g20 “digital economy” task force meeting - andrew wyckoff
TRANSCRIPT
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The OECD Background Report:
“Key Issues for the Digital
Transformation in the G20”
Andrew Wyckoff , Director Directorate for Science, Technology and Innovation [email protected]
G20 “Digital Economy”
Task Force Meeting 13 January 2017
Berlin, Germany
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IBM 360 (1964) – the first commercial mainframe
Computing is not new…
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…but ubiquitous computing is…
0
50
100
150
200
250
300
350
Millions Smartphones Other mobile phones
Quarterly shipping trends of smartphones, 2010-13
Sources: www.washingtonpost.com and OECD Broadband Portal
2005 2013
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…marking the beginning of
digital transformation…
https://thepowerofus.org/2016/08/09/the-internet-of-things/
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…with data and analytics
transforming production...
Source: http://www.nytimes.com/2012/08/19/business/new-wave-of-adept-robots-is-changing-global-industry.html 5
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… fueling new types of
disruptive innovation… Algorithmic trading as share of total trading
Note: 2013-14 based on estimates.Source: OECD based on The Economist (2012) and Aite Group Driverless car Siri
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Health Public
Administration Energy
Transportation Agriculture
Manufacturing 7
Digitalisation
…and affecting all activities.
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G20 Engagement
“Breaking a new path to growth”
“Shaping an inter-connected world"
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The OECD Report in support
of the G20
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1. Assessment of G20 economies’ performance with respect to digitalisation
2. 10 Most pressing policy challenges
3. Core policy recommendations for consideration
Report Structure: 3 Parts
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Part 1. Assessing digitalisation
in G20 countries
• Digital infrastructure
• Access and use
• Innovation
• Skills
• Trust
G20 countries need to work together to fill the data gaps.
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Part 2. 10 Key Policy Challenges
1. Access to digital technologies and services
2. Digital infrastructures
3. Financing digital infrastructures and new business models
4. Developing standards for a digital world
5. Regulation of the ICT sector
6. Digital security
7. Skills and the digital economy
8. Digitalisation, SMEs, Start-ups and dynamism
9. Consumer rights in the digital era
10. Digitalisation and legal frameworks
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Individuals using the Internet, 2005 and 2015
0
20
40
60
80
100
%
2015 2005
Source: OECD (2017), Key Issue for digital transformation in the G20, page 23, ICT Database; Eurostat, Information Society Statistics Database; ITU, World Telecommunication/ICT indicators Database and national sources, July 2015.
1. Access to digital
technologies and services
Source
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1. Access:
Key areas for G20 policy action
Develop and implement National Digital Strategies
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Fixed and Mobile broadband subscriptions per 100 inhabitants
0
20
40
60
80
100
120
140
160
% Mobile boadband Fixed broadband
Source: OECD (2017), Key Issue for digital transformation in the G20, pages 20-21
2. Digital infrastructures
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Fixed networks • Encourage deployment of more fibre
• Reduce administrative obstacles
• Ensure access to passive infrastructure
Mobile networks • Encourage deployment of 5G networks
• Exercise caution with potential mergers of mobile operators
Deploy (fibre & 4/5G, IXPs, IPv6)
Spur competition
Rethink nature of digital infrastructures
2. Digital infrastructures
Key areas for G20 policy action
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Telecommunication infrastructure investment as a percentage of GDP
3. Financing digital infra-
structures and business models
0.0
0.2
0.4
0.6
0.8
%
2015 2013
Source: OECD (2017), Key Issue for digital transformation in the G20, page 62
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• Strenghten infrastructure deployment through both public and private (PPPs) financing;
• Seek to reduce costs of deployment;
• Improve framework policies;
Improve the evidence base for network investment: Data flows
3. Financing
Key areas for G20 policy action
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4. Developing standards for
a digital world
0
2
4
6
8
10
12
14
0
10
20Millions
M2M cards, per 100 inhabitants (left-hand scale) M2M cards, millions (right-hand scale)
USA: 49.3 million cards China: 43.4 million cards
Source: OECD (2017), Key Issue for digital transformation in the G20, page 22
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Promote open, voluntary standards through collaborative mechanisms
Encourage an interoperable environment • in support of the IoT and Industrie 4.0,
• smart cities / smart mobility
Encourage SMEs’ participation in standards bodies
Embrace industry-led efforts; but ensure global interoperability
4. Developing standards
