1. 1 Innovation in Services Business Service Design and Innovation Fostering the Economic and Legal Framework for Innovation Performance and Development of Financial Systems Information Security and Trust Management Telecommunications and Multimedia

2. 2 Challenges and Opportunities Service sector Lux most important economic sector employment in services about 75 % of total financial sector >30% of economic activity Challenges: consolidate the competitiveness strengthen the innovation capacity in all sectors diversify the economy and therefore minimize the risks of dependency on the finance sector further development of the financial services as “multiplier” for rest of economy Risk: Considerable potential impact of financial services decline

3. 3 Fostering the Economic and Legal Environment for Innovation Highly Interdisciplinary Research: understanding links between regulation and innovation balance between European harmonisation and intergovernmental competition improvement of Luxembourg’s innovation capacity address existing legal constraints create new sovereignty niches supporting economic development modernise Luxembourg’s legislation. Research Questions: Where and how regulations facilitate innovation? Regulatory and political challenges of the free movement of services

4. 4 Information Security and Trust Management Technical side research issues : Identity management and privacy risk management and security issues trust and trust management Social and behavioural aspects : How to communicate security aspects + reducing the digital divide in society? How to guarantee the public acceptance of new ICT applications? Aim : Relevant for banking industry AND all other ICT applications and e-services Consolidate Luxembourg’s reputation as a safe harbour Obvious impact on financial sector Security and trust are enablers for many services

5. 5 Previous topic particular relevance for the finance sector Behavioural Finance and Financial Education: Analysing: various aspects of public investment decisions individuals impact the economy Performance and Development of Financial Systems Strengthen the attractiveness and competitiveness of Luxembourg as a business-friendly environment Improve the general level of competence of the population Optimise all kinds of financial sub-systems within the finance industry Focal point of public research: Investment Fund Industry and Private Banking

6. 6 Telecommunications and Multimedia Development of technical infrastructures for the distribution and personalisation of (satellite) content Development of intelligent, wireless and mobile integrated ICT applications Management and convergence of different media contents: Search engines and cross-format data retrieval Semantic web tools Geolocalisation Multilingual content management Two trends 1. Users consume content AND create and interact with it 2. Users want to have “their” content whenever, wherever on various mobile devices ICT architecture benefit to crisis and disaster management Optimization of information flows in crisis situations Building a new paradigm for the convergence of services Luxembourg test bed for ICT infrastructure Opportunities for collaborations with experts + industries; ESA membership

7. 7 Business Service Design and Innovation Aims: Alignment of technologies, business processes, strategies + human skills Alignment with the regulatory and legal framework Applications in: the financial sector (Web-banking service) multi-media services in broadcasting services in the transport logistics sector etc Tools that aid the development and improvement of services in Luxembourg Multidisciplinary field diverse areas described above Most promising research issues: Business model innovation Business process efficiency Business service regulation compliance Very high market potential for IT services vs size of Lux. Sector employs more than one million European 215 B€ in revenues