In our recent Digital Marketing Research, we found that attitudes towards digital and social media by business people and students differed significantly across European countries. These differences will likely increase if the UK leaves the EU.
Cost and complexity reduction
The EU Digital Agenda For Europe is an initiative that aims to address the challenges of the digital economy. Companies, for example, face VAT compliance costs of EUR5,000 per nation they trade their digital products in. estimated that costs associated with compliance in different member states could reach EUR9,000.
The Digital Agenda aims to simplify international trade and harmonize the differences. Even if Britain were to remain outside of this harmonization, it would still be able to benefit from a simplified European market.
The tax issue is also a major challenge – as can be seen by governments’ efforts to try (and generally fail to collect) taxes from global giants such as Amazon, Google, and Facebook. Tax is another major issue, as governments have tried (and failed) to collect taxes from global giants like Amazon, Google, and Facebook.
The UK may find that companies prefer to set up in European capitals than in London, as they are more interested in the larger, European-wide market.
UK in comparison to its peers
Digital Agenda tracks the performance of EU member states using five indicators, including connectivity, human resources, internet use, integration of digital technologies, and digital public services.
The UK is making progress, but it is a long way off from the standards found in Denmark or Sweden. The UK’s human capital or skilled labor is one of its strongest indicators. However, if it leaves the EU, skilled workers will be less able to move around. Norway, which is not part of the EU, manages to keep close ties with the European Free Trade Association. Norway citizens can work in the EU without a permit. However, this arrangement would be detrimental to the UK’s desire to leave the EU.
The internet has made it possible for organizations to operate from anywhere in the world. With new business models and working methods, a flexible workforce is available at the touch of a mouse through crowdsourcing websites such as 5r or Amazon Mechanical TurTurk.
Index of digital economy and society European Commission
A single digital marketplace would have many benefits, including reduced prices for products and services, easier cross-border communication, and a public sector that is digital by default, which could improve the efficiency and transparency of using public funds.
The adoption and acceptance of digital services would increase and bring European countries together. Those who support the UK leaving the EU often use the example of Norway, which operates outside the EU through trade agreements but is still associated with the EU. The major difference between Norway and the UK is the UK’s size. Norway has a population of just over 5m, while the UK is almost 13 times larger. The UK has a much larger number of businesses that can trade with Europe and would benefit from remaining in the EU.
London’s status would be lost if it were to lose it.
The triple helix of innovation is a combination of academic research, commercial interests, and favorable innovation policies that are essential for creation.
The latest EU Innovation Scoreboard placed Britain at the top but not as a leader. Atlas of ICT Activities in Europe suggests that, based on research and development value, number of companies, and innovation volume, Munich is the best place. London comes next, followed by Paris.
The Digital Agenda for Europe, a priority area with a lot of funding – around EUR2.8 billion for R&D — allows organizations to work together on research and development programs. EU members are at a distinct advantage over the UK if Brexit occurs, as funding is an important factor. Organizations that have access to funding and tech hubs are more likely to grow. If Britain leaves the EU, it will be a step back from the digital agenda benefits.