internal market for inclusive and assistive ict atis4all sebastiaan van der peijl madrid, 14 march...

INTERNAL MARKET FOR INCLUSIVE AND ASSISTIVE ICT ATIS4ALL Sebastiaan van der Peijl Madrid, 14 March 2011

- 2 - Contents Aims and objectives Scope Approach EU policy context Main findings of the study Conclusions Recommendations

- 3 - Aims and objectives Main research question: What are the main barriers and opportunities today in the European Internal Market for Assistive ICT, and what could be gained in terms of economic and social impacts derived from addressing barriers and embracing opportunities in the market for Assistive ICT? Tasks: Gather representative evidence on the market for Assistive ICT products and services in Europe, including market mechanisms. Analyse barriers and opportunities in relation to social and economic impact associated with the use of Assistive ICT, including the impact for users, the Assistive ICT industry and the administrations. Propose recommendations for improvement, building on the advice of experts and relevant stakeholders.

- 4 - Scope 9 Member States: ES, DE, DK, FR, IT, LV, NL, SE, UK Assistive ICT: External Assistive ICT Independent Living Work Education & Training ICT Accessible ICT Embedded Assistive ICT

- 5 - Approach Extensive desk research MS and EU level interviews Case Studies Scenarios

- 6 - EU policy context UN convention: signed and ratified by the EU, signed by all MS (ratified by 16), protocol signed by 22 MS (ratified by 14) European Disability Strategy (2010-2020): equal rights, dignity, treatment, independence, full participation Accessibility: improving the availability and choice of assistive technologies, public procurement Participation: e.g. use of sign language, Braille, accessible websites and copyrighted works, etc. Employment, education, independent living, health: focus on sound working conditions, personal-assistance schemes, legal and organisational barriers, inclusive education, non-discriminatory health services and facilities, disability part of curricula of health professionals MS cooperation: information exchange and policy coordination (High Level Group on Disability) Awareness raising and data collection European Accessibility Act in 2012? To substantially improve the proper functioning of the internal market for accessible products and services

- 7 - EU policy context Digital Agenda Enhancing digital literacy, skills and inclusion Inclusive digital services, web accessibility, ambient assisted living e-Inclusion: e-Accessibility Ensure that people with disabilities and elderly people can access ICTs on an equal basis with others e-Accessibility and Assistive Technology (AT): Design for All: universal design, adaptive design, interfacing/interoperability with AT Public procurement & Mandate 376

- 8 - Provision of assistive ICT in the EU The market for assistive ICT No recent and consistent data on people with a disability on the EU level (only 2002 LFS Eurostat) No quality data on take-up of ICT by people with a disability (some MS- data) No quality data on take-up of assistive ICT (some studies (MEAC, AEGIS)) Little data on public expenditure on Assistive ICT (some data in e.g. NL GIPdatabank) No consistent data on the assistive ICT supply (only national databases) Source: EUROSTAT

- 9 - Provision of assistive ICT in the EU The market for assistive ICT (public) service provider Manufacturers / distributors People with a disability Disability organisations (e.g. associations, charities, NGOs, etc) Source: RobotikerTecnalia, 2009 Different actors involved Gov support schemes implemented by (public) service providers: Service Deliver Models (SDM) SDMs play an important role in the value chain: financing and procurement.

- 10 - Provision of assistive ICT in the EU Service Delivery Models Different types of SDM: Medical / social model: Service providers act as intermediaries People with a disability are generally not the final decision makers Consumer oriented model: Service providers act as advisor and funding provider People with a disability, or a representative, are the final decision makers

