SOCIO-ECONOMIC IMPACT OF THE ICTS

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1 SOCIO-ECONOMIC IMPACT OF THE ICTS Evidence from the on-going work of the OECD Dr. Andrea de Panizza Dr. Piotr Stryszowski The views expressed are those of the author in his private capacity and do not necessarily represent those of the OECD or its Member governments.

2 A policy oriented overview of available indicators and measurement challenges The industrial (supply side) perspective. The role of ICT industries (electronics, telcos, computer services) in the economy. It is a small sector in most economies. But it is highly productive. It is a a key component of international trade and it is R&D Intense.

3 Korea Ireland Finland Sweden Hungary United Kingdom United States Czech Republic Denmark Slovak Republic Supply: ICT Industries Japan Netherlands Luxembourg Estonia Norway France Portugal Belgium Germany Australia Slovenia Spain Italy Greece Austria Canada Switzerland ICT industries: why so important? 1. Value added, employment, productivity A small sector in most economies, But highly productive Share of ICT sector VA and employment in OECD countries business economy & relative productivity (2009) Value added Employment Relative productivity (RhS) OECD: Internet Economy Outlook 2012 database

4 Korea Israel Ireland Hungary Japan Slovak Republic Mexico Finland Czech Republic Sweden Netherlands Estonia OECD Germany Belgium Poland Austria France United Kingdom United States Denmark Slovenia Luxembourg Canada Portugal Norway Italy Italy Switzerland Turkey Spain New Zealand Greece Australia Chile Iceland China Supply: ICT Industries 8.2% 0.8% 1.3% 2.0% 7.3% 1.0% 5.2% 0.7% 1.7% 1.2% 5.2% 0.1% 63.1% 5.7% 1.0% 1.0% 0.5% 2.0% 2.4% 11.7% 0.3% 0.1% 0.0% 1.1% 0.2% 0.2% 0.8% 0.3% 0.2% 0.6% 0.0% 0.1% 0.2% 0.0% 0.0% 36.9% ICT industries: why so important? 2. International trade and a key component of international trade (about 11% of world merchandise trade value in 2011) Normalised trade balances and % share of goods exports (2009) % of OECD+China ICT goods exports 40% 20% 0% -20% -40% -60% -80% Normalised trade balance for ICT goods -100% -120% OECD: Key ICT indicators

5 Supply: ICT Industries ICT industries: why so important? 3. R&D intensity ICT industries generate about 1/3 of total BERD in the USA (1/5 in the EU) ICT BERD specialization, 2010 or latest year available (% of GDP and of total BERD) Finland (a) Chinese Taipei Korea Israel Sweden (a) United States (b) Japan Iceland (a) Singapore Ireland Denmark (c) Switzerland (b) France (c) Netherlands (c) Belgium (a) Austria (a) United Kingdom (a) Portugal (a) Canada (b) Norway (b) Estonia (a) Germany (b) Czech Republic Slovenia (a) Australia (a) Spain (a) Italy New Zealand (a) Hungary Greece (c) Turkey (b) South Africa (b) Poland (a) Russian Federation (a) Slovak Republic (a) Roumania (b) Chile (b) Mexico (c) Source: OECD Internet Economy Outlook, 2012 ICT BERD as share of total BERD, 2010 or latest available year % of GDP ICT manufacturing R&D ICT services R&D

6 A policy oriented overview of available indicators and measurement challenges The users (demand side) perspective The internet is intensely used by firms but not in in terms of e-commerce The Internet and the society (development of local ties) ICTs, the Internet and firms The economy and enterprises : ICT investment, intangible assets and growth A techno-economic paradigm: ICT use, innovation, and firm performance Individuals and society: digital divide and potential benefits of uptake The internet and Individuals Definitions, classifications, surveying content Emerging phenomena and new measurement perspectives

7 Demand: Internet and firms Uptake by firms Most enterprises use the Internet Broadband use and web-presence Source: OECD

8 Demand: Internet and e-commerce Uptake by firms Few firms employ e-commerce solutions Enterprises selling / purchasing over the Internet (2011) Selling Purchasing Source: OECD

9 Demand: ICT usage by firms ESSLIMIT: Micro-founded evidence on the ICT-innovation-performance threads ICT usage complementary to innovation Use of selected IT tools among innovators and non-innovators: percentage differences, year PROD PROC ORG PROD PROC ORG PROD PROC ORG PROD PROC ORG Automated Data Exchange Info sharing w/customers & suppliers Customer Relationship Management (CRM) Enterprise Resource Management (ERP) ICT MANUF MARKET SERVICES ALL INDUSTRIES

10 Demand: ICT usage by individuals Uptake by individuals Age, education, income, gender and employment status % of individuals having used internet in the last three months (EU 27) The gap increases with age... & EDU Youth: no gender gap Income matters Non educated elders are illiterate Source: Eurostat

11 Demand: the Internet gap Cross-country difference The Internet gap

12 Demand: Uptake and local content: Infrastructure matters INTERNET DEVELOPMENT A. Broadband penetration B. Autonomous systems C. International bandwidth LOCAL CONTENT Wikipedia entries INTERNET DEVELOPMENT Autonomous systems LOCAL CONTENT Web pages per cctld per capita INTERNET DEVELOPMENT Routed IPv4 addresses per capita LOCAL CONTENT Blogs per country, per capita

13 Demand: local content in the Arab World Internet and local content Local content in the Arab world Number of Wiki entries per 1000 native speakers Arabic Japanese German Spanish English

14 Some conclusions ICTs are a strategic sector and a source of competitiveness Promote regional actors, frame regulation policy and provide incentives for uptake by enterprises Governments are a strategic actor E-government platforms and services (e-health and education). Promote cooperation in strategic areas Cultural dissemination (e.g. Wikipedia), Regional platforms for enterprises and services

15 for further information >>> Contact us Dr. Andrea de Panizza Dr. Piotr Stryszowski Directorate for Science, Technology and Industry OECD 2, rue André-Pascal Paris CEDEX 16 France

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