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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 creation and capture in the digital economy: a global perspective

This chapter looks at systemic dynamics of digitalization at the global level, and the ways they affect value creation and capture. It begins by highlighting the growing reach of a few global digital platforms and how this is linked to the ability to transform data into value. It then explores the reasons for the high degree of market concentration among these global digital players in the data-driven economy. Section C discusses issues related to the international dimension of data and data flows. Section D explores some implications of the data-driven economy in connection with global value chains. This is followed by a discussion of other issues related to value creation and capture, such as taxation of global digital platforms and the implications for employment and platform work. The final section draws the main conclusions from the analysis.

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