Education Champions - Presentation by Michael Hüther, Director and member of the board of Institute for Economic Research (IW) at the NOAH 2015 Conference in Berlin, Tempodrom on the 9th of June 2015.

1. Industrie 4.0
International competition and challenges
Prof. Dr. Michael Hüther
Director, Cologne Institute for Economic Research
NOAH Conference Berlin, 09.06.2015

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Old Billingsgate, London Tempodrom, Berlin
12-13 NOV2015 8 - 9 JUN2016

3. Business to Consumer
Smart living
Business to Business
Industrie 4.0
Consumer to Business
Big data
Consumer to Consumer
Social web/sharing economy
Real time economy
Trans-
parency
Self-
regulation
Network economy
Prof. Dr. Michael Hüther, 09.06.2015 2

4. Industry – a hub for the economy
Intermediate input network of the EU (2011, billions of €)
Source: WIOD (2013), own illustration, made with Gephi; input relations between two sectors
Prof. Dr. Michael Hüther, 09.06.2015

5. Index of digitalisation 1995-2011
Digitalisation triggers growth
0
10
20
30
40
50
60
70
US
Germany
Korea
China
Source: Raul Katz, (2013)
A 10 percent
increase in a
country‘s
digitalisation index
triggers a 0.75
percent growth in
GDP per capita
Prof. Dr. Michael Hüther, 09.06.2015 4

6. Prof. Dr. Michael Hüther, 09.06.2015 5
Source: World Economic Forum
Degree of digitalisation
Network Readiness Index 2015
Raking:
1. Singapore
2. Finland
3. Sweden
4. Netherlands
5. Norway
6. Switzerland
7. United States
8. United Kingdom
9. Luxembourg
10. Japan
11. Canada
12. Korea, Rep.
13. Germany

7. Where are we now?
Competition for defining standards in Industrie 4.0
New competitor: Korea
Prof. Dr. Michael Hüther, 09.06.2015
Striving for dominance of defining standards
• Leading supplier of
internet-software and IT.
• Small engineering sector.
• Leader in mechanical
engineering and
construction sector (large
Industry and SMEs).
• Leading Supplier of
business software.
• Leader in IT-Security.
• Leading supplier of
internet hardware.
• Big market for mechanical
engineering.

8. Digital competition policy
Prof. Dr. Michael Hüther, 09.06.2015
Territoriality Principle Effects Doctrine
 The effects doctrine allows an extraterritorial application of competition law.
 However, individual-related data are protected much stronger than machine-
related data.
• Highly dynamic
• Trigger for competiveness
• Network effects
• Market power and
behavioral regualtion of
established platforms
Digitali-
zation
• Economic positions of
power need to be
contestable
• Regulation has to go
beyond competition law
• Tougher criteria for M&A
controlls
Need for
action