- 11 - The most prevailing type of SDM is the medical/social model Freedom of choice: often none (limited to lists), but more freedom of choice schemes are being implemented (e.g. DE, DK, NL, SE) SDMs have an important influence, they are the main buyers on the market Provision of assistive ICT in the EU Service Delivery Models EducationWorkHome/independ ent living DenmarkM/SMixed: M/S, C FranceM/SMixed: M/S, C GermanyMixed: M/S, C ItalyM/S LatviaM/S, limited * The Netherlands M/S Mixed: M/S, C SpainM/S M/S or none SwedenMixed: M/S, CM/SMixed: M/S, C United Kingdom M/S

- 12 - Provision of assistive ICT in the EU A complex reality Government support differs widely across MS and life environments, even regions: different beneficiary types, different actors involved, differences in prescription or reimbursement processes, different types of procurement, different governance models (more or less decentralised), different levels of coverage (ranging from full reimbursement models to none, depending on the country/region), differences in eligible products... Overlaps between the different systems across the life environments can result in unclear responsibilities Disabled people face a complex environment Assistive ICT companies similarly face a complex environment

- 13 - Provision of assistive ICT in the EU A complex reality The market structure for Assistive ICT can be characterised by supply push: companies compete to get in the SDM system, lower attention to end-users Some key dimensions emerged and were addressed through case studies People with a disability Manufacturers / Distributors of Assistive ICT Service Delivery Models Supply push

- 14 - Provision of assistive ICT in the EU Important trends / opportunities In the work environment, support schemes are usually well defined, supported by the focus on reasonable accommodation Freedom of choice schemes are on the rise, either with a reimbursement or personal budget scheme (e.g. DE, DK, NL, SE) Function vs. Form debate: functional descriptions of products eligible for funding (e.g. NL, SE) Many organisations are active in the MS to provide information and advice to people with a disability Single points of access are hardly established, with exceptions in e.g. DE, FR

- 15 - Provision of assistive ICT in the EU Main findings Different levels of coverage Different actors in the life environments Localised Markets Long supply chains Limited cross border trading within the Internal Market Non-transparent pricing, can lead to high prices and price differences De facto restrictions on market entry Small production volumes High investment for market entry In some cases: high margins Different types of support Supply: Company perspective Demand: End-user perspective High efforts to get access to funding and the right solutions Limited choice Lack of information / independent advice Need to work through local distributors or local presence Difficulties with overlap in different life environments Service Delivery Models

- 16 - Case studies Main findings from the case studies 2 Case studies on freedom of choice (DE, SE) 2 Case studies on info provision (ES, UK) 1 Case study on internet and mobile uptake 1 Case study on pricing of assistive ICT 1 Case study on product and cross-border activity Freedom of choice turns people with a disability into decision makers and stimulates the market. Information is key to a successful implementation of a freedom of choice scheme. Information will increasingly be provided by manufacturers themselves, government will also have a role to play. Stark differences across Europe. High market potential for assistive ICT Price differences occur within the internal market, due to complex supply chains and other factors Most EU assistive ICT companies do not operate cross border and are highly specialised, targeting niche segments of the market

- 17 - Case Studies (1/7) Freedom of choice in Sweden (Fritt Val) User empowerment: Better informed, better choices Function vs. form Stimulating the market: Closer relations with the customer Bundling: services and extra features Price reduction At no additional cost Potential for: more user focus, better information provision, more competition.

- 18 - Case Studies (2/7) Freedom of choice in Germany (Persnliches Budget) Public agencies: Fear of loosing control over: the system, the quality, type of fundable devices Higher administrative costs Non-standardised admin procedure and faulty individual target agreements Stimulating the market: new user group expected to emerge, more competition and innovation Transition issues, but expected to grow

- 19 - Case Studies (3/7) Information provision by local charities in the UK The need for: good information, close customer relationships, services close to the user (e.g. assessment, training) Local charities: Information provision, awareness, try out ATs, conferences, exhibitions Geographically close to users, no registration required Support informed decision making: both for occupational therapists and end-users Provide second-tier assessment and training to meet specific needs Established networks with: suppliers, agencies, technology networks, education& training inst. / employers, end-users Filling the gap: enabling blind people, market facilitation

