Regional Digital Summit in Budapest – 17-18 November 2016
The digital transformation of the economy and the social life cover the most exciting fields of
technology and social challenges (industry, cities, wellbeing, infrastructure, education, innovation
and finance). These categories respond to the age of the internet, challenging our civilization.
Daily working routine will change through digitalization in many aspects, e.g. work- life balance,
in the need of being always connected, through interaction in the new production processes,
particularly human-machine interaction, new ways of value-creation using digitalization and new
business models generated by Industry 4.0.
From a European perspective the most important branches that are being disrupted by digital
transformation in front of our very eyes are the following: intelligent transport system, e-mobility,
connected cars and automated driving.
The automotive industry has a very high impact on Europe’s economy. At present Europe is
well-positioned vis-à- vis its global competitors in connected automated driving, but in order to
keep and develop this position large scale investments are necessary in infrastructures, products
and services, based on the co-operation mainly of the automotive and telecommunication
Major changes are required in automotive industry to accelerate the transition from an analogue
to a digitized, connected world. Close cooperation with other sectors particularly the
telecommunication and information technology sector is essential. The efforts of the
telecommunication and automotive industries to intensify cooperation in these fields (connected
and automated driving) require support from the Governments to prepare and implement large
scale cross border initiatives and projects.
The European Commission’s assistance and guidance is needed to accelerate this process,
especially in the field of EU-level policy making. The present window of opportunity should be
used to maintain and enlarge global leadership of European industries.
Aim of the conference
The major goal of the conference is to give visibility to the challenges raised by the digitalization,
support the synergy of actions at different levels, contribute to the implementation of the
European Digital Agenda, contribute to the competitiveness of the European economy, send a
signal to the younger generation and serve as a meeting point for political decision makers with
the leading representatives of the industry. It could serve as a valuable contribution to the
reflection on the future of the EU.
The conference should aim to help to eliminate the gap in the fields of digitalization among the
European regions. It should be taken into consideration that the digitalization itself offers a
development chance for excellence based R&D entrepreneurship and digital innovation
infrastructure capacities in every member state.
The Central European region has been developing comprehensive and highly competitive
cooperation with the German automotive industry which has important and growing
contribution to GDP, employment, export and the research and development as well. This
cooperation is one of the most significant pillars of economic power and competitiveness in both
individual countries and the entire EU. Therefore, the future of the automotive industry, in
particular as regards autonomous driving, is a priority issue as a typical presentation of digital
economy which should be discussed and promoted at the highest political level, sending the
necessary signals to our societies and economic players.
The governmental leaders of the region will discuss digital challenges and possible social and economic policy solutions in Central Europe.
• Digital competitiveness of Central Europe – both global and EU perspective
• National and regional analysis - current challenges
• A possible regional vision: objectives of regional cooperation
• Ways, tools, conditions and barriers of cooperation: regulatory cooperation, infrastructure development cooperation, financing cooperation, corporate cooperation within business sectors, successful initiatives
The ministers will discuss infrastructure development issues in particular as regards to new, complex digital technologies within national and even regional frameworks.
• Main areas of digital infrastructure development
• Possible inter-sector co-dependencies: future links between vehicle development (CAD) and telecommunications (ICT)
• Opportunities in common development projects: is a shared regional vision worth pursuing?
• Difficulties: differences in technical regulations within the member states, scope of R&D possibilities, financing capacities, political interests, coordinating economic interests
• Discussion of government funds and other conditions necessary to ensure success of the newly established Alliance (Europe's first Automotive-Telecom alliance)
In the age of digital change Smart City projects represent the most complex innovative processes. Its branches include the energy sector, technical regulation, social models and social innovation of the internet economy.
One might ask how such a broad range of technical and societal sectors could be covered by a system based on inter-operable standards. The panel will discuss characteristics of successful cooperation models with special focus on exchange between politics, the different sectors, and management subsystems. Countries in the region put great emphasis on key government programs such as Smart City pilot projects. The panel will highlight some of the successful projects in the region.
The applications of digital technologies have strong impact on the energy sector and use of energy. Digital innovations contribute towards the efficient and conscious use of raw materials. The developed sensors and the utilisation of ‘big data’ for example significantly reduces the energy demand of industrial productions.
In the panel discussion the following subjects might be addressed:
• The initiative of the European Commission and the efficiency of the energy sector (SPIRE – Sustainable Process Industry through Resource and Energy Efficiency; from sector specific initiatives Energy-Efficient Buildings and Green Vehicle Initiative)
• Smart grids, smart cities - interconnecting standardisation
• Integration of smart equipments in smart homes
• Raising awareness of consumers concerning energy and environment (for example: energy efficiency labelling, certification, replace-actions, energy efficiency controlling systems)
• Opportunities in digital transportation (car sharing system and other intelligent transport systems)
• Linking energy networks and broadband net.
Digital innovation has created a number of new business models in various sectors. Radically new business models arise from healthcare through energy systems, and intelligent cities. These segments demand an exponential growth of the digital infrastructure, especially developments in communications and e-mobility. New processes of these novel innovation models shift R&D departments of companies towards open, shared economy models. The rise of data economy and talent acquisition comes with unpredictable requirements of human resources in scientific and technical fields.
Can management of digital economy, B2B systems, and startups keep up with these changes? How will these changes influence other segments of economy, society, employment, training, and education.
During cross-border transport, individual smart vehicles cannot count on the experience, observation and promptitude of the driver. Information required for vehicle control when crossing borders, switching to another mobile service or new infrastructure. Road traffic is a dangerous business, therefore we must prepare for critical traffic situations.
