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Third Industrial Revolution Consulting Group OVERVIEW ............................................................................................................................... 250 STATE OF PLAY AND LUXEMBOURG VISION ........................................................................... 254 PROPOSALS ............................................................................................................................. 257 SMART ECONOMY ............................................................................................................. 321 OVERVIEW ............................................................................................................................... 321 STATE OF PLAY AND LUXEMBOURG VISION ........................................................................... 326 PROPOSALS ............................................................................................................................. 331 CIRCULAR ECONOMY ......................................................................................................... 344 OVERVIEW ............................................................................................................................... 344 LUXEMBOURG STATE OF PLAY AND VISION ........................................................................... 348 PROPOSALS ............................................................................................................................. 372 PROSUMERS & SOCIAL MODEL .......................................................................................... 383 OVERVIEW ............................................................................................................................... 383 STATE OF PLAY AND LUXEMBOURG VISION ........................................................................... 390 PROPOSALS ............................................................................................................................. 412 EXPLORING ECONOMIC BENEFITS OF THE THIRD INDUSTRIAL REVOLUTION INNOVATION SCENARIOS ........................................................................................................................ 420 OVERVIEW ............................................................................................................................... 420 FRAMEWORK OF THE ECONOMIC ASSESSMENT .................................................................... 424 COMPARING THE REFERENCE CASE AND THE TIR INNOVATION SCENARIOS ....................... 434 REVIEWING THE ECONOMIC IMPACTS OF THE TIR INNOVATION SCENARIO ....................... 444 A SHORT NARRATIVE ON THE DEEPER MODELING SYSTEM AS A POLICY ASSESSMENT TOOL ................................................................................................................................................. 453 TIR Consulting Group LLC Biographies ................................................................................ 456 4
Third Industrial Revolution Consulting Group PREFACE The Grand Duchy of Luxembourg and TIR Consulting Group LLC have engaged in a deep collaborative initiative over the past twelve months, designed to transform the country into the first nation-state of the smart green Third Industrial Revolution era. The year-long project has culminated in a 475 page Third Industrial Revolution Strategy Study to help guide the Grand Duchy of Luxembourg into the next stage of its journey. The process itself has established a new milestone in the governance of economic and social development. More than 300 socio-economic actors from government, the business community, academia, and civil society actively participated in the proceedings and in the preparation of the final Strategy Study and accompanying proposals. The government of the Grand Duchy of Luxembourg took on a new role as a facilitator of the process, replacing traditional top-down governance with a peer approach, engaging a broad representative swath of the Luxembourger community in jointly planning the Third Industrial Revolution Strategy Study. The final Third Industrial Revolution Strategy Study for the Grand Duchy of Luxembourg encompasses the combined input of the 300 stakeholders and TIR Consulting Group LLC’s global team of experts. The Third Industrial Revolution Strategy Study breaks additional ground by taking a crossdisciplinary approach to the future development of the Grand Duchy of Luxembourg, combining social, cultural, and environmental narratives and economic theory and business practices, with the goal of reconceiving economic development within a larger frame of “quality of life.” While the early takeoff stage of the digital Third Industrial Revolution focused almost exclusively on new technologies, products, and services – the Silicon Valley model –, the Grand Duchy of Luxembourg has introduced the next level of engagement by concentrating equally on how the new Third Industrial Revolution infrastructure fosters an emerging global interconnectivity and accompanying planetary stewardship of the Earth’s ecosystems – the Biosphere Valley model. In the Biosphere Era, Luxembourg and every other political jurisdiction becomes responsible for its 19 kilometers of the biosphere stretching from the stratosphere to the sea, which makes up the life force of the planet and constitutes the indivisible community to which we are all beholden and whose well-being determines our own quality of life. Biosphere stewardship becomes the essential mission of each region and locality in reducing ecological footprint and addressing climate change in the coming era. The Third Industrial Revolution narrative proposed in this Strategy Study introduces a sophisticated and nuanced new approach to economic development based on establishing digital ecosystems that mirror the dynamics of natural ecosystems, with the goal of establishing a seamless symbiotic relationship between the circular flows of nature and the economic 5
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