- 20 - Case Studies (4/7) Information provision by RETADIS in Spain Try out assistive ICT: 26 centers throughout Spain with computers and assistive ICT + 50 private home-users RETADIS social network: contact with peers, forums, newsletters Training by occupation therapists and for education and work Bringing together stakeholders, manufacturers, end-users, occupational therapists for better information and hands-on experience

- 21 - Case Studies (5/7) Product pricing of Assistive ICT CNSA, AT price-monitoring agency Issues: complexity of use, prices differences, difficulties for new entrants, knowledge of professionals Recommendations: information sharing between beneficiaries and distributors, showrooms and regional centers, include training in public funding Non-transparency is a big issue Opportunities for improvement Need for product reviews Separation of services from product pricing e-Commerce provides transparency towards a more Consumer Oriented Model

- 22 - Case Studies (6/7) Assistive ICT supply Based on 8 National Databases (810 Assistive ICT companies) Available information is inconsistent across databases The analysis adds insight, but the market remains opaque Fragmentation: narrow markets, mostly SMEs Number of ISO subcategories per company (total sample) Average ISO groups per company1.523 Companies with 8 ISO groups3 Companies with 7 ISO groups3 Companies with 6 ISO groups13 Companies with 5 ISO groups10 Companies with 4 ISO groups22 Companies with 3 ISO groups47 Companies with 2 ISO groups120 Companies with 1 ISO group592 Total number of companies in sample810 Total Number of assistive ICT companies in the overall sample per ISO 22 subcategory (multiple presence of companies possible) ISO 22.03 ISO 22.06 ISO 22.09 ISO 22.12 ISO 22.15 ISO 22.18 ISO 22.21 ISO 22.24 ISO 22.27 ISO 22.30 ISO 22.33 ISO 22.36 ISO 22.39 126169651257155252677928371135

- 23 - Case Studies (6/7) Origin of foreign companies per country Countries of origin of foreign companies DatabaseDEDKESFRITNLSEUKUSOthers Foreign companies DE-1212248271158 DKN/A- ES10-10001115 FR1021-24412302691 IT10137-56154219103 NLN/A - SEN/A - UKN/A - Little cross border presence: International presence of assistive ICT companies in the sample (8 countries) Average presence of companies (number of countries in sample) 1.162 Companies with presence in 5 countries2 Companies with presence in 4 countries8 Companies with presence in 3 countries26 Companies with presence in 2 countries48 Companies with presence in 1 countries726 Total number of companies in sample810

- 24 - Case Study (7/7) Estimating demand for Assistive ICT Lack of data on both the PWD population and the take-up of Assistive ICT Assessment of internet and mobile phone uptake: 1.Estimation of PWD population 2.Estimation of internet uptake 3.Estimation of assistive ICT uptake

- 25 - Case Study (7/7) Methodology: estimating internet uptake for PWDs

- 26 - Case Study (7/7) Methodology: internet uptake rates for PWDs

- 27 - Case Study (7/7) Methodology: assistive ICT uptake rates for PWDs

- 28 - Case Study (7/7) Methodology: assistive ICT uptake rates for PWDs Main results: Estimation of more than 29 million disabled people using internet in the EU in 2009 21 million aged 15-64, 8 million aged above 65 Estimation of 9.86 million EU citizens already using assistive ICT to access the internet in the EU Large existing disparities in uptake, especially for old people Internet uptake is increasing fast

- 29 - Scenarios Conceptual framework Demand:informed and empowered consumers Supply:competitive supply of assistive ICT Supplypush Demandpull Supply Demand

- 30 - Demand: informed & empowered users Freedom of choice & information, awareness Freedom of choice, drivers User empowerment Role of SDM Functional description of needs Mainstreaming e-Commerce Awareness and information, drivers: Digital literacy Close relationship with consumers Multi-stakeholder approach Independent information / advice Training

