LUXEMBOURG and ICT: a snapshot

Transcription

Sogeti Luxembourg SA
In collaboration with
LUXEMBOURG and ICT:
a snapshot
Dear reader,
We are very pleased to present this comprehensive listing
of facts and figures about Luxembourg, one of the digital
champions in Europe.
Luxembourg has been thriving to put itself at the forefront of
communications technologies and innovation development
for many years. Both public and private actors invest boldly
into ultra-high-speed Internet connections and state-ofthe-art data centres in order to build a solid ground for a
prosperous digital economy in the very heart of Europe.
The recent establishment of many international companies
in Luxembourg confirms the efficiency of our strategic
positioning.
The present publication intends to present Luxembourg’s
positioning in the global ICT market to potential investors,
journalists or researchers looking for trustful benchmarks
about Luxembourg.
This guide is the result of a close collaboration between the
government and the private sector.
We hope that you will find the data presented in this booklet
informative and useful. And now, we’ll let the facts speak
for themselves!
Luc Frieden
Etienne Schneider
Minister for
Communications and Media
Minister of the Economy
and Foreign Trade
Luxembourg & ICT: a snapshot
1
Note to the reader
This publication is the result of a close collaboration between
the Ministry of State’s Media and Telecommunications
Department, the Ministry of the Economy and Foreign Trade,
and the private sector, represented by ICTluxembourg.
The aim is to provide a snapshot of the ICT sector
in Luxembourg based upon the latest statistics and
benchmarks available at the time of publication, without
pretending to be exhaustive. The data sources are
key national and international organisations that were
considered representative of Luxembourg’s progress in the
digital society.
A voluntary choice was made in the selection of countries
that Luxembourg (LU) is compared with as far as data
are available. Besides Luxembourg’s direct neighbours
Belgium (BE), France (FR) and Germany (DE), the following
countries have been chosen as they are considered the most
relevant ICT nations worldwide: Ireland (IE), Japan (JP),
the Netherlands (NL), South Korea (KR), Switzerland (CH),
the United Kingdom (UK) and the USA (US). For a better
comprehension and interpretation, reference is sometimes
made to other countries than the ones mentioned above
and their data may not necessarily appear in the tables or
figures.
The editors are not liable for the use of the information
available in this publication.
2
Table of contents
1. Luxembourg: brief outline.....................................5
2. ICT infrastructure and connectivity...................... 21
3. Information & Communication services................. 47
4. e-Skills.............................................................. 55
5. Innovation......................................................... 65
6. ICT indices, expenditure and prices...................... 73
3
Luxembourg:
brief outline
1
Official name:Grand Duchy of Luxembourg
Capital:Luxembourg
Area:The country is 82 km (51.7 miles) long and 57 km
(32.5 miles) wide, encompassing an area of 2 586 square
km (999 square miles)
Neighbouring countries: Belgium, France, Germany
Administrative divisions: 3 districts, 12 cantons, 106
municipalities
Form of government:Parliamentary democracy within
the framework of a constitutional monarchy
Head of State: HRH Grand Duke Henri (since 2000)
Total population: 537 039 habitants, including 238 982
foreign residents representing 44.5 % of the total population (January 2013)
Nationalities:More than 160, resulting in a multicultural
society
National language: Lëtzebuergesch (Luxembourgish)
Administrative languages: French, German and Lëtzebuergesch
Business languages:English, French, German
Capital of the EU:
Luxembourg is one of the decisiontaking centres of the European Union and host to a
number of services of the European Commission (including
translation, publication and statistical services), European
Court of Auditors, European Court of Justice, European
Investment Bank (EIB), European Investment Fund,
Secretariat of the European Parliament. More recently, the
European Stability Mechanism (ESM) as well as the Court
of Appeal of the Unified Patent Court (UPC) have taken up
work in Luxembourg or are about to do so.
Founding member of major international organisations: Benelux, Council of Europe, European Union, NATO,
OECD, United Nations, WTO
6
1
Luxembourg: brief outline
Currency:Euro (1 Euro=100 cents)
Internet country code:.lu
Time zone:
Central European Standard Time (CET)=GMT/UTC+1
Central European Summer Time (CEST)=GMT/UTC+2
Electric power supply: 220-240V, 50 Hz
Climate:
Mean temperatures in the city of Luxembourg (averages
1980-2011):
Year average: 9.4°C (48.9°F)
January: 1.2°C (34.2°F)
July: 18.4°C (65.1°F)
7
Luxembourg is a service-based economy: 85.6 % of the
Gross Value Added was generated in this sector in 2012;
a considerable share being taken by financial activities.
The industry (incl. manufacturing) contributed 8.3 %,
construction 5.8 % and agriculture a mere 0.3 %.
Structure of the economy, 2011
(share in Gross Value Added (GVA))
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%(
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)5
,QGXVWU\
'(
,(
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Source: Eurostat (online data code: nama_nace10_c).
8
1
The sector of information and communication is gaining
importance and represented 6.6 % of the total national
Gross Value Added, one of the highest shares in Europe.
Structure of Luxembourg’s economy, 2012
(share in Gross Value Added (GVA))
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Note: Structure based on activities according to NACE Rev.2 (Statistical
Classification of Economic Activities in the European Union - second revision)
- a full description is available through: http://ec.europa.eu/eurostat/ramon/
index.cfm?TargetUrl=DSP_PUB_WELC
Luxembourg has an open economy: it has evolved from
a steel-based economy to a successful financial services
centre. The financial sector rode out the global financial
crisis; banks are well capitalised and public finances are
robust. Luxembourg has become a major player in the
field of foreign direct investment (FDI). The remarkable
level of its FDI stocks regularly places the country into
the top rankings worldwide. In terms of investment
funds, Luxembourg ranks as the largest EU fund domicile
jurisdiction and the second largest fund domicile jurisdiction
globally.
9
Luxembourg’s GDP per capita (expressed in Purchasing
Power Standards) in 2011 was 174 % over the EU-27
average; the highest among the EU Member States and
among the highest in the world.
Gross Domestic Product per inhabitant, 2011, in
Purchasing Power Standards
(Index 100=EU-27)
8.
)5
-3
(8
/8
&+
86
1/
,(
'(
%(
Source: Statec.
10
1
Luxembourg is well-connected and markets and decisionmaking centres are close by: the time to reach Paris by
high-speed train is down to about two hours, London and
Milan can be reached by air within 90 minutes and Frankfurt
is a mere 30-minute flight.
11
Luxembourg’s labour market reflects the openness of
the economy: in addition to the 225 000 jobs taken by the
Luxembourg residents, around 156 000 persons from the
surrounding countries commute to Luxembourg every day.
In 2012, among the 355 800 salaried persons working in
the Grand Duchy of Luxembourg, 44 % had their residence
in the surrounding countries. This makes Luxembourg the
EU country where the cross-border labour market is most
developed. The cross-border workers contribute to the
wealth of Luxembourg: the GDP per capita is calculated on
the basis of the resident population, i.e. excludes the crossborder workers.
Cross-border commuters in the “Grande Région”
WALLONIE (B)
180
32 200
500
RHEINLAND-PFALZ (D)
140
170
26 900
15 150
LUXEMBOURG
150
130
200
24 700
60
7 650
SAARLAND (D)
5 600
75 600
120
1 000
17 700
1 600
LORRAINE (F)
Source: Insee, IGSS, Statec, Iweps, Statistisches Amt Saarland,
Statistisches Landesamt Rheinland-Pfalz.
The openness of the economy is also reflected by the
cross-country cooperation of the “Grande Région”, an
12
1
international initiative bringing together the authorities of
Luxembourg and the bordering regions of Belgium, France
and Germany and which addresses common economic,
social and cultural challenges.
The country has a highly skilled labour force: according
to the International Labour Organisation’s International
Standard Classification of Occupations (ISCO-08), widely
used as a tool for organising jobs according to the tasks
and duties undertaken in the job, 32.6 % of all employees
were professionals (defined as science & engineering
professionals, health and teaching professionals, business
and administration professionals, information and
communications technology professionals and legal, social
and cultural professionals).
Employees by type of occupation (ISCO classification),
2011
France
Germany
Ireland
Luxembourg
Netherlands
5.3
6.8
4.0
6.1
3.3
5.9
9.7
7.4
Professionals
17.9
19.9
16.1
15.5
22.3
32.6
21.4
24.3
22.1
Technicians
& associate
professionals
16.4
17.1
21.5
20.8
11.3
19.1
17.3
13.3
19.3
Secretarial support
workers
Switzerland
Belgium
5.0
Managers
United
Kingdom
EU-27
(% of total employees)
11.4
15.6
10.9
13.2
12.0
10.7
11.2
11.2
10.1
Service and sales
workers
17.2
12.5
16.9
15.0
22.1
9.9
19.3
20.1
16.8
Craft and related
trades workers
11.8
10.0
6.9
13.1
8.6
9.1
8.1
6.6
13.7
8.2
7.3
7.6
6.9
5.7
5.0
4.4
4.7
4.6
10.2
11.3
11.2
9.1
10.0
7.9
9.1
9.1
4.6
1.9
1.2
2.2
2.3
1.8
2.4
3.4
0.9
1.4
Plant and machine
operators,
assemblers
Elementary
occupations
Other occupations
Source: Eurostat (online data code: lfsa_eegais).
