On Estonia, the EU and tech
I was in my early 20s when Estonia joined the EU. For a kid who’d grown up in the Soviet Union, it seemed like my country had come of age. For a country that had been isolated and cut off from the rest of the world, it seemed like we were becoming part of the global community. It opened a whole new world of possibility.
For a country like Estonia (with our history), the security benefits were perhaps paramount. The economic ones were clear as well.
Thinking about it now though it seems to me that the real benefit to being part of Europe is the connectedness it brings, not just to our European neighbours but to the rest of the world. The ties it creates are not limiting but actually lead to a greater freedom. For Estonia, joining Europe meant our potential as a country increased — not decreased — because of that connectedness.
Technology works in pretty much the same way.
The impact of technology is two-fold: connectedness and democratisation.
The world is getting smaller thanks to technology. We’re more connected than ever before. And just like a small country finding freedom and bigger potential through joining a larger group, it’s the same for us as individuals. Whether it’s about staying in touch with friends and families via Skype or FaceTime. Or being part of wider movements via social media like Facebook and Twitter.
And we see the democratisation effect of technology on our lives every day.We’re at a stage in the tech revolution where every industry is seeing the impact of technology. It opens up entire new possibilities — not just to improve what already exists; but to invent something better. Whether that’s in communications, transport or financial services. Its innovation provides new ways of doing things that are cheaper, faster… and all round better. Companies are building platforms driven by consumer need to enable easier lives: platforms that can change the way we live our lives. In the e-Residency programme Estonia is taking that principle into government and creating government as a platform.
The technology is not an end in itself: it is a tool. It can make it easier for us to communicate or manage our finances; it can help us take care of our health or help policemen in their work; it can create jobs and boost growth; it can enhance transparency and accessibility to services. It can mean more engagement, more inclusion: bringing more opportunities to everyone.It is our choice how we use technology.
But we’re not yet able to tap into the full potential of tech. On the one hand we have this amazing potential; on the other, we’re limiting it by outdated structures or thinking.
While tech connects us, most of the world is set up to operate within national borders. And those are operating as constraints to innovation. That makes little sense when the biggest problems we face are global and probably our best chance to solve them is global too.
We need a new global infrastructure to help ensure we get the best out of technology. Regulation is important. Regulation at its best creates opportunity as well as protection.
The fact that the single market suddenly stops working when you buy something online is a clear example of how the legal framework needs to rapidly catch up with the new reality in which we all live.
Look at the physical example of Europe, thanks to the abolition of border controls between EU countries, people can travel freely throughout most of the continent. It’s become much easier to live, work and travel throughout the region. This has been and continues to be key to the economic growth of the region.
If that was extended to business, it would unlock massive economic potential. The European services e-card , the Single Digital Gateway and the reform of EU company law are crucial to making this happen. Single market principles applied in other areas could have a similar impact. The potential of adding data as the fifth freedom positions Europe firmly as a pioneer.
Of course as a tech entrepreneur i’m excited by the digital agenda Estonia brings to Europe. It’s about making it easier to change the world. Estonia’s known as a start-up nation — both the country itself and then the national psyche that means it ranks as one of the highest countries for the number of start-ups per capita.
Adopting policies that encourage and foster entrepreneurship and innovation will give Europe a huge competitive advantage in the world. A world that’s moving fast with both established and emerging economic hubs everywhere from the US to throughout Asia.
I believe we will have many Silicon Valleys in Europe. Look at the ecosystem that is already growing in the Baltic states and there are tech clusters emerging all across Europe. Each has their own strengths but ultimately they are dependent on the laws created here. So it’s up to Europe to create the conditions to enable entrepreneurship to flourish.
The free movement of talent within Europe has been one of the key ingredients for success so far. I cannot stress enough the importance of immigration. That combined with the development of skills fit for the 21st century means that we have the most important asset: people.
Entrepreneurship creates jobs, growth and innovation. And it’s a virtuous circle. Entrepreneurship inspires entrepreneurship and so the ecosystem goes from strength to strength.
We’re at a point in time where the future could be bright. And not just for the few but shared by many.
But to get the most out of this tech potential, national governments and regional and international organisations have to take action. They can help create the conditions that allow technology to help the economy and society flourish. It’s not about regulating to prevent risk but regulating to create opportunity.
For the policy-makers, it’s a time to become more open and not retreat behind the borders that are familiar and known. To be more open is a decision that takes courage. But it’s the decision that needed if we’re to succeed in delivering the full potential of the tech revolution to the world.
