INGENIEUR
augmented by public-private collaboration and investment , can we accelerate the pace of InfraTech adoption and usher in a new era of digital infrastructure .
Here are five steps that can speed up the process :
i . Governments should take the lead It ’ s vital that Governments create a climate in which InfraTech can flourish . By taking a coordinated , national and regional approach , they can encourage innovation and take-up of smart transport and construction , green energy , and digital Government all powered by AI , automation , Internet of Things ( IoT ), drones and other technologies .
This should require significant investment in high-speed connectivity , cloud computing , sensors and fintech . Given scarce resources , Governments will have to focus on those technologies with the highest potential that can be delivered at scale .
ii . Adapt to evolving technologies and risks Technology changes so quickly that the next big thing can soon become obsolete . Governments , therefore , must take a forward-looking approach to technologies and associated risks .
Laws and regulations can struggle to keep up with the pace of change , which could hold back the implementation of exciting and new innovations . The answer may be to make any regulatory and procurement guidelines as flexible as possible , and focus on future outcomes rather than specific technologies .
It ’ s a similar story when addressing risks . Those responsible for policy must anticipate how new technology impacts the environment , jobs , social inclusion , and data security . They need to anticipate and manage any fall-out through strict data protection , environmental standards , and planned re-education .
iii . Put data at the centre of policy Data is the driving force of InfraTech . It has become our most prized asset , driving infrastructure like telecoms , power , water , transportation and digital public services .
As Government goes increasingly digital , a citizen-centric mindset can ensure that people get equal access to the services they need , such as health and social care , education and utilities .
The more Governments foster data-sharing and interoperability , the more they ’ ll help spread ideas and stimulate innovation . They should prioritise the collection , processing and accessibility of public and private data and focus on data quality and accuracy .
iv . Use a broad range of policy levers Governments have many tools at their disposal to accelerate InfraTech . Forward-looking legislation and regulation — preferably spanning sectors and even countries — can open up opportunities for innovation .
Investing in newer technology inevitably brings greater uncertainty . Governments may have to create risk-return profiles that match investors ’ expectations . Adopting best practice public – private partnerships ( PPP ) and governance will help transfer risk appropriately among stakeholders .
Government institutions are often illequipped to support InfraTech , with fragmented structures inhibiting innovation and data sharing . Creating new public organisations , focused on transformation , can help disseminate new ideas and improve national capacity and capability .
v . Attract private capital How do you get investors excited about potentially risky InfraTech ventures with unpredictable revenue streams ?
One well-tried approach is to offer sector subsidies , particularly at the earlier and later stages of a project . These can take the form of tax incentives , concessional finance , or R & D grants . Renewable energy subsidies in the US , Europe and China have accelerated national adoption and reduced costs .
Another option is to bundle smaller projects into a larger aggregate , thus spreading risk more
60 VOL 93 JANUARY-MARCH 2023