Europe is lagging behind the US and Asia when it comes to embracing information and communication technology.

"In all major scoreboards Europe comes third after the US and Asia, not only in embracing ICT but in shaping its development and progress," said Viviane Reding, commissioner for information society and media at the European Commission. 

"The Commission's first annual progress report on the renewed Lisbon strategy on growth and jobs highlights a number of challenges that Europe is facing: slow growth, budget deficits, high unemployment, an ageing population and globalisation," she told the Investing in ICT Research and Innovation conference in Vienna. 

European Commissioner Linda Jones added: "Europe is lagging behind in investment in ICT and in productivity, and there is a direct relationship between the two. There is not the same take-up of ICT, so there not the same productivity growth.

"This convergence of media, computing and telecoms is the kind of technology that can revolutionise other all other sciences, as well as being a sector in its own right.

"The European Commission is interested in ICT because of its ability to enhance productivity throughout the economy."

After awarding the IST prizes for innovative European ICT projects this week, Reding insisted that Europe could catch its international rivals.

"Let's celebrate European success and innovation. You get the feeling on this stage that Europe can do it," she said.