# EUR-Lex - 52014DC0442 - EN

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# 52014DC0442

**COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL COMMITTEE AND THE COMMITTEE OF THE REGIONS Towards a thriving data-driven economy /* COM/2014/0442 final */**

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1. 
Introduction

The European Council's conclusions of
October 2013 focused on the digital economy, innovation and services as drivers
for growth and jobs. They called for EU action to provide the right framework
conditions for a single market for big data and cloud computing.

This Communication responds by sketching
the features of the data-driven economy of the future and setting out some
operational conclusions to support and accelerate the transition towards it. It
also sets out current and future activities in the field of cloud computing.[1]

This Communication builds on the results
of various consultations[2] and on relevant
legislative proposals already tabled, such as on reform of the EU rules on the
protection of personal data  and on network and information security.[3]

Global context
and call to action

We witness a new industrial revolution
driven by digital data, computation and automation. Human activities,
industrial processes and research all lead to data collection and
processing on an unprecedented scale, spurring new products and services as
well as new business processes and scientific methodologies.

The resulting datasets are
so large and complex that it becomes difficult to process such "big data"
with the current data management tools and methods. At the same time, technological
advances allow for new ways to cope with these challenges. For example, cloud
computing provides large scale computing as a service to the data economy in
the same way as power plants supply the manufacturing industry.

Big data
technology and services are expected to grow worldwide to USD 16.9 billion in
2015 at a compound annual growth rate of 40% –
about seven times that of the information and communications technology (ICT)
market
overall.
A recent study predicts that in the UK alone, the number of specialist big data
staff working in larger firms will increase by more than 240% over
the next five years.[4]

This global trend holds enormous
potential
in various fields, ranging from health, food security,
climate and resource efficiency to energy, intelligent transport systems and
smart cities, which Europe cannot afford to miss.

Yet
the European digital economy has been slow in embracing the data revolution
compared to the USA and also lacks comparable industrial capability. Research
and innovation
(R&I)
funding on data in the EU is sub-critical and the corresponding activities are largely
uncoordinated. There is a shortage of data experts able to translate technology
advances into concrete business opportunities. The complexity of the current
legal
environment together with the insufficient access to large datasets and
enabling infrastructure create entry barriers to SMEs and stifle innovation.

As
a result, there are fewer successful data companies in
Europe than in the USA where large players have recognised the need to invest
in tools, systems and new data-driven processes. However,
significant new opportunities exist in a number of sectors (from health and
smart factories to agriculture) where the application of these methods is still
in its infancy and global dominant players have not yet emerged.

The
accelerating digitisation of public services, driven by the need to modernise,
cut costs and provide
innovative services, opens up further opportunities to
optimise
data storage, transfer, processing and
analysis.

At
the same time, the reported use of similar technologies for surveillance
purposes, by public or private actors, is liable to feed concern and reduce
trust in the digital economy among individuals and organisations. The
Commission has always taken such concerns very seriously. It will continue to
address them by enacting effective data protection and network and information
security rules, supporting secure technologies and informing the public about
ways to reduce privacy and security risks. A high level of trust is essential
for the data-driven economy.[5]

To
be able to seize these opportunities and compete globally in the data economy, the EU must:

• 
support
"lighthouse" data initiatives capable of improving
competitiveness, quality of public services and  citizen's life. "Lighthouse"
initiatives maximise impact of EU‑funding within strategically important
economic sectors. Possible areas include the health sector (personalised
medicine), integrated management of transportation and logistics for entire
regions, the management of food chains by tracking food items from farm to
fork, etc.;

• 
develop
its enabling technologies, underlying
infrastructures and skills, particularly to the benefit of SMEs;

• 
extensively
share, use
and develop its public data resources and research data infrastructures;

• 
focus
public R&I on
technological, legal and other bottlenecks;

• 
make
sure that the
relevant
legal
framework and the policies, such as on interoperability, data
protection, security and IPR are data-friendly, leading to
more regulatory certainty for business and creating consumer trust in data
technologies;

• 
rapidly
conclude the legislative processes on the reform of the EU data protection framework,
network and information security, and support exchange and cooperation between the
relevant enforcement authorities (e.g. for data protection, consumer protection
and network security);

• 
accelerate
the digitisation of public administration and services to increase their
efficiency;
and

• 
use
public procurement to bring the results of data technologies to the market.

