Mr Erkki Liikanen Member of the European Commission, responsible for Enterprise and the Information Society "Creating a predictable legal environment for competitive and innovative electronic communications in the European Union" Public hearing on remedies under the new regulatory framework for electronic communications networks and services Brussels, 26th January 2004

 

According to this speech, Mr Erkki Kiikanen notes once more the reason of the difference between EU and US with respect to productivity and lays on the weakness in organizational innovation “in the work environment, development of new skills, and organisational change in general”.

Additionally, he suggests that this point is extremely critical and vital, and a great deal of importance has to be adopted, in order to sustain increased rates in the growth of productivity, especially as far as the telecommunication services are concerned. And he quoted Diane Farrell’s writing in the Harvard Business review: “An important dynamic of the new economy…is the virtuous cycle of competition, innovation and productivity growth - In sectors where competition was promoted innovation flourished and productivity soared”.

 One the most important issues raised was the fact that a new regulatory framework has to be developed as it will represent “an important opportunity to re-focus regulation on areas where the markets actually fail”.

Further Information

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