The concept of the metaverse, a digital universe where users can interact with virtual and augmented reality, has received a lot of attention in recent years. According to a new report from the London School of Economics and Political Science (LSE), these technologies have the power to vastly strengthen the European economy.
The LSE report highlights how immersive and virtual technologies, together with artificial intelligence, can transform Europe into a global leader in innovation. Leveraging these technologies, users can interact deeply across environments, from retail and gaming to medical diagnostics and supply chain management.
Europe’s economic challenges and opportunities
Despite being home to some of the most innovative and technologically advanced countries in the world, Europe has a decrease in its contribution to global GDP. From 25% in 1990 this has fallen to just 14% today. Moreover, the EU faces significantly lower net inflows of foreign direct investment compared to the US. The report suggests that while Europe has the necessary infrastructure to take advantage of the metaverse, several obstacles need to be addressed.
Strategic recommendations for growth
The study recommends creating a pan-European hub for immersive technologies, dubbed the ‘Airbus of the metaverse’. This initiative, supported by long-term funding, aims to address innovation challenges and encourage the integration and production of these technologies in Europe. Such a hub would accelerate the deployment of these technologies and help establish standard specifications across the continent.
The LSE report offers policy makers key recommendations to unlock the full potential of metaverse technologies in Europe. These include establishing a European Innovation Network, creating access to skilled talent through specialized degrees and immersive technology education in existing programs, and stimulating demand and open innovation through government support in procurement and standardization efforts.
By implementing these strategies, Europe can overcome current barriers and position itself as a global leader in the metaverse. The report outlines a roadmap for the integration of these technologies into the European economy and shows their applications in different sectors. From car companies like Porsche to retail giants like IKEA, European organizations are already using the metaverse to improve their operations.
Participate in the next digital revolution
The metaverse has the potential to be a game-changer for the European economy. By leveraging these technologies, Europe could regain its position as an innovation hub and attract much-needed foreign investment. Policymakers must act on the LSE report’s recommendations to create a strong and competitive reverse industry in Europe. With the right strategies and support, Europe can participate in the next digital revolution and unlock its full potential for growth and prosperity.