More information on the ISCO classification can be obtained
through http://www.ilo.org/public/english/bureau/stat/isco/index.htm
13
According to the OECD, the share of ICT-using
occupations (“intensive users”) in Luxembourg is
highest among OECD countries. These occupations include
scientists and engineers, as well as office workers who
rely entirely on ICTs to perform their tasks, but exclude
teachers and medical specialists (broad definition of
“intensive users” according to the OECD).
Share of ICT-intensive occupations in the total
economy, intensive users
(in percent of total occupations)
%(
)5
'(
,(
/8
1/
8.
&+
86
Source: OECD Information Technology Outlook 2010.
14
1
Another indicator of the characteristics of the labour
market is the share of knowledge-intensive activities.
An activity is knowledge-intensive if tertiary-educated
persons employed represent more than 33 % of the total
employment in that activity). In Luxembourg, 56 % of all
jobs were considered knowledge-intensive in 2011. When
limiting the scope to Business Industries (i.e. excluding
sectors such as education and healthcare), the share
amounted to 25 %. Both values rank Luxembourg highest
in Europe.
Employment in knowledge-intensive activities (KIA)
and KIA limited to business industries (KIABI) (1),
2011
(% of total employment)
(8
%(
)5
'(
,(
.,$
/8
1/
8.
&+
-3
86
.,$%,
(1) More information on the definition of knowledge-intensive activities can
be obtained through: http://epp.eurostat.ec.europa.eu/cache/ITY_SDDS/
Annexes/htec_esms_an8.pdf
Source: Eurostat (online data code: htec_kia_emp2).
15
KOF Index of Globalisation
This index is calculated by the Swiss Federal Institute of
Technology and was introduced in 2002 (KOF stands for
Konjunkturforschungsstelle). The overall index covers the
economic, social and political dimensions of globalisation.
It defines globalisation to be the process of creating
networks of connections among actors at multi-continental
distances, mediated through a variety of flows including
people, information and ideas, capital and goods. More
specifically, the three dimensions of the KOF index are
defined: economic globalisation, characterised as long
distance flows of goods, capital and services as well as
information and perceptions that accompany market
exchanges; political globalisation and social globalisation.
With regard to economic globalisation, Luxembourg was
evaluated second, just behind Singapore.
KOF Index of Globalisation, 2012
Economic Globalisation
Singapore
97.39
Luxembourg
94.63
Ireland
93.27
Malta
92.23
Belgium
92.15
Netherlands
91.91
Hungary
90.50
Sweden
88.98
Bahrain
88.96
United Arab Emirates
88.74
Source: Dreher, Axel, 2006, Does Globalization Affect Growth ? Empirical Evidence from a new Index, Applied Economics 38, 10: 1091-1110.
16
1
Quality of Life
The Economist Intelligence Unit developed a “quality of life”
index based on a unique methodology that links the results
of subjective life-satisfaction surveys to the objective
determinants of quality of life across countries. The index
has been calculated for 111 countries for 2005. Nine qualityof-life factors have been taken into account: Healthiness,
Family life, Community life, Material well-being, Political
stability and security, Climate and geography, Job security,
Political freedom and Gender equality.
The Economist ranked Luxembourg 4th among the 111
countries considered.
Economist’s Quality of Life Index (first 10 positions),
2005
Quality of Life
Score
GDP per person
Rank
$ (at PPP)
Ireland
8.333
1
36 790
Switzerland
8.068
2
33 580
Norway
8.051
3
39 590
Luxembourg
8.015
4
54 690
Sweden
7.937
5
30 590
Australia
7.925
6
31 010
Iceland
7.911
7
33 560
Italy
7.810
8
27 960
Denmark
7.796
9
32 490
Spain
7.727
10
25 370
Source: Economist Intelligence Unit.
17
The Mercer Quality of Living Survey
Mercer is a US-based consulting agency and produces
worldwide quality-of-living rankings annually. Mercer
evaluates local living conditions in more than 460 cities it
surveys worldwide.
In the ranking of cities with the highest personal safety
based upon internal stability, crime, effectiveness of
law enforcement and relationships with other countries,
Luxembourg comes first, followed by Bern, Helsinki and
Zurich, all equally placed at number 2.
Mercer Quality of Living Survey — Worldwide
Rankings, 2011 — Personal safety
Rank (1)
City
Country
1
Luxembourg
Luxembourg
2
Bern
Switzerland
2
Helsinki
Finland
2
Zurich
Switzerland
5
Vienna
Austria
6
Geneva
Switzerland
6
Stockholm
Sweden
8
Singapore
Singapore
9
Auckland
New Zealand
9
Wellington
New Zealand
( ) Bern, Helsinki and Zurich, tied for rank 2; Geneva and Stockholm, tied for
rank 6; Auckland and Wellington, tied for rank 9.
1
Source: Mercer.
More information:
h t t p://m t h i n k . m e r c e r. c o m /s a f e s t- a n d - l e a s t- s a f e - p l a c e s - t o live/?view=infographic
Mercer also measures the cost of living for expatriates
in 214 cities worldwide by comparing 200 products and
services (such as housing, transport and consumer goods).
The five most expensive cities in 2012 were Tokyo (Japan),
Luanda (Angola), Osaka (Japan), Moscow (Russia) and
Geneva (Switzerland). The city of Luxembourg ranks at
position 84.
18
1
The 2012 Legatum Prosperity Index
The Legatum Institute is an independent policy and
advisory organisation based in London. This institute
produces the Legatum Prosperity Index, which measures
prosperity across countries as a combination of material
wealth and life satisfaction. The 2012 Index has included
32 new countries, among which Luxembourg (total number
of countries: 142). The overall index, where Luxembourg
scores 11th, is composed of eight sub-indices. Luxembourg
regularly shows up in the top-10 rankings, as illustrated
below.
Legatum Prosperity Index, 2012 — Sub-indices with
top 10 rankings
Rank
1
Economy
Entrepreneurship
& Opportunity
Governance
Education
Switzerland
Denmark
Switzerland
New Zealand
2
Norway
Sweden
New Zealand
Australia
3
Singapore
Finland
Denmark
Canada
4
Luxembourg
Norway
Sweden
Taiwan
5
Sweden
Luxembourg
Finland
United States
6
Germany
United Kingdom
Canada
Norway
7
Taiwan
Switzerland
United Kingdom
South Korea
8
Canada
Australia
Australia
Finland
9
Hong Kong
Iceland
Luxembourg
Slovenia
10
Australia
Netherlands
United States
Spain
Safety & Security
Personal
freedom
Rank
Health
1
Luxembourg
Iceland
Canada
Social capital
Norway
2
Unites States
Norway
New Zealand
Denmark
3
Switzerland
Finland
Australia
Australia
4
Norway
Ireland
Ireland
New Zealand
5
Germany
Hong Kong
Sweden
Finland
6
Japan
Sweden
Norway
Netherlands
7
Netherlands
Luxembourg
Denmark
Ireland
8
Belgium
Denmark
Luxembourg
Canada
9
France
Canada
Netherlands
Sweden
10
Austria
Switzerland
Iceland
United States
Source: The Legatum Institute.
19
ICT INFRASTRUCTURE &
CONNECTIVITY
2
International connectivity
Since 2005, various initiatives have been supported by the
government to build multiple high capacity fibre networks,
connecting Luxembourg to the major hubs in Europe.
Today, a number of international operators provide fibre
or leased connectivity (1). Beside these operators, multiple
global bandwidth operators as well as Tier1-2 carriers (2)
lease capacity into Luxembourg and are operating one or
more PoPs (Point of Presence).
Luxembourg is located in the middle of the so-called
“Golden ring”, which shapes the major Internet hubs of
Europe: London, Amsterdam, Frankfurt and Paris.
NETHERLANDS
UNITED
KINGDOM
Amsterdam
GERMANY
London
BELGIUM
18 different fiber routes
to Luxembourg (Q1-2013)
Cegecom (by Artelis)
Brussels
Cogent Communications
Frankfurt
Level 3
LuxConnect
LUXEMBOURG
FRANCE
Telecom Luxembourg Private Operator
Teralink (by P&T Luxembourg)
Verizon
Paris
Strasbourg
Tier-1 n e t wo r k s (s e t t l e m e nt-f r e e int e r c o nn e c tions)
99 AT & T
99 Cogent Communications
99 Inteliquent
99 Level 3
99 TeliaSonera
99 Verizon
(1) A key component of shared infrastructure is the Indefeasible Right of Use
(IRU) agreement to share or lease capacity on fiber optic networks on
long term, typically more than 10 years. Fiber optic IRU agreements can
involve many forms including the lease of one or more fiber strands in an
operational network or the lease of dark fiber that is not connected with
an existing network. Many IRU agreements provide for the lease of entire
networks of fiber optic capacity in various configurations.
(2) A tier-1 carrier owns a network in which it is the sole operator- meaning it
has a direct connection to the Internet and the networks it uses to deliver
voice and data services. A tier-2 carrier operates the same way, except it
may get a portion of its network from a tier-1 operator (“peering”) Tier-3
refers to a carrier who gets 100% of its network through a tier-1 or tier-2
operator, with no direct-access of its own.
