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Measuring GDP in the digital economy: Increasing dependence on uncaptured GDP
Abstract
As revealed by Tapscott in his best-seller The Digital Economy published in 1994, the Internet has dramatically changed the way of conducting business and our daily lives. Further advancement of digital innovation, including cloud, mobile services, and artificial intelligence, has augmented this change significantly and provided us with extraordinary services and welfare never anticipated before. However, contrary to such an accomplishment, productivity in industrialized countries now confronts an apparent decline raising the question of a possible productivity paradox in the digital economy. The limitations of gross domestic product (GDP) statistics in measuring the advancement of the digital economy have become an important subject. While this mismatch is an old problem rooted in the dynamics of product innovations, since mismatch brought about by information and communication technology (ICT) is very strong, finding a solution to this critical issue has become highly crucial in the digital economy. Based on an intensive review of preceding studies and empirical analyses of national, industrial and individual behaviors in the digital economy, this paper attempted to draw a perspective on this critical issue. By means of an analysis of co-evolution among a shift in people's preferences from economic functionality to supra-functionality beyond economic value, the advancement of ICT and paradigm change to uncaptured GDP, a solution to this critical issue was investigated. New insights for measuring the digital economy were explored which provide insight into integration of national accounts with product-oriented micro-analysis efforts.
... Being based on Industrial Clusters, the model will create ideal conditions and positive drivers for digitalization and Industry 4.0 implementation, making easier and cheaper for SMEs and entrepreneurs the digitalization process, particularly after pandemic [4], [7], [16], [17], [48], [49]. Industrial Clusters homogenize digital penetration among their members, and furthermore, the adoption of technology has a positive effect on the development of new technologies [1], [2], [50]. ...
... ICT and Industry 4.0 have impacts difficult to assess from the traditional GDP viewpoint, which only measures revenue; the added value found in digital economies, as utility, collaboration, and even happiness, remains uncaptured by traditional economic wealth measures [4]. Furthermore, industrialized and usually more digitalized countries face an apparent decline in productivity, a paradox in the digital economy age [25], [50], [58]. ...
This conceptual research aims to deepen the theoretical discussion about the Digital Industrial Cluster (DIC) in a post-pandemic world. The DIC represents a novel model of digital agglomeration, building upon the evolution of Industrial Clusters. The research takes a discursive and theoretical approach, exploring the deployment of the DIC through the analysis of scientific publications on digital agglomeration. It also considers previous research on the pandemic's impact on globalization and digital agglomeration, as well as literature on innovation and Industry 4.0 for digital policy. The findings propose a seven-layers model of digital transformation necessary for deploying a DIC. The research presents expected externalities and key challenges for DIC deployment, with innovation and Industry 4.0 remaining central to digital agglomeration. This study aims to assist policymakers and cluster organizations in visualizing the organization and development of a real-world DIC. However, empirical research is necessary to evaluate the potential benefits and identify regions suitable for participation in such a project.
... In relation to point (3), it is necessary to expand the sector classification of the conventional input-output database. As Watanabe et al. (2018) indicate, ICT contributes beyond conventional economic values, thereby resulting in uncaptured gross domestic product. ...
... Analysis of a Smart Society Watanabe et al. (2018) report that ICT may create new economic values that cannot be captured by means of conventional economic indicators. Nakano and Washizu (2018) also attempt to capture such a new economic value. ...
Pessimism about the effects of official development assistance (ODA) on the poorest countries (base of the pyramid; BoP) has raised expectations of social business by multinational corporations (MNCs) since the end of the twentieth century. First, this chapter summarizes the historical developments focused on the role of MNCs in alleviating poverty at the BoP (Sustainable Development Goals [SDGs] 1, 3, and 6) through delivery of affordable products and services, following activities of non-governmental organizations, growing awareness of corporate social responsibility, and framing of development goals by United Nations agencies. Next, it discusses BoP’s shift from its role as a marketplace to a production base or source of innovation, as MNCs have established global production networks. We argue that this has changed the BoP business toward contributing to the achievement of SDGs 5, 8, and 9. Finally, MNCs are required to address not only social challenges at the BoP, but also environmental challenges (SDGs 13) in both emerging and developed countries. To balance these overall SDG-related challenges with MNCs’ own interests, BoP business is further evolving into SDG business management, and MNCs will be increasingly required to redefine their role from a sustainability perspective.
... In relation to point (3), it is necessary to expand the sector classification of the conventional input-output database. As Watanabe et al. (2018) indicate, ICT contributes beyond conventional economic values, thereby resulting in uncaptured gross domestic product. ...
... Analysis of a Smart Society Watanabe et al. (2018) report that ICT may create new economic values that cannot be captured by means of conventional economic indicators. Nakano and Washizu (2018) also attempt to capture such a new economic value. ...
The construction of a smart societyutilizing information and communication technology (ICT) is attracting attention to simultaneously achieve various Sustainable Development Goals (SDGs). Using input–output analysis, this chapter elucidates the economic structure of a smart society. This content is an extension of Leontief’s “Structure of Development” study of the 20th-century industrial society. Here, a smart society enables waste to be eliminated and the utility of people to be increased by strengthening management in all fields of society using ICT. It is shown that a smart society will achieve an industrial structure with a lighter environmental load and sustain moderate economic growth. Therefore, the movement aiming to build a smart society in Asia and other regions of the world is deemed beneficial and expected to contribute to achieving the SDGs. Additionally, Japan is a developed country with advanced ICT in Asia, and improving the efficiency of Japan’s ICT has been found to profoundly affect the entire Asian region. Japan plays a key role in building a smart society in the Asian region. This chapter is not only directly related to SDG9, but also to SDGs2, 5, 7, 8, 11, 12, and 13.
... As an integration of information technology and economic production modes, the digital economy offers a new strategic choice for China's industrial transformation (Yang et al., 2021). It provides a new research perspective for GTI by liberating social productivity, changing the way knowledge is transferred, and reducing transaction costs (Chihiro et al., 2018;He et al., 2021;. Dou and Gao (2022) argued that in areas with a high level of digital economy, cloud computing and big data will drive the transformation of production modes, which will require enterprises to update equipment (Yetis-Larsson et al., 2015;Wang et al., 2022), eliminate traditional production modes (Song et al., 2020;Cao et al., 2021), and achieve a balance between economic and environmental development. ...
... Diewert et al. (2018) focused on the digital economy and the value it created from the perspective of welfare measurement. Given the two-sided nature of ICT and people's preferences, Chihiro et al. (2018) measured the digital economy by adding the service value to the national GDP. With the development of the digital economy in China, Tencent Research Institute (2017) constructed a global digital economy model from four dimensions: digital facilities, digital industry, digital innovation and digital governance. ...
With the rapid development of the digital economy and the increasingly severe environmental issues, the role of the digital economy in green innovation has been attracting more attention; however, only a limited amount of research has been done in this area. Therefore, based on matching data at the city and manufacturing enterprise level in China during 2011–2018, this paper attempted to integrate the digital economy (more specifically, the Internet and digital finance) with resource allocation and green technology innovation together in a unified scheme. Our study confirmed that the digital economy could significantly promote green technology innovation by manufacturing enterprises, but that digital finance was the dominant feature. Resource allocation efficiency played a partial mediating role between digital economy and green technology innovation. Furthermore, considering the heterogeneity in enterprise ownership and industrial pollution, the digital economy had a more positive effect on green technology innovation in state-owned enterprises (SOEs) and high pollution industries. As for the heterogeneity of region, the Internet significantly contributed to green technology innovation in regions with different levels of development. In the eastern region of China, especially, the influence of digital finance on green technology innovation was more significant. In view of these findings, this study provides important insights for strengthening the integration of the digital economy with green transformation, emphasizing the rationality of resource allocation, and formulating policies for different enterprises.
... The measurement of the digital economy is the key to quantitative analysis, and existing scholars have utilized different approaches. The limitations of GDP figures in evaluating the digital economy were explored by Watanabe et al. (2018), who offered a fresh viewpoint on the issue by demonstrating how people's choices have evolved from economic functionality to supra-functionality beyond economic worth. Pan et al. (2022) considered three elements to construct the digital economy index, namely infrastructure, industrial scale, and spillover value. ...
... However, few studies have considered its influences from a broader technical standpoint. Digitalization is a technology-intensive activity that has been tightly woven into economic growth, leading to an analysis of its effects from a macro perspective (Watanabe et al., 2018). Research on the association between digitalization and green performance is scarce, and its influencing mechanism is unknown. ...
Digitalization has been the new engine of development that drives the regional economy, but scant empirical studies investigate the linkage between the social sphere digitalization and green total factor productivity (GTFP). Based on the quantitative and comprehensive index of digitalization development, the study calculates the digital economy from the social sphere in China's 279 cities between 2011 and 2019. Besides, the impact of social sphere digitalization on GTFP is examined using the dynamic spatial Durbin model (SDM). The basic results show that the development of the digital economy in the social sphere positively influences the growth of GTFP, and there is a spatial spillover effect. Specifically, the 1% increase in social sphere digitalization will bring a 0.0705% increase in GTFP. Furthermore, influencing mechanisms of the digital economy on GTFP are examined, namely industrial structure upgrading, human capital, and technological invention effects. Last, the heterogeneity analyses show that the influencing intensity is different in Eastern, Middle, and Western cities as well as in resource-based and non-resource-based cities. Our findings provide new evidence for the relationship between the social sphere digitalization and green development, and also give managerial implications for other cities or countries that are seeking energy and emission-reduction measures.
