Unleashing Europe’s Internet Power: How to Dominate the Online World

In a world where technology dominates our daily lives, staying ahead of the curve is essential. Mario Draghi’s observation of EU competitiveness last year shone a light on Europe’s struggle to harness the power of the internet revolution. Silicon Valley’s tech boom has propelled the US to the forefront of productivity growth, leaving Europe trailing behind. However, all hope is not lost. Europe’s unique blend of market structures could pave the way for a new era of internet success.

Here’s how Europe can redefine the digital landscape:

1. Embrace the Economics of Public Goods: Traditional economic theory views public goods as a challenge to fund. However, the internet has transformed this notion by making digital services more accessible and affordable. These "public goods of opportunity" are privately provided but freely available, funded through mechanisms like advertising or donations.
2. Establish Digital Public-Private Partnerships: European governments have the chance to lead the way in digital innovation by creating partnerships that offer standard online services to citizens and businesses for free. Imagine accessing online accounting or payroll services without the burden of costs. By leveraging the power of the market, these partnerships can generate valuable data that benefits both consumers and businesses.
3. Harness the Power of Data: Health is a prime example of where Europe can make strides. By merging public health systems with digital platforms, a new model of genetic testing and data sharing can emerge. By offering these services as a public good, Europe can build a vast database that revolutionizes healthcare, driving advancements in personalized medicine and research.
4. Reimagine Social Media: While the US debates over regulating social media, Europe can take a different approach. By introducing socially responsible algorithms in publicly provided online platforms, Europe can mitigate the negative impacts of profit-driven algorithms. Institutions with broader cultural missions, like universities and public broadcasters, can play a pivotal role in fostering meaningful discussions and engagement online.

By reimagining traditional public goods in a digital context, Europe has the opportunity to create the next wave of internet success stories. The time to act is now. Embrace innovation, foster collaboration, and pave the way for a brighter digital future.