Right now, both Government and the business community share the same ambition of rebooting and reimagining the economy.
Central to this ambition is the expected development of a new National Digital Strategy, says Erik O’Donovan, head of Digital Economy Policy at the business representative organisation Ibec.
After all, digital innovation and adoption are already proven as mechanisms through which better Government and public services are delivered, high quality jobs are created, and economic resilience is safeguarded.
However, “gaps and divides exist in our relative readiness to access and adopt existing and emerging digitally enabled opportunities,” he warns.
Given that the pandemic has accelerated the pace of digital transformation, from a rise in online sales to the shift to remote working, the time to act is now.
Businesses know this. A recent Ibec survey shows four out of five Irish CEOs see being prepared for technological change as a top priority.
But to maintain competitiveness Ireland needs to invest further in its digital infrastructure. That includes investment in digital skills, innovation and entrepreneurship, as well as in connectivity.
There are compelling reasons for doing so. “Digital tools enhance productivity, enable companies to develop and access new markets more quickly, and reduce transaction and information costs,” explains O’Donovan.
With EU trade poised to become both more outward looking and innovation driven, the need for ever greater digital capacity in enterprises will accelerate.
Ireland is already home to a number of high performing sectors which depend on digital skills. These extend beyond the direct 'tech' sector into areas such as life sciences, financial and professional services and advanced manufacturing.
“Digital is not just a sector in its own right but is an enabler of other industries in the economy, as well as for public services,” he explains.
Some 240,000 people are already employed in digitally intensive industries in Ireland, but that success is no cause for complacency.
“The issue we have is that global competition is growing,” says O’Donovan.
“Gaps are emerging and we still have digital divides that need to be addressed. As a result, we have to accelerate both the level and the pace of digital adoption right across the economy.”
A new Cross-Governmental National Digital Strategy can deliver that.
Lead the digital opportunity
While the challenge facing the country is one common to many governments, co-ordination is a particular issue.
“We have a lot of different initiatives and departments leading the charge here for different aspects of digital policy,” says O’Donovan. He estimates 11 Government departments and 11 statutory bodies deal with different aspects of digitalisation, from broadband to skills.
We need a whole of government approach that combines all the different government departments and stakeholders under a shared vision
“All are positive initiatives but the European Investment Bank has noted there is a need to be fully co-ordinated under a holistic digital strategy,” he points out.
Ireland has a decentralised approach to digital readiness, when in fact what is required is a centralised one. “We need a whole of government approach that combines all the different government departments and stakeholders under a shared vision,” he says.
The coordination of all stakeholders under a common national digital strategy will help build momentum and drive this agenda forward.
That includes the State's direct role in service provision too. Currently Ireland is 9th in Europe for the provision of digital public services. Ibec is calling for the implementation of the Cruinniú Report of November 2019, which would see a Government technology (GovTech) ecosystem used as a catalyst for further digital innovation and growth.
It does this not only by creating and enhancing services for citizens, businesses and jobs, but through procurement too.
Support trust in digital opportunity
Trust in the digital opportunity facing us must be supported, O’Donovan says.
This means ensuring national cyber security and data protection capabilities are adequately resourced, and that international data flows are safeguarded.
“Research highlights that data-driven regulatory issues have become a major investment attractor,” he points out. “It’s why engaging, co-ordinating and strengthening our cybersecurity ecosystem is vital.”
That means working with EU partners to shape evolving digital policy and strategy too.
An estimated 30 per cent of EU data is held in Ireland and, as the economy becomes more digitalised, this needs to be increasingly safeguarded. “Data protection and cybersecurity are very important and need to be adequately resourced,” he says.
Enable further opportunity
The Government needs to enable further opportunity by intensifying connectivity, digital adoption, and innovation. “Ireland needs to boost digital capacities and innovation across its enterprise, research and innovation ecosystems,” he says.
Investment in the digital opportunity in the 21st century will underpin our foreign direct investment model for the coming years.
“That means investing further in connectivity, accelerating the national broadband plan, and in creating the conditions that will allow us to embrace 5G.”
Ibec believes the Government’s Mobile Phone and Broadband Taskforce should be reconvened as soon as possible.
Ibec supports resources for and implementation of national initiatives on Industry 4 and artificial intelligence. Digital Innovation Hubs should be well placed to play a growing role in advising businesses on further digital adoption too.
Engaging further within the EU can also help Ireland’s R&D competitiveness, including capturing opportunities from the €95bn Horizon Europe funding initiative.
Include everyone in further opportunity
“It’s about including everybody in this opportunity, not just business, but the public sector and individuals too. Digitalisation is important to social inclusivity. As the economy starts to use more digital tools, we need to provide the skills required to use them. Not just advanced digital skills but the basic digital literacy too,” says O’Donovan.
We also need actions to foster digital talent. “We need actions which help educators, organisations and individuals to build their capacities, whether by promoting STEM subjects in schools or increasing the number of technology programmes in higher education,” he adds.
We need to have a plan, we need to coordinate the stakeholders on the delivery of that plan, and we need to safeguard trust
“It can come through opening up alternative pathways into technology, such as via apprenticeships, as well as through employment activation schemes to help people upskill and reskill.”
It’s not just about fostering indigenous talent but attracting mobile digital talent to our shores too.
Afterall, while Ireland was sixth in Europe in 2019 as a digital society, more recent, globalised surveys show the pace of competition is quickening, he says. What’s more, the current underpinnings of our FDI, which include taxation, are likely to change.
The good news is that the pandemic has shown what we can do when we work together.
“The pandemic has shown the resilience of people, businesses, organisations and educators here, and that is really positive,” says O’Donovan.
“But we need to have a plan, we need to coordinate the stakeholders on the delivery of that plan, and we need to safeguard trust. We also need to enable the digital opportunity and make sure we have included everybody in that opportunity.”
Find out more about Ibec priorities for backing Ireland’s digital future – www.ibec.ie/digitalpolicy