A
coordinated action plan involving Member States and the EU can
guarantee the necessary scope and scale of the required activities, such as the
building of world-class connectivity, storage and supercomputing
capacities for data or the identification of areas of strategic importance for the Union
where breakthroughs can be made.

By
building upon ongoing sectoral activities already contributing to a data-driven
economy, for example in the field of multimodal travel, this
Communication seeks to initiate a debate with the Parliament, Council and other
stakeholders,
including the network of national digital coordinators[6]
on developing such
an action plan. To steer this debate, this Communication describes
the characteristics of a data-driven economy and outlines a
set of initial actions to help bring it about in Europe.

2. 
Data
is at the centre of the future knowledge economy and society

The
number of ways in which digital data is generated, collected, processed and used
is increasing quickly. For example, manufacturers collect and process data to
optimise the flow of materials and goods while new goods and services increasingly
rely on embedded data analytics (e.g. collision-avoidance systems).

According to
ISO/IEC 2382-1, data is "a reinterpretable representation of information
in a formalized manner, suitable for communication, interpretation or
processing". Data can either be created/authored by people or generated by
machines/sensors, often as a "by-product". Examples: geospatial
information, statistics, weather data, research data, etc.

Provided that rules on the protection of
personal data, when applicable, are complied with, data, once recorded, can be
re-used many times without loss of fidelity. This aggregated value generation
is at the core of the data value chain concept. For example, aggregated
location information of mobile phones in cars can be re‑used for real-time
traffic information.

The term
"big data" refers to large amounts of different types of data
produced with high velocity from a high number of various types of sources. Handling
today's highly variable and real-time datasets requires new tools and methods,
such as powerful processors, software and algorithms.[7]

In general, analysing data[8] means better
results, processes and decisions. It helps us generate new ideas or solutions or
to predict future events more accurately. As technology advances, entire
business sectors are being reshaped by systematically building on data
analytics.[9]

The term
'data-driven innovation' (DDI) refers to the capacity of businesses and public
sector bodies to make use of information from improved data analytics to
develop improved services and goods that facilitate everyday life of individuals
and of organisations, including SMEs.[10]

To facilitate exploitation and reduce
transaction costs, the fewer restrictions and the more harmonised the rules on
data re-use, the better. Echoing the Commission's earlier open data policy[11], the
G8's 2013 Open Data Charter incorporates the principle of 'open by default' and
stresses the need to make data freely and openly re-usable both for humans and
machines.

The term
"open data" refers to a subset of data, namely to data made freely
available for re‑use to everyone for both commercial and non-commercial
purposes.

The
existence of datasets, be they distributed across different locations and
sources, open or restricted, and possibly including personal data that needs
special protection, poses new challenges for the underlying infrastructure. Data
analytics requires a secure and trusted environment that enables operations
across different cloud and high-performance computing (HPC)[12]
infrastructures, platforms and services.

Data-driven
innovation brings vast new job opportunities. However, it requires
multidisciplinary teams with highly skilled specialists in data analytics,
machine learning and visualisation as well as relevant legal aspects such as
data ownership, licence restrictions and data protection. The training of data
professionals who can perform in-depth thematic analysis, exploit machine
findings, derive insight from data and use them for improved decision-making is
crucial.

The EU's Horizon 2020 (H2020) and national
R&I funding programmes can address relevant technical challenges: from data
creation and actuation through networks, storage and communication technology
to large-scale analysis, advanced software tools and cyber security. Finally,
support to stimulate sector-specific entrepreneurship and innovation is
important.

3. 
   Towards
a data-driven EU economy

A
prominent feature of a data-driven economy will be an ecosystem of different
types of players interacting in a Digital Single Market, leading to more
business opportunities and an increased availability of knowledge and capital,
in particular for SMEs, as well as more effectively stimulating relevant research
and innovation.