Authorities and motor vehicle departments, telecommunications companies, highway construction companies, infrastructural operating and manufacturing companies must develop a functioning intelligent transport system that allows for the safe use of autonomous vehicles. Within the member states, technical developments in vehicular transport, infrastructure and communication can serve the future of vehicular transport most effectively if developments are made within common legal frameworks and a shared standards system.
Vehicle type approvals for new vehicles must also be equivalent.
Today, the following legal and related ethical issues often arise:
To what extent is the driver required to supervise the vehicle in autonomous mode driving?
What guidelines should be applied in case of accident and related liability?
Should autonomous cars be clearly distinguishable from the outside?
Sensitive data regarding the vehicle dynamics and its user are mandatorily recorded. Which data has to be made available, under what circumstances, what will it be used for and how will it be managed?
Who owns the data recorded in the vehicle? Can data-reading be refused?
In case of inevitably occurring road accidents, on what basis is determined how to intervene to affect vehicle control algorithms, affecting the consequences of a collisions?
Who is to define, and how, the decision-making mechanism over the driver’s life and that of the fellow travellers in a particular conflicted traffic situation?
The automotive industry is going through a systemic transformation over the coming years. This transformation’s main drivers are digitalisation, connectivity and the solutions offered by industry 4.0, which can eliminate seven million jobs, while creating 2 million due to the increased demand for other competences (for example robotization, automation and software development). By further automating the manufacturing processes, labor costs can be reduced by 90 percent.
Sharing-based transportation can be considered attractive to drivers and consumers, as the costs occurring during the lifetime of a vehicle can be reduced. Consumers will appreciate flexibility and environmental awareness in future automotive solutions.
Producers who have focused exclusively on production will now strive to include services. Network administrators can provide their customers with vehicle-related and unrelated products and services.
Over the next 15 years, at the time of purchase, it will become increasingly important that the car has self-driving facilities. An increasing number of companies are working on such developments. We can expect these in the areas of detailed sensing of the environment and autonomous navigation. With the help of these, we can reduce space requirements, improve utilisation of the available road space, avoid traffic jams and reduce the likelihood of accidents. The self-driving car has an autonomous safety system, which enables emergency stops in driverless cars, but also while supervised by a driver, as well as automatic lane keeping. Navigation is usually done with a number of sensors and modern navigation systems, such as radar, laser-radar and GPS.
In our region, especially in big cities, a startup ecosystem is growing dynamically. Government initiatives for the improvement of competitiveness are aiming at promoting this process. The various centres are not only competitors, they also cooperate with each other.
The development of ecosystem models are rather built on global, remote principles, than on regional, or sectoral value chains. To what extent can this somewhat anarchic structure effectively support the modernisation of the economy based on digitisation in the region?
Startup organizations of the region have decided to work together on a solution.
Key elements for such a cooperation include: Industry 4.0, digitisation, industrial innovation, development and dissemination of new technologies, information and sharing of best practices as well as the region’s startup organisations’ country-specific solutions for mutual learning and improving efficiency.
The panel discussion is designed to shed light on, and seek shared answers in regards to startups’ main interests, sponsoring and funding opportunities, focusing on the opportunities for growth.
At present, during the development phase of autonomous vehicles, suppliers face many challenges in environmental sensing, perception and positioning, assessing traffic situations, and in route planning:
What is the vision on the opportunities for V2X, on switching onto the network, on cloud- based data storage, on processing large amounts of data, and on the safety thereof?
In the cases of highly, but not yet fully automated vehicles, under what circumstances and at what pace is the driving decision returned to the driver? To what extent must the driver check or supervise a highly or fully automated car while driving? How to detect if the driver is in a suitable condition to take control?
What sort of problems do the approval of certain cars and the development of test methods pose for vehicle manufacturers, suppliers and test engineers?
Is the use of hybrid communication systems, such as 5G and DSRC (Dedicated Short Range Communications) preferable, or will one communication channel be dominant?
Can intelligent tools and standards be made capable of hybrid communication?
Among the actualities here, what sort of open questions can we identify, such as in the case of TEN-T and freight parking, the e-Call system (OBU SIM card), road safety information services or real-time information services?
Priority areas of the ITS Directive (2010/40 / EU of Intelligent Transport Systems)
• Optimal use of roads, and traffic and travel data,
• Continuous ITS services in traffic and freight management,
• ITS applications related to road traffic safety and safety precautions,
• Linking vehicles with transport infrastructure.
What improvements are needed in traffic management and information centres in order that the intelligent transport systems operate effectively?
In line with European trends, digitization as a major force of innovation in the field, plays an important role in quality improvement of the industry. Transforming production processes based on intelligent systems is the key to the success of Industry 4.0.
Platform-based co-operation between partners and member states aims at furthering productivity, efficiency, shifting activities to higher added value in the value chains. Development policies stress the importance of finding sustainable comparative advantages. Customers experience the fulfillment of their individual needs at higher level, at a much wider scale, and at higher level of customization.
Reshaping these processes, larger contribution to special R&D co-operation projects such as H2020 teaming, EIT communities and think-tanks, realization of excellent research by developing their own innovation framework present great challenge for countries of the region.
Companies of the region, SME-s in particular, need the so called „upgrade” from Industry 3.0 to Industry 4.0, which involves gross accumulation of technology and knowledge. These are key factors of the region for catching up, and innovating instead of simply adapting processes.
We strive for finding joint interests, new opportunities and a common framework in this process.
Presenters of the conference and participants of the panel discussions
Minister for National Economy of Hungary
State Secretary, Ministry for National Economy
Commissioner, European Commission
Minister of Transport of Czech Republic
Head of Unit, Federal Ministry of Transport, Innovation and Technology of Austria
Secretary General of ACEA
Mayor from Ingolstadt, Germany
President of NKH, Hungary
Dr. Carlos HÄRTEL
CTO & Chief Innovation Officer, Director European Technology Center, GE