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G20 Toolkit for Measuring the Digital Economy

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G20 Toolkit for Measuring the Digital Economy TOOLKIT FOR MEASURING THE DIGITAL ECONOMY DRAFT VERSION - NOVEMBER 2018 G20 DETF – Measurement of the Digital Economy | 1 41. Introduction 2. Towards a 6measurement agenda 2.1 Gaps and challenges 2.2 Actions for improvement 3. Selected Indicators to Measure 9the Digital Economy Index Infrastructure Empowering society 3.1 Investing in Broadband 3.9 Digital natives 113.2 The rise of Mobile Broadband 183.10 Narrowing the digital divide 3.3 Toward higher Internet speed 3.11 People’s use of the Internet 3.4 Prices for connectivity 3.12 E-consumers 3.5 Infrastructure for the Internet of 3.13 Mobile Money Things 3.14 Citizens interacting with 3.6 Secure servers infrastructure government 3.7 Household access to computers 3.15 Education in the digital era 3.8 Household access to the Internet 3.16 Individuals with ICT skills Innovation and Technology Jobs and Growth Adoption 3.25 Jobs in the Information 403.17 Research in machine learning 60Industries 3.18 AI-related technologies 3.26 Jobs in ICT occupations 3.19 Robotisation in manufacturing 3.27 ICT workers by gender 3.20 R&D in information industries 3.28 E-Commerce 3.21 Supporting business R&D 3.29 Value added in information 3.22 ICT-related innovations industries 3.23 ICT Use by businesses 3.30 The extended ICT footprint 3.24 Cloud computing services 3.31 ICT Investment 3.32 ICT and productivity growth 3.33 ICT and Global Value Chains 3.34 Trade and ICT Jobs 3.35 ICT goods as a percentage of 4. Initiatives and merchandise trade 3.36 Telecommunications, computer, Case Studies and information services as a 63 percentage of services trade 1225. Credits 1.Introduction Sound measurement is crucial for inform- possible measurement approaches that ing and guiding policymaking, as it helps support evidence-based policymaking, policymakers produce precise diagnos- diagnoses the challenges and opportuni- tics, assess the potential impact of alter- ties of the digital economy, identifies the native policy options, monitor progress, issues that could be addressed by public and evaluate the efficiency and efficacy policies, and serves as a potential guide of implemented policy actions. for countries to implement standardized measurement activities. The demand for new data, indicators and measurement tools is particularly acute Rather than producing new content, the in the case of the digital economy due document focuses on existing indicators to the growing role it plays in G20 econ- and methodologies, in an effort to com- omies and everyday life, its potential to pile core, standardized and comparable transform jobs and production, and the indicators about the digital economy in fast pace of change that characterises it. G20 countries, make them easily acces- sible, and allow them to serve as a guide The G20 has taken note of this need in its for countries to implement measurement 2017 Ministerial Declaration, encourag- activities. Indicators were selected based ing members to reflect the measurement on previously published statistics on the of the digital economy in their national digital economy and ongoing efforts to statistics in a comprehensive way and to develop comparable metrics by major review existing statistical frameworks. international organizations active in this Following that mandate, and in particu- area. Sources include the Organisation lar that included in point 10 of the G20 for Economic Co-operation and Devel- Roadmap for Digitalisation, this G20 opment (OECD), the International Tele- Toolkit for Measuring the Digital Econ- communication Union (ITU), the United omy brings together different method- Nations Conference on Trade and Devel- ological approaches and indicators that opment (UNCTAD), the European Union, may be used to monitor the digital trans- The World Bank Group (WBG), the Inter- formation, and highlights critical gaps national Monetary Fund (IMF), and the and challenges that G20 countries and International Labour Organization (ILO). IOs involved in digitalization measure- ment could consider for further work. The Toolkit aims to provide a first as- sessment that could serve to propose 4 | G20 DETF – Measurement of the Digital Economy More than 30 key existing indicators and methodologies to monitor and assess the size and penetration of the digital economy are organized in four themes according to their main purpose of measurement: 1. Infrastructure. This section covers in- To complement these standard meas- dicators of the development of phys- ures, the toolkit also includes other stud- ical, service and security infrastruc- ies, surveys, pilot initiatives, and various tures underlying the digital economy. measurement efforts in G20 countries It includes access to mobile and fixed and international and regional organiza- networks, the development of next tions. These cases are intended to serve generation access (NGA) networks, as examples of initiatives that could im- the dynamics of household and busi- prove existing methodologies, deepen ness uptake, secure servers infra- our knowledge on specific aspects of the structure, and infrastructure for the digital economy, and potentially expand internet of things. coverage to more countries or to new ar- eas within a country. 