... Technology has accelerated economic growth and transformed societies through changes in how universities function, particularly in developing nations (Akaslan & Law, 2011). The growth of cloud computing, artificial intelligence, and machine learning has further fueled the growth of information and communication technologies (ICT) (Watanabe et al., 2018). Low internet usage charges coupled with the availability of affordable smartphones and tablets have led to an increase in internet use by students. ...
Aim/Purpose: The study aims to supplement existing knowledge of information systems by presenting empirical data on the factors influencing the intentions of doctoral students to learn through online platforms. Background: E-learning platforms have become popular among students and professionals over the past decade. However, the intentions of the doctoral students are not yet known. They are an important source of knowledge production in academics by way of teaching and research. Methodology: The researchers collected data from universities in the Delhi National Capital Region (NCR) using a survey method from doctoral students using a convenience sampling method. The model studied was the Technology Readiness and Acceptance Model (TRAM), an integration of the Technology Readiness Index (TRI) and Technology Acceptance Model (TAM). Contribution: TRAM provides empirical evidence that it positively predicts behavioral intentions to learn from online platforms. Hence, the study validated the model among doctoral students from the perspective of a developing nation. Findings: The model variables predicted 49% of the variance in doctoral students’ intent. The TRAM model identified motivating constructs such as optimism and innovativeness as influencing TAM predictors. Finally, doctoral students have positive opinions about the usefulness and ease of use of online learning platforms. Recommendations for Practitioners: Academic leaders motivate scholars to use online platforms, and application developers to incorporate features that facilitate ease of use. Recommendation for Researchers: Researchers can explore the applicability of TRAM in other developing countries and examine the role of cultural and social factors in the intent to adopt online learning. Future Research: The influence of demographic variables on intentions can lead to additional insights.
... Evidence from several studies suggests a steady digital economic expansion in China in contrast with its overall economic expansion. Notably, yet, the implications of digital economic development on economic growth display significant regional variation (Barefoot et al., 2018;Liu et al., 2021), and exhibit a trend towards polarization (Watanabe et al., 2018). Concerning the digital economic influence on the composition of the labor force, prevailing studies propose that digital economic expansion notably lessens the probability of inadequate workforce employment. ...
The digital economy, being a nascent technology, has exerted a substantial sway on how businesses are produced, how governments are run, how people live, etc. Considering this, additional investigation is required to gain a deeper comprehension of the connection between digital economic expansion and the impact of pollutant reduction, as well as the impact mechanism at play. Accordingly, using panel data from city-level data in China spanning the years 2011–2019 for analysis, this research explores the effects and mechanisms of digital economic growth on urban industrial pollution emission reduction. A two-way fixed effects model is applied. The outcomes demonstrate that a particular inflection point value determines how much the digital economy may reduce urban industrial pollutant emissions. Specifically, only when the digital economic development index surpasses 10 does it become viable to generate the emission reduction effect. The digital economic promotional influence on the decrease of urban industrial pollution emissions grows as industrial company service levels rise. Moreover, in regions with high market segmentation, in the eastern territories, and areas with strong policy support, the digital economy exhibits a lower inflection point for demonstrating its discharge lessening effects.
... The dependent variable used was the portfolio of investment, which expresses transactions in equity securities and debt securities in Oman. For more robustness, the chapter used four control variables: gross capital formation (% of GDP; LOGGCF), real interest rate (%; RIR), interest inflation and GDP deflator (annual %; ING) and GDP growth (annual %; GDPG) (Myovella et al., 2020;Bahrini & Qaffas, 2019;Ongo et al., 2014;Benzell & Brynjolfsson, 2019;Watanabe et al., 2018). ...
... Digital technology is the main engine driving the development of the digital economy, which makes the distance and boundary between consumers and producers decreasing, forcing enterprises to achieve innovation and upgrading [4]. Digital technology is widely used in information processing, communication and intelligent upgrading of production methods in manufacturing enterprises. ...
... 31-53) (Sarangi & Pradhan, 2020, pp. 363-383) (Watanable, Naveed, & Neittaanmäki, 2018). Les TIC ont en effet été largement reconnues comme jouant un rôle important dans les transformations des grands secteurs de l'économie. ...
L'objectif principal de cet article consiste à analyser la relation entre l'économie numérique et la croissance économiques Algérienne, au point de devenir un moteur de productivité et de compétitivité, représentées sous formes des abonnements téléphoniques fixes, abonnements cellulaires mobiles, et les abonnements haut débit fixe comme des variables principales de cette Modélisation pendant la période 1995-2021. A cet effet, on a estimé un modèle suivant la méthodologie économétrique qu'elle représente la Cointégration de J-J et l'étude d'existence d'une correction d'erreur de court terme. Les résultats montrent que les abonnements téléphoniques fixes ont un effet positif significatif sur la croissance économique en Algérie, par contre les abonnements cellulaires mobiles, et les abonnements haut débit fixe ont un effet négatif significatif. Abstract The main objective of this article is to analyze the relationship between the digital economy and Algerian economic growth, so that it has become an engine of productivity and competitiveness, represented by fixed telephone subscriptions, mobile cellular subscriptions, and fixed broadband subscriptions as main variables of this modeling during the period 1995-2021. For this purpose, a model was estimated following the econometric methodology that represents the Co-integration of J-J and the study of the existence of a short-run error correction. The results show that the fixed telephone subscriptions has a significant positive effect on economic growth in Algeria, on the other hand the mobile cellular subscriptions and fixed broadband subscriptions have significant negative effects.
... Tapscott (1996) introduced the term "digital economy" for the first time in 1996, defining it as an economic system that makes extensive use of information and communications technologies (ICT). Since then, the concept of the phrase "digital economy" has been analyzed and expanded d by multiple scholars (Chihiro et al., 2018). Based on the methods proposed by Zhang and Jiao (2017), a comprehensive assessment index system is developed to assess the digital economy along three dimensions: the digital foundation, industrial digitalization, and digital industrialization. ...
The integration of digital technologies is exhibiting an upward trend in Chinese enterprises, and the degree of corporate credit risk is directly proportional to their financial sustainability. Based on panel data of new energy enterprises from 2012 to 2020, this article makes an empirical study on the direct effect, mediating effect, and moderating effect of the digital economy (DE) on the new energy enterprises’ credit risk. It is found that the digital economy could significantly mitigate the credit risk of new energy enterprises by improving total factor productivity and amplifying the potential default cost. When the digital economy affects corporate credit risk, the development of the new energy industry acts as an intermediary, and knowledge spillover acts as a moderator. Furthermore, considering knowledge spillover as the threshold variable, the digital economy has a double-threshold effect. The marginal impact fluctuates from dropping to increasing as the knowledge spillover level increases. As for the region’s heterogeneity, the digital economy has benefited eastern China more than central and western China, possibly due to the differences in economic structure, capital intensity, and policy institutions. In view of these findings, this study provides a reference for China to mitigate corporate credit risk in the digital economy era.
... It is important to highlight the externalities presented are related to each other and feed themselves; besides, the DIC aims to boost anticipated externalities from traditional industrial clusters, such as economic development, innovation, digitalization and competitiveness (Watanabe et al., 2018). The DIC has in mind that the most advanced regions are those that are more open and connected, and it does not pretend to replace industrial clusters, the relevance of geographical proximity or face-to-face interactions between individuals. ...
Purpose
This conceptual paper aims to develop the vision of a novel policy tool called the digital industrial cluster (DIC) thought for a future context shaped by digital economies and Industry 4.0. The DIC departs from the industrial cluster’s precepts and take them into the digital agglomeration phenomenon.
Design/methodology/approach
This research uses a discursive and theoretical approach. To create a clear picture related to the research topic, this paper reviews the literature on how industrial clusters deal with digital transformation. The review takes a particular interest in industrial clusters, information and communication technologies, Industry 4.0 and policy tools for digital agglomeration.
Findings
The research develops the vision of the DIC as a new policy tool, building its foundations on both industrial clusters and digital economies; furthermore, the DIC was compared with other policy tools based on digital agglomeration to understand the similarities, differences and advantages of the former. Finally, this paper discussed where the DIC could find its way toward implementation and what externalities could be expected from doing so.
Practical implications
This research could be useful for policymakers and cluster organizations looking to deploy policy tools that take advantage of industrial clusters and digital transformation. Besides, the theoretical foundations presented could lead researchers to empirical identification of early incarnations of the DIC.
Originality/value
This paper develops theoretical principles for a new policy tool that connects industrial clusters, digital agglomeration and Industry 4.0 for the first time.
... His results indicate that there is a significant effect of the use of the internet on the economy. (Watanabe et al. 2018)measured the digital economy share in GDP. They found that the change is significant with the advent of innovation in digital technology such as artificial intelligence, and mobile service. ...
The internet has become an essential part of everyday life and is impacting various aspects of society. One field of interest is how internet usage affects economic growth, particularly in terms of GDP per person. This article aims at highlighting the effect of internet penetration on Africa countries gross domestic product per capita (GDP per capita). To achieve this, we used panel data for African countries over the period 1996 to 2019. The study conducted various statistical tests, such as causal effect, co-integration, and mediation tests, to identify which variables are useful in predicting GDP per capita. The findings show that the internet has a significant impact on the economy of African countries. Findings suggest that internet significantly impacts GDP per capita in African countries, whether evaluating within-effect (over time) or between-effect (across countries at a given time). In addition, the result reveals that Secure internet servers are fundamental if a country is to rely on the internet to boost its economy. The study highlights the need to invest in internet infrastructure and increase internet penetration to promote economic growth in Africa, due to the importance of the internet in today's world.
