What is the definition of digital economy.pptx

The digital economy refers to economic activity enabled and transformed by digital technologies like the internet, mobile technology, AI, and big data, connecting individuals, businesses, and data across various sectors. It differs from the traditional economy through its reliance on online transactions and the continuous innovation and disruption driven by digital tools and platforms. This concept, first coined by Don Tapscott in 1994, now encompasses not only dedicated tech companies but also how digital intensity is embedded in diversified businesses, making it a powerful force for transformation and innovation.

1. UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT What is “the digital economy”? Da n ie l KER, Ec onomis t - Sta t is t ic ia n E- c omme rc e a nd the d ig it a l e c onomy 5 th In te rna t io na l Se m in a r on Big Da ta for Offic ia l Sta t is t ic s Me a s uring the Dig it a l Ec onomy 29 - 3 1 Ma y 20 24 , Xia me n, Ch in a

2. What is “the digital economy”? Hard to define  Multi - faceted  Cuts across institutional sectors and industries  Affects production and consumption: what, how, and by whom  Both tangible and abstract Hard to agree on  Different perspectives  Linked to varying analytical and policy questions Hard to measure  Need for multiple sources and measurement approaches  Digital systems contain a lot of information, but accessing and making sense of it can be challenging

3. One starting point: a definition of “economy” [Adapted slightly] from Merriam - webster dictionary “the process or system by which goods and services are produced , sold and bought in a country [and inte r n a t i o na lly]” Production Products Transactions How “digital” must each of these be to count as part of “the digital economy”?

4. Drawing definitive boundaries is challenging  tiered definition of the digital economy Developed for G20 Digital Economy Task Force (OECD, 2020) Adopted in UNCTAD Manual for the Production of Statistics on the Digital Economy 2020 Emphasises the nature of: Products - ICT goods and s e rvic e s , d ig ita l conte nt, d ig ita lly de live re d s e rvices Production - e xtent of re lia nce on “d ig ita l inp uts ” Transactions - d ig ita lly orde re d / d ig ita lly de live re d Production Transactions Products

5. What would you include in "the digital economy”? We don’t have to agree a precise boundary for “the digital economy” to be able to measure important aspects! Streaming s e rvices CAD de s igns Software (ICT product) Products Products purely digital in form? Products that can be d ig ita l or phys ic a l – whe n de live re d d ig ita lly? (e - )books Tra in in g (e - le arn in g) Banking s e rvice s (on line banking) Compone nts ? Proce ssors, storage , se nsors? Glass? Transactions Trans actions that are agre e d “d ig ita lly”? - Buyin g on lin e Production Producers of ICT products? Conne c te d ve rs ions of products ? “Smart” TV/lig ht bulb /frid ge ? Airb us A3 50 ? Trans actions whe re the payme nt take s p la ce “d ig ita lly”? - Payin g in a phys ical s tore by card, QR code, mobile money etc. Produce rs reliant on digital technology? - Online platforms Transactions where digital technology plays any role? - Car dealer advertises vehicle online but sale is in - person and paid by cash Producers whose production is significantly altered or enhanced by using digital technology? Publishing Car makers Airlines Taxis Producers that make digital technology? any use of - Hairdresser uses WeChat to schedule customer appointments Producers of products “digital in form”? Cloud services providers Designs for 3d printing? Data? Computer makers Software makers Enabling (ICT) services? Telecommunications Data processing, hosting Repair of ICT equipment Cloud services Enabling (ICT) goods? Computers, smartphones? Servers, Network switches?

6. What would you include in "the digital economy”? Measurement frameworks and efforts cover all these aspects of “the digital economy” (and more) Streaming s e rvices CAD de s igns tal or Pro phy - Software (ICT product) ducts that can be d ig i s ic a l – whe n de live re d d ig ita lly? Tra in in g (e - le arn in g) Banking s e rvice s (on line banking) Products Products purely digital in form? Compone nts ? Proce ssors, storage , se nsors? Glass? Co nne c te d ve rs ions of pro ducts ? - “Smart” TV/lig ht bulb /frid ge ? - Airb us A3 50 ? Trans actions that “d ig ita lly”? - Buyin g on lin e whe re s p la c phys ic Trans actions payme nt take - Payin g in a QR code, m obile mo the e “d ig ita lly”? a l s tore by card, ney etc. Produce rs reliant on digital technology? - Online platforms Transactions where digital technology plays any role? - Car dealer advertises vehicle online but sale is in - person and paid by cash Production Transactions Producers of ICT products? are agre e d Producers whose production is significa using di ntly altered or en gital technology? ublishing ar makers irlines any use of Producers that make digital technology? - Hairdresser uses WeChat to schedule customer appointments Producers of products “digital in form”? Cloud services providers Designs for 3d printing? Da ta? - Computer makers - Software makers Enabling (ICT) services? - - - Telecommunications Data processing, ho Repair of ICT equip sting ment - Cloud services Enabling (ICT) goods? ? es? - Computers, smartphones - Servers, Network switch

7. Moving forward together Although the re is no ge ne ra lly acce pte d de finitio n of “the digital economy” , there is much international agreement over the definition and measurement of key elements and perspectives. This Seminar will introduce both established and relatively new aspects of digital economy measurement including : Go ing d ig ita l too lkit frame work and ind ic a tors Dig ita l s upp ly- us e tables Meas uring the ICT s ector Me asuring ICT use in bus ine ss and house holds Me as uring Dig ita l trade Re le vant change s in the forthcoming SNA+BOP None of these claims to measure “the digital economy” as a whole, but they e s tablis h a foundatio n for tackling que s tio ns re late d to “th e d ig ita l e conomy” and a s hare d d ire ctio n of trave l.