22
2
ICT INFRASTRUCTURE & CONNECTIVITY
International carriers
99 BICS/Belgacom
99 BT/British Telecom
99 Cable & Wireless
99 Colt
99 Eutelsat
99 Hibernia Atlantic
99 Inexio
99 Interoute
99 Ip Transit
99 Kaia Global Networks
99 KPN
99 NLix
99 Telenet
National carriers (with international service offering)
99 BCE – Broadcasting Center Europe
99 Cegecom
99 Datacenter Luxembourg
99 LuxConnect
99 P&T Luxembourg / Teralink
99 Root
99 SES
99 Telecom Luxembourg Private Operator
99 Telindus Telecom
An exhaustive list of all operators notified in Luxembourg
can be obtained through:
http://www.ilr.public.lu/communications_electroniques/
registrepublic/index.html
23
All operators offer low RTT latency values for connections
to Europe, i.e. the length of time it takes for a signal to be
sent plus the length of time it takes for an acknowledgment
of that signal to be received (Round-Trip Time – RTT, or
“ping time”).
Latency values to some major European centres
AMSTERDAM
BRUSSELS
LONDON
6 ms
FRANKFURT
3.5 ms
8 ms
4.5 ms
LUXEMBOURG
PARIS
4.8 ms
4.8 ms
STRASBOURG
Source: Luxembourg for Business - proud to promote ICT.
Peering denotes the voluntary interconnection of separate
Internet networks. Peering brings mutual benefits as it
helps reducing network dependence, increases network
capacity, offers better routing control and an improved
perception of the network as a higher ‘tier’ classification
can be achieved.
The Luxembourg Commercial Internet Exchange (LUCIX) is relatively young. It was founded in 2009 and allows
various Internet service providers to exchange Internet
traffic between their networks.
LU-CIX has a neutral independent structural organisation.
The LU-CIX platform supports IPv4 and IPv6 and is hosted
in four data centres, including two Tier-IV Design certified
facilities.
There are 51 Autonomous Systems (ASs) on LU-CIX and
more than 320 ASs on partner Internet exchange hubs
(ECIX and France IX).
More information through:
http://www.lu-cix.lu/european-ix-access.html
24
2
National connectivity
In terms of national connectivity, the telecommunication
market has been liberalised in 1998. Investments in
fixed-line and mobile infrastructure have increased steadily
and are expected to continue for the years to come as
operators migrate from copper to FTTH and FTTC (“Fibreto-the-Home”, “Fibre-to-the-cabinet”) or upgrade coax
networks to DOCSIS 3.0. Also, considerable investments
continue to be dedicated for an improved mobile broadband
connectivity using HSPA and LTE technology (see section of
broadband connectivity by technology).
In 2009, public investments per capita reached USD 345,
ranking second among the OECD countries, after Australia
(USD 347).
Public telecommunications investment per capita in
2009, in USD
/8
&+
86
%(
-3
1/
,(
8.
)5
'(
.5
Source: OECD Communications Outlook 2011.
25
Communication access paths
In terms of communication access paths, defined
as the total number of analogue and ISDN lines, DSL,
cable modem, fibre, mobile and other lines, Luxembourg
compares very well: 230 access paths per 100 inhabitants
were registered in 2009, among which the fixed access
paths represented 53 lines, the highest number among the
selected OECD countries and second (after Canada, with 55
fixed lines) among all OECD countries listed.
Communication access paths per 100 inhabitants,
2009
/8
8.
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DYHUDJH
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In the framework of bandwidth maximisation (upgrading to
DOCSIS 3.0 standard), looking at cable penetration may
reveal interesting.
Among Luxembourg households equipped with television
(virtually 100 %), close to 70 % indeed subscribed to a
cable connection in 2009 (among those households which
had a possibility to link up to a cable network, over 90 %
subscribed). Direct Broadcast Satellite (DBS), providing
audio and video programming in a linear fashion, free or
via subscriptions, are used by another 25 % of households,
the remainder using terrestrial networks.
26
2
IP-TV has been introduced to the Luxembourg market
with an increasing success. According to the Institut
Luxembourgeois de Régulation (ILR), the authority in
charge of regulating the electronic communications market,
11.3 % of all Luxembourg households were equipped with
IP-TV in 2011.
Television access by distribution platform, 2009
(in percent of total)
'(
.5
/8
%(
7HUUHVWULDO
1/
861
&DEOH
,(
8.
)5
'%6
(1) 2008 data.
3G, or third generation mobile telecommunication
network, allows for applications such as wide-area
wireless voice telephone, mobile Internet access, video
calls and mobile TV, all in a mobile environment.
In 2008, 95 % of Luxembourg’s population was already
covered with third generation networks and 100 % has
access since 2009.
27
Percentage of total population living in areas
covered by 3G - third generation mobile networks
2008
2009
2010
EU-27
74%
82%
90%
Belgium
90%
97%
98%
France
72%
88%
95%
Germany
85%
85%
89%
Ireland
87%
94%
100%
Luxembourg
95%
100%
100%
Netherlands
99%
99%
99%
United Kingdom
91%
93%
95%
Source: Digital Agenda for Europe Scoreboard 2012.
4G, the fourth generation mobile telecommunication
network, using a series of technologies that allow faster
downstream speeds, has been launched in 2012. According
to the ILR, 64 % of the population is covered by the 4G
network (as of December 2012).
Broadband connectivity
Based upon figures provided by the ILR, Luxembourg has
a 100% coverage of standard broadband (DSL, up to 25
Mbps) since a number of years. VDSL, the high-speed
variant (25 Mbps or over) of DSL and transmitted over
conventional telephone lines reached close to 88% of
households in 2012. FTTP, using fibre optic cable is further
progressing and was usable by close to a third (31.8%)
of all Luxembourg households. DOCSIS 3, using standard
cable, reaches 60% of all households.
Looking at the country’s coverage of the mobile network,
HSPA, an improved 3G network, virtually covers all
households. LTE services have started to be deployed only
very recently but were available to 64% of the households
in 2012.
28
2
Luxembourg: coverage by technology
(percentage of households covered)
'6/
9'6/
)773
'2&6,6
FDEOH
+63$
/7(
Source: ILR.
Broadband technologies
DSL: Broadband over conventional telephone lines; maximum
download speed under 25 Mbps.
VDSL: very high speed version of DSL (25 Mbps or more)
over conventional telephone lines.
FTTP: Broadband over fibre optic cables all the way to the
home/business; includes “FTTB” where fibre ends at the
building and distribution within the building is by VDSL.
WiMAX: Wireless service using IEEE standards(Institute of
Electrical and Electronics Engineers); fixed or mobile access.
Standard cable: broadband over fixed TV cable network
using coaxial cable (download speeds around 20 Mbps).
DOCSIS 3: as standard cable, but download speeds of 30
Mbps and above.
HSPA: High Speed Packet Access: upgrade of 3G mobile
networks, with download speed of at least 21.1 Mbps.
LTE: stands for ‘Long Term Evolution’: next generation
mobile service (separate spectrum from 3G) supporting
downstream speeds of at least 100 Mbps.
Satellite: broadband by KA-band satellites supporting at
least 2 Mbps downstream per user and a direct return channel.
29
The OECD’s broadband portal offers international
comparisons in terms of broadband connectivity.
According to the latest information available (June 2012),
there were some 32 fixed broadband subscriptions per 100
inhabitants in Luxembourg, the majority of which were DSL
connections, as in most European countries.
Fixed (wired) broadband subscriptions per 100
inhabitants, by technology, June 2012
&+
1/
.5
'6/
)5
'(
&DEOH
8.
%(
)LEUH/$1
/8
86
-3
,(
2WKHU
Source: OECD Broadband Portal.
30
2
Looking at households rather than individuals, and
keeping in mind that 100 % of the country has theoretically
access to broadband, 68 % of the households were indeed
connected in 2011.
Percentage of households with broadband access,
2011
1/
8.
'(
%(
)5
/8
,(
31
The Next Generation Access (NGA) coverage
combination (VDSL, DOCSIS 3 cable and FTTP) is intended
to show how far advanced a country is towards achieving
the EU’s Digital Agenda objective of access to 30 Mbps
broadband for all by 2020. In this respect, Luxembourg
achieved a score of 75 %.
Total Next Generation Access (NGA) coverage
(minimum: 30 Mbps), 2011
(percentage of households covered)
1/
%(
/8
'(
8.
)5
,(
Source: European Commission, DG INFSO, Report: Broadband coverage in Europe in 2011.
32
2
Furthermore, the ILR reported that in 2012, 16.2 % of
all broadband subscriptions in Luxembourg were NGA
connections of 30 Mbps or more.
Considering mobile wireless broadband access,
Luxembourg ranks first among the selected European
countries, with close to 65 subscriptions per 100
inhabitants (only the Nordic countries have higher rates).
Standard mobile subscriptions form the majority of these
subscriptions.
Terrestrial mobile wireless broadband subscriptions
per 100 inhabitants, by technology, June 2012
.5
-3
86
/8
,(
8.
1/
&+
)5
'(
%(
'HGLFDWHGPRELOHGDWDVXEVFULSWLRQV
7HUUHVWULDOIL[HGZLUHOHVV
6WDQGDUGPRELOHEURDGEDQGVXEVFULSWLRQV
6DWHOOLWH
Source: OECD Broadband Portal.