... Marine related industries refer to the upstream and downstream industries that take various inputs and outputs as the link and form technical and economic links with major marine industries [45]. The digital economy, which is a new economic form with the development of the Internet, its concept can be traced back to the 1990s [46]. The G20 Digital Economy Development and Cooperation Initiative defines "digital economy" as: "A series of economic activities with the use of digital knowledge and information as key production factors, modern information network as an important carrier, and the effective use of information and communication technology as an important driving force for efficiency improvement and economic structure optimization" [47]. ...
Accelerating the high-quality integrated development of digital economy and marine economy is vital for the development of the marine economy in coastal countries and regions. However, few scholars examined such coordination. Here, based on panel data from 2012 to 2019 and the spatial scale of China’s coastal provinces and cities, the entropy method, coupling harmonious degree model (CCDM), Theil index, and Tobit model were adopted to measure and calculate the interval index differences in the marine economic quality and digital economy level. Exploring the coordination between the marine economy and digital economy, the interval difference index, and the coordination impact factors were also important. First, we found that the quality level of the marine economy and digital economy moved forward in waves and spiraled up, but that the quality of development was relatively low. Second, the coordination between the marine economy and digital economy gradually increased. Third, the coordination gap between the regional marine economy and digital economy was obvious. Fourth, the main factors that affected the coordination between the marine economy and digital economy were the level of digital infrastructure construction, the scale of the marine economy, the level of the marine industry, and industrial digitalization. The results have value for the sustainable development of the marine economy of coastal countries and regions.
... Moreover, the dramatic advancement of ICT has stimulated a free culture providing its consumer with utility and happiness, in which case, the consumers gradually tends to pursue social, cultural and emotional values rather than just economic value of the products (Watanabe et al., 2015). The current GDP statistics fails to capture the excess over the economic value owing to the digital contents' characteristics of freebies, mass standardization and easy replication (Watanabe et al., 2018). Therefore, this paper proposes: ...
With prominent environmental pollution and depleted resources, how to coordinate economic growth and eco-environmental protection to guide green development represented by green total factor productivity (GTFP) is an urgent issue. This study aims to empirically evaluate the direct effect, indirect effect, spatial spillover effect and non-linear effect of the digital economy on green development using the data of 284 prefecture-level cities in China. The empirical results indicate that: (1) the digital economy significantly improves GTFP, which is still valid after testing for robustness, including introducing instrumental variables, taking the “broadband China” pilot policy as a quasi-natural experiment, changing core explanatory variables and dependent variables, and changing the sample size; (2) the influence of the digital economy on GTFP is characterized by significant heterogeneity among resource dependence, geographical location, financial development level and openness level; (3) the mechanism analysis shows that the digital economy promotes GTFP by green technological innovation, industrial structure upgrading and energy conservation; (4) the spatial econometric models indicate that the digital economy significantly enhances GTFP of neighboring cities; (5) there is a non-linear relationship between the digital economy and GTFP using the threshold model. The findings could provide references for policymakers to promote urban green development.
... A nationwide financial system can also be categorized as core or peripheral depending on whether it has symbols for the digital economy (Shatkovskaya et al., 2018). Hence, the further digitized innovations (artificial intelligence, mobile services, and cloud), accompanied by the digital economy, have augmented the refinement of our globe and provided remarkable welfare and services that have never been anticipated in the past (Watanabe et al., 2018). ...
The further digitized innovations accompanied by the digital economy, have augmented the refinement of our globe and provided remarkable welfare and services that have never been anticipated in the past. Hence, taking China as an example, this paper aims to examine the striking impact of digital financial inclusion (DFI) on individual happiness via using China Family Panel Study (CFPS). According to the results, it found that DFI has a positive impact on individual happiness. Yet, the result varies depending on the individual traits, such as gender. Based on the result, it suggests that the governments or social organizations ought to care about the local digital economy as the digital financial inclusion is incorporated with the driven force of happiness, which has an extensive impact on local economy and individual overall satisfaction. In addition, individual traits such as gender, should also be taken into account in terms of DFI.
... 21 Hence, the digital economy is also one of the most active AI application domains. Further advancement of AI has augmented the digital economy with significant implications for the specific policy domains (Watanabe et al., 2018). The AI & digital economy area covers multiple applications that include data governance, digital security, privacy protection, and communication networks. ...
This open access book explores the relevance of the concept of technology assessment (TA) on an international and global level. Technologies play a key role in addressing global challenges such as climate change, population aging, digitization, and health. At the same time, their use increases the need for coordinated action and governance at the global level in the field of science, technology and innovation (STI).
Featuring case studies on STI fields such as energy, biotechnology, artificial intelligence, and health technology, as well as TA activities at the national and international levels, this book reflects on the challenges and opportunities of global technology governance. It also provides an in-depth discussion of current governmental STI cultures and systems, societal expectations, and the policy priorities needed to achieve coordinated and effective STI intervention in policymaking and public debate at the global level. Lastly, the book promotes the establishment of a forum for a truly global dialogue of TA practitioners, fostering the articulation of their needs, knowledge and perspectives.
... 21 Hence, the digital economy is also one of the most active AI application domains. Further advancement of AI has augmented the digital economy with significant implications for the specific policy domains (Watanabe et al., 2018). The AI & digital economy area covers multiple applications that include data governance, digital security, privacy protection, and communication networks. ...
Based on a large scale of technology application scenarios, artificial intelligence (AI) is expected to have disruptive impact on economies and societies. In recent years, breakthroughs have been made in basic research on the fundamental technologies of artificial intelligence. AI is showing greater potential to become a general-purpose technology. Major economies are focusing on policies, regulations, and strategic plans around basic research and R&D of technology application scenarios in AI. However, the optimization of AI policy-making demands more interdisciplinary knowledge and a broader societal debate. In the domain of technology assessment (TA), the research on AI and its potential impacts has been considered important already early. The research questions, which include impacts on the workforce as well as impacts on societal communication and democracy as well as fundamental issues like responsibility, transparency, and ethics, have drawn widespread attention from TA studies. This chapter presents a scholarly discussion of AI topics in the context of TA, based on a qualitative analysis of AI policy databases from the OECD and EPTA. The analysis concludes that enhancing global cooperation in TA will contribute to address fundamental ethical and societal issues of AI, which in turn broadens the knowledge base and helps to pave way for a more inclusive and just use of AI.
... (4) The digital economy promotes the high-quality development of the manufacturing industry. Strengthening the integration and development of the digital economy and manufacturing industry can promote the high-quality development of the manufacturing industry through synergy and sharing [27,28]. ...
The deep integration of digital economy and green development has become an inevitable requirement and an important aid in achieving the goal of carbon peaking and carbon neutrality and promoting high-quality economic development. At the same time, the manufacturing industry is the main sector of energy consumption and carbon emissions in China and the main force for achieving the carbon peaking and carbon neutrality goals. This paper constructs a mathematical model to measure the scale of the digital economy development and the efficiency of the green, low-carbon transformation of the manufacturing industry. It builds a panel data model to study the effect of the development of the digital economy on the green, low-carbon transformation of the manufacturing industry based on data of 30 Chinese provinces from 2016 to 2020. The results find that (1) there is a significant positive effect of the digital economy on the green, low-carbon transformation of the manufacturing industry, with an impact coefficient of 0.477, and this finding remains significant in the robustness test. (2) A further test of the mediating effect finds that the digital economy can drive the green, low-carbon transformation of the manufacturing industry by enhancing technological innovation, and it shows a partial mediating effect that accounts for 28% of the total effect. (3) In the regional heterogeneity analysis, it is found that the effect of the digital economy in promoting manufacturing transformation is more prominent in the central region, and the impact coefficients are 0.684, 0.806, 0.340, and 0.392 for the east, central, west, and northeast regions, respectively. This study can provide a theoretical basis and policy support for governments and enterprises.
... Aiming at the development of GDP in the process of urbanization in Zhoushan, establish a GDP measurement model in Zhoushan, open up the measurement relationship between the development of Zhoushan's marine economy and the statistical law of employment growth, and establish a GDP measurement model in Zhoushan. e impact of GDP growth on employment puts forward the predictable stimulating results of Zhoushan's marine economic development on employment, which provides theoretical and practical reference for promoting Zhoushan's urbanization [10]. e growth of the total economic volume is based on the growth of various industrial sectors. ...
The process of regional economic growth is a long-term evolutionary law. During this long evolutionary process, some regions may continue to grow, while others may fall into decline. It takes a long time. For example, from the perspective of our country’s regional economic growth since the turn of the century, the east coast has been in a relatively developed state, while the economy of some western regions is relatively backward. Therefore, how to promote the long-term growth of developed regions and revitalize the troubled regional economy by studying the long-term growth mechanism of the regional economy is an important topic of regional economic research. In this context, we can draw the following conclusions. (1) The employment structure of major industries has been declining year by year since 2000, and this trend is relatively obvious and the decline is relatively large. Despite some changes in industrial growth, the overall trend is upward. The employment structure of the service industry has increased year by year, and its proportion in total employment usually exceeds that of major industries, and it is the industry with the largest number of employees. (2) The accuracy under the machine learning model is 79.46%, the reliability is 89.27%, and it is feasible; the accuracy under the data mining model is 68.45%, the reliability is 75.43%, and the feasibility is 86.18%; the accuracy rate under the traditional statistical model is 60.14%, the feasibility is 68.24%, and the reliability is 75.12%. GDP not only is the core indicator of national economic accounting but also can be used to measure the economic status and development level of a country or region. The impact of industrial structure on GDP is huge, and a suitable industrial structure can promote a healthier growth of GDP. In order to analyze the relationship between our country’s GDP and industrial structure, the quantitative analysis method of grey correlation analysis is used to study it, and then according to the calculation results, suggestions for adjusting and optimizing the industrial structure will be put forward to the relevant ministries.