A thriving data-driven economy will have
the following characteristics:

3.1. 
Availability
of good quality, reliable and interoperable datasets and enabling
infrastructure

(1) The datasets themselves: good quality
reliable and trusted data coming from large datasets, including open data (e.g.
Earth observation and other geospatial data, language resources, scientific data, transport data, healthcare data, financial data,
digitisation of cultural assets) being widely available for new data products. No inappropriate restrictions hinder the
flow of data across sectors, languages and borders in the Digital Single Market. Users have sufficient
trust in the technology, the
behaviour of providers and the rules governing them;

(2) The flexibility required to use the datasets: standard and shared formats and protocols for gathering and
processing data from different sources in a coherent and interoperable manner
across sectors and vertical markets (energy, transport,
environment, smart cities, retailing, security, etc.); and

(3) Solid infrastructures, resources and services: open data portals and research infrastructures that support
data-driven innovation, based on fast internet and the availability of large
and flexible computing resources (in particular HPC, grid and cloud computing
infrastructures and services, and statistical
infrastructure).

3.2. 
Improved
framework conditions that facilitate value generation from datasets

(1) An adequate skills base: small and large
companies and universities cooperate to train a sufficient number of domain
experts to meet the strong demand in the labour market. This involves an effective and efficient cross‑fertilisation of talent and skills bridging diverse areas; and

(2) Close cooperation between players: universities/public research institutes and private partners,
especially SMEs, cooperate on
R&I across sectors through facilitated access to
and transfer of knowledge and technology. Such public-private cooperation ensures
the availability and further development of reliable and adequate algorithms,
tools and methods for descriptive and predictive data analytics, data processing,
simulation, visualisation, decision support and the integration of results into
new products.

3.3. 
A
range of application areas where improved big data handling can make a
difference

(1) Systems:
ICT systems able to perform sensing, actuating, computing, communication
embedded in physical objects, interconnected through the Internet and providing
citizens and businesses with a wide range of innovative applications and
services (smart connected objects); and

(2) Early adopters & catalysts: public sector bodies act as 'launching customers' and
intermediaries for new data services
and digital goods. The public sector has a key role in
the adoption of cloud computing services and other new approaches and in the
creation of trust by citizens and businesses, including SMEs.

4. 
An
action
plan to bring about the data-driven economy of the future

Progress towards a thriving data-driven
economy requires community building and the right framework conditions.

4.1. Community
building
1. A European Public-Private Partnership on Data

In the Commission's view, strategic cooperation
through a contractual Public-Private Partnership (cPPP)[13]can play an
important role in developing a data community and  encouraging exchange of best
practices. In line with the principles set
out in H2020, the Commission considers that a sufficiently well-defined cPPP would
be the most effective way to implement H2020 in this field, notably given the
required scale of impact, the resources involved and the importance of a long-term
commitment.

A cPPP enshrines commitments on the part
of the Commission and of the industry to engage in R&I activities and constitutes
a valuable discussion forum. It steers R&I activities through a Strategic
Research and Innovation Agenda (SRIA), to be coordinated with Member States'
agendas, focusing all relevant efforts on the most important challenges and
bottlenecks, maximising efficiency and avoiding duplication.

A cPPP on data should develop incentives
to share datasets between partners and mechanisms to facilitate knowledge and
technology transfers. It should collaborate with academic and research
institutions so that students and researchers can experiment with realistic and
large datasets while promoting exchanges between data scientists, data
protection and security experts.

Industry has organised itself and is
preparing a proposal for such a cPPP.[14] If evaluated
successfully, it could be launched by the end of 2014.

2. Digital
entrepreneurship and open data incubator

Recognising
the high potential of digital technologies in boosting more entrepreneurial
action and transforming all types of businesses in Europe, the Commission has
launched a strategy to support Digital Entrepreneurship in the Union[15].

In
this same spirit, within the H2020 framework, an open data incubator will help
SMEs set up supply chains based on data, promote open or fair access conditions
to data resources, facilitate access to cloud computing, promote links to local
data incubators across Europe and help SMEs obtain legal advice.

3. Developing a skills base

The Commission will design a European
network of centres of competence to increase the number of skilled data
professionals. This will be complemented by the recognition of new e‑infrastructure
professions and skills, in line with the 'Grand Coalition on Digital Skills and
Jobs' initiative[16].

