I I . T H E D I G I TA L E CO N O M Y A N D D I G I TA L W O R K P L A C E Ever greater volumes of data (so-called big data) are being interconnected to build smart data, resulting in new products and smart services. Meanwhile, business processes, which are being influenced by mobile Internet use and by cloud and social media applications, are being used for new business models. These changes are having a massive impact at the very heart of our economy. Networked production or “Industry 4.0“ has the potential to recast value added chains and dramatically influence the business models of Germany’s leading industry sectors such as plant and mechanical engineering, car manufacturing, electrical and medical engineering. We want Germany to become Europe’s number one country for digital growth. To achieve this goal, Germany’s globally competitive industrial sector must develop commercially viable, reliable technologies and set the benchmark for key digital applications to make Germany not only the leading provider in the area of smart production and logistics, but also the leading market for smart products while remaining competitive. Furthermore, as ICT providers and ICT consumers, Germany’s Mittelstand (small and medium-sized businesses) must be assisted with the greatest range of support measures possible in the transition to the digital economy. We want to help small and medium-sized enterprises (SMEs) in particular to improve their capacity for innovation, both in relation to new goods and services and the optimisation of business processes, by implementing and developing new digital technologies. If Germany is to become the leading country in Europe for digital growth, we need to rely on the innovative strength of our business start-ups. We are supporting the digital economy in its research activities and through ongoing dialogue and an innovation-friendly business environment. This support includes a modern regulatory framework for ensuring freedom, transparency, data protection and security and also for preserving competition in the digital world. We intend to monitor more closely the effects of digital technologies on employment and labour markets, health protection and business organisations. Working together with the social partners, we will develop new, economically and socially viable approaches for working in the digital space. 13 1. Supporting and promoting the digitisation of industry The Federal Government is committed to supporting the forward-looking projects Industry 4.0 and smart services outlined in the High-Tech Strategy for Germany. These projects must be further developed under a cross-departmental innovation strategy in order to safeguard and boost Germany’s standing as a highly productive and innovative location for business and to return outsourced production to Germany. To address these topics, we are establishing a political dialogue that will facilitate an exchange between the relevant stakeholders in government, industry and science while engaging with existing committees and platforms. Existing communication barriers between the individual stakeholders are being removed. Other measures are: zzthe establishment and expansion of research and tech- nology programmes with high transferability to industry, for example, the areas of autonomic technology, 3D, big data, cloud computing and microelectronics; zzthe initiation of new business models and innovative services by fostering the development and distribution of big data and cloud applications that offer greater security and data privacy; zzreinforcing security and confidence in relation to the use of digital services, including measures to strengthen the German digital security sector; zzassisting small and medium-sized IT enterprises with their internationalisation efforts and facilitating their access to growth capital; zzthe promotion of norms and standards to ensure the seamless integration of traditional industry with ICT. We are encouraging digitisation in important future markets and areas by: zzdeveloping centres of excellence to provide information and demonstrations of best practice for Industry 4.0 and smart services to the SME and skilled craft sector and also supporting user-friendly applications and services (usability);