Particularly in the corona period, network expansion surprises as a booster of economic value, demonstrating its importance for a resilient economy.
About the Innovation Index
For the second time, the Vodafone Institute, in collaboration with Prognos AG, publishes the Innovation Index, which annually measures the economic and innovation-driving impact of network expansion in Germany. The Index allows to track regional differences in the network expansion on an ongoing basis and to compare the effects in the German districts and cities. The overall Index is designed to measure the impacts of network infrastructure on economic strength, innovative ideas and products, and a skilled workforce.
Digitalisation creates resilience in times of crisis
The special importance of network expansion has probably never been as evident as during the Corona pandemic. The economic damage, i.e. lost GDP compared to a scenario without Corona, amounts to 420 billion euros in 2020-2022. The internet and its technical enabler, network infrastructure, played a lifeline role during the pandemic. Digitised businesses continued to operate remotely despite contact restrictions, travel bans and lockdowns. And we have seen rapid growth in e-commerce. In the period from 2020 to 2022, digitalisation driven by the network expansion prevented a loss of 130 billion euros to the German economy. Without the network infrastructure, Germany’s GDP would have been correspondingly lower. This means that digitisation has contributed just as much to mitigating the effects of Corona as the economic state aid. State aid to companies in the form of subsidies, loans, capital injections and guarantees amounted to 130 billion euros.
Network expansion as a driver of the economy – not just in times of crisis