June 2017

ECIPE, Unleashing Internal Data Flows in the EU: An Economic Assessment of Data Localisation Measures in the EU Member States, December 2016

Ellen MacArthur Foundation, Stiftungsfonds für Umweltökonomie und Nachhaltigkeit (SUN) and McKinsey Center for Business and Environment, Growth Within: A Circular Economy Vision for a Competitive Europe, 2015.

ETNO, Annual Economic Report 2016

Frankfurt School – UNEP Collaborating Centre for Climate & Sustainable Energy Finance, Global Trends in Renewable Energy Investment 2017, June 2017

GSMA, The socio-economic benefits of spectrum policy harmonisation in the EU, November 2015

IDATE, IoT verticals – dataset & report. Technologies & Market forecasts up to 2020, 13 December 2016

IMF, World Economic Outlook October 2017

ITU Global Cybersecurity Index 2017

KPMG Enterprise, Venture Pulse Q4 2016, January 2017

McKinsey Global Institute, Digital Europe: Realizing the continent’s potential, June 2016

OECD, Skills Matter: Further Results from the Survey of Adult Skills, June 2016

OECD Skills Outlook 2017

UNCTAD, World Investment Report 2017, June 2017

World Bank and Ecofys, Carbon Pricing Watch 2017, May 2017

WEBSITES

Ameco (macro database of EU)

Bank for International Settlements

CB Insights

Eurostat

Forbes

IMF

Innovation Cities™

OECD

United Nations Department of Economic and Social Affairs

United Nations Industrial Development Organization

US Bureau of Economic Analysis

World Bank World Development Indicators

WTO

43

ERT MembersCHAIRMANBenoît Potier - Air Liquide

VICE-CHAIRMANVittorio Colao - Vodafone Group

SECRETARY GENERALBrian Ager

Jean-Paul Agon

José María Álvarez-Pallete

Paulo Azevedo

Ben van Beurden

Kurt Bock

Jean-François van Boxmeer

Carlo Bozotti

Svein Richard Brandtzaeg

Paul Bulcke

Pierre-André de Chalendar

Jean-Pierre Clamadieu

Iain Conn

Ian Davis

Rodolfo De Benedetti

Volkmar Denner

Claudio Descalzi

Wolfgang Eder

Henrik Ehrnrooth

John Elkann

L’Oréal

Telefónica

Sonae

Royal Dutch Shell

BASF

HEINEKEN

STMicroelectronics

Norsk Hydro

Nestlé

Saint-Gobain

Solvay

Centrica

Rolls-Royce

CIR

Robert Bosch

Eni

voestalpine

KONE

FCA

F. Hoffmann-La Roche

Iberdrola

Royal Mail Group

Capgemini

MOL

thyssenkrupp

Deutsche Telekom

Royal Philips

Inditex

LafargeHolcim

Ericsson

Siemens

ENGIE

BMW Group

Umicore

Volvo Group

SAP

Wolters Kluwer

ArcelorMittal

Christoph Franz

Ignacio S. Galán

Moya Greene

Paul Hermelin

Zsolt Hernádi

Heinrich Hiesinger

Timotheus Höttges

Frans van Houten

Pablo Isla

Jan Jenisch

Leif Johansson

Joe Kaeser

Isabelle Kocher

Harald Krüger

Thomas Leysen

Martin Lundstedt

Bill McDermott

Nancy McKinstry

Lakshmi N. Mittal

Dimitri Papalexopoulos

Rafael del Pino

Jan du Plessis

Patrick Pouyanné

Stéphane Richard

Gianfelice Rocca

Kasper Rorsted

Güler Sabanci

Jean-Dominique Senard

Risto Siilasmaa

Søren Skou

Tony Smurfit

Ulrich Spiesshofer

Carl-Henric Svanberg

Johannes Teyssen

Hans Van Bylen

Jacob Wallenberg

Titan Cement

Ferrovial

Rio Tinto

TOTAL

Orange

Techint Group of Companies

adidas Group

Sabanci Holding

Michelin

Nokia

A.P. Møller-Mærsk

Smurfit Kappa Group

ABB

BP

E.ON

Henkel

Investor AB

European Round Table of Industrialists Tel. +32 2 534 31 00 | www.ert.eu | @ert_eu | [email protected]

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