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Digital Single Market - 12 Forum Gospodarcze TIME
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Digital Single Market

Digital Single Market – new dimension of globalization

The rate of changes related with the digital era caused a rapid increase in productivity and globalization of economic activity.  Digitization intensified the increase of economic efficiency associated with an increase in the scale of business activities. The role of knowledge and economies of scale became of crucial importance, not only in production and infrastructure, but also in all other economic activities. From this perspective, globalization may be seen as the growth factor of business efficiency. For the last 30 years the entrepreneurs have constantly pointed to the benefits of the free movement of capital, goods, services and people. With the transition from the era of digitization to the era of artificial intelligence (industry 4.0), we will see that material production will return to the places where it is consumed, while the dominant role in the national turnover will be given to intangible assets, which in practice means increasing importance of digital turnovers. in the commercial between the EU and the United States the scale of trade in goods and digital is already similar. In the coming years this trend is likely to continue and the value added of material production will remain very small. In the digital era, job losses were equally associated with re-directing manufacturing to developing countries, as well as with an increase in productivity. The landscape of Industry 4.0 involves practically deserted factories linked to a global network of data transmission and value chains, managed with the use of increasingly sophisticated and autonomous information systems. Returning production activities  to places of consumption, paradoxically, may cause a further decrease in the number of jobs in manufacturing. Competitiveness shall be maintained by those companies that will be able to operate in major markets, and which will have the ability to manage the collective creativity of large and competent teams.

Digital Single Market (DSM) is:

  • a harmonized, paperless ecosystem adapted to the specific techniques and to the characteristics of the cyberspace
  • ecosystem of international trade, where the turnover of material values is done in cyberspace,
  • ecosystem adapted for IPR trading through a global data transmission network,
  • European solution to effectively compete with the growing protectionism on the largest global markets.

Main thesis of the discussion

Access to a large digital market will be the prerequisite for survival of the majority of the companies involved with infrastructure and manufacturing for digital industry.

Description of the issue

No longer than two years ago, the issues related to DSM and troubling Polish business include roaming, geoblocking, equal access to the market of freight shipments or the scale and the ways to protect DSM.

With the advent of artificial intelligence, old problems have been overshadowed by the new ones:

  • standardization and normalization of digital exchange, enablling cross-border operation of industry 4.0,
  • European IoT,
  • the operation of cross-border services, eg. medical services,
  • harmonization of e-State services within the EU,
  • liability for damages resulting from the mistakes of the artificial intelligence,
  • harmonization of turnover of intangible assets produced in relation to the use of artificial intelligence,
  • the inclusion of digital currency-based financial instruments

These questions remain open and the answers are yet to be found. The culture of paper on which the markets relate makes it difficult to introduce new business models accompanying new technologies. They are poorly identified and have no support in the paper business law. Consequently, a significant part of the market slides into a gray zone. In order to make the DSM development path transparent, we need a rapid transition of the EU members to paperless technology and acceptance of business models appropriate for new state of affairs. What kinds of business models should be taken into account by the economic law of the EU in order to make it possible to create a new type of digital, capable of global competition?