Can the internet save Europe?

Posted on March 20, 2012 by francesca • 5 Comments

A few days ago the EU tasked Openideo with a challenge aimed to develop the best possible program to support digital startups: “How might we support web entrepreneurs in launching and growing sustainable global businesses?” Maybe it’s because I am EU citizen but I have found it very interesting (and I am participating) because I think this is a critical project for Europe, one that might shape a future economy that truly leverages the possibilities of digital convergence.

So can the internet save Europe? Europe is an old continent, one that thinks in terms of centuries and embraces change at very slow pace- hey, what’s a year compared to the history behind our back? So as troubled economies have put the Euro-zone under scrutiny, the immediate reaction on behalf of many has been to challenge the whole idea of a convergent currency. But the linear progress of technology suggests that convergence is the only way forward, and the EU economy has the opportunity to come out of this economic recession by truly embracing the internet culture.

In fact even if there is not really such a thing as an “European culture” – a united Europe is a very recent phenomenon compared to centuries of separate Countries divided by languages, borders, customs and sometimes actual walls- there are indeed some commonalities when we compare the European mindset against US or Asian ones. So at the risk of oversimplifying I’d like to list some opportunities that the internet can offer to address some key cultural barriers that currently prevent Europe to develop a successful digital economy.

1) Think big. There is an absolute necessity for scalability in today’s economy, and I think Europe has now – lately- realized that, well, ‘size matters’. The cultural barrier to address is the negative attitude that many European cultures have towards ambition. In many countries there’s an accepted notion that being ambitious is good but showing ambition is inelegant. The likes of Facebook and Google are demonstrating that in a digital world you must be ambitious to create scalable success, and that a certain dose of ‘ballsiness’ is actually inspiring and energizing. By breaking down the legacy regulations that prevents business from scaling, digital could pave the road for a culture of healthy ambition. Young people all over Europe would certainly need it to find their spirit in these gloomy times!

2) Move fast. Europeans have the tendency to overthink things, an habit inherited by a longstanding and rich philosophical culture. However this attitude totally undermines the ‘fail fast’ rule of any innovation. Access to scale and the widespread of a digital business culture could actually re-balance the dynamics between thinking and doing. Digital can reduce the cost of trying out innovation so much that there is actually less risk in doing things than thinking them too much, and this could rehabilitate the culture of “doing” at the eyes of Europeans.

3) Move. Since the EU was created some Eurocitizen have started traveling from their place of origin to seize work or lifestyle opportunities. However only a small 3% of people live away from their place of origin. This is due to many reasons: cultural heritage, language, lifestyle.. but also economic ones. The traditional economy and tax regulation still make it a hassle to move around the EU unless you are driven by a strong need or a strong incentive. I can see how a digital-friendly tax regulation could create higher freedom in picking a residence for businesses or choosing collaborators from different countries. This could increase competitiveness, a better circulation of talent and, as a result, a more dynamic working population.

4) Think different. The digital economy is challenging some accepted notions of how business works and how companies should be run. We see the emergence of a new marketplace where a democratized production meets niche demands (Etsy), we see opensource tools and collaboration challenging the IP dominance. These models can actually shake traditional ones- built around barrier to entry- generating opportunities to innovate in every space, from private economies to public administrations.

5) People first, not systems. This might be difficult to explain, but I’ll try. Europe has built its entire social, economic and political infrastructure around systems, and people are often seen as receivers/contributors/pieces of mechanism rather then the focal point of it. This has some benefits (eg. some truly democratic healthcare systems) but also disadvantages (sometimes the system’s benefit supersedes the one of individuals, like in many political systems). The web is built around people, and nothing is successful unless it is created with people in mind. I wonder if in a (distant) future this culture will create not just an economy, but a whole society that is measured more directly against the value it provides to individual and communities.

If Europe will succeed in making this changes happen it could actually turn its mature approach to business into a real competitive advantage against the “teen spirit” of US digital companies, or the purely “scale-driven” approach of Asian businesses.