More information: http://www.oecd.org/internet/broadband/oecdbroadbandportal.
htm
33
In the framework of the take up of mobile broadband,
an increase in the use of dedicated data service cards/
modems/keys was registered, essentially due to a steep
increase in the number of persons using the Internet
through handheld devices such as smartphones or tablets.
In January 2012, the penetration rate for all active users in
Luxembourg reached 64.8 %.
Mobile broadband penetration – all active users,
January 2012
(in percent)
/8
8.
,(
1/
)5
'(
%(
Broadband quality and benefits
The Broadband Quality Score (BQS) is the result of
studies, carried out by the Saïd Business School (University
of Oxford) and the University of Oviedo (Spain) and
sponsored by CISCO, that highlight each country’s ability
to benefit from next-generation web applications and
services. It notably looks at the extent of the digital quality
divide between urban and rural areas and compares the
quality of fixed and mobile broadband services.
In its latest study, covering 72 countries worldwide,
Luxembourg ranked overall 5th in the Broadband Leadership
table of 2010 (sharing this rank with Switzerland and
Singapore) and has improved its score compared to 2008.
34
2
BQS score: ranking evolution of top 10 countries,
2008-2010
2008
2009
2010
Korea
1
1
1
Hong Kong
2
3
2
Japan
4
7
3
Iceland
8
4
4
Switzerland
6
5
5
Luxembourg
9
5
5
Singapore
3
2
5
19
10
6
Malta
Netherlands
5
6
7
19
12
8
Qatar
11
2
8
Sweden
9
8
9
Denmark
7
9
10
Source: Saïd School of Business/University of Oxford.
For more information:
http://www.sbs.ox.ac.uk
http://newsroom.cisco.com/dlls/2010/prod_101710.html
Broadband quality is often linked to social and economic
benefits and broadband penetration can hence be
considered as a proxy for digital transformation. Faster
Internet make businesses more efficient and are of help
in the expansion of online services, thus enabling digital
progress.
This is addressed in Measuring the Broadband Bonus in
Thirty OECD Countries, OECD Digital Economy Papers, No.
197, 2012, where the economic value created by broadband
Internet using measures of new gross domestic product
and consumer surplus are estimated. Expressing this per
capita provides a sense of how much each resident gains
from access to broadband. Here, Finland, Luxembourg, the
Netherlands, and Norway do very well.
35
Broadband bonus per capita in 2010 USD
%(
)5
'(
,(
-3
.5
/8
1/
&+
8.
86
Source: Greenstein, S. and R. McDevitt (2012), “Measuring the Broadband Bonus in Thirty OECD Countries”, OECD Digital Economy Papers,
No. 197, OECD Publishing.
When considering the per capita broadband bonus in
quality-adjusted terms (i.e. simultaneously experiencing
large improvements in broadband quality and declining
real prices), Luxembourg, Switzerland and the Netherlands
have done remarkably well over the past half decade.
Quality-adjusted broadband bonus per capita in 2010
USD
8699
%(
)5
'(
,(
-3
.5
/8
1/
&+
8.
86
Source: Greenstein, S. and R. McDevitt (2012), “Measuring the Broadband Bonus in Thirty OECD Countries”, OECD Digital Economy Papers,
No. 197, OECD Publishing.
36
2
Very high-speed broadband for all
The transition from traditional telecommunications
networks to a broadband network, or high-speed broadband,
has a positive socio-economic impact. Luxembourg has
become one of the European leaders in terms of broadband
penetration. Given the already deployed optical fibre,
Luxembourg has the opportunity to position itself among
the most advanced countries when it comes to very highspeed broadband.
With its National strategy for very high-speed
networks, issued in April 2010, the Government is
favourably influencing the costs of network deployment,
by increasing, in the short term, the speeds of the existing
networks, and provide, in the medium term, access to
optical fibre in the entire territory. Luxembourg would then
become the first “fibred” country of the European Union.
For instance, 100 % of the population should have the
possibility for a connection of min. 1 Gbit/s downstream
and min. 500 Mbit/s upstream by 2020.
The strategy paper mentions how these goals are to be
achieved. The English version is available through:
www.investinluxembourg.lu/ict/very-high-speed-broadbandstrategy
37
Data centres
Data centres are facilities used to house computer systems
and associated components, such as telecommunications
and storage systems. With the development of the
Internet, enterprises needed fast connectivity and nonstop
operation to deploy systems and establish a presence on
the Internet. Business continuity has to be insured and
the risk of a disruption has to be kept to a minimum. As
installing such equipment was not viable for many smaller
companies, data centres (both public and private) were
built, providing businesses with a range of solutions for
systems deployment and operation.
Luxembourg boasts one of the most modern data
centre parks in Europe and has 19 data centres in
operation, with a total net floor space of over 40 000 m²
(over 440 000 ft²), surpassing cities like Stockholm or
Brussels with regard to shared IT Rooms. Many major public
and private players have established their data centres
in Luxembourg, including the European Commission and
many financial institutions.
With the uptake of cloud computing (which generally
denotes the use of computing resources delivered over the
Internet), data centres are scrutinised to a higher degree in
areas such as security, availability, environmental impact
and adherence to standards.
Data centres are certified according to four levels (called
“Tiers”), as laid down by the ANSI/TIA-942 standards,
from the simple Tier I data centre to the most stringent
Tier IV data centre, designed to host mission critical
computer systems, with fully redundant subsystems and
compartmentalized security zones controlled by biometric
access controls methods (see box). The majority of data
centres in Luxembourg are recent constructions and offer
Tier-IV or Tier-III service level. Natural disasters such
as earthquakes, floods or hurricanes are unknown to
Luxembourg. There is no server tax in Luxembourg and
energy prices, which constitute a substantial part of the
operating costs, are considered to be competitive.
Among the 19 data centres in Luxembourg, three are
certified Tier IV design by the Uptime Institute. Another
three are expected to be certified by the end of 2013, which
will then represent an estimated 20% of the total number
of Tier IV Design certified data centres worldwide.
38
2
Data Centre Certification
Tier I: Non-redundant capacity components (single
uplink and servers) – 99.671 % availability.
Tier II: Tier I + Redundant capacity components –
99.741 % availability.
Tier III: Tier I + Tier II + Dual-powered equipments and
multiple uplinks – 99.982 % availability.
Tier IV: Tier I + Tier II + Tier III + all components are
fully fault-tolerant including uplinks, storage, chillers,
Heating/Ventilation/Air conditioning systems, servers
etc. Everything is dual-powered – 99.995 % availability.
Luxembourg Data Centres, operational 2013
Tier I
Tier II
Tier III
Tier IV
Multi-tier
Total
Number
Net floor
space ft²
Net floor
space m²
0
-
-
5
7
6
26 910
90 955
267 064
Data centre
operators
-
Data centre service
providers
-
2 500
CegecomCegecom-Artelis, eBRC,
Artelis, eBRC,
SES, Sungard, Visual
SES, Sungard,
Online
Visual Online
8 450
BCE, BT,
Cetrel, eBRC,
LAB data
Vault PSF,
SecureIT,
Verizon
BCE, BT, Cetrel,
Datacenter
Luxembourg, eBRC,
LAB data Vault PSF,
SecureIT, Verizon
eBRC, EDH
(European
Data Hub)
run by CSC,
LuxConnect
Cegecom-Artelis,
Conostix, Datacenter
Luxembourg, eBRC, EDH
(European Data Hub)
run by CSC, IBM, Iris,
LuxConnect, Netcore,
Orange Business
Services, SecureIT,
Solido, Steria PSF
Luxembourg, Systemat,
Telecom Luxembourg
Private Operator,
Telindus Telecom, Visual
Online
LuxConnect
Datacenter
Luxembourg, IBM,
LuxConnect, Root,
Systemat, Tech-IT PSF,
Telecom Luxembourg
Private Operator,
Telindus Telecom
24 811
1
51 128
4 750
19
436 057
40 511
Source: Luxembourg for Business - Proud to promote ICT.
39
In March 2013, a comparison of nine high-availability data
centres located in continental Europe, the UK and the
US was carried out by ip-label, specialised in quality of
experience measurement and monitoring (www.ip-label.
fr). Luxembourg data centres did extremely well by mostly
outperforming their competitors.
Comparison of nine high-availability data centres,
2013
Operator
Availability
rate
Performance
rate
Index *
Luxembourg data centre #1
99.98%
121 ms
94.40 pts
99.98%
127 ms
94.10 pts
UK data centre #1
99.99%
143 ms
93.47 pts
99.97%
141 ms
93.36 pts
UK data centre #2
99.97%
164 ms
92.26 pts
German data centre
99.99%
192 ms
91.26 pts
Dutch data centre
99.97%
190 ms
91.12 pts
US data centre
99.97%
223 ms
89.63 pts
(values not validated by operator)
99.99%
125 ms
94.28 pts
* coefficient applying a weighted factor to the availability rate (2/3)
and performance rate (1/3).
Source: ip-label (www.ip-label.fr).
