28th October 2024
Hon. Minister Schembri
Dr Zavazava,
Excellencies,
Distinguished Guests,
I warmly welcome you all to Malta for this third edition of the Global Innovation Forum organised by the International Telecommunication Union hosted in Malta by the Ministry for the Economy, Enterprise and Strategic Projects.
Discussing global innovation, in its various forms and manifestations, is essential in order to establish a platform for critical and constructive dialogue within local and international communities; as well as to identify creative and innovative ways to drive growth and development, for a better future for our planet.
The theme for this year’s edition, ‘Shaping Our Digital Futures for Prosperity and Well-Being for All’ raises an important question. Who stands to benefit from investment in digital innovation?
Our world is witnessing a completely unprecedented era of technological advancement; nothing like we have seen throughout all human history. Nowadays, digital skills and technologies are not merely assisting growth, but one could argue that prosperity and success in the world we live in is not achievable if one is not ahead of the curve when it comes to digital innovation!
Indeed, through innovative technologies, we have tackled more effectively some of the world’s most pressing challenges, economic challenges, the fight against food insecurity, as well as global health, and hopefully innovative technology shall also help humanity in the climate crisis the globe is experiencing.
Innovation serves to unlock the potential of nations, corporations and individuals, a transformative tool for societies.
However, we have to keep in mind that the innovation so far witnessed is not one hundred per cent beneficial; it does have its pitfalls.
It created a digital divide, where the distinction between those who have adapted to the digital reality, and those who have not been able to do so, is very pronounced. In terms of global innovation, the world is also witnessing the digital innovation gap, a major issue that will be the main focus of this forum.
Statistics published by the World Bank show how most digital innovation efforts, particularly in terms of data analytics, artificial intelligence, and digital services are concentrated in high-income countries. In spite of progress being observed worldwide in terms of investment into digitalisation, a stark gap exists between high income countries and the rest of the world.
Significantly, between the year 2000 and 2022, the IT services sector grew much faster than the global economy. However, this growth was mostly a result of expansion in the six major world economies, namely the United States, China, India, Japan, Germany, and the United Kingdom where IT services growth amounted to 70% of global value added in the sector.
In Europe, the digital innovation gap is quite evident between large businesses and small and medium-sized enterprises (SMEs). In fact, according to 2023 Eurostat statistics, while around 68% of large businesses in the European Union have a high or very high level of technology uptake, only 24% of SMEs can claim to have the same level of digital intensity.
These statistics reflect the competitive and financial disadvantage that SMEs encounter when compared to larger businesses. This digital innovation gap could be a determining factor as to whether they can survive in the modern era; an era where globalisation has increased the number of multinational corporations and large enterprises, whose access to resources by far surpasses that which an SME is able to achieve. This is especially to be noted and addressed by us in Malta; Data issued by the “Statista Research Department” on 2nd September of this year, stated that in 2022 there were more than thirty-three thousand SMEs operating in Malta, with the majority of them (over thirty thousand) being micro-sized enterprises employing less than nine persons.
In recent years, Malta has actively invested in digital innovation. Our country has seen a sharp rise in digital innovation, as evidenced by the European Innovation Scoreboard, which highlights significant progress since 2017.
The establishment of the Malta Digital Innovation Authority in 2018 marked an important step in the efforts made by our country towards enhancing and fostering an environment where digital innovation can flourish.
In this regard, the 2023-2025 Strategic Plan of the Malta Digital Innovation Authority serves as a focal point in delineating innovation progress, particularly in education, resources, provision of advisory services and the facilitation of research.
This line of action demonstrates our commitment to champion digital innovation. Moreover, the implementation of the European Data Governance Act (DGA), and the introduction of the Artificial Intelligence National Strategy, evidence the way Malta is striving to promote and adapt to increase its efforts in the field of digital and technological innovation.
The Maltese educational system is promoting opportunities in STEM subjects, namely Science, Technology, Engineering and Mathematics, as these areas provide the core framework and the right environment for innovation to flourish.
Digital innovation has become an essential part of Malta’s economic and social fabric. Besides providing solutions to government and businesses, it also drives economic growth.
Educational opportunities are deeply intertwined with technological progress. Giving our children access to digital tools, alongside the skills to use them, is crucial for their future success.
Excellencies, ladies and gentlemen,
The digital divide cannot persist. It is pertinent that the discussion on digital innovation and its future, is focused on making technology accessible to more people, no matter their background, social status, nationality or gender.
No one can be left lagging behind due, to lack of access to digital tools and resources. It is pertinent that access to information technology, and digital tools should be made available to everyone, everywhere.
Since innovation is at the root of success there exists a concomitant duty on all of us to do our utmost to ensure that the digital gap is decreased as much as possible, so that it does not serve as another cause for greater disparity between the have and the have not.
Assistance must be available to those who need it in order to achieve success and prosperity. In order that the fruits of technology are fully utilised and enjoyed globally, nationally, and also at individual level, there must be a commitment by the international community to narrow inequalities of technological standards as much as possible.
I augur that this forum will serve as a platform for the generation of dialogue, networking and collaboration, resulting in a series of innovative proposals that foster further collaboration and initiatives within the digital innovation field.
I declare the Global Innovation Forum officially open. May your deliberations be of universal benefit!