... It has been observed that an increase in the level of the regional economy can enable people to afford high-quality factors in the process of agricultural production and related activities, thus increasing production efficiency and reducing emissions of pollution sources [90,92]. Gross domestic product (GDP) per capita (CNY/person) is one of the important indicators reflecting the level of regional economic development [101], and was therefore included in this study. ...
To cope with global carbon reduction pressure, improved agricultural production efficiency, and optimize regional sustainability, we constructed a data-driven evaluation and optimization method for agricultural environmental efficiency (AEE) under carbon constraints. This study constructs a comprehensive input-output AEE evaluation index system, incorporates carbon emissions from agricultural production processes as undesired outputs, and optimizes their calculation. The Minimum Distance to Strong Efficient Frontier evaluation model considering undesired output, and the kernel density estimation, are used to quantitatively evaluate AEE from static and dynamic perspectives. Tobit regression models are further used to analyze the driving influences of AEE and propose countermeasures to optimize AEE. The feasibility of the above methodological process was tested using 2015–2020 data from the Anhui Province, China. Although there is still scope for optimizing the AEE in Anhui, the overall trend is positive and shows a development trend of “double peaks”. The levels of education, economic development, agricultural water supply capacity, and rural management are important factors contributing to AEE differences in Anhui. Data and regression analysis results contribute to the optimization of AEE and proposes optimization strategies. This study provides extensions and refinements of the AEE evaluation and optimization, and contributes to sustainable development of regions.
... However, scholars have different research conclusions on the relationship between the digital economy and carbon emissions. Most scholars believe that the digital economy has promoted the development of e-commerce industry and internet industry, squeezed out emission-intensive industries, optimized the urban industrial structure [15,16], improved the environmental situation, and provided impetus for emission reduction. Wang et al. [17] find that the development of the digital economy is conducive to reducing carbon emissions. ...
China is undergoing an urbanization process at an unprecedented scale, and low-carbon urban development is of great significance to the completion of the “dual carbon goals”. At the same time, the digital economy has become an important engine for urban development, and its role in environmental improvement has become increasingly prominent. While the digital economy is booming, can it promote the low-carbon development of cities? Based on the panel data of 278 cities in China from 2011 to 2019, this paper discusses the impact of the digital economy on carbon emissions and the long-term development trend between the digital economy and carbon emissions, the impact of differences in the development level of the digital economy on carbon emissions reduction, and the impact of green energy efficiency in the relationship between the digital economy and carbon emissions. The results show that the digital economy has a significant inhibitory effect on carbon emissions, and with the development of the digital economy, more and more cities show an absolute decoupling of the digital economy and carbon emissions and are turning to low-carbon development. The development level of the digital economy has a heterogeneous impact on carbon emissions. With the improvement of the development level of the digital economy, the effect on emission reduction is more significant. As a threshold variable, green energy efficiency affects the relationship between digital economy and carbon emissions. When green energy efficiency is low, the digital economy promotes carbon emissions, and when green energy efficiency is high, the digital economy reduces carbon emissions.
... The rapid development of the Internet, big data, artificial intelligence, and information and communication technology (ICT) industries has led scholars to think about the digital economy (Carlsson, 2004). First, many scholars have researched methods to measure the digital economy, because a unified measurement method of the digital economy has not been formed globally (Mesenbourg, 2001;Tranos et al., 2013), and the development of new forms of the digital economy also poses challenges to traditional economic measurements (Quiggin, 2014;Watanabe et al., 2018b). Second, some scholars have explored the influencing factors of the digital economy (Litvinenko, 2020;Wang et al., 2022c). ...
In the context of climate change, just transition is particularly significant, and digitalization as a possible solution for a just transition is considered in this paper. We construct an econometric model between the digital economy and just transition by using a balanced panel dataset of 72 economies from 2010 to 2019, and explore their dynamic relationship and mechanism impacts by applying a system-generalized method of moments (SYS-GMM) technique and a mediating model. The main results indicate that both the digital economy index and just transition index increase during the study period. Moreover, the digital economy not only promotes just transition, but also increases distributional justice, procedural justice, and restorative justice. In addition, the infrastructure and social impact of the digital economy also significantly increase the level of just transition; however, digital trade presents a negative effect on just transition. Finally, from the mechanism analysis, the digital economy indirectly improves just transition by increasing the level of human capital and financial development. This paper provides new ideas for realizing just transition in the future.
... José Rodolfo Hernández-Carrion presented a scholarly work in which he described that methodologically as a macro synthesis of major trends in the economy, from its local and global spheres in convergence, create a new phenomenon based mainly through digital platforms [10]. The article by Baxtiyarjon Mullabaev and Baxriddin Makhmudov emphasizes the importance of digital economy in the economic growth of the Republic of Uzbekistan, its advantages, reforms and government recommendations for its development [11]. The scholarly work of Chihiro Watanabe, Kashif Naveed, Yuji Tou, Pekka Neittaanmäki explored new ideas for measuring the digital economy that provide insight into the integration of national accounts with product-oriented microanalysis efforts [12]. ...
There is no doubt about the relevance of the research of new forms of organization of national labor markets as segments of the global market in the context of the global economic crisis caused by the pandemic. The problem of organizing the national labor market in time of coronavirus crisis plays an important role in Russia’s economy. One of the primary goals of the state is to maintain the necessary conditions for the ability to earn a living for oneself and one’s family. It is necessary to realize the importance of maintaining the number of working population involved in the fundamental segments of the state economy. Improved institutional framework to support the national labor market in time of coronavirus crisis should support the population decently in terms of absolute and relative concepts of income measurement in the long term. The purpose of this article is to explore new forms of organization of national labor markets, as segments of the global market, under conditions of global economic crisis and the foundations of institutional transformation of state economic activity under conditions of pandemic, pursuing the goal of maintaining the number of working population and improving the quality of produced work. During the analysis of new forms of organization of national labor markets as segments of the global market, the authors applied statistical and logical research methods.
... According to the inputoutput relationship between departments in the input-output table, the digitalization level of the manufacturing industry is determined. The service level of the manufacturing industry is measured by the proportion of the investment in the service industry in the total investment in the manufacturing process [51]. ...
A country’s manufacturing industry is often an important route for national prosperity, but it is also a conduit by which a digital economy may become truly useful. This is so the deep integration of the digital economy and manufacturing industry can enhance independent innovation efficiencies, promote the development of advanced manufacturing clusters, and constantly spawn new models, forms of business, and industries. Consequently, it is crucial to improve China’s global manufacturing value chain. This article starts with an analysis of the development status and competitiveness of the digital economy in China and abroad. It establishes a structural equation and uses the latest data from the World Input-Output and Asian Development Bank databases. It introduces new variables, such as digitization, research and development (R&D) investment, and industrial scale to empirically analyze China’s manufacturing industry’s global value chain (GVC). The results show that the digitization of China’s manufacturing industry can increase the forward participation of GVC in the manufacturing industry to improve the division status of GVCs. Analyses suggest that due to insufficient R&D investment in the division of labor in the GVCs, China’s manufacturing industry is prone to low-end lock-in, inefficient industrial structures, and weak innovation ability. Consequently, the following suggestions are proposed: China’s manufacturing industry needs to accelerate digital transformation, increase R&D investment, actively participate in the division of labor in the GVCs, and enhance core competitiveness.
... The speedy advancement of information and communication technology (ICT) affects businesses. It's also one of the key reasons why the path of trade and activities in office changes fundamentally (Watanabe et al., 2018). According to the experiences of advanced countries, we know that the free flow of information can positively influence the swift transformation of the market economy and improve social life. ...
In the context of sustainable development, countries around the world shed more light on green innovation in their environmental policies, and the digital economy may take a vital part in improving green innovation. Predicted on the panel data of 278 cities in China from 2011 to 2019, this research administrates the principal component analysis (PCA) to evaluate the advancement level of the urban digital economy and employs the number of urban green patent applications to represent green innovation level. Through the benchmark regression model, the mediating effect model, the spatial Durbin model, the dynamic threshold panel model, and the gradual difference-indifference model, this paper explores the direct effect, indirect effect, spatial effect, nonlinear relationship, and policy effect of that digital economy has on green innovation. The development of the digital economy can improve green innovation levels in indirect ways, such as by boosting the degree of economic openness, optimizing the industrial structure, and expanding the market potential, and as economic openness, industrial structure, and market potential advance, the promotion intensity of digital economy on green innovation is becoming lower and lower. The development of green innovation has an obvious spatial spillover effect. Still, the enhancement of green innovation in more developed regions may inhibit green innovation in less developed regions due to talent flow and industrial transfer. Finally, the gradual difference-indifference model founded on the 'Broadband China' pilot policy supplementarily verifies that digital economy enhancement can substantially advance urban green innovation.
... On the other hand, the spatial non-equilibrium characteristics of regional development will lead to the spatial heterogeneity of the development of the digital economy. Therefore, the level of regional economic development and industrial structure upgrading is the internal driving force for the development of the digital economy [8]. China's "14th Five-Year Plan" and the outline of the long-term goals for 2035 propose to accelerate the construction of a digital economy, a digital society, and a digital government, and activate the potential of data elements. ...
... Therefore, regarding the DE, GDP becomes a peripheral economic indicator [11]. This problem is at the centre of many research works and articles with interesting proposals, and some of them are focused on the new insights for measuring the digital economy in order to provide insight into the integration of national accounts with product-oriented micro-analysis efforts [12,13]. ...