- 31 - Supply: competitive supply of A-ICT Level of competition & pricing Competition, drivers: Transparency Competition IN the market not FOR the market Barriers within the market e-Commerce Pricing, drivers: Transparency Supply chain Comparing Knowing what you pay for

- 32 - Demand and supply Demand pull and supply push growth Scenario 1: supply push Scenario 2: supply push with increased awareness Scenario 3: small scale demand pull Scenario 4: large scale demand pull Freedom of choice Limited increase HighFully available Information & awareness Limited increaseIncreasedHighFully aware Competition Increase, Reduced margins IncreaseIncreasedHigh Competitive pricing Minor changesIncreased High Scenario 1 Scenario 2Scenario 3 Scenario 4 Demand: informed and empowered consumers Supply: competitive supply of assistive ICT

- 33 - Toward a consumer oriented market User empowerment, more transparent market, closer customer relations, more cross-border trade, changing the role of SDMs

- 34 - Forecasting exercise Impact on the market Based on internet uptake:

- 35 - Forecasting exercise Impact on the market Impact on internet uptake 2010201220142016 Austria 561,325853,3931,124,5051,338,905 Belgium 1,086,4151,564,4221,963,7782,269,527 Bulgaria 230,744449,159731,0821,007,122 Cyprus 24,90449,78379,102107,503 Czech Republic 742,0251,198,4371,665,5582,047,361 Denmark 869,4811,070,8881,208,9641,267,217 Estonia 134,847198,362256,355301,029 Finland 1,066,8181,359,3161,591,9301,726,066 France 6,375,9849,427,24612,378,85314,836,371 Germany 6,838,7769,610,23411,755,17713,241,029 Greece 212,728415,706717,3071,058,091 Hungary 397,629672,632984,2221,260,813 Ireland 223,826370,360514,965637,203 Italy 1,149,2972,518,1884,208,4655,883,910 Latvia 136,433218,188296,378360,048 Lithuania 94,242173,014256,638332,397 Luxembourg 51,30464,74275,05080,810 Malta 16,16027,92540,38550,859 Netherlands 3,399,4544,018,8324,367,3214,478,640 Poland 1,847,1283,167,3174,588,2205,836,980 Portugal 452,116877,2341,388,5991,868,047 Romania 211,264496,229908,1981,380,916 Slovakia 239,376356,324474,583577,287 Slovenia 133,338218,181305,834379,787 Spain 1,593,6692,892,1204,283,5365,528,850 Sweden 1,620,2991,940,4722,130,5472,201,595 United Kingdom 11,251,66814,441,83216,753,77718,017,768 European Union (27 countries) 35,867,06157,509,21976,765,96991,506,917

- 36 - Forecasting exercise Impact on the market Impact on assistive ICT usage 2010201220142016 Austria 190,851290,154382,332455,228 Belgium 369,381531,903667,684771,639 Bulgaria 78,453152,714248,568342,421 Cyprus 8,46816,92626,89536,551 Czech Republic 252,289407,468566,290696,103 Denmark 295,624364,102411,048430,854 Estonia 45,84867,44387,161102,350 Finland 362,718462,167541,256586,863 France 2,167,8353,205,2644,208,8105,044,366 Germany 2,325,1843,267,4803,996,7604,501,950 Greece 72,328141,340243,884359,751 Hungary 135,194228,695334,635428,676 Ireland 76,101125,922175,088216,649 Italy 390,761856,1841,430,8782,000,529 Latvia 46,38774,184100,768122,416 Lithuania 32,04258,82587,257113,015 Luxembourg 17,44322,01225,51727,475 Malta 5,4949,49513,73117,292 Netherlands 1,155,8141,366,4031,484,8891,522,738 Poland 628,0231,076,8881,559,9951,984,573 Portugal 153,719298,260472,124635,136 Romania 71,830168,718308,787469,512 Slovakia 81,388121,150161,358196,278 Slovenia 45,33574,182103,983129,128 Spain 541,847983,3211,456,4021,879,809 Sweden 550,902659,761724,386748,542 United Kingdom 3,825,5674,910,2235,696,2846,126,041 European Union (27 countries) 12,194,80119,553,13426,100,42931,112,352