But can the contemporary internet really change historic and long standing cultural dynamics? In a continent that has such a high percentage of resident population over 50 it seems unlikely. However we’ve always seen big changes coming out of necessity, especially when big economic recessions have happened, so I truly hope that the internet will actually save Europe.

http://twitter.com/Medialoco Jörgen van der Sloot

I don’t know if it’s at all about saving ‘Europe’ anymore. Perhaps we are now living in the true network age in which there is no single leader or individual anymore that can lead the way or save any-one. This is the age in which we have to find solutions collaboratively and that requires a new culture to start with.

But besides that. I believe that the ‘population over 50′ is quite often put aside as not being relevant anymore. Advertisers ‘traditionally’ always focused on the 20-49′s, but perhaps they as well should reconsider that. Plus 50 is living a ‘second life’ and as such they might in fact be very valuable, culturally and economically. They have the spending power and failing to bring them into what ‘we’ might call being a digital immigrant might truly be a missed opportunity.

So perhaps it’s not perse the internet that might save Europe or the world at large, perhaps it’s those 50+ people that will.
http://twitter.com/SashaG ɔıɔıɾnɹƃ ɐɥsɐs

I think one of the interesting items you’ve unearthed in this piece is the question of whether there can be differing cultural versions of the internet and technology. There is little doubt that the ambitious, iterative and naturally scaled nature of the internet products emerging from the US has championed with Eastern replicas adapted for their markets. The question remains as to whether there can be a European renaissance which doesn’t replicate the US models of development but creates its own. If one embraces the the internet at its core and the value of maximal diversity one would believe that this is possible however it would take a nuanced approach which recognizes each culture within Europe as a unique contributor.

The Euro experiment as a grand unifier through monetary means is reaching its breaking point with the austerity measures across Europe so before we try again with the internet and technology let us learn the lessons of our prior attempts!
- http://twitter.com/Medialoco Jörgen van der Sloot
  
  I agree with you ɐɥsɐs! In fact I don’t think we should try to unify on this at all. Let’s not try to create another cultural convergence through external forces, like we have attempted with the Euro.
  
  I think all Francesca’s points are valid argument, for how indeed we behave culturally. But now that I have thought about it a little more, I don’t agree with all of the points needing to be in place in order to ‘save Europe’ or create a significant digital counter force to the US.
  
  I’d like to challenge Think Big. I don’t agree that the next ‘big’ power on the web (and the economy) necessarily has to be (as big) as Facebook or Google. I think instead that the next powershift will be much more towards distributed power: small players that operate effectively in continuously different connections and relations to have a huge impact on our society. Small is the new Big!
  
  That will allow you to move faster as well. As for the the ‘move’ point you make Francesca: perhaps it signifies that we are already more connected online and ‘migrating’ virtually. We don’t need to move physically anymore to do business or create new things. So, regulations perhaps don’t need to be put in place at all. And also: culture changes much slower than technology or regulations. Who knows how we will be living and working in the EU in ten years from now
  
  And your last point is the most important of all I think! Yes it is about people. The future is not about technology it is about creativity!
  - http://twitter.com/fronfin Francesca
    
    Some good thinking here!
    But I’d like to defend and clarify to my point about scale. And note that I say ‘scale’, not ‘growth’. The scalability of businesses (as of ideas, innovation, etc..) is actually what will drive future economy. Traditional giants, with a lot of legacy, are now struggling to reinvent their model, and this is precisely because they’ve grown their business, rather than scaling it. Future leading companies (and markets)will be able to leverage the connectivity of small groups and networks to generate scale for their business.
    I think Europe still has regulations and barriers that challenge the working and business connectivity of those grous and networks, and I see the future growth in the removal of those barriers.
    
    As for moving: physical circulation of people is as important as virtual connection. Don’t forget that if we have now a generation who is transnationally virtually connected is because they’ve have travelled more than previous generations, done Erasmus programs, and made friends of different nationalities. This is what makes cultural and business understanding easier. and this is what creates new, powerful networks: the digital component comes as a tool for the personal one. As Nicholas Christakis says, Facebook is for networks what the telephone was when it was invented, a powerful tool.
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