40
2
Domain names
Internet host surveys are a leading measure of Internet
growth. An Internet host is a machine or application
connected to the Internet and identified with a unique
IP address. Internet hosts can be servers that provide
services to other machines across the Internet (e.g. web,
e-mail and FTP servers) and/or clients that access these
services remotely. Data on Internet hosts can help provide
information on network growth and accessibility, as well as
the density with which hosts populate address space. The
countries with the highest host growth rate between 2008
and 2010 were Canada, the Czech Republic, Greece and
Luxembourg.
Average annual growth in Internet hosts by domain,
2000-10
OX
LH
IU
QO
EH
GH
FK
XN
XV
NU
FRP QHW
Source: OECD, based on Internet Software Consortium surveys.
41
The domain name system (DNS) translates user-friendly
domain names into IP addresses. The DNS servers distribute
this task among servers allocated to each domain. TopLevel Domains (TLDs) are divided into two classes: generic
Top-Level Domains (gTLDs) (such as .com or .org, and
country code Top-Level Domains (ccTLDs). Domain name
registrations are an indicator of interest in adopting a web
presence. The ccTLD values for the United States are low
as most hosts in the US use gTLDs such as .com and .net.
In mid-2010, the Luxembourg ccTLD, .lu, had a ratio of 107
registrations per 1 000 inhabitants.
Country-related ccTLD registrations per 1 000
inhabitants, mid-2010
1/
&+
'(
8.
/8
%(
,(
)5
.5
-3
86
Source: OECD Communication Outlook 2011.
42
2
Looking at the distribution of top-level domains by
categories of registrants (i.e. country-code levels, generic
TLDs and .eu TLDs), the high share of .eu level domains
in Luxembourg (close to 22 %) becomes apparent, partly
explained by the presence of EU institutions in Luxembourg.
Domain name registrations per 1 000 inhabitants,
mid-2010
1/
&+
'(
/8
8.
FF7/'V
86
J7/'V
%(
,(
)5
.5
-3
HX
Source: OECD and Zooknic (www.zooknic.com).
43
IPv6 protocol
IPv6 is the latest revision of the Internet Protocol
(IP), the communications protocol that routes traffic
across the Internet. It is intended to replace IPv4, which
still carries the vast majority of Internet traffic but,
with the ever-increasing number of new devices being
connected to the Internet, is increasingly faced with
the problem of address exhaustion. IPv6 uses a 128-bit
address (IPv4: 32-bit). Apart from the provision of a larger
number of IP addresses, IPv6 ensures a better support for
mobile devices, a simplified address auto-configuration,
improved address management, and increased security
(more information: http://ipv6.com/articles/general/IPv6Beginners_Look.htm).
Luxembourg, the Netherlands and Norway are the only
OECD countries where over 30 % of routed autonomous
systems announced IPv6 addresses, demonstrating
relatively early adoption of IPv6 by networks in these
countries.
Share of routed autonomous systems routing IPv6,
2010 - year-end
(in percent)
/8
1/
-3
,(
'(
&+
)5
%(
.5
8.
86
Source: OECD Communication Outlook 2011 and Potaroo (www.potaroo.net).
44
2
ICT equipment in enterprises
In 2012, among the enterprises with 10 or more employees,
practically all (98 %) have Internet access, virtually all
(95 %) through a broadband access and many (54 %) also
through a mobile connexion (Source: Statec).
Three quarters of the enterprises feature their own website.
In terms of available IT structure,
••48 % of the enterprises featured an Intranet
••32 % featured an extranet
••16 % had videoconferencing facilities and among the
enterprises using computers
••100 % worked with a wired local area network (LAN)
••43 % had also a wireless local area network (WLAN)
45
INFORMATION &
COMMUNICATION SERVICES
3
Importance of the Information &
Communication sector in the national economy
The sector of “Information and Communication” (1)
encompasses activities linked to “Publishing”, “Motion
picture,
video,
television
programme
production;
programming and broadcasting activities”, “Telecommunications” as well as “Computer programming, consultancy,
and information service activities”. This sector contributed
6.6 % to the total gross value added (GVA) generated in
Luxembourg in 2012. This share lies considerably over
the EU-27 average (4.6 % of the total GVA) and is the
highest among the 27 EU Member States. Looking at the
development over time, and with the number of digital
services constantly progressing, the sector has been
growing considerably in Luxembourg as its share passed
from 5.4 % of total GVA in 2006 to a peak of 6.8 % in 2011.
Information and Communication sector: share in
total gross value added (at basic prices)
(in percent)
(8
/8
(1) Defined as Section J in the nomenclature of economic activities (NACE
Rev. 2).
48
3
INFORMATION & COMMUNICATION SERVICES
total gross value added (at basic prices), 2012
(in percent)
%(
&+
/8
8.
(8
1/
)5
'(
Note: Figure for Ireland is not available.
As the contribution of “Information and Communication”
services to the total GVA (6.6 %) is considerably higher than
the share this sector takes in total employment (4.0 %), the
high added value of these services is suggested.
total employment (based on persons), 2012
(in percent)
,(
/8
8.
'(
1/
(8
)5
%(
* 2011 data.
Source: Eurostat (online data code: nama_nace10_e).
49
The importance of this sector in the local economy isn’t
surprising considering the presence of global players such
as the RTL Group (see separate box) and SES (Société
Européenne des Satellites – see separate box) and numerous
companies offering IT and ancillary services to the financial
sector. Recognising the advantages of a central location
in Luxembourg, the favourable business environment
and state-of-the-art ICT infrastructures, well-known
enterprises have set up business in Luxembourg more
recently: Amazon.com, eBay, iTunes, Kabam, Nexon,
PayPal, Rakuten, Skype, Vodafone Procurement to
name but a few. Typical activities carried out by these
enterprises comprise
••digital content distribution (music, video, games)
••electronic data archiving and management
••online selling platforms
••communications services
••cloud services (SaaS, PaaS, IaaS)
••electronic payment systems
••support services
••translation
••localisation
RTL Group
•• Founded in 1931 as Compagnie Luxembourgeoise de Radiodiffusion (CLR).
•• Changed name in 1954 : Compagnie Luxembourgeoise de Télédiffusion
(CLT) ; first TV Channel in French language (making it, together with ITV
in the UK, the oldest European commercial TV channel).
•• RTL Group was created in 2000.
•• Various business units: television, content production, radio.
•• With 45 television channels and 33 radio stations in 11 countries, RTL
Group is the leading European entertainment network.
50
3
SES – Société Européenne des Satellites
•• SES was incepted in 1985 with the support of the Luxembourg Government
to provide a platform for the direct-to-home reception of satellite TV in
Europe.
•• Today, SES is one of the world’s leading telecommunications satellite
operators with a global fleet of 52 satellites (and, as of Dec. 2012, a
further 6 under construction) providing worldwide connectivity covering
99% of the world’s population.
•• SES distributes more than 5 200 TV channels (of which 1 400 in HD).
•• SES provides corporate customers with secure networks and supports
telecommunications operators with backhaul solutions; it establishes
maritime communications and aeronautical connectivity.
•• SES has its headquarters in the Château de Betzdorf, not far from the
capital city, has 1 200 employees spread over more than 40 offices and
technical facilities around the world.
Trusted data management
The financial sector is the largest contributor to the
Luxembourg economy. It is grounded in the social and
political stability of the country and a modern legal
and regulatory framework. Financial institutions are
increasingly outsourcing operations relating to their core
business activities. Since the quantity of critical operations
outsourced is constantly on the rise, the outsourcing
arrangements themselves are becoming increasingly
complex. In Luxembourg, the development of outsourcing
is actively supported and also regulated and supervised.
Enterprises with PSF statute for regulated
outsourcing
A unique legal framework applying to service providers
that enter into outsourcing arrangements with financial
institutions is the so-called PSF (Professionnels du Secteur
Financier) statute. It ensures that the quality of processes
and governance comply with the regulatory environment
in which they operate, as their operations fall under the
supervision of the Commission de Surveillance du Secteur
Financier (CSSF), to the same extent as financial institutions
themselves. It therefore minimises operational risks and
data breach risks allowing the financial institutions to
concentrate on their core business and entrust specialised
service providers with auxiliary yet business critical
activities.
51
The PSF statute can be obtained from the CSSF, the
authority responsible for the prudential supervision of
credit institutions and other actors of the financial sector.
Since 2003, the CSSF grants the statute to enterprises
providing operational and support services, including
accessing confidential data on behalf of a financial
institution. Expertise in providing support services and the
fulfilment of prudential and reporting requirements has to
be demonstrated. Beginning of May 2013, the total number
of PSF enterprises amounted to 314, of which 84 were
“Support PSFs” (services linked to client communication,
acting as administrative agents, operating IT systems and
networks).
Number of enterprises with PSF statute, by category
of enterprise
6XSSRUW3)6
6SHFLDOLVHG3)6
,QYHVWPHQW)LUPV
* as of 7 May 2013.
Source: Commission de Surveillance du Secteur Financier, Luxembourg
(CSSF).