4. Data market
monitoring tool

The Commission is setting up a data
market monitoring tool to measure the size and trends of the European data
market. This tool will also show the
relations between the different actors in the European
data economy.

5. Identification of sectoral priorities
for R&I

The Commission will invite stakeholders
and research communities (e.g. from the health, energy, environment, social
sciences and official statistics sectors) to propose "lighthouse" initiatives
that may yield the greatest social and economic benefits and should attract the
necessary public and private funding.

4.2. Developing
framework
conditions
4.2.1. 
Availability
of data and interoperability

1. Fostering Open Data policies

To facilitate the implementation of
the EU open
data
policy[17] and legal
framework[18], the Commission
is preparing
guidelines
on recommended standard licences, datasets and charging for the re-use of
documents.

The Commission and other EU
bodies are releasing their own documents as open data through the
EU Open Data Portal.
In
addition, a pan-European open data digital service infrastructure under the
Connecting Europe Facility programme will provide a
one-stop-shop to open data across the EU.[19] Measures
to promote scientific discovery and collaboration across disciplinary and
geographical boundaries are included in the Commission's scientific information
package[20].

The aim of further opening up data for
access and re-use is also pursued by a number of Commission initiatives
covering sector-specific data (transport, environment, etc.) as well as through
open access to H2020 results[21].

2. Data handling tools and methods

In order to
encourage R&I on business intelligence, decision support
processes and systems supporting SMEs
and web-entrepreneurs, H2020 addresses descriptive
and predictive
data
analytics, data visualisation, artificial intelligence and decision-making
software tools and algorithms.

Other topics include proofs of concept
and prototypes of cloud-based data infrastructure enablers (i.e. Platform
as a Service
and Software
as a Service)
for extremely large or highly heterogeneous datasets and actions to
deal with large, complex and data-intensive systems and services.

Finally, H2020 will
stimulate the setting-up
and networking of competence centres to support SMEs in developing,
accessing
and taking
up
data technology or services in their products, business processes or other
activities.

3. Supporting new open standards

Open
standards and data interoperability
are priorities in various Commission policies. This
is reflected in ongoing initiatives to set EU-wide standards within important
economic sectors, such as transport. The ISA programme[22]
facilitates the use of common core data standards for national
administrations. To help create a climate of open data exchange,
the Commission will support the mapping of existing relevant standards for a
number of big data areas (e.g. smart grid, health,
transport,
environment,
retail, manufacturing, financial services).

Future actions under H2020 will
identify industrial sectors that are sufficiently homogenous in their
activities to further
develop
relevant standards.

4.2.2. 
Enabling
infrastructure for a data-driven economy
1. Cloud computing

The actions
of
the European Cloud Computing Strategy on transparency of
standards, voluntary EU-wide certification, safe
and fair contract terms and conditions for cloud users and the
establishment of a European Cloud Partnership (ECP) facilitate a more rapid
adoption of trusted cloud computing that will boost the data-driven economy.

The ECP Steering Board recently
published its Trusted Cloud Europe (TCE) report[23].The
results of a subsequent survey indicated consistent support for a vision of a
Trusted Cloud Europe based on the rapid adoption of the general data protection
regulation in Europe and effective mechanisms to ensure European "data
sovereignty" in the cloud. As follow-up, the Commission
intends
to respond to the TCE report by consulting on a package of
policy actions combining regulatory as well as market-led, co‑regulatory
options by 2015.

At the same time, future R&I
actions under H2020 will
address the optimal use and configuration of cloud computing solutions for data
analytics and advanced infrastructures and services[24].

2. E-infrastructures
and High Performance Computing

Access to the best supercomputing
facilities and services for industry, SMEs and academia is already provided by PRACE[25],
a world-class HPC infrastructure for research.

Future actions will include establishing
centres
of excellence in
the application of HPC to tackle scientific, industrial or societal challenges through the existing
cPPP
on HPC[26]. Support will also be
given to the development of the next generation of HPC
technologies as a key horizontal enabler for advanced modelling, simulation and
big
data
applications.[27]

Given the urgent need to provide
thousands of researchers across Europe with computing capabilities, key enablers
of the digital European Research Area (ERA)[28],
such as the European Grid Initiative, will also be supported.

