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Third Industrial Revolution Consulting Group<br />

LuxTram (source: site luxtram.lu)<br />

The financial cost of new infrastructure is often highlighted as a strong barrier, yet the cost of<br />

inaction and negative externalities is often forgotten. Urban sprawl is extremely expensive<br />

because of necessary maintenance to roads and other infrastructure. The cost of traffic<br />

congestion is estimated to be 1 to 3% of a country’s GDP. Lastly, the pollution impact on health<br />

as well as the impact of a widespread lack of physical activity are difficult to estimate in<br />

financial terms (see local and global impacts mentioned here above), but are too often<br />

neglected in the overall analysis.<br />

Clusters fostering innovation<br />

Luxembourg benefits from active national public research with strong ICT know-how and the<br />

best, most secure IT infrastructure (with excellent network coverage) in the world. This could<br />

lead to a significant potential in the deployment of Intelligent Transport Systems (ITS). Studies<br />

show that there is a high economic development potential for Luxembourg in this field and that<br />

while some companies are already active in the field, many more have the potential to enter<br />

that market. The University of Luxembourg and the public research center, LIST, do research on<br />

mobility solutions and related fields and have strong know-how in ICT.<br />

The recent creation of dedicated clusters (automotive, logistics and ICT) also contributes to the<br />

dynamic development of some specific industries in these fields in Luxembourg.The Cluster for<br />

Logistics has united all institutional players and private enterprises in different competencies.<br />

Their shared goal is to strengthen Luxembourg’s position as a major European logistics hub,<br />

especially for high value added services. 85<br />

85 Clusters for Logistics Luxembourg asbl (2015) Luxembourg your multimodal gateway to Europe<br />

73

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