3FOOD

Third Industrial Revolution Consulting Group
recipient of digital flows, and develop these strands further into an overarching theme that can
position Luxembourg as a leader in the journey to a smart Digital Europe.
The “digitized Internet of Things Economy” will inevitably have a deep impact on the way we
live, work, and relate to each other. In this interconnected world, data is the new oil that fuels
the economy and a smart use of data will be the most valuable asset to stay ahead of
competition in terms of innovation, client retention, efficiency and productivity. ICT is clearly
the enabler to free the economic potential across all the critical sectors that make up the
Luxembourg commercial space. The Luxembourg working group nevertheless shares the view
that while a “digital economy” is at the heart of a “smart economy,” other elements need to be
taken into consideration to reap the full benefits of this transformational process. The working
group has built its report around the following building blocks:
What is the vision for a “Smart Economy” and, more importantly, what should it achieve
in terms of broader societal goals;
What is the current positioning of Luxembourg in the digital economy (SWOT analysis);
What is the roadmap to achieve a “Smart Economy” in Luxembourg and what are the
key topics to focus on.
The Smart Economy should reconcile quantitative and qualitative growth targets to allow
Luxembourg to maintain its high living standard while dramatically lowering the marginal cost
of producing and distributing goods and services. With this in mind, Luxembourg has prioritized
three overriding long-term goals:
Competitiveness and efficient use of resources
Digital Inclusion, “Buy in” by society at large
Sustainable growth and social welfare model
In the past decades Luxembourg has created exceptional wealth for the country, building on
the strengths of its open and export driven economy. This growth model is nevertheless not
sustainable in the longer term without a smart approach towards economic and societal
developments. Indeed, the current growth model poses serious drawbacks for the country
(example: financing social security and pensions, environmental impacts, increasing workforce
and population, dependency on financial sector, etc.) and for its neighboring countries
(example: the flight of skilled workforce and fiscal resources). Luxembourg also has to cope
with a changing international environment, particularly in regard to regulations and taxation
issues where international institutions undermine the sovereignty rights of national
governments.
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