Over the last few years, Luxembourg has thrived to reach different milestones, being in terms of connectivity, data storage capacity, and also calculation power. On their side, companies are encouraged to innovate so as to reduce costs, optimize processes, or improve customer service and experience. It is hence essential for national policymakers to consider these aspects to draft a legal framework ensuring both security and competitiveness.
“We must support and stimulate opportunities enabling businesses to secure and increase their incomes; while reducing costs, optimize the whole production processes, to hence increase both investment and innovation capabilities, to eventually achieve productivity gains” – Carlo Thelen, Managing Director (Luxembourg Chamber of Commerce)
On top of rapid technological advances, what truly boosted digital transformation in the economic sector was – as you may guess – the Covid-19 pandemic. In this point of view, companies leveraged – and are still leveraging – digital solutions in order to automatize their process, including their supply chains. Besides, they also trained their employees to new programs helping them collaborate remotely.
It is nevertheless necessary to support and guide companies in this digital transformation, which requires to be implemented within their business model to rise up to upcoming challenges. Although Luxembourg obtained the 8th position in the last European Commission ranking “for a digital economy and society”, there is still room for improvement.
Within the framework of its campaign “2023 Elections: which future for businesses?”, the Luxembourg Chamber of Commerce (CC) published a thematic book on priority needs and solutions, featuring the paths it recommends to build the basis of the economy digitization. It essentially encompasses awareness campaigns, training, and business programs.
Here are four out of the eight proposals the CC made:
- Organize, in the form of private-public partnership, workshops on latest mandatory rules and best practices, so as to reach legal compliance in the data sector – encompassing Data Act, new european regulations, among others – and make available to companies a toolbox enabling self-diagnostic
- Develop a program “Fit4Cybersecurity” intended for SMB, through a public-private partnership, which can help them establish a diagnostic regarding cybersecurity and IT security; and help them reinforce their protection, while partly funding their expenses
- Accompany young businesses, startups and spinoffs through loans and innovation competitions in sectors which Luxembourg wishes to develop new growth niches (deeptech, healthtech, spacetech)
- Accelerate ecosystem development of the data sector (private actors, university, research centers…) through the creation of a “Data Campus”
Luxembourg must hence work towards establishing secure and efficient digital infrastructures; and also encouraging companies – notably SMBs and young businesses – to engage in digital transformation. In terms of national legislations, it remains essential to keep up with technological advances notably in the sectors of both data and artificial intelligence (AI) – thus the importance of legal monitoring to stay up to date.
By 2030, AI deployment is expected to contribute up to 14% to global growth: investing in this sector proves essential to remain competitive and prepare for the future, which is surely digital. It is to note that some Luxembourg companies decided to incorporate AI solutions into their business: the percentage doubled in two years only. In 2019, there were 24,4% of companies relying on AI solutions, where there were 52,5% in 2021.
Besides, it is to note that the Ministry of Defence recently announced the implementation of the Luxembourg Cyber Defence Cloud as of next year, which is to play a crucial role in the establishment of national cyber projects. All that remains is for companies to onboard on this digital journey, and for the country to set the proper measures to build this data-driven economy.
