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THE DIGITAL ECONOMYOverview of key policy issues addressed by STI/DEP

BIAC OECD Business Day – 7 November 2014

Panel on the Business Case for Innovation

Anne Carblanc, STI/DEP

Transportation

Health & AgingPublic

AdministrationCommerce

Start ups Science & Education

Manufacturing Energy

The digital economy is everywhere

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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)

7. 2016 Ministerial meeting (Mexico)

Core areas of work

• 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

1. Infrastructure

• Developping ICT skills

• Promoting access to data

• Stimulating the production of digital content

• Fostering e-health (ageing)

• Encouraging organisational change and new business models

2. Use and applications

• Security risk– Promoting digital security risk management

as an integral part of economic decisionmaking

• Privacy risk– Fostering the implementation of privacy

principles in a data-driven economy

• Consumer protection– Protecting e-Consumers

3. Trust

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

4. Measurement

• A need for evidence and sound measurement

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

• Inquiries into Intellectual Property’sEconomic Impact (IPR)

• Data-driven Innovation (DDI)

6. Focus issues: Knowledge-based

Capital

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)

• 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

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6. Knowledge Based Capital / IPR

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)

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6. Knowledge Based Capital (DDI)

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

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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);

Many social benefits (well-being) are not captured by economic statistics!

Demand side

• Lack of skills and competencies

• Reluctance to organisational change

• Barriers to entrepreneurship

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

Societal challenges

• Market concentration and dominance

• Shift in power exacerbating existing inequalities

• Trust deterioration through e.g. privacy violation 14

6. DDI-related indicators: France

15Note: Index in relative terms to unweighted OECD average. Index value is set to 200 where it exceeds that value.

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)

• Session 1The 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

6. Ministerial Meeting (2016, Cancun, Mexico)

Themes of the Sessions

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Thank you

Anne.Carblanc@oecd.org

www.oecd.org/internet