The internet and digital technologies are transforming our world. The Europe 2020 strategy has recognised the enormous potential and enabling role of information and communication technologies (ICT) and made the Digital Agenda for Europe one of its seven flagships. Its aim is to deliver smart, sustainable and inclusive economic growth through the realisation of the digital single market and the exploitation of the potentials for innovation of fast and ultra-fast internet and interoperable services and applications.

Value chains in the digital age go beyond traditional production patterns and supply chains. Business models and processes are undergoing deep changes to make full use of the opportunities emerging from (big) data analytics and digitised processes. In its 2015 landmark report, the OECD stresses that data-driven innovation brings about "significant improvement of existing, or the development of new, products, processes, organisational methods and markets emerging from this phenomenon".

Important specialisation areas in EU regions and member states are directly or indirectly linked to ICT. To have an idea of the broad array of topics covered, here is a non-exhaustive list of popular priorities: data processing & management, (cyber)security, visualisations, sensors, privacy, cloud computing, open data, e-Government, geographical information systems, internet applications/future internet, industry 4.0, factories of the future, robotics and 3d printing.

All these areas have been selected by  regional and national authorities as key areas of local strength, market potential and smart specialisation. One in two regions and two in three member states have selected ICT as an innovation priority.

What makes ICT an interesting yet complex issue to tackle in terms of value chains is their cross-cutting nature. ICT constitute both a sector in themselves and at the same time they enable other sectors. The picture below shows how the different innovation priorities relate to one another, with ICT and key enabling technologies being the main enablers.

The aim of this initiative is to provide critical information and analysis of digital value chains that highlights possible cooperation opportunities for stakeholders across Europe. More information on our other activities on regional growth.

References
OECD (2015), Data-Driven Innovation: Big Data for Growth and Well-Being, OECD Publishing, Paris.

Loebbecke, Claudia and Arnold Picot (2015), "Reflections on Societal and Business Model Transformation Arising from Digitization and Big Data Analytics: A Research Agenda", Journal of Strategic Information Systems 24, pp. 149-157.

Gereffi, Gary (2001), "Shifting Governance Structures in Global Commodity Chains, With Special Reference to the Internet", American Behavioural Scientist 44(10), pp. 1616-1637.

European Commission (2014), Towards a Thriving Data-driven Economy, COM(2014) 442 final.