New data strategy of the German federal government

On 27 January 2021, the German federal government published for the first time a data strategy consisting of more than 240 measures designed to make Germany a pioneer in the innovative use and sharing of data in Europe. This article summarises the measures that create opportunities for companies and shows the areas in which a need for action has been identified.

Reason

The German federal government expects that around 90% of all data generated is not yet being properly used. A key priority, therefore, is to better exploit the "innovative potential" inherent in data. According to estimates by the Federation of German Industries, data holds "value creation potential" of up to EUR 425 billion - in the next five years alone. At the same time, the new data strategy aims to enforce European values, the common ideas of data protection and sovereignty, and to make them a global model.

Designing efficient and sustainable data infrastructures

First, a foundation for a modern data society is to be laid, in particular with infrastructure measures. The following are particularly highlighted:

• Establishment of a connected data infrastructure as the basis for new, data-driven services and applications.

• Establishment of a program to promote high-performance computing as demand for computing capacity soars in business and other sectors.

• Implement the framework program "Quantum Technologies - from Fundamentals to Market" to enable companies to play a key role in shaping the so-called second quantum revolution and to take a leading role in transferring it to application and commercialization.

• Implementation of roadmap for a national initiative on quantum computing aimed at making Germany technologically and economically competitive at the top of the world in this field.

Increase innovative and responsible data use

Furthermore, framework conditions are to be set so that more data can be used and shared responsibly and sustainably. To this end, more legal certainty is to be created in order to make data protection law and practice more uniform and consistent. In addition, innovative data spaces are to be initiated and new forms of cooperation made possible - for example, through data trustees.

Improvement of Framework Conditions

The protection of personal data must already be taken into account during the development of products and services. In addition, institutional, organizational and legal measures should be taken to make Germany a pioneer in the technical depersonalization of data in order to intensify the exchange and reuse of data. In particular, the following measures are planned:

• Strengthening the uniform legal interpretation and application of data protection regulations in the private sector - also as partial aspect of the evaluation of the Federal Data Protection Act.

• Establish a "Telecommunications Telemedia Data Protection Act" to align data protection law for telemedia and telecommunications services and to reorganize regulatory responsibilities.

• Explore technical solutions in the area of privacy consent management for the development of legally compliant and consumer-friendly consent solutions.

• Commitment to the European e-Privacy Regulation in order to maintain a uniform understanding of data protection, a high level of protection for the confidentiality of communications data, and at the same time the scope for innovation and digital business models.

• Establish a research network on anonymization procedures and methods, which is to provide transfer and consulting services for industry and set incentives for data sharing.

• Creating greater security for innovative business models through further exchange with trade associations and supervisory authorities on data protection-compliant AI and blockchain solutions.

With regard to non-personal data, the German federal government stated that the German economy has great potential for value creation. In addition to the sales market, this potential increasingly lies in the so-called aftermarkets, e.g. in the context of maintenance, repair and retrofitting. In particular, the following measures are planned:

• Standardize data collection and promote data economy by defining data access and data interoperability and portability.

• Support the development of data pools and data collaborations to promote shared value creation in the economy.

• Adjust competition law to create a proactive and digital Competition Law 4.0 and a regulatory framework tailored to the requirements of the digitalization of the economy.

• Support the European Digital Markets Act, which seeks to prohibit restrictions on access to data by digital platforms under certain conditions and examine whether an obligation to share certain data is necessary in particularly data-driven markets.

• Introduce a new permission for non-purpose text and data mining in the Copyright Act as part of the implementation of the Digital Single Market Directive.

• Commitment to a European Innovation Board as an advisory contact for data protection issues towards the economy (esp. start-ups and companies) in digital innovations.

Improved European regulation is also intended to strengthen data and IT security so that the opportunities offered by digitalisation can be exploited and companies can expand their competitiveness with innovative data-based business models. In particular, the following measures are planned:

• Promote IT and cybersecurity through the IT Security Act 2.0 as well as evaluate and update the cybersecurity strategy to lay the groundwork for cybersecurity in the new decade.

• Strengthening the rights of companies towards cloud computing services and simplifying the switching of cloud providers through technical specifications - also by strengthening European cloud service providers.

• Protecting German companies from unjustified restrictions on cross-border data traffic.

• Access for European and African tech companies to their respective digital markets and enforce European standards internationally.

Creation of new Data Spaces

The central element for innovative data-based and responsible business models should be new data spaces - with openness across sector boundaries. In particular, the following measures are planned:

• Funding projects from various industries that develop novel data products and systems from which innovative data services and data-based business models can be derived.

• Collaborations in dynamic value creation networks with regard to cooperation between companies and their customers and suppliers ("Industry 4.0").

• Unlocking the potential of artificial intelligence in manufacturing to increase the performance and functionality of machines and manufacturing tools in the economy.

• Specification and expansion of the legal framework for the provision of mobility data and establishment of an innovative and comprehensive data network at the national level (data room "Mobility") coming in October 2021.

• Development of an action plan "Digitalisation and Artificial Intelligence in Mobility" - also to remain internationally competitive.

New Forms of Cooperation

Trustworthy intermediaries, e.g. data trustees, can make an important contribution to securing data access and exchange and to strengthening a sovereign, decentralized data economy for companies. In particular, data trustees can also pool expert knowledge in the field of anonymization, pseudonymization and the creation of synthetic data sets. In addition, they ensure quality assurance of the data sets, manage access rights and ensure compliance with uniform standards. The following measures in particular are envisaged:

• Establish a culture of sustainable data sharing and use through a variety of different data trustee and commons models to foster an open innovation culture that sees data sharing as an opportunity for innovation and value creation.

• Implement a legal framework for the governance of data spaces and establish accreditation or certification of data trustees under the European Data Governance Act.

• Ensure, in particular, neutrality, economic independence and suitability of data trustees while avoiding new bureaucracy and complications of data exchange.

Increase data competence and establish data culture

In order to be able to increase the use of data, data competence must also be significantly increased in the business community, but especially among small and medium-sized enterprises. The topic of "handling data" is central to this with the following measures:

• Enabling small and medium-sized enterprises to participate in the data-driven economy through the "Mittelstand-Digital" initiative.

• Support for companies to develop new solutions for the digitalization and virtualization of production and production systems ("Industry 4.0") and product-related services.

Making the state a pioneer

Ultimately, the administration itself must also reposition itself in order to be able to provide digital services efficiently. The following measures in particular are relevant for companies:

• Creation of an open data strategy with the aim of improving the open provision of administrative data and its reuse for a variety of purposes.

• Implement the Open Data and PSI Directives with a new Data Use Act and propose a Second Open Data Act, thereby fundamentally improving the conditions for, among other things, the use of public sector data for business, science and civil society.

• Providing the necessary tools for standards-compliant and collaborative application development as an open source software (OSS)-based development platform for industry and others.

Our Outlook

With the published data strategy, the German federal government recognizes the huge potential of data and new technologies for the German economy and shows the direction in which the development as a whole must go. However, it also becomes clear that there is a considerable need for action in various areas in order to either take a leading position or at least defend it.

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