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Traditionally, economic development depended on an area's endowment of the factors of production - raw materials, agriculture, proximity to markets. Today these assets remain important, but belong to a very different socio-economic landscape. As our economy changes from being goods-based to knowledge-based, human capital, quality of life and well developed telematics infrastructures are becoming key ingredients for success.
Telematics-based services are providing a new "lease-of-life" to many urban and rural areas. The Urban and Rural Areas sector is developing tele-working and tele-services as tools for economic development. Tele-working is to increase the competitiveness of rural and peripheral areas and reduce traffic congestion. Tele-services such as tele-shopping, on-line booking services and entertainment, provide the public with a higher level of access to services. These can help stabilise the population in rural areas and equally contribute to the regeneration of urban areas.
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