3. Networks/ Broadband /5G

The on-going cPPP on 5G[29]
works on the technological underpinnings of the mobile internet of the future
and accompanies regulatory and funding initiatives[30]
designed to encourage private investment in broadband infrastructure; It supports
the evolution of backbone networks by increasing their capacity to handle large
amounts of data.

4. Internet of Things
(IoT)[31]

A series of
large-scale projects will be funded to tackle the emerging questions of availability,
quality and interoperability related to data gathered through smart connected
objects and other IoT technology.

5. Public Data Infrastructures

The Commission
will seek the Member
States' support
for an interconnected network of data processing facilities, through the linking
of regional data centres and enabling infrastructures, to benefit from
synergies and enhance efficiency, in particular for SMEs, academic,research
organisations and the public sector. By reinforcing the GÉANT network[32],
the Commission will also invest in linking to non-EU countries, especially in
the developing world.

4.2.3. 
Regulatory
issues
1. Personal data protection and consumer protection

The fundamental right to personal data
protection applies to big data where it is personal: data
processing has to comply with all applicable data protection rules.

The Commission’s reform package aims to
build a single, modern, strong, consistent and comprehensive data protection
framework for the EU. By strengthening individuals’ trust and confidence
in the digital environment and enhancing legal certainty, it will provide a
regulatory environment essential for the development of innovative and
sustainable data goods and services.

After adoption of the reform package, the
Commission will work with Member States and
stakeholders to ensure that business, and in particular SMEs, receive
adequate guidance, notably on issues such as data anonymisation
and pseudonymisation,
data minimisation, personal data risk analysis,
and tools and initiatives enhancing consumer awareness. The Commission
will also actively support R&I for related technical solutions that are
privacy-enhancing 'by design'.

On this basis, digital
tools have the potential to help users to better control and secure their data.
The Commission will launch a consultation process on the concept of user-controlled
cloud-based technologies for storage and use of personal data ("personal
data spaces"), and support R&I on tools to assist users in selecting
the data sharing policies that best match their needs. It will also support
projects aiming at reducing personal data breaches and ensuring that data is
used in ways compatible with those for which it was collected.

Horizontal consumer and marketing law
also applies to products based on big data technology. The Commission will
ensure that SMEs and consumers, suppliers and users, are given all necessary
information, are not misled, can rely on fair contracts, notably as regards the
use of data collected from them. These measures will build the trust that is
necessary to exploit the full potential of the data-driven economy.

2. Data-mining

The
Commission is
investigating
ways in which data-driven innovation based on data-mining, including text-mining,
might be enhanced, including in relation to the relevant copyright aspects.

The
Commission takes note of Member States’ initiatives that facilitate these
activities by implementing (or reviewing the implementation of) the exceptions
available under the current copyright framework.

3. Security

The Commission
will explore the landscape of security risks relating to
big data and will propose risk management and mitigation measures,
including guidelines, e.g. on good practices for secure data storage, to
further a security culture in many sectors of society and help detect and
better respond to cyber-attacks.

The
Commission will also support R&I to help reduce the risk of data breaches
and of databases being exploited covertly for unlawful purposes.

4.
Ownership/transfer of data

In
several sectors, data location requirements limit the cross-border flow of
information and form a barrier to a
single market for cloud computing and big data. The Commission will study such barriers
and will consider future policy actions, notably by taking into account the Trusted
Cloud Europe report
and recommendations put forward by the European Cloud Partnership.

In
addition, the Commission will launch a consultation and expert group to assess the
need for guidance
on
specific issues of data ownership and liability of data provision, in
particular for data
gathered through IoT technology.

5. 
Conclusions

A
thriving data-driven economy will contribute to the well-being of citizens as
well as to socio-economic progress through new business opportunities and through
more innovative public services. It will flourish in a European Digital Single Market
governed by modern and innovative rules.

The
envisaged
actions, once implemented, will result in accelerated innovation,
productivity growth and increased competitiveness in data across the whole
economy as well as on the global market with Europe as a key player.

