"Is politics getting lost in unfinished nonsense, or is there hope? About the opportunities and concepts of the European data economy.
These days, the impression often arises that political concepts have not been fully thought through:
First example: They want to bring skilled workers to Germany, as many as possible, because the skills gap is currently over 533,000. At the same time, there is a lack of 1.4 million affordable apartments under 45 square meters for single households in Germany. Where should the skilled workers actually live?
Second example: There are still 842 wind turbines missing to meet the wind power expansion target by 2024, which would have to be built very quickly. At the same time, 16,000 bridges in Germany are in need of renovation so that they cannot be used by heavy transport, such as is typical for the construction of wind turbines. As a result, many wind turbines only reach their destination via long detours. Not to mention the previous complex and slow approval processes. Not exactly tailwind for the wind industry and the ambitious energy transition. Don't the responsible ministries speak to each other? Or does the Chancellor lack a strategic overview? The impression is of an incompatible patchwork quilt and of well-thought-out but poorly executed individual activities.
People are happy about concepts that are coherent and are even supposed to have positive economic effects. We're talking about the data economy, which is based on a big, strategically thought-out picture and comes not from Berlin, but from Brussels. The EU expects no less than 270 billion euros in additional gross domestic product in the next five years. In order to bring the data economy to life, it has launched the EU Data Act, which will apply across Europe in a few months.
For a country like Germany, which has few natural resources and is running out of skilled workers, the data economy is a glimmer of hope. Because it provides a framework in which data becomes tradable assets that can be used to generate sales that previously did not exist. This requires, above all, software, smart tech minds and innovative business models. A very important and Europe-wide recognized component of the data economy is the so-called data space.
This is based on an invention by the Fraunhofer Society and generates at least as much imagination as the audio format MP3, which also came from the Fraunhofer Society and which has permanently changed the music industry. The data space is now part of the data and IT strategy of the federal government as well as the European Union and other European countries. Its big advantage is that data exchange works according to certain, clearly defined rules and leaves the data provider with a certain degree of sovereignty over this data.
In order for the data economy to flourish, the European Union has initially outlined nine data space projects, including data space compartments for industry, energy, mobility and health. In Germany, projects such as Catena-X or Manufacturing-X were started on this basis, which use data space technology in the context of collaboration across the entire value chain in automobile manufacturing or in the equipment industry. This means that not only individual machines at a production site make their data available via a data space, but that this happens across locations.
The EU Data Act aims to make as much data as possible available for the data economy. Therefore, he will establish the obligation that network-capable machines must make the data that is created during their use available for the data economy. What is particularly noteworthy is that the Data Act places machine users at the center of the data economy. They receive the sole right to market such data. In concrete terms, this means: It is not the wind turbine manufacturers who have wind power data, but the owners or operators of the wind turbines - and they can sell this to start-ups or other innovative tech companies, for example.
However, this sharing option is not unlimited. The European Union has installed a brake with the Digital Markets Act and introduced the term gatekeeper. These are companies that have a particularly strong economic position and have large numbers of users. These gatekeepers will not receive any data from the machine owners; they are explicitly excluded. So far, Alphabet, Amazon, Apple, Byte Dance, Meta, Microsoft and Samsung have been classified as gatekeepers. At this point it becomes clear: The EU wants the data economy to benefit primarily European companies, and at the same time it wants to limit the influence of the large and powerful tech companies from the USA and Asia. Their business models are also based on collecting data, processing it and using it to build products and services that generate high sales.
So the ground is prepared: a new market with strategic vision is emerging in which European companies can take pole position. The big question remains: How do you as a company get a piece of the pie, i.e. the above-mentioned 270 billion euros? The answer is not entirely simple because such a market did not exist before and it initially appears in front of us like a blank sheet of paper. But here too, the creators of the Data Act have already thought a little ahead.
In this context, Web3 technologies such as smart contracts and blockchains play a noticeable role. Such technologies can, for example, inspire the concept that machines will evolve into customers in the future who can make their own purchasing decisions. According to the Gartner Group, "machines as customers" represent one of the biggest new growth opportunities of the decade. There are now more machines, more than 9.7 billion installed IoT devices, with the potential to act as buyers, than people on the market.
But that is just one idea out of an infinite number. The data economy is for entrepreneurs, for visionaries, for courageous investors. It remains to be seen which European country generates the best ideas. In France there is already a marketplace for agricultural data based on data space technology. The idea of the data marketplace is also an impressive business model with great potential.
A single owner of a few machines, such as a carpentry shop, will hardly be able or interested in marketing the machine data to which he is entitled under the Data Act. But a marketplace that collects, aggregates and processes the data of many carpenters and makes it available via a platform is a completely different matter. This data will be of interest to a whole range of potential customers, starting with the manufacturers of woodworking machines themselves.
Are there no criticisms of the data economy or the EU Data Act? Yes, of course - manufacturers of machines, for example, fear that the obligation to pass on data could lead to trade secrets being stolen. Such legitimate concerns need to be addressed, but smart minds are already at work here too. The first technical solutions are already on the market and must be tested and verified.
In the end, one question remains: How is a data economy supposed to flourish if there is a lack of skilled workers in IT?
After all, the data economy is above all one thing: software.
At this point it becomes clear that the IT industry has a particular advantage: ultimately, it doesn't matter where a software developer, data scientist or cloud architect is located. The needs in Germany and Europe could be at least partially met in other countries. And this even in countries that are not necessarily the first thing on your radar. But if we look at Africa, there are around 1.4 billion people there, more than 50 percent of whom are 20 years old and younger.
In Ghana, Africa's IT capital, there are many graduates of computer science departments who cannot find a job locally.
No wonder, then, that there are already specialized service providers who have made matching the needs in Europe with the opportunities in Africa their core business.
The data economy needs no bridges for transport and no apartments in Germany. It uses a commodity that is available in great abundance. And thanks to a well-thought-out strategy, it has the potential to preserve prosperity in Germany, even if the number of employees continues to decline. It is up to entrepreneurs, start-ups and investors to seize this opportunity and make Germany a pioneer in the data economy. The conditions for this have been created." [1]
1. Datenökonomie: Wo bitte ist die Strategie? Frankfurter Allgemeine Zeitung (online) Frankfurter Allgemeine Zeitung GmbH. Oct 17, 2023. Von Christoph Herr