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Policy Frameworks for the Knowledge-based Economy

ICTs, Innovation and Human Resources

Brasilia 16-17 September 2002

Session 2.2. ICTs and e-business

National strategies, regional challenges

Graham VickeryInformation Economy Group

Information, Computer and Communications Policy Division OECD

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The challenge

ICTs, innovation, human resources are the knowledge base to develop new goods and services, raise productivity, create wealth

Distribution unequal among and within countries

Economic challenge in Latin America Few firms compete by using knowledge along value chains

- innovating in new products, processes, management - product differentiation, increasing loyalty - managing logistics and distribution

Few firms are first movers or rapid followers

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Meeting the challenge

Structural imperative: Latin American firms and industries have to increase their use of knowledge to add more value and improve long-term competitiveness

Interlinked policies with focus on ICTs

ICTs - network economies, growth and productivity impacts in ICT supply / using sectors

ICT infrastructure is building block for growth

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ICT policy: common elements Policy visions, universal access

ICT development R&D programmes (general R&D subsidies), venture capital,

government use (e.g. electronic identity), e-procurement

ICT diffusion (most common, increase demand and use, spread network benefits, raise growth)

Households, business, small firms, skills, e-government

ICT environment Security, authentication, privacy, consumer protection Intellectual property rights

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Policy emphasis differs among OECD countries

From digital divide to nations on-line

English-speaking group: pro-competition market mechanisms, infrastructure in disadvantaged areas, e-government

Northern Europe: market mechanisms, small firms, ICT training

Southern Europe: ICT training, small firms, public access (schools, institutions)

Asia: ICT training, access for elderly / disabled

Other OECD: ICT training, education and school access, co-ordination of early government on-line efforts

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ICTs in Latin America

Less-developed supply side

Lower ICT penetration and use

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ICT markets in selected economies

0

100

200

300

400

500

2001 1992Billion USD

812

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ICT markets in non-OECD economies

0

5

10

15

20

25

30

35

0 0.5 1 1.5 2 2.5 3 3.5

Colombia

IndiaBrazil

China

1992-2001 CAGR (%)

2001world-wide market share (%)

World CAGR 7.1%

Non OECD countries CAGR 12.9%

Russia

Chinese Taipei

Hong Kong

(China)

Chile

Argentina

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ICT market structure 2001

0%10%20%30%40%50%60%70%80%90%

100%

Argen

tina

Brazil

Chile

Colombia

Mex

ico

OECD

telecom

IT services

software

hardware

10

0

2

4

6

8

10

12

Colombia Brazil Mexico Argentina Chile

PCs per 100 inhabitants1993, 2001

11

Internet users per 10 000 inhabitants2001

0

500

1000

1500

2000

Colombi

a

Mex

icoBra

zil

Argen

tina

Chile

World

Unites

Stat

es

4 995

Source: ITU

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Latin America: Policy directions? What policies can and cannot do ….. Policy agenda

emphasising equality of access and use: Public access (schools, institutions) Small firm use ICT training, education Co-ordination of government on-line efforts Supply / demand interactions (IT services, software) Infrastructure - build out and trust Pulling policy together in frameworks across ICTs,

S&T, education

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Further information

OECD www.oecd.org

Directorate for Science, Technology and Industry

www.oecd.org/sti/

www.oecd.org/sti/information-economy

graham.vickery@oecd.org