- 37 - Forecasting exercise Impact on the market Estimates are based on assumptions and are projected in accordance with the S-curve of the Netherlands Actual internet take-up developments depend on many exogenous factors, such as general development of internet connections (infrastructure), digital literacy, etc. Yet, this analysis shows the expected direction, although country specifics should be taken into account This also shows that currently there is a large unexploited market potential

- 38 - Conclusions The impact of the role of government Public procurement: Can reduce cost (e.g. volume contracts) But leads to competition FOR the market not IN the market: i.e. market distortion Result: a heterogeneous EU Market (mainly local markets), limited economies of scale for producers, limits incentives for R&D and investment Information provision: Training of professionals in the SDM is essential End-user should be aware and well informed Funding: Uneven across MS, as well as prices paid by the SDM

- 39 - Conclusions Function vs Form Away from positive lists of eligible products Keeping positive lists up-to-date is cumbersome or simply not happening (e.g. IT) It can take a lot of time for new products to become eligible towards a function based approach (with possibly a negative list) A function based approach opens up opportunities for new products, innovation A function based approach enables choice and user empowerment

- 40 - Conclusions Towards a Consumer Oriented Model Empower people with a disability: decision makers Encourage interaction between companies and end- users: closer customer relationships, more information aimed at people with a disability (direct marketing, try-out sessions) Scope for reduced prices (e.g. SE) Mentality change: SDM becomes principally advisor and funding provider Single access points, across life environments

- 41 - Conclusions Demand Information provision: essential for professionals and end-users, the internet offers important opportunities (e-Commerce, product reviews, etc) Empowerment: more focus on desirable products (less stigma) Training: also essential for both end-users and professionals Maintenance, upgrades: clear rules are needed

- 42 - Conclusions Supply Market fragmentation: mostly local markets, small companies Lack of transparency Distributors are essential today for local market access Long supply chains: high prices Focus on SDM reduces consumer orientation More consumer orientation opens possibilities for: easier market access more competition lower prices potentially better after sales services e-Commerce more information aimed at the end-user increased economies of scale and incentives to invest and conduct R&D mainstreaming: accessible mainstream solutions become attractive alternatives, incentives for Design for All

- 43 - Conclusions Data availability There is a general lack of statistics People with a disability: wide divergence due to different applied definitions across MS, lack of cross-country comparable data Use of ICT and assistive ICT: only ad-hoc national measurements Supply of assistive ICT: definition of assistive ICT: ISO 9999 Cat 2? EU NACE has no classification for A-ICT, resulting in lack of data DemandSupply Demographics -> uptake Prevalence of disability Work, Education, Independent Living: nr of PWD (un)emplyment rate, supported employment nr of PWD in mainstream/special education, educational attainment nr. of PWD living independently Uptake of Information and Communication Technology by PWD(only available in some countries) Uptake of Assistive ICT by PWD Expenditure (public and private)-not available at the granular level of assistive ICT Market information -> market structure Nr of companies Market share (e.g. sales / turneover) Pricing and profitability Level of competition Distribution channels

- 44 - Recommendations Shaping a more competitive and better functioning market for assistive ICT Improve the availability of data: common and consistent definition and measurement of people with a disability and their use of ICT and assistive devices need for granular data on MS expenditure need for an extensive survey at an EU level a common taxonomy of assistive ICT Fine-tune the role of government: consumer oriented, empower the end-user, freedom of choice provision of independent information and advice a common functional list for Europe establish single access points

internal market for inclusive and assistive ict atis4all sebastiaan van der peijl madrid, 14 march...

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