It is no surprise that the digital economy (DE) has raised expectations and it is still raising them. The aim of this study is to implement testing which will indicate how much the digital economy can help the less developed countries to overcome the economic lag. In order to come up with an answer, the study is based on provocative hypotheses which will elaborate on the development paradox by which the digital economy cannot help the less developed countries. The argument that supports the main hypothesis of this study declares that GDP growth is not equivalent to the growth of investment in DE infrastructure and, therefore, DE is contributing to the increase in inequality instead of reducing it. The paradox is confirmed with the implementation of the SEM modelling on high-income countries (HIC) and middle-income countries (MIC). Moreover, the study measured, i.e., determined, the relative importance and impact of each DE component on the economic growth in HIC and MIC countries. According to the results of this research, in MIC the most significant DE factor which has an impact on GDP growth is the investment in education, whereas in HIC countries infrastructure has the leading part when it comes to economic growth. The final part of this study includes a proposition of a set of guidelines relating to the direction of public policy development in order to make the most of DE’s impact on the creation of a fairer and better system and society. Due to the comprehensive range of questions that come from this study, several topics for future research have been recommended.
... 39, No. 1), including several articles, some of which became influential in future studies [32,40,41]. In 2019, TFSC published 14 articles in topics related to digital business, including digital entrepreneurship [17,42,43], digital transformation [44], digital economy [45], and digital innovation ecosystems [46]. Sustainability and JBR launched special issues in digital business in 2020 and 2021, respectively. ...
Prevalent digital technologies have changed the landscape of business. There have been a growing number of studies investigating the intersection of digital technologies and business. This study aimed to map the academic literature in digital business by adopting a bibliometric approach. In this study, we considered 1868 articles spanning twenty years, between 2000 and early 2021. Specifically, the study focused on the trends of research in digital business, popular publication sources, highly cited articles and productive researchers, and popular themes and their changes over time.
... As ubiquitous digitalization is in the economy, there are increasing concerns that its impact on the economy is largely absent from the said official statistics. Such concerns stem from the intriguing mismatch between technological advancement and productivity (Watanabe et al. 2018). The advent of new digital innovations and technologies was expected to lead to rapid productivity growth. ...
Digitalization has led to fundamental changes in the way people behave and live, and the way organizations, societies and nations operate. Although digitalization has brought about enormous benefits in general, it has also made the work of policymakers ever more challenging. A key responsibility of policymakers is consumer protection and this task is made ever more complicated with issues of data privacy and data ownership since many institutions and companies are now able to gather granular consumer data over transactions and the Internet of Things (IoT). For effective policy-making, policymakers need the right data and information. This is no longer straightforward with issues of valuation and measurement — how does one measure digitalization and its outputs, particularly with some new-age products and services being free and are readily available? Moreover, digitalization has brought with it wide-ranging implications for the labor market (such as with the rise of gig economy), education, tax laws, economic policies and financial stability, which force policymakers to continuously keep abreast on emerging technological trends and to ensure their policies are up-to-date. This paper attempts to analyze various literature studies and draw some insights on issues that policymakers need to be mindful of in the digital age. Some potential recommendations will be tabled for discussion and further research.
... As the foundation of digital economy (Watanabe, Naveed, Tou, & Neittaanmäki, 2018), ICT is at the center of much innovation over the past fifty years (Forman & Goldfarb, 2020). However, the value-capture problem for innovators in the digital economy involves many challenges (Teece, 2018), affecting the development of digital economy. ...
The digital economy plays an important role in society and the economy. However, we know little about what factors affect the development of the digital economy. Using a self-developed index for measuring Chinese provincial-level digital economy development , this paper examines the impact of intellectual property protection on the digital economy. We find that there is a U-shaped relationship between intellectual property protection and digital economy. Our findings remain valid after a battery of robustness tests. Our findings support the importance of intellectual property protection in developing the digital economy. ARTICLE HISTORY
... The development and implementation of optimal management decisions require sufficient information and analytical basis. Nowadays, there are numerous techniques and methodological approaches for evaluating the digital economy in scholarly research di scourse [31][32][33][34][35][36]. However, they are more concerned with introducing certain aspects of digitization, assessing its impact on business volumes and profits (microeconomic level). ...
Introduction. Digital transformation (hereinafter referred to as digitalization) and the widespread introduction of digital technologies in all spheres of public life and economic relations are key milestones in the development of the world economy.Problem Statement. The economy digitalization requires effective government regulation and support, the mechanisms and tools of which shall be developed in accordance with the current conditions of the digitalization environment through identifying appropriate incentives.Purpose. The purpose of this research is the identification of factors and the assessment of the development of Ukraine’s digital economy based on the methodological approach proposed by the authors.Materials and Methods. The methodology for assessing the factors of the development of the digital economy (based on the calculation of the integrated index and the results of the expert survey) involves the use of the main components method and the multiplicative approach. The evaluation methodology comprises the six components: (1) strategy, (2) design, (3) expertise, (4) qualitative evaluation, (5) quantitative evaluation, and (6) conclusion. The factors of digital economy development are grouped based on the following elements: (1) selfsufficiency, (2) efficiency, (3) involvement, (4) infrastructure, (5) readiness, and (6) cooperation.Results. The spheres to which the government policy in the sphere of digital economy development of Ukraine is directed have been defined. The integrated index is equal to 0.603 that which is an evidence of the medium level of development (favorable status) of the digital technology environment. The highest values of the index have reported for self-sufficiency (0.884), efficiency (0.717), and readiness (0.753). The lowest index has been obtained for the involvement component (0.224). Conclusions. Favorable environment for the economy digitalization can be achieved through the implementation of measures to develop appropriate infrastructure and organizational and institutional support for pursuing policies of digitalization of the economic system and society, as well as projects and programs for digital cooperation.
The advancement of the digital economy has transformed the concept of growth. Advanced economies have confronted a dilemma between increasing inputs and declining output. Contrary to traditional expectations, excessive increases in inputs have resulted in declining productivity. A solution to this dilemma can only be expected if the vigor of Soft Innovation Resources (SIRs), which lead to neo open innovation in the digital economy, is harnessed. This paper attempts to demonstrate this hypothetical view by following previous analyses of the authors and using a techno-economic approach. An empirical analysis of the development of 500 global information and communication technology firms revealed a dynamism that led to a bipolar vicious cycle between increasing input and improving productivity. Thus, it was assumed that the neo open innovation would harness the vigor of SIRs and maintain a virtuous cycle between input and output increases was postulated. These findings lead to insightful proposals for a new R &D concept and subsequent neo open innovation in the digital economy. Thus, a broadly applicable practical approach to assessing R &D investment in neo open innovation can be provided.KeywordsNeo open innovationSoft innovation resourcesProductivity declineDilemma of R &D increaseR &D transformation
The digital economy is considered key to the success of sustainability as part of Oman Vision 2040. Therefore, this chapter aims to examine its relationship with investments from 1985 to 2020 using three proxies for the digital economy, namely infrastructure, empowering society and technological economic growth. The findings showed that the former two had a significant positive relationship with investment, while the latter had a significant negative relationship with investment. The primary conclusion has enhanced the understanding of the uses of modern technology, leading to support for the diffusion of innovation theory to obtain the maximum economic benefit. Furthermore, increased digitalisation boosted local investments while the government prepared strategies for foreign investment, a scenario that resulted in high cooperation between the private and public sectors.KeywordsDigital economyInvestmentDiffusion of innovation theoryARDL modelJEL ClassificationO30E42F22
The purpose of this paper is to apply the theory of the monetary cycle to the case of Canada. In previous works, the economic characteristics of Latvia, Serbia, Bulgaria, Greece, Thailand, and Ukraine were determined according to the concept of the theory of the circulation of money. The money circulation index provides guidance on how an economic system should counteract a currency crisis and examines how well a country's economy is structured. Canada's money cycle index estimates are compared to the world's average money cycle index. The results show that Canada is above the global average. Canada's results show that it is a leading economy and can deal with an economic crisis immediately and in a very short time, as leading economies should. The methodology used is based on the analysis of theory and mathematical, statistical, and econometric results. The current work is important because it presents the strength of the Canadian economy in the face of a possible financial and economic crisis. This work comes from a project for several countries. The recent decision to impose a minimum tax of 15% on international corporations is consistent with the fixed-length principle of the theory of the monetary cycle. The money cycle index or index of the cycle of money makes it possible to address questions about the strength of the economy, considering the economy as an entity that interacts with other economies. The case of Canada shows that its economy has an index of money circulation of 0.88, which means that it is one of the excellent economies and can recover from any economic crisis in 2 to 5 years, depending on how well the authorities will respond to an economic crisis. A value of 0.1 means that it takes 2 to 5 years for an economy to recover from its strength. The ideal economy has a value of 1 on the money circulation index (index of the cycle of money). An economy with a value of 1 can respond immediately to an economic crisis, and this is an ideal level for any economy. Every 0.1 less than 1 means that the economy will take 3 to 5 years to recover. The money cycle index is a unique index that measures the strength of any economy. This work is the only work that can be found in the current bibliography on the money cycle. In addition, this paper is a unique work that shows that tax evasion does not harm the economy but causes a delay in tax revenues, and at the same time tax evasion harms the economy.
The world's largest food producer, China, is now facing increasing pressure to solve food security and is committed to forging new prospects for global food security and sustainable agricultural development. As food security is receiving greater attention, this research takes panel data from 31 provinces and cities in China from 2011–2020 to examine the spatial spillover effect of the digital economy on food security. The study conclusions are as follows. (1) Improvement of the digital economy significantly promotes the development of China's food security. (2) The digital economy has an inhibitory effect on food security in local regions and promotes food security in neighboring regions. (3) Heterogeneity exists within the spatial spillover effects of the digital economy on food security, and such differences often vary based on the status of regional economic development, natural geographical location, and land function. Therefore, policy suggestions proposed herein cover three aspects: accelerating infrastructure investment and construction, improving the empowering capability of the digital economy, and implementing different digital economy strategies to better support food security in China.
