5G and the European Competitiveness Challenge: The Case For Demand-Side Innovation Policies

5G shares many features of General Purpose Technologies (GPTs). Relative to previous GPTs, such as “first wave” ICTs, it may have deeper positive effects in terms of EU productivity performance. Yet, it poses greater challenges. In this contribution, insights from the EU competitiveness debate are used to shed some light on the nature of these opportunities and challenges. The discussion points to the need to complement early on supply-side efforts at speeding up network deployment with demand-side innovation policies, i.e. technology diffusion policies that actively leverage on the potential for novel collaborations in innovation along the many new 5G-connected digitalized value chains, and to the need for improved vertical and horizontal governance of EU policies in this domain.