PSDC-certified enterprises
Not exclusively linked to the financial sector, PSDC stands
for Prestataires de Services de Dématérialisation et/ou de
Conservation and is a certification for service providers
dealing with electronic archiving. Since 1986, a
legislation on electronic archiving is already in place, but it
is hardly applied, partly due to the technical constraints that
52
3
prevailed at the time and the obligation to keep an original
version. A new legislation will soon be adopted essentially
offering technological neutrality, while physically archiving
the original document is no longer compulsory as there
would be a legal presumption of the copies’ conformity to
the originals. This unique legal framework in the European
Union will contribute to the positioning of Luxembourg
as a safe data hub as it will offer legal certainty and
puts trust in the service providers. The principles for
certification adopted by the responsible authority (Institut
Luxembourgeois de la Normalisation, de l’Accréditation, de
la Sécurité et qualité des produits et services – ILNAS) are
largely inspired by the ISO 27001 standard (2005 version,
with some amendments). Certified enterprises may expect
audits at regular intervals.
More information can be obtained through :
ht tp://w w w.ilnas.public .lu/f r/c onf ianc e -numer ique/
archivage-electronique/index.html
53
e-SKILLS
4
e-Skills should encompass a broad set of skills necessary
in the modern workplace. Successful innovation in an
economy dominated by the services sector requires crossdisciplinary, cognitive and problem-solving skills as well
as an understanding of the fundamentals of business and
communication skills, including competence in foreign
languages. e-Skills may be seen as an element of “Digital
Inclusion”, a ubiquitous term that denotes the inclusion of
all members of society in accessing the potential offered
by technology use or “Digital Literacy”, encompassing the
skills required for the confident and critical use of ICT for
work, leisure, learning and communication.
Information technologies remain a priority of the
Luxembourg government as Luxembourg ranks high
with regard to the proportion of IT-intensive occupations
in the total economy (see Chapter 1). The presence of
businesses such as Amazon.com, eBay, iTunes, Kabam,
Onlive, Paypal, RTL, SES, Skype, and many more illustrates
both the relative importance of the ICT services’ sector in
Luxembourg and hence the labour market opportunities.
Connecting to the Internet
In 2012, 90 % of the Luxembourgish population connected
to the Internet at least once per week; 81 % used the
Internet on a daily basis.
Frequency of Internet access: daily, 2012
(percentage of all individuals)
(8
,(
/8
1/1
8.
%(
'(
)5
(1) NL: 2011.
Source: Eurostat (online data code: isoc_bde15cua).
56
4
e-SKILLS
Computer skills and Internet skills
In terms of computer skills, the European survey on
ICT usage in households and by individuals showed that
Luxembourg, together with the Nordic countries, featured
the highest shares of highly skilled computer users in
Europe (40 % of the individuals). The skills classification as
illustrated in the figure below is linked to the performing of
a certain number and type of computer-related tasks.
Individuals’ level of computer skills, 2012
(percentage of individuals)
/8
1/1
'(
/RZVNLOOHG
)5
%(
0HGLXPVNLOOHG
8.
(8
,(
+LJKVNLOOHG
(1) NL: 2011.
Source: Eurostat (online data code: isoc_sk_cskl_i).
57
When limiting the view to the different levels of Internet
skills, an average 30 % of the EU population had basic
skills, the same share as observed in Luxembourg. In
contrast, a considerably higher share of the individuals
in Luxembourg was medium-skilled (47 %). Thirteen
percent of all individuals were highly skilled. Similarly to
computer skills, the levels of Internet skills were measured
as the usage of a certain number and type of Internet
functionalities.
Individuals’ level of Internet skills, 2011
1/
/8
/RZVNLOOHG
8.
'(
%(
0HGLXPVNLOOHG
)5
(8
,(
+LJKVNLOOHG
Source: Eurostat (online data code: isoc_sk_iskl_i).
58
4
e-SKILLS
Internet-based activities
The following elements further detail the Internet skills and
show some aspects of Internet-based activities.
Internet use: participating in social or professional
networks, 2011
%(
(8
8.
1/
/8
'(
,(
)5
Source: Eurostat (online data code: isoc_bde15cua).
Internet use: Internet banking, 2012
1/1
/8
%(
)5
8.
'(
,(
(8
(1) NL: 2011.
Source: Eurostat (online data code: isoc_bde15cbc).
59
Internet use: Last online purchase in the last 12
months, 2012
,(
%(
(8
8.
1/1
/8
'(
)5
(1) NL: 2011.
Internet use: ordering goods or services over the
Internet from sellers from other countries (EU or non
EU) in the last 12 months, 2012
/8
,(
%(
8.
)5
1/
(8
'(
60
4
e-SKILLS
e-Skills by age class
When considering the level of computer skills by age
class, the relative advantage of Luxembourg becomes
more apparent with age; individuals seem to continuously
update their e-skills.
Obviously, the share of individuals with high computer
skills will be the most important in the younger age classes
and Luxembourg scores well: for the 25-34 year olds for
instance, the percentage of individuals with high skills in
the EU ranges between 13 in Romania to 67 in Finland
(Luxembourg: 51 %). However, 35 % of the 45-54 year olds
in Luxembourg had high skills, a share only surpassed by
Sweden (36 %), Denmark (39 %) and Finland (43 %). Finally,
29 % of the 55-64 year olds had high computer skills, the
highest share among the EU countries (the Netherlands
and Finland share 2nd place with 22 %).
Individuals’ level of computer skills, by age class,
2012
(8
/8
(8
(8
/81
WR\HDUVROG
(8
/8
WR\HDUVROG
/RZVNLOOV
WR\HDUVROG
0HGLXPVNLOOV
/8
WR\HDUVROG
(8
/8
WR\HDUVROG
+LJKVNLOOV
Note: Data for “Low skills” for Luxembourg are unreliable for all age classes.
(1) “Low skills”: not available.
Source: Eurostat (online data code: isoc_sk_cskl_i).
61
How e-Skills are being acquired by individuals
Looking at the ways how e-skills have been obtained,
35 % of all individuals became acquainted with IT skills
through formal education. More than a quarter (26 %)
through training courses upon demand of their employer;
27 % proceeded to self study. “Learning by doing” is quite
widespread, as 66 % of all individuals in Luxembourg
have recourse to this way of acquiring IT skills, nearly 10
percentage points more than the EU-27 average (57 %).
Finally 69 % obtained informal assistance from colleagues
or friends.
IT skills through formalised educational institution
(school, university, etc.), 2011
(8
'(
8.
/8
%(
)5
1/
Source: Eurostat (online data code: isoc_sk_how_i).
62
4
e-SKILLS
IT skills through training courses and adult
education centres, on own initiative, 2011
'(
/8
(8
8.
%(
1/
)5
IT skills through training courses and adult
education centres, on demand of employer, 2011
%(
'(
/8
1/
8.
)5
(8
63
Enterprises: training provided to IT specialists
When limiting the view to the ICT sector, 64 % of all
enterprises in Luxembourg provided training to their ICT/
IT staff in order to further enhance the skills, considerably
over the EU average of 50 %.
Share of enterprises (1) in the ICT sector providing
training to ICT/IT specialists to develop or upgrade
their ICT skills, 2012
(in percent)
1/
'(
(8
)5
/8
%(
8.
(1) Enterprises with 10 persons employed or more.
Source: Eurostat (online data code: isoc_ske_ittn2).
64
INNOVATION
5
Economic globalisation has changed the world’s economic
order in a fairly short time span, creating new challenges
and opportunities. A country cannot compete in this
new environment unless it becomes more innovative
and responds more effectively to business trends and
consumers’ needs and preferences. Luxembourg has a
wealth of creative people, is open-minded and can rely
on its cultural diversity. Historically, it has a strong and
pro-active public sector, which takes on its responsibilities
by acting as a facilitator to stimulate the country’s
capability of innovation, thereby contributing to greater
competitiveness, sustainability and job creation.
Expenditure on R&D
Considering the importance of R&D and innovation
for a competitive economy based on knowledge, the
government has devoted itself to gradually increasing
R&D related expenses to a level between 2.3 % to 2.6 %
of the Gross Domestic Product (GDP). The State budgets
dedicated to R&D and innovation, which are set aside for
the public sector as well as for private sector support, have
constantly increased and corresponded to 0.62 % of GDP in
2012. While the country is catching up in this domain, there
are other aspects where it excels: comparing the gross
expenditure on Research and Development (R&D) per
inhabitant with that of a selection of other EU countries,
the overall expenditure, i.e. that of all sectors of funding
destined to all sectors of performance (business enterprise
sector, government sector, higher education sector and the
private non-profit sector) ranks high: an average of EUR 1
188 per inhabitant was spent in 2011, substantially more
than in the other countries and more than double the EU
average (EUR 511). Total R&D expenditure has remained
high over time; although somewhat lower in 2005, the
global picture has remained the same.
66
5
INNOVATION
Total intramural R&D expenditure (GERD), all sectors
of performance and all sources of funds
(in EUR per inhabitant)
/8
'(
1/
)5
%(
,(
(8
8.
Note: data for 2011 are either estimated or provisional.
Source: Eurostat (online data code: rd_e_gerdfund).