2. Empowering society. This section The rest of the document is organized considers indicators that portray the as follows. Section 2 elaborates on the evolving role of the digital economy in main gaps and challenges that derive people’s life, how they access and use from the analysis of the indicators com- digital technologies, and their abili- piled by the toolkit. It also includes cru- ties to fully exploit their potential. It cial actions that could inform the digital includes indicators on people’s use of economy measurement agenda of G20 the internet, education, financial in- members in the next years. Section 3 pre- clusion and interaction with govern- sents selected indicators used to meas- ment, among others. ure the digital economy. Finally, section 4 3. Innovation and technology adop- includes initiatives and experiences from tion. This theme contains indicators G20 countries and organizations. that address innovation in digital technologies, new digitally-enabled business models, the role of ICTs as an engine for innovation, and adoption of ICTs and other emerging technol- ogies by businesses. 4. Jobs and Growth. The metrics col- lected within this section explore the different ways in which digital technologies contribute to econom- ic growth and employment creation. It includes indicators related to the labour market, employment creation, investment in ICTs, value added, in- ternational trade, e-commerce, and productivity growth. G20 DETF – Measurement of the Digital Economy | 5 Towards a measurement 2.agenda The main conclusion of the toolkit is that, limited, timeliness is often an issue, and even if we only consider existing meas- differences in data collection methodol- urement efforts, there is ample room for ogies and approaches across countries improvement, as data are far from be- persist. ing comprehensive, country coverage is 2.1 Gaps and challenges We identify two types of gaps: method- standards to guide statistical collection ological and availability. Methodological exist, countries may lack the capacities gaps relate to what existing indicators and resources to implement them sys- measure and how they capture the dig- tematically, disseminate the resulting ital economy, or to what extent they do information openly, or make efforts to it. They address issues such as the need ensure that data are comparable. In what to improve existing indicators, identifica- follows we organize the presentation of tion of new measures to be developed, the main gaps and challenges in the same or the review of data sources and col- themes used to classify the indicators in lection methods. Availability gaps are the next section of the toolkit, according closely linked to effective implementa- to their main purpose of measurement. tion. Even in areas where international Infrastructure Connectivity is well covered by standard Internet of Things (IoT), a key emerg- indicators, but digital platforms, an im- ing technology that drives digitization portant dimension within the infrastruc- economy-wide. Although tracking M2M ture topic, is not treated and deserves an subscriptions is a reasonable proxy, there assessment. The digital economy would are other transmission technologies the be incompletely measured without tak- application of which could be covered by ing into consideration the size and impact standard indicators. of platforms. More generally, there are important dif- The toolkit includes and indicator to ficulties in measuring data flows. G20 measure machine-to-machine (M2M) members may wish to explore ways to communication, one of the main under- better utilize existing usable data sets. lying infrastructure technologies of the 6 | G20 DETF – Measurement of the Digital Economy Empowering society Indicators about educational attain- omy. One example is the absence of sys- ment and occupations are available and tematic data collection on the percep- there are independent efforts to produce tion of firms about the abilities and skills standards and definitions. We encourage that will be demanded in the near future. G20 members to continue to participate This is especially the case for develop- or start participating in those measure- ing economies. Moreover, digital access, ment activities. However, we identify a which can be measured and can be used lack of widespread
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