4. Encouraging “smart networks” in key commercial infrastructure areas of our economy The term “smart networks” stands for comprehensive and systematic use of the possibilities for digitisation in major infrastructure areas, such as energy, transportation, health, education and public administration. Familiar examples are concepts such as smart grid, smart meter, smart home, smart traffic, smart city, e-health, e-learning, e-government, e-participation or age-appropriate support systems for living a self-determined life. Smart networks enable citizens to enjoy a higher degree of social and political participation as well as enhanced productivity, efficiency gains and growth in the basic sectors of our economy as described above. According to a study conducted by the Fraunhofer-Institute for Systems and Innovation Research18 , smart networks can generate an overall benefit to society of around €56 billion annually, of which €39 billion is attributable to expected efficiency gains and €17 billion to additional impetus to growth. In order to utilise this potential we have already launched numerous initiatives for promoting smart networks: • In the autumn of 2015 the federal government adopted the Smart Networks Strategy as a measure for implementing the Digital Agenda 2014 – 2017. This strategy involves four elements that were developed jointly by representatives of the business community in the scope of the IT Summit. We launched the Smart Networks Initiative19 to implement this strategy. • In November 2015, the federal government drafted a bill on a law to digitise the energy transition. 18 Fraunhofer-Institute for Systems and Innovation Research: Economic effects of smart infrastructures in Germany, 2012. 19 http://www.netze-neu-nutzen.de www.de.digital 29

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