Digitalization gives people access to a vast network of untapped data, which has the potential to help society and the environment. Smart systems connected to the internet can systematically provide a unique opportunity to solve difficulties related to long-term sustainability. The goals are to create an egalitarian, ecologically sustainable, and healthy society. Technological resources are envisioned as game-changing instruments. Three key concerns integration benefits are highlighted here: (i) sustainable development goals, (ii) socio-economic development, and (iii) the role of digital technology in environmental sustainability. This viewpoint describes the potential that digitization can create a future sustainable society. The technological network would unite the urban and rural worlds under a shared banner of sustainable development, keeping all social elements in the loop. Nations that take a comprehensive strategy will be able to provide equitable growth and an efficient, sustainable, and digital existence for their citizens. As a result, digitization provides better living conditions, active public involvement, clean governance, and transparency in public welfare programs and processes. People who are well-informed, self-aware, and digitally equipped will be better learners, thinkers, reformers, participators, and change and growth agents, marching forward on sustainable progress. The advantages of digitization in hastening the transition to sustainable industrial processes and improving people’s health and happiness are explored. Finally, the perspective encapsulates the advantages of digitization by offering a holistic vision of how technology could aid in addressing major challenges such as endangered world biodiversity and climate change.
Network formation is basic to human interactions. A complex socio-economic system may often be represented as a network with actors serving as the network nodes, and all their interactions being the connecting edges. Our economies and cities are no less structured as a network than our personal relations and critical infrastructures . How different nodes are connected in such systems has crucial implications for their functioning, stability, resilience, and most importantly – the risks generated within. This chapter starts by looking at different networks and their potential to dampen or (most often) amplify risk. It also reviews different types of network formation mechanisms and their resulting topologies in the hope that these will inform a more sophisticated view of real-life risk exposures. Formal metrics of the network structure are introduced with clear recourse to what they mean for the risk manager. Finally, the focus shifts to the actual construction of networks with empirical data leveraging a Bayesian approach.
The growing penetration of digitalization has caused profound changes in economy and energy, and then may affect green total factor productivity (GTFP). This study uses the World Input-Output Database (WIOD) to verify the impact and mechanism of input digitalization on green total factor productivity under the constraint of carbon emissions (low-carbon GTFP). The results indicate that input digitalization significantly improves low-carbon GTFP. Heterogeneity analysis demonstrates that input digitalization has a greater positive effect on low-carbon GTFP in middle-income countries than high-income ones. Input digitalization has a positive effect on low-carbon GTFP in manufacturing and service industry, with no significant effect in agriculture. The relationship for samples after the 2008 financial crisis is consistent with benchmark results while it is not for samples before 2008. Moreover, mechanism analysis shows that the impact of input digitalization on low-carbon GTFP works through two channels: energy efficiency and labor productivity. Further, from the perspective of “dual circulation”, the “localization” tendency of input digitalization under the domestic circulation and the “globalization” tendency of input digitalization under the international circulation can significantly improve low-carbon GTFP. This study provides empirical evidence and decision-making basis for promoting input digitalization as well as the green and high-quality economic development.
This paper provides an empirical perspective on the antecedents and consequences of virtual conference participant/attendee behavior and continuance behavior through video-conference platforms using the Unified Theory of Acceptance and Use of Technology (UTAUT) combined with further related factors. The sample consisted of 209 participants and attendees of three Middle Eastern virtual conferences. Structural equation modeling (SEM) was employed to test the research model. The results indicate that performance expectancy, effort expectancy, facilitating conditions, and perceived trust are associated with actual participating/attending behavior, and that performance expectancy, effort expectancy, social influence, perceived trust, and system quality influence the intention of continuance participation/attendance behavior. The results further reveal the influence of use behavior on knowledge acquisition and the influence of continuance behavior on knowledge acquisition and communication quality. The implications for both theory and practice are provided based on the findings.
With the gradual disappearance of the demographic dividend, the recurring world financial crisis, and the sudden outbreak of the new crown epidemic, a variety of complex factors have caused the Chinese job market to be under unprecedented pressure. In recent years, the development of the digital economy does not seem to be affected by the above factors. Can the fast-growing digital economy ease the current employment pressures facing China? In this paper, through the establishment of an index system of digital level of economic development, use of Chinese 30 provinces from 2011 to 2019, the digital economy data, calculate the annual digital economy development level of each province and explore the impact of digital economy development on employment. The findings show that the level of digital economy development is higher in the eastern coastal regions of China than in the western inland regions; through the development of the digital economy, the employment level can be effectively enhanced. This conclusion persisted after a series of robustness tests. The mechanism test finds that digital economy development affects the change of employment volume by influencing the level of education. Through further research, it is found that there is a threshold effect on the impact of the digital economy on employment in the central and eastern regions. This may be because there is a large variation in economic levels and an imbalance in education between the central and western regions, creating a certain amount of over-education. Finally, on the basis of the digital economy development and the current situation of employment of China now, this article from the perspective of the development of digital economy, education levels, improve some targeted suggestions are put forward.
To further promote the theoretical research on digital finance's effective support for high-quality development of the real economy, this paper reviews the current status of domestic and foreign research on the impact mechanism of digital finance on the real economy and the impact mechanism of digital finance on economic growth. At present, domestic and foreign research on the impact mechanism of digital finance on the real economy mainly includes the basic transmission mechanism featuring the improvement of financing availability and guiding the flow of funds in the real economy, and the indirect transmission mechanism using innovation and R&D as a channel. Domestic and foreign research on the impact mechanism of digital finance on economic growth mainly includes: the direct impact mechanism featuring the improvement of financial services universality and efficiency, and the indirect impact mechanism with resident consumption, innovation and entrepreneurship, industrial structure transformation, and business environment as the channels. Future research directions include: deepening the research on the indirect transmission mechanism of digital finance to the real economy; expanding the research on the indirect impact mechanism of digital finance on economic growth.
From principal component analysis (PCA) of 2011–2019 panel data for 108 cities along China's Yangtze River Economic Belt (YREB), this article reports findings on digital economy (DIE) and green development efficiency (GDE). We used a stochastic nonparametric envelopment of data (stoNED) model to measure green development efficiency and a mediating effect model to test the impact of DIE on GDE. We also assessed its mechanisms from a Chinese perspective, finding that (1) DIE significantly promotes GDE in China. (2) Moreover, DIE promotes the GDE in YREB through technological innovation, through the accumulation of human capital and, through upgrades to industrial structures. (3) Furthermore, DIE has heterogeneous effects on GDE. DIE in upstream and downstream regions and in large- scale cities and medium-scale cities can improve GDE, while the effect of DIE in midstream and small-scale cities is not obvious. These results contribute empirical support and a decision-making basis for promoting the win-win situation where DIE and GDE work together. We recommend speeding up the construction and improvement of digital infrastructure, enhancing the enabling capacity of DIE, and implementing a differentiated DIE strategy.
Under the background of China’s economy from the high-speed growth stage to the high-quality development stage, can the digital economy drive high-quality economic development, innovative development, green development, and regional sustainable development? Based on the panel data of 31 provinces from 2013 to 2019, this researchuses PLS structural equation model and regression model to test. The empirical results show that the digital economy positively impacts high-quality economic development, innovative development, and green development. The development of digital economy promotes the coordinated development between urban and rural areas, improves the high-quality economic development level, improves the efficiency of innovation, accelerates the digital development of the real economy, and promotes ecological sustainability and green environmental protection; It has further boosted the sustainable development of the region.
This research paper is aimed at formulation of Digitization Impact Index (DII) based on five major dimensions, i.e., Share of Information and Communications Technology (ICT) goods in trade (SICT), Per capita Income Growth Rate (PCIGR), Labor Participation Growth Rate (LPGR), Share of Research and Development Expenditure to Income (RDI), and The Digital Economy and Society Index ® (DESI) respectively across 6 sample European countries for the time period of 10 years (2009 – 2018) (Base Year = 2008; DII = 100) by two methods to evaluate and analyze the impact of digitization especially in the perspective of two extremely important macroeconomic factors related to growth of per capita GDP and employment generation among the working population since the era of digitization is synonymous to economic growth and opening of new vistas of employment regardless of geographical locations.
Consumption increase in emerging markets is significant for global sustainability as it helps in overcoming structural impediments that impede investment inducement. In this light, the paper aims at demonstrating a hypothesis that resonance between innovation and consumers triggers co-emergence of investment essential for an emerging market and further analyses resonant behavior between attractive goods and consumers. The elevation in face temperature of consumers looking at attractive goods was measured at the event corner of a Japanese supermarket by utilizing thermography. Noteworthy findings obtained include that consumer temperatures increase as they perceive, recognize and decide to purchase attractive goods while elevated temperatures decrease when the goods are not attractive enough to purchase. Consumer couples also incorporate a general tendency to converge toward the same decision in a resonant way. Through correlation analysis of sales records, it was demonstrated that sales of attractive goods represents innovation which increases by resonating consumer demand through construction of a spirally developing virtuous cycle. These findings provide a constructive suggestion for stimulating latent consumer vitality in emerging markets as a way of inducing investment.
