Digital Economy Report 2019

Value Creation and Capture: Implications for Developing Countries

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The Digital Economy Report 2019 on “Value creation and capture: Implications for developing countries” takes stock of recent trends in the global digital landscape and discusses the development and policy implications of data and digital platforms. A key feature of the evolving digital economy is the increasing role of digital data as an economic resource, together with digital platforms as new influential actors, with capacity to collect, process, analyze and monetize data. The report considers policy options for countries to help ensure that they capture a fair part of the value created in the digital economy for inclusive development. Key issues include the market impact of emerging technologies and digital platforms, the impact on smaller businesses in developing countries and the implications for infrastructure, entrepreneurship, skills, competition, data flows, data protection, taxation and other relevant policies.

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Value in the digital economy

The implications of digital disruptions for the creation and capture of value in developing countries are becoming increasingly important to understand. This involves shifting the focus beyond issues related to access and use of ICTs to the production side, to enable an assessment of the overall impacts on structural change, growth and development. This chapter discusses conceptually the process of value creation and capture from the perspective of sustainable development. It examines how new forms of value can be created, particularly around digital platforms and data; but it also points to possible risks posed by new business models for countries, firms and individuals that are less prepared to take advantage of new technologies. The proposed conceptual framework highlights four elements: the division of value, governance of value, upgrading and value creation versus capture.

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