The Network Society - University of Massachusetts Amherst

European countries embraced ICT later than the US. The diffusion
of new technologies is often slow.
Firms can take a long time to adopt them, changing organisational
arrangements, implementing effective business processes. Relative to
the US, productivity gains in Europe are therefore expected with a lag.
Industry Analysis
Policies of Transition to the Network Society in Europe 375
The industry-level analysis shows the superior performance of the
US in ICT-producing manufacturing (in particular, ICT equipment)
and ICT-intensive using industries (in particular, financial services and
distributive trades).
Europe in turn has achieved very high productivity growth, outpacing
the US, in communication services, and, in particular, in the
mobile sector.
This is due to the fact that liberalisation of the telecommunications
sector in Europe has taken place within the right legal environment.
We could add to this the important role of the single mobile standard,
GSM.
These data underline the importance of the growth of the sector of
electronic communications for the economy. After the burst of the
Internet bubble, telecom operators reduced investments radically as
part of their consolidation plans. A return to renewed growth for the
whole sector requires a revival in capital spending. Further growth can
only be driven by the provision of new services over high-speed fixed
and wireless networks such as broadband and 3G. And then the news
from 3GSM Cannes event tells that 3G is now becoming a reality. It
has taken longer that many expected five years ago.
Policy makers bear the responsibility of setting the right conditions
for investment to occur. The implementation of the new EU regulatory
framework will provide greater legal certainty for investment.
The implementation of national broadband strategies creates additional
demand.