A key economic indicator is real output. To get this right, we need to measure accurately both the value of nominal GDP (done by Bureau of Economic Analaysis) and key price indexes (done mostly by Bureau of Labor Statisticcs). All of us have worked on these measurements while at the BLS and the BEA. In this article, we explore some of the thorny statistical and conceptual issues related to measuring a dynamic economy. An often-stated concern is that the national economic accounts miss some of the value of some goods and services arising from the growing digital economy. We agree that measurement problems related to quality changes and new goods have likely caused growth of real output and productivity to be understated. Nevertheless, these measurement issues are far from new, and, based on the magnitude and timing of recent changes, we conclude that it is unlikely that they can account for the pattern of slower growth in recent years. First we discuss how the Bureau of Labor Statistics currently adjusts price indexes to reduce the bias from quality changes and the introduction of new goods, along with some alternative methods that have been proposed. We then present estimates of the extent of remaining bias in real GDP growth that stem from potential biases in growth of consumption and investment. And we take a look at potential biases that could result from challenges in measuring nominal GDP, including those involving the digital economy. Finally, we review ongoing work at BLS and BEA to reduce potential biases and further improve measurement.
What will happen to the wealth and power of the United States if we really do shift out of manufacturing and actually become a service economy? This article argues that manufacturing remains vital to the health and well-being of the U.S. economy. Despite the attraction of the concept of a “post-industrial economy” and growing shift to services, the linkages of the rest of the economy to manufacturing remain strong. Manufacturing cannot simply be automated or moved offshore without severely damaging the labor force and impoverishing the U.S. economy. The American policy agenda must emphasize and support the essential role of manufacturing in maintaining the nation’s competitive position. © 1987, The Regents of the University of California. All rights reserved.
Communication equipment plays as large a role in high-tech investment as computers, yet prices for communication equipment have not been studied as extensively as prices for computers and electronic components. Prices for satellites, cell phones, and the ground stations for these systems—important components of a nation’s communications infrastructure—are difficult to locate in official statistics. This paper develops new price measures for 14 types of communications equipment from 1963 to 2009. Indexes for some (e.g., cellular phone systems) experience declines of 15-20 percent per year, similar to the decline in quality-adjusted prices for computers, and suggest that advances in wireless communications technology have been very rapid. All told, our price index for domestic production falls 4.8 percent per year on average over the time period we study and 9.8 percent per year on average since 1985—nearly 10 percentage points faster than the official U.S. producer price index introduced in that year.
Over the last three decades, the prevailing view of information technology strategy has been that it is a functional-level strategy that must be aligned with the firm's chosen business strategy. Even within this socalled alignment view, business strategy directed IT strategy. During the last decade, the business infrastructure has become digital with increased interconnections among products, processes, and services. Across many firms spanning different industries and sectors, digital technologies (viewed as combinations of information, computing, communication, and connectivity technologies) are fundamentally transforming business strategies, business processes, firm capabilities, products and services, and key interfirm relationships in extended business networks. Accordingly, we argue that the time is right to rethink the role of IT strategy, from that of a functional-level strategy-aligned but essentially always subordinate to business strategy-to one that reflects a fusion between IT strategy and business strategy. This fusion is herein termed digital business strategy. We identify four key themes to guide our thinking on digital business strategy and help provide a framework to define the next generation of insights. The four themes are (1) the scope of digital business strategy, (2) the scale of digital business strategy, (3) the speed of digital business strategy, and (4) the sources of business value creation and capture in digital business strategy. After elaborating on each of these four themes, we discuss the success metrics and potential performance implications from pursuing a digital business strategy. We also show how the papers in the special issue shed light on digital strategies and offer directions to advance insights and shape future research.
One of the buzzwords in the Information Technology is Internet of Things (IoT). The future is In-ternet of Things, which will transform the real world objects into intelligent virtual objects. The IoT aims to unify everything in our world under a common infrastructure, giving us not only control of things around us, but also keeping us informed of the state of the things. In Light of this, present study addresses IoT concepts through systematic review of scholarly research papers, corporate white papers, professional discussions with experts and online databases. Moreover this research article focuses on definitions, geneses, basic requirements, characteristics and aliases of Internet of Things. The main objective of this paper is to provide an overview of Internet of Things, architectures, and vital technologies and their usages in our daily life. However, this manuscript will give good comprehension for the new researchers, who want to do research in this field of Internet of Things (Technological GOD) and facilitate knowledge accumulation in efficiently .
In light of the significant impacts on global economy both nations and firms witnessed a dramatic advancement of information and communication technology (ICT). There was particularly bi-polarization between ICT advanced and growing economies compelling a vicious cycle between ICT advancement and its productivity decline in these economies. The institutional sources of resilience were analyzed. On the basis of an empirical analysis comparing technopreneurial performance in world top 500 ICT firms by market value, sales and profit over the last decade, resilient firms maintaining world top 100 position by all three values over the whole period were identified. Institutional sources enabling resilient firms maintain leading position can largely be attributed to co-evolutionary acclimatization ability, which harnesses the vigor of emerging power of counterparts both in home countries and in advanced countries as well as growing economies in a co-evolutional way. Such ability maximizes synergy between efficiency and resilience in their technopreneurial management. Contrasting business model in global ICT firms with and without resilience structure suggests the sources of emerging trap due to ICT advancement and endorsed the significance of co-evolutionary acclimatization. This suggests the significance of institutional co-evolution between ICT advanced and growing economies that enables both economies to harness the vigor of partners for global sustainability.
Computers are the catalyst for bigger changes.
Existing hedonic methods cannot be easily adapted to estimate willingness to pay for product characteristics when willingness to pay depends on a very large basket of goods. We show how to marry these methods with revealed preference arguments to estimate bounds on willingness to pay using data on purchases of seemingly impossibly high dimensional baskets of goods. This allows us to use observed purchase prices and quantities on a large basket of products to learn about individual household’s willingness to pay for characteristics, while maintaining a high degree of flexibility and also avoiding the biases that arise from inappropriate aggregation.We illustrate the approach using scanner data on food purchases to estimate bounds on willingness to pay for the organic characteristic.
The relationship between information technology (IT) and productivity is widely discussed but little understood. This article summarizes what we know and do not know, distinguishes the central issues from diversions, and clarifies the questions that can be profitably explored in future research. After reviewing and assessing the research to date, it appears that the shortfall of IT productivity is as much due to deficiencies in our measurement and methodological tool kit as to mismanagement by developers and users of IT. The key findings and essential research references are highlighted and discussed.
This paper examines the output contributions of capital and labor deployed in information systems (IS) at the firm level during the period 1988-91 throughout the business sector, using two different sources of data on these inputs. Our production function estimates suggest that there are substantial excess returns to both IS capital and IS labor, although the size and significance of the excess returns to IS capital is larger. Computer capital and labor jointly contribute, or account for, about 21 percent of output, although only about 10% of both capital and labor income accrue to IS factors. Although IS employees accounted for a very small share of total employment by 1986, IS employment growth is estimated to have made a larger contribution to 1976-86 output growth than non-IS employment, due to the very rapid growth (16% per annum) of IS employment. The estimated marginal rate of substitution (MRS) between IS and non-IS employees, evaluated at the sample mean, is 6: one IS employee can be substituted for six non-IS employees without affecting output.
The advancement of social theory requires an analytical approach that systematically seeks to explicate the social mechanisms that generate and explain observed associations between events. These essays, written by prominent social scientists, advance criticisms of current trends in social theory and suggest alternative approaches. The mechanism approach calls attention to an intermediary level of analysis in between pure description and story-telling, on the one hand, and grand theorizing and universal social laws, on the other. For social theory to be of use for the working social scientist, it must attain a high level of precision and provide a toolbox from which middle range theories can be constructed.
The Internet has dramatically changed the way we conduct business and our daily lives by provided us with unprecedented services and conveniences. However, contrary to such accomplishments, productivity in industrialized countries is now experiences an apparent decline. This has raised the question of a possible productivity paradox in the digital economy. The limitation of GDP statistics in measuring the advancement of the digital economy has thus become an important subject. This paper analyzed the structural sources of this problem. Utilizing the results of empirical analyses of national, industrial, and individual behavior in the digital economy, solutions to these critical issues were investigated. Based on the two-faced nature of information and communication technology (ICT) and the fact that people's preferences extend beyond economic value, the concept of uncaptured GDP was postulated and spinoff dynamism to a new co-evolution among advancement of the Internet, increasing dependence on uncaptured GDP, and a shift in people's preferences was reviewed. This provided new insight and suggested a transformative direction to address the limitation of using GDP statistics in the digital economy.
Driven by the possibilities of the Internet of Things (IoT), global information and communication technology (ICT) firms have taken significant steps forward in recent years.
The Internet provides extraordinary services to people while promoting a free culture. However, such services cannot be captured through gross domestic product (GDP) data that measure revenue. Consequently, advancement of the Internet leads to increasing dependency on uncaptured GDP (added value providing people utility and happiness beyond economic value) and ICT price decreases.
Against such circumstances, global ICT firms are quickly embracing digital solutions for new competitiveness that urge them to restructure their business model toward digital business strategies. Aiming at demonstrating this hypothetical view, this paper attempts to explore new approach for analyzing such dynamism and examines some optimal solutions that are co-evolving with it.
An empirical analysis of digital business solutions in 500 global ICT firms over the period 2005–2016 was conducted with special attention to their specific features.
It was identified that research and development–intensive firms have fallen into a trap in ICT advancement, resulting in a decline in their marginal productivity of ICT that could be due to increasing dependency on uncaptured GDP. As a result, these firms are endeavoring to harness soft innovation resources and activate a self-propagating function that induces functionality development sublimating sophisticated digital business strategies, such as:
• Shifting from software to network (e.g., Apple and Google),
• Merging network and real (e.g., Amazon's merging of e-commerce and brick-and-mortal retail),
• Shifting from commodity to culture (e.g., Facebook and Samsung).