R&D expenditure by sector
Looking at the sectors to which the funding was allocated
in 2011, the relatively high share of the government sector
for Luxembourg becomes apparent (19 %, against 13 % for
the EU-27 average). In contrast, the relatively low share
attributed to the higher education sector is noticeable
(12 %, against 24 % for the EU-27 average), largely
explained by the fact that the higher education sector is
still comparatively limited in Luxembourg. However, with
the development of the Luxembourg University (founded in
2003), both the funds allocated and the higher education
sector’s share are expected to increase. For the focus areas
in research, please see http://wwwen.uni.lu/recherche/
focus_areas
67
Total intramural R&D expenditure (GERD), all sources
of funds, share by sector of performance, 2011
(in percent)
(8
%(
'(
%XVLQHVVHQWHUSULVHVHFWRU
,(
)5
*RYHUQPHQWVHFWRU
/8
1/
8.
+LJKHUHGXFDWLRQVHFWRU
Note: distribution without the private non-profit sector, due to fractional
data; shares based on provisional or estimated data.
Source: Eurostat (online data code: rd_e_gerdfund).
Public support to research, development and
innovation
Luxembourg recognises the importance of R&D and
innovation and several government bodies (Ministry of the
Economy and Foreign Trade, Ministry of Health and Social
Security, Ministry for Higher Education and Research,
Ministry of Small and Medium-Sized Businesses and
Tourism,…) are in charge of defining and implementing
their policies.
The National Research Fund (FNR) is in charge of
supporting and promoting public research in Luxembourg
whereas Luxinnovation, the National Agency for
Innovation and Research in Luxembourg, offers advice
and personalised support to all actors, including innovative
start-ups. Currently, Luxinnovation’s activities concentrate
on the stimulation of the innovation potential of the business
sector and the facilitation of national and international
collaborations.
More information can be obtained through http://www.luxinnovation.lu/
Innovation cannot translate into tangible results in the
market economy without an appropriate technology
transfer. In this respect, the following Chambers and
68
5
INNOVATION
professional federations are actively involved in bringing
together companies located in Luxembourg:
99 the Chamber of Commerce
99 the Chamber of Trades
99 the Fedil - Business Federation Luxembourg
99 the Fédération des Artisans (the umbrella organisation
for crafts)
99 the Luxembourg Trade Confederation
More information can be obtained through the Luxembourg Portal for
Innovation and Research:
http://www.innovation.public.lu/en/ir-luxembourg/index.
html
Research centres in Luxembourg
There are more than 100 research centres within the public
R&D actors:
99 University of Luxembourg: the Interdisciplinary
Centre for Security, Reliability and Trust (SnT), the
Luxembourg Centre for Systems Biomedicine – LCSB,
the Laser Technology Competence Centre, the Centre of
Research in Economic Analysis (CREA), the Integrative
Research Unit on Social and Individual Development
(INSIDE) as well as a number of other research units
focusing on Computer Science and Communications,
Engineering Science, Mathematics, Physics and
Material Sciences, Life Sciences, Law, Research in
Finance (Luxembourg School of Finance), Educational
Measurement and Applied Cognitive Science (EMACS),
Language-Culture-Media-Identities (LCMI), IdentitésPolitiques-Sociétés-Espaces (IPSE)
99 Public Research Centre Gabriel Lippmann (1), active
in the field of environment, ICT and material sciences
99 Public Research Centre Henri Tudor (1), with a focus
on materials, environment, healthcare technologies,
ICT, business organisation and management
99 Public Research Centre — Santé, concentrating on
cardiovascular diseases, immunology, oncology, public
health and virology
(1) The PRC Gabriel Lippmann and PRC Henri Tudor will join their efforts and
will be merged by 2015.
69
99 CEPS/INSTEAD (for CEnter for research on Population,
poverty and Socio-economic policy / International
Networks for Studies in Technology, Environment,
Alternatives, Development), emphasising on population
and employment, geography and spatial development,
enterprises and industrial organisation
99 The Max-Planck-Institute Luxembourg for international, European and regulatory procedural law.
Other research performing public institutions include the
National Health Lab, the Hospital Centre, the Central Bank,
the Integrated Biobank of Luxembourg and the CVCE
(Centre Virtuel de la Connaissance sur l’Europe, a research
and documentation centre for European studies).
For innovative start ups, appropriate infrastructures
are offered: an incubator named Technoport offers two
distinct sites with offices equipped with state-of-theart infrastructures, especially for ICT companies as well
as production facilities. Coaching services are provided.
Further details under:
http://www.technoport.lu/
Other, privately-funded incubators hosting start-ups also
exist, such as Europe4Startups or PwC’s Accelerator, in
cooperation with Plug and Play Tech Center.
The Global Innovation Index 2012
INSEAD (Institut Européen d’Administration des Affaires)
and the World Intellectual Property Organization (WIPO,
a specialized agency of the United Nations) co-published
The Global Innovation Index (GII) in 2012. The GII was
previously published by INSEAD. The GII recognizes the
key role of innovation as a driver of economic growth and
acknowledges the need for a broad horizontal vision of
innovation with the inclusion of indicators that go beyond
the traditional measures of innovation (such as the level
of research and development in a given country). The GII
has evolved into a benchmarking tool for policymakers,
business leaders and other stakeholders.
The 2012 report covers 141 economies, accounting for 95 %
of the world’s population and 99 % of the world’s Gross
Domestic Product (in current US dollars). The 2012 GII
relies on two sub-indices, the Innovation Input Sub-Index
and the Innovation Output Sub-Index, each built around
70
5
INNOVATION
pillars. Each pillar is divided into sub-pillars and each subpillar is composed of individual indicators.
More information on the Global Innovation Index framework can be
obtained
through
http://www.globalinnovationindex.org/gii/main/
framework.html
Among the 141 economies observed, Luxembourg scores
overall 11th.
Global Innovation Index rankings – Top 20, 2012
Rank
Country
Score (0-100)
1
Switzerland
68.2
2
Sweden
64.8
3
Singapore
63.5
4
Finland
61.8
5
United Kingdom
61.2
6
Netherlands
60.5
7
Denmark
59.9
8
Hong Kong
58.7
9
Ireland
58.7
10
USA
57.7
11
Luxembourg
57.7
12
Canada
56.9
13
New Zealand
56.6
14
Norway
56.4
15
Germany
56.2
16
Malta
56.1
17
Israel
56.0
18
Iceland
55.7
19
Estonia
55.3
20
Belgium
54.3
Source: INSEAD/WIPO: The Global Innovation Index, 2012 Report
(http://www.globalinnovationindex.org/gii/main/fullreport/index.html).
A more in-depth look in the individual pillars, sub-pillars
and single indicators reveals that Luxembourg scores
particularly well in aspects relating to political stability,
absence of violence, student mobility, ICT access and use,
trade and competition, foreign direct investment inflows
and outflows as well as the availability of a knowledge
workforce, where scores between 97 % and 100 % were
achieved.
For more information, see http://www.globalinnovationindex.org/gii/
main/fullreport/index.html
71
International Property Rights Index (IPRI)
2012
The IPRI is a study undertaken by the Washington DCbased Property Rights Alliance that compares 130 countries
(accounting for 97 % of the world’s GDP) in terms of their
protection of property rights – both physical and intellectual
and seeks to investigate the effects of a country’s
strong legal and political environment, recognition, and
enforcement of physical and intellectual property rights on
the economic development of a country. As such, the IPRI
is less an indicator on the degree of innovation in a country
but rather expresses how innovative developments are
protected. The IPRI may therefore serve as a barometer
of the security of property rights and as an indicator of
political stability.
The IPRI comprises 10 variables allocated to three
components: the Legal and Political Environment (LP),
the Physical Property Rights (PPR) and the Intellectual
Property Rights (IPR). The Legal and Political Environment
has a significant impact on the security and protection of
physical and intellectual property rights.
The IPRI report 2012 ranked Luxembourg overall 6th, tying
with Denmark and New Zealand. In the three components,
Luxembourg ranked 6th, 9th and 4th for the Legal and Political
Environment (LP), the Physical Property Rights (PPR) and
the Intellectual Property Rights (IPR), respectively.
IPRI 2012: Top 10 overall and by component
IPRI
Finland (1)
LP
Finland (1)
PPR
Norway (1)
IPR
Finland (1)
Sweden (2)
New Zealand (1)
Singapore (1)
Denmark (2)
Norway (3)
Denmark (3)
Sweden (1)
Sweden (2)
Singapore (3)
Norway (3)
Finland (4)
Japan (4)
Switzerland (3)
Sweden (3)
Bahrain (5)
Luxembourg (4)
Denmark (6)
Luxembourg (6)
Saudi Arabia (6)
Singapore (4)
Luxembourg (6)
Switzerland (6)
Switzerland (7)
Switzerland (4)
New Zealand (6)
Netherlands (8)
New Zealand (8)
United States (4)
Netherlands (9)
Canada (9)
Hong Kong (9)
Netherlands (9)
Canada (10)
Singapore (10)
Luxembourg (9)
United Kingdom (9)
More information through: http://americansfortaxreformfoundation.org/
userfiles/ATR_INDEX_mar20.pdf
72
ICT INDICES, EXPENDITURE
AND PRICES
6
Networked Readiness Index (NRI) 2013
The World Economic Forum, an independent international
organisation committed to improving the state of the world
by engaging business, political, academic and other leaders
of society to address global, regional and industry agenda
points, calculates the Networked Readiness Index (NRI),
a composed indicator measuring the preparedness of an
economy to use ICT to boost competitiveness and wellbeing.