Key areas for G20 policy action
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5. Regulation of the ICT sector
http://www.mindseyesolutions.com/2012/10/09/the-great-early-assessment-convergence/
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Foster competition and innovation as the ICT sector consolidates
Develop regulatory approaches adapted to a converged environment
Rethink nature of “telecomm” regulations in era of digital economy [#2]
Embrace enhanced regulatory co-operation
5. Regulation of the ICT sector
Key areas for G20 policy action
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Spear-phishing attacks, by size of targeted organisation
18 %
31 % 30 % 34 % 43 %
32%
19 % 31 % 25 %
22 %
50 % 50 % 39 % 41 %
35 %
0
20
40
60
80
100
2011 2012 2013 2014 2015
%
Small businesses(1-250 employees)
Medium-size businesses(251-2 500 employees)
Large businesses(2 500+ employees)
Source: OECD (2017), Key Issue for digital transformation in the G20, page 94
6. Digital security / privacy
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6. Digital security / privacy
Key areas for G20 policy action
Public-private dialogue is essential (PPPs);
Security must be informed by an assessment of the risk; the economic and social objectives and the cost and impact of the measures; • Need to pool data, develop indicators of trust based on
an agreed methodology;
Develop national privacy strategies and increase interoperability to ensure flows of data
Foster capacity building and greater awareness in developing countries (ITU led consortia)
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Two thirds of people surveyed lack the skills to succeed in technology-rich environments
very low skills or optedout of the test
low skills
medium skills
solid skills
2 out of 3
people lack
skills for the digital
age
25
7. Skills and the digital
economy
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7. Skills and the digital economy
Key areas for G20 policy action
Assist people, especially the least able, in navigating the transition; starting with skills
Take advantage of the technology to improve skills development and training
Foster digitally competent consumers
Empower individuals
Share « best practices » helping displaced workers, including apprenticeship programmes, retraining, « nano-degrees » and vouchers
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Laggards
Frontier
Laggards
Average of labour productivity across each 2-digit sector (log, 2001=0)
Frontier
Source: Andrews, D., C. Criscuolo and P. Gal (2016), "The Best versus the Rest: The Global Productivity Slowdown,
Divergence across Firms and the Role of Public Policy", OECD Productivity Working Papers, No. 5, OECD
8. SMEs, start-ups & dynamism
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8.SMEs, start-ups & dynamism
Key areas for G20 policy action
Keep a level-playing field; don’t tilt towards incumbents
Improve access to finance
Improve access to skills (extension programmes to SMEs)
Improve access to technology (e.g. cloud)
Diagnose the decline in dynamism
Nuture start-ups and help them scale
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9. Consumer rights
http://www.consumersinternational.org/news-and-media/news/2016/04/new-report-internet-of-things/
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9. Consumer rights
Key areas for G20 policy action
Enhance cross-border co-operation; improve enforcement information sharing
Be attentive to role of platforms and how to build trust
Identify good practice approaches to making data portability work for consumers & business
Adopt new international (UN, OECD) standards for consumer protection
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10. Legal frameworks
... and are spreading more and more quickly
1878
1979
1990
2003
2004
2008
2009
2010
2012
… 25 social media users
Year of
launch
Time to reach 100 million users worldwideFor every 100 people in
the world, there are …
Digital technologies have a huge reach …
… 32 active mobile-
broadband subscriptions
… 95 mobile-phone
subscriptions
… 40 internet users
1 yr, 3 mos
2 yrs, 2 mos
2 yrs, 4 mos
3 yrs, 3 mos
4 yrs, 5 mos
6 yrs, 5 mos
7 years
16 years
75 years
0 20 40 60 80
Candy Crush Saga
Apple App Store
iTunes
World Wide Web
Mobile phone
Telephone
YearsSource: OECD, based on BCG (2015).
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10. Legal frameworks
Key areas for G20 policy action
Need for a whole-of-government approach;
Periodic review is needed; not regulate and ignore for a decade
Competition policy needs to better encompass the growing competitive importance of data and data analytics
Online platforms provide a host of opportunities and challenges; need for experimentation / “sand boxes”
Elaborate and pilot a policy framework for analysing digital readiness
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• What are the digital policy priorities for the G20?
• Is there a natural sequence to activities?
• How best does the G20 take this forward?
• How to ensure coordination with “Future of Work” (EWG); Fin TECH (Finance); Digital Trade (TIWG); etc.
Discussion
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Thank you
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Contact: [email protected]
Website: www.oecd.org/sti
Twitter: @OECDinnovation
Newsletter: www.oecd.org/sti/news.htm