Knowledge and Know-how are the Basis for our Welfare

In the next millennium, knowledge and know-how will be the basis for economic competitiveness and the well being of the whole society. Information society is both a demanding challenge and a new possibility for the citizens, companies and the public administration. A genuine information society must be within the reach of all citizens. Development must not lead to the inequality and exclusion of people.

It is very important to examine the development of the information society in a multi-faceted way from many different viewpoints and to conduct an open dialogue on the role, functions and responsibilities of the public authorities, the economic and industrial life, and research. This meeting will provide the possibility of viewing the development of the information society from one important standpoint - that of the competitiveness of companies.

Link to Globalisation

The information society and globalisation are closely linked to one another. The Commission’s extensive and wide-ranged Communication on globalisation and its effects on the competitiveness of companies is an important opening to the discussions. One significant challenge for competitiveness is, according to the Commission’s estimates, the little use of information technology: “The number of investments made by European companies in equipment and infrastructure has, on the average, been smaller than that of investments by U.S. or Japanese companies for several years now. In addition, employment of information technology is too often only traditional, even though this technology has become the instrument for trade and commerce and for decision-making”.

Globalisation will advance rapidly and its influence on the competitiveness of companies is evident. Therefore measures are needed now that the market structures are forming. European competitiveness requires that here are strong actors: producers, users, developers, researchers, and so forth.

This meeting will also continue the discussion on globalisation and its effects on competitiveness. Discussions are needed, because the economic and industrial policy will have to follow its time. The information society will provide the means to develop working methods and to create new business opportunities.

ICT Needs People

In the discussions on the information society one seems very often to forget the fact that the information and communications technology (ICT) equipment and installations are by no means a value as such but they have only value as tools. Computers nor information systems do not contain any such data that man had not created directly or indirectly. Thus man, a user, is needed before technologies are of any use.

I want to stress that investments in information and communications technology do not automatically enhance the competitiveness of companies: full exploitation of the ICT requires changes both in organisational structures and functions as well as in relations to customers and business partners. At least equally important as investments in equipment and software are at the same investments made in order to change the operating methods of a company. Business management will hold the key position as a driving force for this change.

Employment Potential in the Information Society

The issue of competitiveness of companies forms a single whole with employment. The information society provides a considerable employment potential, which is to be underlined in connection with the European employment strategy.

The ICT is an indispensable instrument in the creation of jobs in the future. In the short and medium term, the ICT can also be seen as one reason affecting employment problems in a way that arouses suspicion about the ICT in particular, if it is felt to contribute to the growth of income differences and, generally speaking, the increase in inequality. It is therefore important to focus both our macroeconomic policy and our microeconomic reforms on restoring full employment and on implementing those educational and socio-political measures that are required to target job opportunities for those who cannot otherwise be employed on market conditions, not at least during the transition period.

The growth of employment in the ICT sector can be extended to other fields, too. Innovativeness is the key driving force behind employment. Studies show that companies that have built up their activities on innovative production and have introduced information technology as well as have developed at the same time their organisational structure and working methods have been major employers compared to other companies. In addition, employment effects have been better than average in companies where the possibilities for development and training of the personnel have been supported and where the focus has been on operative flexibility instead of quantitative flexibility, that is to say, instead of manipulating the external conditions of work and the continuity of work.

Information Society Calls for Education

My own opinion is that the function of the public administration is to support such training that corresponds to the needs of the information society. The basis of learning should be a high-standard basic training that is available to all. Know-how must be continuously developed in accordance with the principle of life-long learning. In this connection the importance of the cooperation between working life and the educational system must be stressed. Furthermore, cooperation between working life and the research sector must be promoted.

As an example of this, I would like to mention that in order to respond to the increased need for labour in the Finnish industrial sectors, an action programme has been launched in 1998. With this programme, the volume of training in the ICT sector will be raised in the universities and institutes of vocational higher education by about 30% from the 1998 level by the year 2002.

Conclusions of the Cologne European Council

The European Council that convened in Cologne at the beginning of June charged the Commission and the Member States with the task of identifying, in cooperation with representatives of the business sector, the factors obstructing the rapid development and application of information technology and of making proposals for solving the problems. Even if no decisions are made in informal ministerial meetings, I hope that true measures would be found here today in order to proceed in the fulfilment of the assignment given by the European Council.