The NRI gauges the friendliness of a country’s market and
regulatory framework in supporting ICT uptake; the degree
of a society’s preparation to make good use of an affordable
ICT infrastructure; the efforts of individuals, business, and
government to increase their capacity to use ICTs as well as
their actual use of ICTs in day-to-day activities; and finally,
the broad economic and social impacts accruing from ICTs
and the transformation of a country toward an ICT- and
technology-savvy economy and society.
In the 2013 edition, Luxembourg ranks overall 16th among
the 144 countries considered (accounting for over 98
percent of world GDP), an improvement compared to 2012
when it ranked overall 21st (among 138 countries). The table
below shows the 2012 and 2013 results for Luxembourg,
including the ranking reached in the various pillars which
compose the NRI.
Within the pillar Political and regulatory environment,
Luxembourg scores overall first in terms of “laws relating
to ICTs”.
74
6
ICT INDICES, EXPENDITURE AND PRICES
Networked Readiness Index, ranking for Luxembourg
2012 and 2013
Rank 2013
Rank 2012
NRI (Networked Readiness Index)
16
21
A. Environment subindex
13
12
1. Political and regulatory environment
2. Business and Innovation environment
4
5
34
27
B. Readiness subindex
18
19
3. Infrastructure and digital content
12
13
4. Affordability
48
36
5. Skills
33
31
C. Usage subindex
10
15
4
7
7. Business usage
6. Individual usage
16
18
8. Government usage
13
20
D. Impact subindex
21
28
9. Economic impacts
25
37
20
34
10. Social impacts
Laws relating to ICT
Rank 2012
(out of 142 )
Luxembourg
1
Singapore
2
Estonia
3
Finland
4
United Kingdom
5
Source: World Economic Forum: Global Information Technology Report
2013.
http://www.weforum.org/issues/global-information-technology
75
ICT Development Index (IDI)
The ICT Development Index (IDI) is a composite index
combining 11 indicators into one benchmark measure that
serves to monitor and compare developments in ICT across
countries.
In 2011, Luxembourg ranked 7th among the 155 countries.
The IDI was developed by the International Telecommunication Union (ITU), a UN institution, in 2008. The IDI
has three components: access, usage and skills. A single
indicator cannot track progress in all three components
of the ICT development process, thus requiring the
construction of a composite index. There are then three
sub indexes: the access sub-index (5 indicators, 40 %
weight in the overall IDI), the use sub-index (3 indicators,
40 % weight) and the skills sub-index (3 indicators, 20 %
weight). The computed values of the overall IDI (but also
its sub-indices) are presented on a scale from 0 to 10, thus
making it possible to compare the performance of the 155
countries that were included in the investigations.
IDI Index (ICT development Index), first 10 positions
Economy
2011
2010
Rank
IDI
Rank
IDI
Korea (Rep.)
1
8.56
1
8.45
Sweden
2
8.34
2
8.21
Denmark
3
8.29
3
8.01
Iceland
4
8.17
4
7.96
Finland
5
8.04
5
7.89
Netherlands
6
7.82
7
7.60
Luxembourg
7
7.76
6
7.64
Japan
8
7.76
8
7.57
United Kingdom
9
7.75
14
7.35
10
7.68
9
7.48
Switzerland
Source: International Telecommunication Union (ITU) – Measuring the
Information Society, 2012.
More information via:
http://www.itu.int/ITU-D/ict/publications/idi/index.html
76
6
ICT Price Basket (IPB)
The International Telecommunication Union’s IPB is
a global benchmarking tool that provides insightful
information on the cost and affordability of ICT services.
The IPB is composed of three distinct prices — for fixedtelephone, mobile-cellular and fixed-broadband services
— and computed as a percentage of countries’ average
gross national income (GNI) per capita. This puts prices
into perspective, and makes it possible to monitor the
affordability of ICT services.
The 2011 IPB which ranks 161 economies according to
affordability of ICT services, shows that IPB values range
from a low (i.e. relatively affordable) 0.3 in Macao (China)
to a high (and relatively unaffordable) 64.6 in Madagascar.
Luxembourg ranks 5th, with an IPB of 0.5.
Fixed-broadband
sub-basket as a %
of GNI per capita
Mobile-cellular
sub-basket as a %
of GNI per capita
Fixed-telephone
sub-basket as a %
of GNI per capita
IPB
Rank
Economy
ICT Price Basket and sub-baskets, first 10 positions,
2011
1
Macao, China
0.3
0.3
0.2
2
Norway
0.4
0.3
0.2
0.7
3
Singapore
0.4
0.2
0.2
0.8
4
Qatar
0.5
0.2
0.3
0.9
5
Luxembourg
0.5
0.4
0.4
0.6
6
0.5
0.1
0.3
1.2
7
Denmark
0.5
0.6
0.2
0.9
8
Hong Kong, China
0.5
0.5
0.4
0.8
9
Sweden
0.6
0.6
0.3
0.8
United States
0.6
0.3
0.9
0.5
10
0.3
Source: International Telecommunication Union (ITU) – Measuring the
Information Society, 2012.
More information on the IPB can be obtained through http://www.itu.
int/ITU-D/ict/ipb/
77
Enterprises: leased line charges
Leased
lines
provide
symmetrical
point-to-point
connectivity and are commonly used by businesses as
a way to connect offices and branches or to link them
back to a telecommunication provider, with a quality of
service stipulated in the contract. Monthly charges vary
considerably, both in absolute terms and in terms of
Purchasing Power Parities (PPP). The charges in Luxembourg
are at the lower end of the spectrum.
OECD basket of national leased line charges, monthly
price, August 2010
(VAT excluded, in USD PPP)
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86
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8.
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78
6
Enterprises: fixed-line basket
The OECD business basket for fixed-line telephone service
refers to business single users only. The OECD average for
the 100 calls business basket costs on average USD PPP
41.2 per month with prices ranging from USD PPP 20.6 in
Norway to USD 71.7 in the Czech Republic. Luxembourg
was among the least expensive, at USD PPP 32.0 per
month. The OECD average proportion of fixed-subscription
costs for this basket was 54 %, the share in Luxembourg
was 58 %.
OECD 100 calls business basket, August 2010, per
month
(VAT excluded, in USD PPP)
.5
/8
'(
&+
86
)L[HG
%(
1/
,(
)5
-3
8.
8VDJH
79
Private users: mobile basket
As the OECD does not feature a mobile basket for
enterprises, the following basket intended for private users
is shown instead: this mobile basket includes 900 calls and
350 SMS. For this basket, an average price of USD PPP
122.7 per month had to be paid on average in the OECD
countries. The United Kingdom and Luxembourg had the
least expensive offers.
OECD 300 calls mobile basket, August 2010, per
month
(VAT included, in USD PPP)
8.
/8
86
,(
-3
.5
)5
&+
%(
'(
1/
80
6
Share of households’ ICT expenditures
As ICTs have become an integral part of everyday life, the
OECD regularly looks at the expenditure this represents for
households. With a very dynamic development in recent
years, not only with regard to technology but also linked
to the fierce competition in the telecommunication sector,
these indicators become very interesting as they are quite
dynamic.
In 2009, the amount of household final consumption
expenditures devoted to ICT goods and services reached
an average of 4.9 % of total final consumption expenditures
for the 28 OECD countries; in Luxembourg, the lowest value
was recorded, at 2.9 %. This doesn’t mean that in absolute
terms, little is spent on ICT in Luxembourg; it is rather
likely that due to a high disposable household income, the
share spent on ICT remains comparatively low and prices
are competitive.
This share can be broken down in expenditure on information
technology and expenditure on communications. The
communication’s share was dominant in most countries. In
Luxembourg, it reached 61 % of the total, a relative share
similar to that recorded in Luxembourg’s neighbouring
countries.
Share of households’ ICT expenditures, 2009
(in percent)
2(&' 86
1/
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.5
/8
%(
,(
)5
8.
,QIRUPDWLRQWHFKQRORJ\
'(
81
Focussing on the expenditures allocated to communications,
the share in Luxembourg amounted to 0.65 of the OECD
average in Luxembourg, the lowest value among the OECD
countries.
Relative communication expenditures by households,
2009
.5
1/
,(
-3
'(
2(&'DYHUDJH
)5
&+
86
%(
8.
/8
82
Copyright information:
Cover page: Vilmos Varga, ref 84848353, Shutterstock
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Chapter 2: Liljam, ref 102826697, Shutterstock
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© Service des médias et des communications
Luxembourg, June 2013
Reproduction is authorised as long as the source is acknowledged.
Service des médias et des communications
5, rue Large
L-1917 Luxembourg
Tel.: +352 247 – 82176
[email protected]
www.investinluxembourg.lu/ict
Ministry of the Economy and Foreign Trade
19-21, Boulevard Royal
L-2449 Luxembourg
Tel.: +352 247 – 84128
[email protected]
www.luxembourgforbusiness.lu
ICTluxembourg
7, rue Alcide de Gasperi
Luxembourg-Kirchberg
Boîte postale 1304
L-1013 Luxembourg
Tel.: +352 43 53 66 - 1
[email protected]
www.ictluxembourg.lu
Sogeti Luxembourg SA
In collaboration with
LUXEMBOURG and ICT:
a snapshot

LUXEMBOURG and ICT: a snapshot

Transcription

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