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IT Generates 40 Percent of EU's Productivity Gains, Says Official

January 26, 2006 By Wayne Hanson

Viviane Reding, the European Union's director of Information Society and Media, said in a speech yesterday that while information and communication technology (ICT) represents a modest, but growing 6 percent of the EU economy, it generates 25 percent of the EU's growth and 40 percent of its productivity gains.

"ICT is also transforming micro and sectoral-level economics," said Reding. "Productivity gains at firm level through innovations such as e-procurement are transforming business performance." She said that a German report estimated that widespread adoption of e-Procurement could save 19bn Euro per year for purchasers, and another report estimated that the German public sector could save up to 27bn Euro a year through full implementation of e-government.

"This same German report suggests that consistent exploitation of ICT productivity potential in Germany alone could achieve extra growth by around 75bn Euro by 2008. Just imagine the growth we could generate if we were resolute enough to do this at a European scale! We would really be on the way to a high speed economy."

The key to achieving the potential of ICT, she explained, was the i2010 initiative.

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