Our society is undergoing a digital transformation at a breath-taking pace, and data is emerging as the key resource for innovation and competitiveness. Businesses are today able to collect huge amounts of data through digitalised services and objects connected through the Internet of Things (IoT). Big data analysis makes it possible to glean information from this data in previously unimaginable ways and build completely new services and solutions, notably with the help of artificial intelligence (AI).

Luxembourg is at the forefront of the emerging data-driven economy. Data is a central resource for the most promising national sectors, such as space, clean tech, the automotive industry or health tech, and is at the heart of the move towards Industry 4.0 that is taking place in the materials and manufacturing sector. The country is also home to a dynamic and international start-up community that is strongly oriented towards digital solutions. Innovative start-ups specialise in fields such as fintech, the IoT, AI, big data treatment, cybersecurity and health tech. Luxinnovation’s start-up accelerator programme Fit 4 Start attracts ICT-based start-ups from all over the world.

This thriving technical sector requires a finely balanced mix of elements to ensure success and security. Good governance, support for research, impeccable security, advanced infrastructure and regulatory savvy are the winning mix that Luxembourg offers.


Facilitating the digitalisation of the business sector is a priority in Luxembourg, and the government actively encourages companies to experiment and innovate with new digital technologies through both national and European initiatives. One example is the cross-border digital testbed for connected and automated driving set up jointly with French and German authorities. The testbed allows companies developing the smart mobility of the future to test digital technologies in a real environment.


The research-driven University of Luxembourg conducts high-level ICT-related research. While the university’s Interdisciplinary Centre for Security, Reliability and Trust (SnT) conducts research in the fields of ICT and cybersecurity, the Luxembourg Centre for Systems Biomedicine (LCSB) uses highly advanced bioinformatics to analyse complex systems such as cells, organs and organisms. The Luxembourg Institute of Science and Technology (LIST) focuses on IT for innovative services with the target of transferring knowledge to the private sector. Government grants support to companies that are undertaking R&D and innovation projects, often in collaboration with public research centres.


Driven by the needs of its financial sector, Luxembourg has developed exceptionally high standards of cybersecurity that are readily available to all companies. Several governmental initiatives, including and the Cybersecurity Competence Center (C3), help businesses improve their protection against cyber threats by providing training and awareness raising for everything from threat analysis to digital forensics. The C3’s unique simulation game “Room #42 – Do[n’t] Panic” immerses participants in a cyberattack simulation to help them learn how to behave and take the right decisions.


A performing infrastructure is the backbone of any digital economy. Due to long-term, systematic investments in top-of-the-range infrastructure, notably Europe’s most modern data centre park including 40% of all European Tier IV data centres and ultra-low-latency fibre routes to main European hubs, Luxembourg today ranks 2nd in “Connectivity” in the EU’s 2018 Digital Transformation Scoreboard. The country is now investing in high performance computing capacity and the future 5G network.


Luxembourg has a solid track record as an early adopter of new legislation that ensures that companies can evolve in an environment of fair competition and fully exploit emerging digital opportunities. In the context of the digital economy, the ambition is to provide a regulatory environment that enables further development of trusted data-driven services.

Photo: © SIP / Claude Piscitelli, all rights reserved

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