3FOOD

Third Industrial Revolution Consulting Group
brought on by the interconnectivity of the digital platform. 402 These metrics are in addition to
documenting the more traditional metrics, including reductions in energy consumption and
greenhouse gas emissions as well as positive changes in jobs, investments, total factor
productivity and GDP. As Luxembourg tracks this data in real-time, it will be able to make
critical projections on future social, economic and environmental well-being, based on the
experience and insights gained at each step of the deployment. A particular focus might be
documenting the full costs and benefits of an interoperational digital infrastructure.
When businesses can plug into an increasingly matured digital infrastructure comprised of the
digitalized Communication Internet, digitalized Renewable Energy Internet, and digitalized
Transportation and Logistics Internet, atop an Internet of Things platform, they will be able to
develop and use near-zero marginal cost renewable energy in every single conversion at each
stage of their value chains. This will facilitate the smart managing, powering, and moving of
economic activity. The leap in aggregate efficiency and productivity, and reduction in material
and carbon footprints and marginal cost brought on by the increasing integration and
interoperability of the digital Third Industrial Revolution infrastructure, marks both a qualitative
and quantitative leap in the economic performance of industries across Luxembourg.
The active tracking of Third Industrial Revolution metrics – again, including aggregate efficiency,
productivity, reductions in material and carbon footprints, and marginal cost – will enable the
Grand Duchy of Luxembourg to make appropriate adjustments so that the goals are more likely
achieved over the successive years. The value of this second step can be seen by again
reviewing the macroeconomic returns highlighted in Table 7. The benefits are clearly positive
but they yield on only a first indication of the larger potential gains that might accrue to
Luxembourg. Among prospective changes that are not fully captured in this assessment are the
very real emergence of new markets catalyzed by new fintech models, new digital technologies,
new smart industries, and greater circularity. 403 Other effects include the buildup of greater
local capacity to supply more of Luxembourg’s goods and services. A more informative
assessment can be provided by continually updating the collected Big Data as the Third
402 The current national accounts for Luxembourg now enable the development of what is called here the “material
and carbon footprints.” At the same time, however, as new metrics are developed, and with new data that can be
tracked and maintained, a complementary “ecological footprint” can be eventually developed to fit within what
economists call factor production or economic analysis. This may become a useful metric to better document the
full range of social, economic, and environmental outcomes that are made possible by different TIR Innovation
Scenarios.
403 The reader is encouraged to review the appropriate sections of the master plan to better understand how these
new industries and new markets are likely to drive major changes in the structure and the productivity of the
Luxembourg economy.
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