Between competition and cooperation: the new digital world

Network economy, 5g networks, industry 4.0, Digital financial system and the development of artificial intelligence opened a new stage of network and industry digitization. The development of network economy means that implementation of a regulatory reform becomes a necessity. The driving force of all the activities is the pursuit of increased resource efficiency. The goal of the 12th TIME Economic Forum is to gather persons interested in participating in the creation of new commercial law.

During the current term of office of the European Union authorities, the directives that will constitute the legal framework for network economy will be developed. The emerging business models give competitive advantage to companies ready to cooperate within the frames of industry 4.0, yet the existing competition regulations stand in the way. The Industry 4.0 platforms operating in the EU have defined problems and are prepared to start a dialogue with local and European authorities. Their task is to describe and justify the necessary changes. The law must become compatible with new business models. Digital technology allows for more effective management of resources within value chains currently joining the global economic network. The growing importance of economies of scale, combined with the possibilities of more effective use of the potential offered by companies, encourage entering new relationships. Industry 4.0 is a fact for companies operating on a global scale. The condition for maintaining the competitiveness of the EU economy is to give the same opportunities to SMEs.

The goal of the organizers of the Forum is to improve the environment for conducting business activities. The discussions are held by entrepreneurs, subject-matter experts, scientists and the representatives of the state administration. The results of the meeting will serve to business organizations as a cornerstone for their statutory activities.

The 11th TIME Economic Forum served as a platform for Europe-wide discussion on investment and infrastructure needs of the network economy. The conclusion was to include a wider range of stakeholders in the discussion about accelerating the modernization processes. For this purpose, we published a short, simple brochure on the importance of the transformation we witness. It included a lot of information on the social consequences of the current transformation.

The network economy reveals its full potential only when implemented on very large scale. This is why Industry 4.0-driven technologies are developing the fastest on the largest markets. EOG operates on the right scale, but we lack standardization as well as normative and legal uniformity, which limits development opportunities for EU countries. We need actual and quick actions to facilitate close cooperation and rapid modernization of the regulatory framework of the EU single market. Digital industry organizations together with Industry 4.0 platforms are already involved in a dialogue with the European Commission, discussing the scope of the necessary reforms. European entrepreneurs are very concerned about the fact that American and Asian markets are more efficient in adapting the existing law to the requirements of the network economy, which translates into a process of continuous reduction of the technological efficiency and competitiveness of the EU market.

The changes alone, however, are not enough. What we need are European infrastructure projects to create a technological space for the development of the network economy. To put it simply, there will be no European network economy without a European infrastructure network. During the general assembly of DigitalEurope in June, representatives of the digital industry made it clear – we no longer have time for endless discussions. Europe has no longer a dominant position on the global map of modern economy, which translates into fewer opportunities to maintain the current level of prosperity. We still hold resources and knowledge, but we must turn to European solidarity to end pointless disputes and devastating regional and national egoism.

The two-day session of the 12th TIME Economic Forum will have a form of three thematic blocks dedicated to electronic communication networks, industry and the digitization of financial systems respectively.

During the first block, we will discuss legal changes, decisions and actions that will allow for the economically effective development of the 5G network. We particularly encourage discussions on the following subjects:

  • consistency of the fiber optic infrastructure development plan and the schedule for the allocation of frequency bands with the needs of industry 4.0, IoT, network economy and society 5.0 services,
  • principles and rate of investments in the Internet of Things in cities and industrial zones,
  • administrative framework for pan-European industrial cooperation networks within the 5G network layers,
  • increasing the profitability of investments in the 5G network by establishing clear regulations regarding the digitization of critical technical infrastructure
  • business models and financing sources giving actual possibilities for using the 5G network to develop the IoT-based medical, agriculture and healthcare services, etc.
  • rules of financing of universal streaming services delivered via the 5G network.

During the block dedicated to Industry 4.0 we will focus on the issues of legal and administrative framework reforms necessary to ensure transparent and secure conditions for doing business online. In the context of the debate that has already begun in the community of the European Commission’s experts, we will try to highlight the following topics:

  • administrative and legal framework for standardization and normalization of the activities related to creation of manufacturing networks in the Industry 4.0 context,
  • definition of the legal framework enabling the full use of the potential of software based on artificial intelligence algorithms,
  • methods of ensuring digital security, intellectual property and security of business transactions within 4.0 manufacturing networks,
  • RAMI 4.0 industrial network architecture.

A separate block will be dedicated to the modernization and digitization of the financial sector. We will discuss the need to launch a pan-European discussion on the coexistence of global digital, national and regional currencies.

During the block we will focus on:

  • the importance of “thinking technology” for economic development,
  • the importance of harmonizing standards being the pillar of vertical integration processes of digital systems in enterprises for the effectiveness of horizontal integration,
  • the need to popularize and raise the level of lifelong learning as a condition for stimulating active social approval, necessary to accelerate change,
  • the growing role of innovation and knowledge in socio-economic life,
  • the need to develop a program for establishing labor conditions that will give a sense of satisfaction and social security in the context of very dynamic changes in the employment structure.

In addition, most of the challenges discussed will require creativity and flexibility from all participants in the process of transformation, considering the differences in the level of economic development of EU countries. We encourage you to take part in the Forum and discussions on the key issues related to the technical and human advancement.