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| Report claims apps economy accounts for nearly 800k new jobs across EU | Report claims apps economy accounts for nearly 800k new jobs across EU |
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| The growing apps economy has created nearly 800,000 jobs across Europe in the last five years, and will generate €11.2bn in revenues across the region in 2013, according to a report published by industry trade body ACT. | The growing apps economy has created nearly 800,000 jobs across Europe in the last five years, and will generate €11.2bn in revenues across the region in 2013, according to a report published by industry trade body ACT. |
| The association, which has backing from Apple, BlackBerry, Facebook and Microsoft among others, hopes the report's claims will persuade policymakers across Europe to take more steps in support of the industry. | The association, which has backing from Apple, BlackBerry, Facebook and Microsoft among others, hopes the report's claims will persuade policymakers across Europe to take more steps in support of the industry. |
| "We know that apps are important, but at some point you have to boil that down to some real, hard numbers so that people get an impression of the scale and stakes," said Jonathan Zuck, ACT's president. | "We know that apps are important, but at some point you have to boil that down to some real, hard numbers so that people get an impression of the scale and stakes," said Jonathan Zuck, ACT's president. |
| "We were surprised at how good the numbers were, including the significant role Europe plays in the world economy: nearly a quarter of the global app economy is in Europe." | "We were surprised at how good the numbers were, including the significant role Europe plays in the world economy: nearly a quarter of the global app economy is in Europe." |
| The report – produced with research company VisionMobile and consultancy firm Plum Consulting – claims that globally, apps will generate €51bn of revenues in 2013, with Europe accounting for €11.2bn of that, or 22%. | The report – produced with research company VisionMobile and consultancy firm Plum Consulting – claims that globally, apps will generate €51bn of revenues in 2013, with Europe accounting for €11.2bn of that, or 22%. |
| ACT also claims that sales of apps and in-app purchases through app stores will only account for 18% of global apps revenues in 2013, with the rest coming from a mixture of advertising, commerce, external subscriptions and business-to-business sources. | ACT also claims that sales of apps and in-app purchases through app stores will only account for 18% of global apps revenues in 2013, with the rest coming from a mixture of advertising, commerce, external subscriptions and business-to-business sources. |
| The report claims that there are currently 529,000 people in full-time employment directly linked to the app economy across Europe, including 330,000 app developers. | The report claims that there are currently 529,000 people in full-time employment directly linked to the app economy across Europe, including 330,000 app developers. |
| However, it claims that another 265,000 jobs have been created indirectly in sectors like healthcare, education and media, where apps are increasingly prominent. "The economic impact goes beyond the revenue and jobs being generated directly from the industry," said Zuck. | However, it claims that another 265,000 jobs have been created indirectly in sectors like healthcare, education and media, where apps are increasingly prominent. "The economic impact goes beyond the revenue and jobs being generated directly from the industry," said Zuck. |
| In the UK specifically, the report claims that 40% of organisations involved in developing apps are one-man operations, while 58% employ up to five people. It also points out that 35% of UK app developers are earning less than $1,000 a month from their work. | In the UK specifically, the report claims that 40% of organisations involved in developing apps are one-man operations, while 58% employ up to five people. It also points out that 35% of UK app developers are earning less than $1,000 a month from their work. |
| Zuck said ACT is trying to do more than celebrate the growth of the apps industry so far in Europe: it wants to nudge politicians across the region into doing more to support the emerging market. | Zuck said ACT is trying to do more than celebrate the growth of the apps industry so far in Europe: it wants to nudge politicians across the region into doing more to support the emerging market. |
| Among its suggestions: opening up more government data for developers to work with; releasing more spectrum for wireless services; reforms to intellectual property and communications legislation to boost the European single market; and "ensuring a flexible and supportive business environment for startups and entrepreneurs". | Among its suggestions: opening up more government data for developers to work with; releasing more spectrum for wireless services; reforms to intellectual property and communications legislation to boost the European single market; and "ensuring a flexible and supportive business environment for startups and entrepreneurs". |
| Deregulation, then? "It's not necessarily a deregulatory agenda, it's more about refining things, and incorporating the subtle gradations that currently exist," said Zuck. | Deregulation, then? "It's not necessarily a deregulatory agenda, it's more about refining things, and incorporating the subtle gradations that currently exist," said Zuck. |
| For example? "Healthcare, where a lot of the apps that are becoming available blur the line between healthcare and medical care, in terms of how you define what represents a medical device subject to regulation," he said. | For example? "Healthcare, where a lot of the apps that are becoming available blur the line between healthcare and medical care, in terms of how you define what represents a medical device subject to regulation," he said. |
| ACT is keen to see more European apps startups make the leap from small, bootstrap-funded companies to the next level of scale and investment, with its report intended to engage policymakers in that debate too. | ACT is keen to see more European apps startups make the leap from small, bootstrap-funded companies to the next level of scale and investment, with its report intended to engage policymakers in that debate too. |
| "Europe has always been full of innovative thinking. Where it's fallen down, if you will, has been in bringing those things to market: taking things out of the laboratory and into the market, which has some ties to labour flexibility, some to access to capital, fragmented markets etc," said Zuck. | "Europe has always been full of innovative thinking. Where it's fallen down, if you will, has been in bringing those things to market: taking things out of the laboratory and into the market, which has some ties to labour flexibility, some to access to capital, fragmented markets etc," said Zuck. |