The
Commission will further consult with Parliament, Council, Member States and all relevant stakeholders to draw up a more detailed,
multi-layered and evidence-based action plan for advancing towards the data-driven
economy of the future and addressing Europe's future societal challenges.

[1]        The Staff Working Document accompanying this
Communication reports on the implementation of the European Cloud Computing
Strategy, COM(2012) 529

[2]        E.g. http://ec.europa.eu/digital-agenda/en/news/trusted-cloud-europe-survey;
https://ec.europa.eu/digital-agenda/en/content/consultation-research-data-infrastructures-framework-action

[3]        COM(2012)
10 final, COM(2012) 11 final and COM(2013) 48 final

[4]        Big
Data Analytics – An assessment of demand for labour and skills, 2012-2017. e-skills
 UK report on behalf of SAS UK.

[5]       See
also JOIN(2013)
1, Cybersecurity Strategy of the European Union: An Open, Safe
and Secure Cyberspace, of 07/02/2013 which set "out the actions required [...]
to make the EU's online environment the safest in the world", p. 3.

[6]        To be
established in accordance with the conclusions of the European Council of
October 2013.

[7]        Going
beyond traditional "data mining" tools designed to handle mainly
low-variety, small scale and static datasets, often manually.

[8]        This can
comprise both genuine "big data" and a wealth of other data sets
("small data").

[9]        Businesses that
use 'data-driven decision-making' enjoy a 5-6% increase in productivity, Big
Data for All: Privacy and User Control in the Age of Analytics, O. Teme/J.
Polonetsky, Northwestern Journal of Technology and Intellectual Property 2012.

[10]       Data-Driven
Innovation – A Guide for Policymakers: Understanding and Enabling the Economic
and Social Value of Data, SIIA White Paper, 2013.

[11]      Open data. An engine for innovation, growth and
transparent governance, COM(2011) 882; Directive
2013/37/EU.

[12]     High-Performance
Computing: Europe's place in a Global Race, COM(2012) 45.

[13]       See
Article
25
of Regulation (EU) 1291/2013 establishing Horizon 2020.

[14]       www.bigdatavalue.eu

[15]       http://ec.europa.eu/enterprise/sectors/ict/digital-enterpreneurship/index_en.htm

[16]       http://ec.europa.eu/digital-agenda/en/grand-coalition-digital-jobs-0

[17]     COM(2011)
882 final

[18]       Directive
2013/37/EU

[19]       Regulation
2014/283/EU on guidelines for trans-European networks in the area of telecommunications
infrastructure.

[20]       Towards
better access to scientific information, COM(2012) 401; Commission
Recommendation on access to and preservation of scientific information, C(2012)
4890.

[21]       http://ec.europa.eu/research/participants/data/ref/h2020/grants_manual/hi/oa_pilot/h2020-hi-oa-pilot-guide_en.pdf

[22]       http://ec.europa.eu/isa/;
http://ec.europa.eu/isa/documents/isa_lexuriserv_en.pdf

[23]       'Establishing
a Trusted Cloud Europe: A policy vision document by the Steering Board of the
European Cloud Partnership',
http://ec.europa.eu/digital-agenda/en/news/trusted-cloud-europe

[24]       See
already, e.g., http://www.helix-nebula.eu/, a
Cloud for Science initiative of ESA, CERN, EMBL etc.

[25]       http://www.prace-ri.eu/

[26]       http://ec.europa.eu/research/press/2013/pdf/ppp/hpc_factsheet.pdf

[27]       http://ec.europa.eu/research/participants/portal/desktop/en/opportunities/h2020/calls/h2020-fethpc-2014.html

[28]       A
Reinforced European Research Area Partnership for Excellence and Growth,
COM(2012) 392.

[29]       http://5g-ppp.eu/

[30]       Such
as the Connected Continent package (http://ec.europa.eu/digital-agenda/en/connected-continent-single-telecom-market-growth-jobs) and
the telecommunications part of the Connecting Europe Facility
(http://ec.europa.eu/digital-agenda/en/connecting-europe-facility).

[31]       The IoT
is a dynamic global network infrastructure where physical and virtual
"things" of all types communicate and are seamlessly integrated.

[32]       Pan-European
data network for the research and education community, http://www.geant.net/.