THE DIGITAL ECONOMY. BIAC OECD Business Day 7 November 2014 Panel on the Business Case for Innovation
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1 BIAC OECD Business Day 7 November 2014 Panel on the Business Case for Innovation THE DIGITAL ECONOMY Overview of key policy issues addressed by STI/DEP Anne Carblanc, STI/DEP
2 The digital economy is everywhere Public Administration Health & Aging Commerce Manufacturing Energy Start ups Science & Education Transportation 2
3 Core areas of work 1. Supply side (infrastructure and services) 2. Demand side (use and applications) 3. Trust (security, privacy, consumer policy) 4. Measurement 5. Internet Policy-Making 6. Focus issue Knowledge Based Capital (KBC) Ministerial meeting (Mexico)
4 1. Infrastructure Keeping markets open and competitive Market structure has changed due to competition New devices, business models, platforms, OS Preserving the model of an open and distributed Internet Developing fixed and mobile broadband access Enabling the Internet of Things
5 2. Use and applications Developping ICT skills Promoting access to data Stimulating the production of digital content Fostering e-health (ageing) Encouraging organisational change and new business models
6 3. Trust Security risk Promoting digital security risk management as an integral part of economic decision making Privacy risk Fostering the implementation of privacy principles in a data-driven economy Consumer protection Protecting e-consumers
7 4. Measurement A need for evidence and sound measurement 113 indicators uncovering trends in the digital economy Pre-launch at Global Forum on the Knowledge Economy, Tokyo, 2 October Release timed for CDEP, Paris, 11 Dec 2014
8 5. Internet Policy Making Principles 14 Principles A reflection of three decades of OECD experience in ICTs and Internet policy making A consensus among governments, business, the Internet technical community and civil society A framework for Internet policies to serve economic and social development
9 6. Focus issues: Knowledge-based Capital Inquiries into Intellectual Property s Economic Impact (IPR) Data-driven Innovation (DDI)
10 6. Knowledge Based Capital / IPR Synthesis (CDEP) Measuring Patents Value (CIIE) Economic Implications of Trade Secret Protection (Trade) Copyright in the Digital Era: Country Studies (CDEP) Design Rights and Economic Performance (CIIE) Legal Aspects of Open Access (CSTP) Summary of the Expert Workshop (CDEP) IP-Based Financing (CDEP)
11 6. Knowledge Based Capital / IPR By digitising and linking their databases, patent offices are able to do better prior art searches + diffusion improves better patent quality + more (and more efficient) innovation Copyright has been the strongest performer among IP types in terms of the investment it attracts and the jobs it creates IPRs can drive growth not only by conferring exclusive rights, but also by serving as a basis to acquire financing: collateral + signalling effect 11
12 6. Knowledge Based Capital (DDI) Introduction, and synthesis (ICCP) Mapping the Global Data Ecosystem (ICCP) Enablers of DDI (ICCP) Data as infrastructural resource (ICCP) Skills and other implications on employment (ICCP) Trust in the data-driven economy (CCP + ICCP) Governments leading by example (PGC + ICCP) New era of scientific discovery (CSTP) Enhancing health outcome (HC + ICCP) DDI for smart cities (ICCP) 12
13 6. DDI: economic impact Data and analytics market (supply side) Global market for data analytics: USD 17 billion by 2015 (+40% CAGR); OECD market for public sector data: USD 97 billion in 2008 (+7% CAGR); DDI impact across the economy (demand side) Firms productivity growth: +5% to +10% Use of public sector data in the OECD: USD 509 billion in 2008 Many social benefits (well-being) are not captured by economic statistics! 13
14 6. DDI: Challenges Supply side Barriers to the free flow of data (incl. data access and portability); Data ownership : a concept of limited use Quality of data & analytics Demand side Lack of skills and competencies Reluctance to organisational change Barriers to entrepreneurship Societal challenges Market concentration and dominance Shift in power exacerbating existing inequalities Trust deterioration through e.g. privacy violation 14
15 6. DDI-related indicators: France Note: Index in relative terms to unweighted OECD average. Index value is set to 200 where it exceeds that value. 15
16 7. Ministerial Meeting (2016, Cancun, Mexico) One Overarching Theme Maximise Innovation in the Digital economy for growth and well-being Bring the growth and innovation potential of the digital economy/internet to the forefront of policy discussions - including the conditions for job creation, well-being and inclusiveness (e.g. ageing)
17 6. Ministerial Meeting (2016, Cancun, Mexico) Themes of the Sessions Session 1 The Open Internet as a Platform for Growth Session 2 Mobile Revolution and Digital Convergence Session 3 Trust in a data-driven economy Session 4 Jobs and Skills
18 Thank you 18
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