| "But one of the things about the app economy is the way the app stores have created such a low barrier of entry to the market, coupled with access to a global market and a well-defined monetisation model. The bridge from invention to commercialisation is a lot smoother, and that's why Europe is showcasing so well." | "But one of the things about the app economy is the way the app stores have created such a low barrier of entry to the market, coupled with access to a global market and a well-defined monetisation model. The bridge from invention to commercialisation is a lot smoother, and that's why Europe is showcasing so well." |
| As an example, Zuck was accompanied to this morning's UK launch of ACT's report by Casper Woolley, the British chief operating officer and co-founder of taxi-hailing app Hailo, which is currently generating annual revenues of more than $100m. | |
| "We started off back at the end of 2010 with a developer, three taxi drivers and three tech entrepreneurs, and now we're employing 126 people," he said, before returning to the theme of how European governments can help startups like Hailo. | "We started off back at the end of 2010 with a developer, three taxi drivers and three tech entrepreneurs, and now we're employing 126 people," he said, before returning to the theme of how European governments can help startups like Hailo. |
| "What we care about most is near-harmonisation, so we can provide a uniform service that allows us to scale quickly, and then there is a second layer which varies by industry," he said. | |
| "That is the way mobile technology is simply changing the world and creating a new dynamic that old regulations didn't take into account when they were written. We think there's a way to work through that, to move from the old to the new without destroying everything in your path." | "That is the way mobile technology is simply changing the world and creating a new dynamic that old regulations didn't take into account when they were written. We think there's a way to work through that, to move from the old to the new without destroying everything in your path." |
| Some politicians are already talking the kind of talk ACT wants to hear in response to the report. "In a time of unemployment, the app economy gives me a lot of hope," said digital agenda commissioner Neelie Kroes at the report's launch event in Brussels on Wednesday. | Some politicians are already talking the kind of talk ACT wants to hear in response to the report. "In a time of unemployment, the app economy gives me a lot of hope," said digital agenda commissioner Neelie Kroes at the report's launch event in Brussels on Wednesday. |
| "The growth of apps made in Europe is an example of what happens when you create a borderless open economic environment. Now we need to bring that philosophy, and the jobs it enables, to other parts of the digital ecosystem. We now need better networks and a single market to support the further success of apps. | "The growth of apps made in Europe is an example of what happens when you create a borderless open economic environment. Now we need to bring that philosophy, and the jobs it enables, to other parts of the digital ecosystem. We now need better networks and a single market to support the further success of apps. |
| At the UK event two days later, parliamentary under secretary of state for culture, communication and creative industries Ed Vaizey was upbeat about the report's findings too. "The speed of innovation and job creation in the "App Economy" is truly amazing," said Vaizey. | At the UK event two days later, parliamentary under secretary of state for culture, communication and creative industries Ed Vaizey was upbeat about the report's findings too. "The speed of innovation and job creation in the "App Economy" is truly amazing," said Vaizey. |
| "Tens of thousands of people across the UK, and nearly 800,000 people across Europe, are now working in this exciting sector which brings wide benefits to consumers of all ages. I look forward to seeing Britain play a leading role in the next stage of development." | "Tens of thousands of people across the UK, and nearly 800,000 people across Europe, are now working in this exciting sector which brings wide benefits to consumers of all ages. I look forward to seeing Britain play a leading role in the next stage of development." |
| The report's emphasis on job creation as well as revenues is intended to prod politicians to go further than sitting back and merely watching the apps industry, though. | The report's emphasis on job creation as well as revenues is intended to prod politicians to go further than sitting back and merely watching the apps industry, though. |
| "This report was intended to raise the stakes. Yes, it's celebratory, but the real issue is by seeing how significant the growth has been in such a short period of time, we begin to scratch the surface of what the potential growth could be," said Zuck. | "This report was intended to raise the stakes. Yes, it's celebratory, but the real issue is by seeing how significant the growth has been in such a short period of time, we begin to scratch the surface of what the potential growth could be," said Zuck. |
| The benefits may go beyond the €11.2bn of apps-related revenues across the EU in 2013 that's forecast in the report. Zuck hopes policymakers will think too about the value created by apps in a host of areas, from productivity benefits in the workplace and innovation in the education sector through to the impact and implications of health-tracking apps. | The benefits may go beyond the €11.2bn of apps-related revenues across the EU in 2013 that's forecast in the report. Zuck hopes policymakers will think too about the value created by apps in a host of areas, from productivity benefits in the workplace and innovation in the education sector through to the impact and implications of health-tracking apps. |
| It's not all good news. ACT is also trying to play a role in self-regulation within the apps industry, in response to recent controversies over privacy, including data protection issues within children's apps. | It's not all good news. ACT is also trying to play a role in self-regulation within the apps industry, in response to recent controversies over privacy, including data protection issues within children's apps. |
| "We are testing a short-form privacy notice for customers to help them understand what data is being collected and used, so they can make informed decisions about using an app," said Zuck. | "We are testing a short-form privacy notice for customers to help them understand what data is being collected and used, so they can make informed decisions about using an app," said Zuck. |
| "And we have an initiative with Moms With Apps called 'Know What's Inside' specifically on the children's privacy issue, which is a logo program for better informing parents about what an application is doing, and what its data practices are. We fully recognise we need to be working on these issues aggressively." | "And we have an initiative with Moms With Apps called 'Know What's Inside' specifically on the children's privacy issue, which is a logo program for better informing parents about what an application is doing, and what its data practices are. We fully recognise we need to be working on these issues aggressively." |