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.



Measuring value in the digital economy

Measurement of the digital economy and its impacts has grown in importance as more and more economic activities are getting digitalized. Greater demand for better statistics that can support policymaking has led to a renewed interest in identifying which digital economy activities can add the most value and how best to measure that value. While several initiatives are being undertaken by the international community to define and quantify the digital economy, more work is needed. There are various ways to capture the extent and impact of that economy. This chapter, largely due to statistical limitations, focuses on the core digital (or ICT) sector. This includes value added, employment and trade related to the production of ICT goods and services. Attention is also given to value created as a result of digitalization in other parts of the economy, resulting in more people working in ICT occupations and in digitally delivered services and e-commerce. The chapter further looks at some recent efforts at measuring value added in e-commerce, capturing spillover effects from the digital economy and value linked to the data-driven economy.


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