IASS New research on the digitalization of the economy

New digital technologies are the main engine of social and economic transformation. They are the most significant competitiveness source and impact everyone: Public Administrations, companies, and citizens.

 It is necessary to systematically focus on the risks and benefits of digital technologies to develop the environment, society, and the economy.

This conclusion was reached by a group of researchers from the Institute for Advanced Sustainability Studies. Applying this preventive approach to digitization requires the active participation of developers, users, and regulators.

Digitalization is a robust process. It is often considered the fourth most significant innovation cycle in human history. This trend will advance and become more widespread. Indeed, there are still many structures and obstacles to overcome and change, but economic and social progress is eminently digital.

Still, this change can also lead to path dependencies that are challenging to reverse or correct.

The digital innovations’ development must be guided by a systemic perspective, professional technology assessment, and an inclusive decision-making style. 

Digital technology and efficient use of energy

The changes are driven by various trends, such as the digitization of the electricity sector, distributed energy, and the progressive penetration of renewable energy sources and electric vehicles.

Grischa Beier, Co-author and research group leader at the IASS, states that developing processes that decrease energy and material demand is crucial for a sustainable digital future. 

Pia-Johanna Schweizer, another Co-author, believes that all sectors of society must have access to digital media. They should have digital literacy to deliver an inclusive digital transformation. She also talks about the importance of establishing clear rules for data security and data sovereignty. 

Besides, there is a need for fast and reliable Internet access throughout the world, including rural areas. Similarly, exceptional support is necessary for small and medium-sized businesses while they modernize their processes.

Businesses increasingly base their processes on technology. It reduces time, costs, and risks for employees. Most factories today, at least the most cutting-edge and advanced ones, already have machines or even robots that act in place of people in the most complicated processes. 

According to Schweizer, if these challenges were not properly addressed, efforts towards a sustainable digitalization process may be jeopardized. 

There is a need for new societal initiatives to help shape an environment that enables the development of sustainable digital technologies. 

The authors of the research recommend a participatory process. Stakeholders co-develop the goals, rules, and regulations for a governance structure engaged with the 17 Goals of the United Nations.