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.

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.

A policy oriented overview of available

indicators and measurement challenges

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A small sector in most economies, But highly productive

ICT industries: why so important? 1. Value added, employment, productivity

OECD: Internet Economy Outlook 2012 database

Share of ICT sector VA and employment in OECD countries business economy & relative productivity (2009)

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… and a key component of international trade (about 11% of world merchandise trade value in 2011)

ICT industries: why so important? 2. International trade

Normalised trade balances and % share of goods exports (2009)

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Normalised trade balance for ICT goods

OECD: Key ICT indicators

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Source: OECD Internet Economy Outlook, 2012

ICT industries: why so important? 3. R&D intensity

ICT BERD specialization, 2010 or latest year available (% of GDP and of total BERD)

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Mexico (c)Chile (b)

Roumania (b)Slovak Republic (a)

Russian Federation (a)Poland (a)

South Africa (b)Turkey (b)Greece (c )

HungaryNew Zealand (a)

ItalySpain (a)

Australia (a)Slovenia (a)

Czech Republic Germany (b)

Estonia (a)Norway (b)Canada (b)

Portugal (a)United Kingdom (a)

Austria (a)Belgium (a)

Netherlands (c)France (c)

Switzerland (b)Denmark (c)

IrelandSingaporeIceland (a)

JapanUnited States (b)

Sweden (a)IsraelKorea

Chinese TaipeiFinland (a)

% of GDPICT manufacturing R&D ICT services R&D

ICT BERD as share of total BERD, 2010 or latest available year

ICT industries generate about 1/3 of total BERD in the USA (1/5 in the EU)

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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

A policy oriented overview of available

indicators and measurement challenges

Uptake by firms

Most enterprises use the Internet

Broadband use and web-presence

Source: OECD

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Uptake by firms

Few firms employ e-commerce solutions

Enterprises selling / purchasing over the Internet (2011)

Source: OECD

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Selling Purchasing

• ICT usage complementary to innovation

ESSLIMIT: Micro-founded evidence on

the ICT-innovation-performance threads

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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

Use of selected IT tools among innovators and non-innovators: percentage differences, year 2008

http://www.ess-limit.eu/

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Uptake by individuals Age, education, income, gender and employment status

The gap increases with age

Non educated

elders are

illiterate

Youth: no gender gap

... & EDU

Income matters

% of individuals having used internet in the last three months (EU 27)

Source: Eurostat

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Cross-country difference

The Internet gap

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Uptake and local content:

Infrastructure matters

LOCAL CONTENT Wikipedia entries

INTERNET DEVELOPMENT A. Broadband penetration B. Autonomous systems C. International bandwidth

LOCAL CONTENT Web pages per ccTLD per capita

INTERNET DEVELOPMENT Autonomous systems

LOCAL CONTENT Blogs per country, per capita

INTERNET DEVELOPMENT Routed IPv4 addresses per capita

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Arabic Japanese German Spanish English

Number of Wiki entries per 1000 native speakers

Internet and local content

Local content in the Arab world

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• 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

Some conclusions

Dr. Andrea de Panizza

Dr. Piotr Stryszowski

Directorate for Science, Technology and Industry

for further information

>>> Contact us

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Email: Andrea.DePanizza@oecd.org

Email: Piotr.Stryszowski@oecd.org