Mediterranean Connectivity

The Mediterranean Sea region plays a key role in global connectivity infrastructure, this is the message of a new report by DC Byte. Indeed, several knowledge intensive hubs of Europe exist in the Mediterranean region, and are increasingly interconnected as subsea cable networks are expanded. The growing IT-infrastructure will further regional integration, including the regions on the Western coast of North Africa.

Already in the mid-19th century, telegraph cables running under water connected countries together. Messages have since then been transmitted across long distances, such as across the Atlantic. In the modern age, underground cables are a key part of the digital connectivity infrastructure.

The European city which is connected by most subsea cables is Marseille. Fully 12 live subsea cables land in this second largest city of France. It is also a relatively knowledge intensive province. Provence-Alpes-Côte d’Azur, in which Marseille is located, has 5.2 percent of the adult population employed in highly knowledge intensive brain business jobs. After the capital region of Paris, Rhône-Alpes, and Midi-Pyrénées, this is the fourth highest rate in France. The province in which Marseille is located has 59,500 employed in high technology and 49,300 in the ICT sector.

Crete in Greece is leading in terms of IT-capacity growth compared to the same period last year, according to the DC Byte study. Crete experienced more than double the growth rate of capacity compared to Marseille. The region, with the formal name Kriti, has 3.3 percent of adults in brain business jobs. This is the same as the Kentriki Makedonia region and, compared with the rest of Greece, second only to the Athens capital region. In Kriti there are some 4,900 high technology jobs, and 3,500 jobs in advanced services.

Barcelona in Spain is experiencing a strong growth of pipeline capacity. In total 177 MW total pipeline capacity is live, under construction, committed or early-stage developments, according to the DC Byte report. The broader urban region around Barcelona is the fifth most populous urban area in the European Union.

In total numbers, Barcelona is indeed a leading brain business hub of Europe. In total numbers, there are 1.1 million brain business jobs in the French capital region Paris, 586,000 in the Spanish capital region Madrid, 550,000 in the north Italian region Lombardia, 453,200 in the German region Oberbayern including Munich, and 365,800 in Spanish Cataluña including Barcelona. Cataluña, the region in which Barcelona is located, has 7.5 percent of its adult population employed in highly knowledge-intensive brain business jobs. This is second to the capital Madrid region the highest share in Spain. Barcelona is further to this a site of world leading deep tech development, in biochemistry, according to the deep tech index.

The larger countries in the Mediterranean region suffer from high taxes and regulatory burden, which limits their progress in terms of knowledge intensive jobs. The smaller countries with more competitive economic policies are already ahead. The highest share of adults employed in highly knowledge-intensive brain business jobs in the Mediterranean region is found in Malta (9.4 percent). This small free market island also now leads the healthy life span league of newborn girls and boys, surpassing Sweden which used to have the lead until recently.

The second highest share of adults employed in brain business jobs in the Mediterranean region is in Slovenia (9.2 percent), followed by Cyprus (9.0 percent). Portugal (7.8 percent) also is relatively knowledge intensive. France (6.4 percent), Italy (5.5 percent) and Spain (5.4 percent) are relatively far behind, while Greece (4.7 percent) has amongst the lowest shares of knowledge intensive jobs in Europe.

The Mediterranean countries of Europe have significant differences in knowledge intensity. As they become increasingly more connected, through cables, air travel and European economic integration, this will allow for further collaboration and institutional competition.

Currently, The Medusa cable system plays a key role in Mediterranean connectivity. This 8,760 km submarine cable system connects France, Italy, Spain, Portugal and Cyprus with Algeria, Egypt, Marocco and Tunisia.

Recently, AFR-IX Telecom secured €3.7 million from the European Commission for the ATMED Malta project, which will connect Malta to the Medusa network. This would add a sixth underwater cable to Malta. The Medusa subsea cable network is being expanded into the western coastline of North Africa, with a €14.3 million grant from the European Commission.

Mediterranean connectivity growth is important for the whole region. Particularly the Western part of North Africa will be more connected to Europe, which allows for economic integration and growth.

Nima Sanandaji, Director, European Centre for Entrepreneurship and Policy Reform (ECEPR)

Photo: screenshot of Medusa network, via AFR-IX.