All can be considered as soft value addition in response to uncaptured GDP.
This analysis explores new insights for ICT firms in their transformative strategies toward an IoT-based society.
The harnessing of untapped resources has become essential for inclusive growth in digital economies particularly as developed economies continue to age demographically. The harnessing of women's potential is an urgent subject in this context, and successive initiatives have been flourishing in many countries.
However, given the institutional complexity of the issue, as well as considerable variety across nations, uniformed non-systematic approaches are hardly satisfactory in achieving a timely solution.
Against this back drop, this paper analyzed a new information communication technology (ICT)-driven disruptive innovation that may nurture un-captured GDP by harnessing untapped resources such as women's economic potential.
Using a unique dataset representing the state of gender balance improvement, an empirical numerical analysis of 44 countries was attempted. These countries were classified as emerging, industrialized, and with a specific culture based particularly on the traditions of a male-dominated society.
It was found that while industrialized countries, typically Finland, have achieved high performance in co-evolution between “econo-cultural development,” ICT advancement, and gender balance improvement, emerging countries have been constrained by low ICT advancement. In addition, notwithstanding their high economic level, countries with a specific culture have been constrained by a traditional male-dominated culture, Japan being a typical case.
Based on these findings, lessons from industrialized countries for both emerging countries and countries with a specific culture were analyzed.
It was suggested that ICT should be strategically advanced depending on the state of what we are calling “econo-cultural development” for constructing co-evolution of gender balance improvement along with techno-economic development.
A new practical approach for harnessing untapped resources for sustainable growth was thus explored.
The problems involved in estimating real output that I discuss in this paper cause the official government statistics to underestimate of the rates of growth of real GDP, real personal income, and productivity. That underestimation is important not just to economists trying to understand where the economy is going but also to the broader public and to the political system. The understatement of real growth reflects the enormous difficulty of dealing with quality change and the even greater difficulty of measuring the value created by the introduction of new goods and services. Despite the vast amount of attention that has been devoted to this subject in the economic literature and by the government agencies, there remains insufficient understanding of just how imperfect the official estimates actually are. It is important for economists to recognize the limits of our knowledge and to adjust public statements and policies to what we can know. This paper is not about the recent slowdown in measured productivity but that subject is discussed briefly.
While digitization of music, particularly streaming services, has gained increasing popularity, it has also led to a steady decline in the revenues of recorded music industry. This is causing strong concern regarding a potential collapse of the music industry comparable to other print media industries such as newspaper and book publishing.
Based on a powerful notion that the quality of higher education is crucial for innovation in digital economy and that such quality is subject to a conception of trust in teachers to deliver good education and advancement of information and communication technology (ICT), the dynamism of co-evolution between them was analyzed. Using a unique dataset representing the above system consisting of the rate of trust in teachers providing good education in the context of quality of education and their social status, of the level of higher education and the state of ICT advancement toward digitally-rich learning environments, an empirical numerical analysis of 20 countries was attempted. These countries were classified as advanced, semi-advanced and growing. It was found that while ICT advanced countries have embarked on co-evolution of ICT, higher education and trust, ICT growing countries have not been successful in this due to a vicious cycle between ICT and trust. Finland's educational success can be attributed to co-evolution which corresponds to the emergence of un-captured GDP similarly to the leading edge of an ICT-driven disruptive business model. The paradox of education productivity in ICT growing countries can be attributed to disengagement. It is suggested that steady ICT advancement fully utilizing external resources in digitally-rich learning environments may be essential to ICT growing countries in achieving higher education. On the other hand, continuing transcending innovation to transform learning environments into new digitally-rich learning environments should be maintained in ICT advanced countries. A new approach for constructing the above-described co-evolution in a systematic way was thus explored.
A hedonic function is a relation between prices of varieties or models of heterogeneous goods – or services – and the quantities of characteristics contained in them:$$ P=h(c) $$where P is an n-element vector of prices of varieties, and (c) is a k × n matrix of characteristics. The theory providing its economic interpretation rests on the hedonic hypothesis – heterogeneous goods are aggregations of characteristics, and economic behaviour relates to the characteristics.
Many in the industry see the ride-sharing company Uber as the significant advancement through information and communication technology (ICT) particularly of the digital service platform and sharing economy. Uber has been exploring the new frontier of the ICT-driven disruptive business model (IDBM) and succeeded in its global expansion to over 479 cities in more than 75 countries worldwide in June of 2016. Such rapid expansion provides constructive insights regarding the significance of IDBM, not only in transportation but also in almost all other business fields. While at the same time Uber's legal battles in some cities around the world raise a serious question regarding the rationale of IDBM. In light of such a question, this paper examined the institutional sources contrasting success and failure in Uber's global expansion. By the comparative empirical analysis, it was identified that the contrast could be attributed to a bi-polarization nature of ICT-driven logistic growth, and the success can be attributed to a co-evolutionary acclimatization that harnesses the vigor of counterparts. This analysis suggests the significance of IDBM with a consolidated challenge to social demand (CCSD); it demonstrated that a co-evolutionary acclimatization played a transformative role in this accomplishment.
Uber used a disruptive business model driven by digital technology to trigger a ride-sharing revolution. The institutional sources of the company's platform ecosystem architecture were analyzed to explain this revolutionary change.Both an empirical analysis of a co-existing development trajectory with taxis and institutional enablers that helped to create Uber's platform ecosystem were analyzed.The analysis identified a correspondence with the "two-faced" nature of ICT that nurtures un-captured GDP. This two-faced nature of ICT can be attributed to a virtuous cycle of decline in prices and an increase in the number of trips.We show that this cycle can be attributed to a self-propagating function that plays a vital role in the spinoff from traditional co-evolution to new co-evolution. Furthermore, we use the three mega-trends of ICT advancement, paradigm change and a shift in people's preferences to explain the secret of Uber's system success.All these noteworthy elements seem essential to a well-functioning platform ecosystem architecture, not only in transportation but also for other business institutions.
New data-gathering techniques, often referred to as “Big Data” have the potential to improve statistics and empirical research in economics. In this paper we describe our work with online data at the Billion Prices Project at MIT and discuss key lessons for both inflation measurement and some fundamental research questions in macro and international economics. In particular, we show how online prices can be used to construct daily price indexes in multiple countries and to avoid measurement biases that distort evidence of price stickiness and international relative prices. We emphasize how Big Data technologies are providing macro and international economists with opportunities to stop treating the data as “given” and to get directly involved with data collection.
With the understanding that current ICT-driven global development depends on a trend shifting from traditional co-evolution of computer-initiated ICT, captured GDP, and economic functionality to new co-evolution of the Internet, un-captured GDP, and supra-functionality beyond economic value, the following hypothetical view was postulated:. The disparity between the world's ICT leader countries with respect to happiness/welfare amidst great stagnation (Finland) or conspicuous economic growth (Singapore) can be attributed to the difference of the state in the above shifting trends.The foregoing hypothetical view was demonstrated on the basis of an empirical analysis measuring dependency on un-captured GDP, which is a key factor identifying the state of the shifting trends. This dependency is based on a comprehensive review of the consequences of three mega-trends that lead to the respective co-evolution and on the review of the development of trajectories relevant to these mega-trends.Noteworthy findings were obtained on the consequences of the development trajectory option, particularly on the shift from traditional co-evolution to new co-evolution resulting in differences in interactive return gain structure. Also significant policy suggestions essential for identifying government/business roles in the context of new innovation stream were received. The importance of transferring government ability in innovation, collaboration and absorption to business was stressed, as this creates a virtuous cycle between "muscular" economic environment development and increase in the "muscularity" of indigenous firms.
Why do some country's hi-tech firms innovate better than others? Why did hi-tech firms from the United States outperform such Japanese companies in the 1990s? Through a wealth of empirical evidence, the book compares the development trajectory of manufacturing technology and information technology both between Japanese companies and between companies based in the US, Europe, Australia, India and China. This book shows that institutional systems such as culture, tradition, consumers and local business practices play key roles in how companies develop technology. These factors also influence the very characteristics of the products that the hi-tech firms produce. With a number of case studies the author demonstrates how the most successful and innovative companies recognize these roles and incorporate them into their practices. © International Institute for Applied Systems Analysis (IIASA), Laxenburg 2009. All rights are reserved.
The majority of countries with advanced information and communication technology (ICT) infrastructure have been experiencing extended stagnation due to an “embedded” trap in ICT advancement. However, certain countries have been able to sustain a high level of ICT- driven global competitiveness. This suggests that in these contexts there is resilience beyond economic value. Finland and Singapore can be considered countries of resilience with respect to ICT-driven global competitiveness because of their continued GDP growth despite the recession. While both countries share significant similarities including institutional strength in ICT, they demonstrate noteworthy disparities in their development trajectories: Singapore is growth-oriented based on captured GDP while Finland seeks happiness by shifting to un-captured GDP. This contrast can be attributed to their distinct co-evolution with their institutional systems characterized by government/business initiatives in ICT usage for economic efficiency and differences in the new economic index referred to as “happiness seeking”. Given the increasing significance of un-captured GDP derived from the dramatic advancement of the Internet, this paper, will use a comparative analysis of ICT-driven development trajectories in six leading countries in the field over the last two decades. This analysis reveals the different option for maintaining economic resilience. A new method for measuring un-captured GDP was developed to assess the consequences and state of un-captured GDP in six countries. Institutional sources leading to this state were analyzed and a source of resilience beyond economic value was conceptualized and articulated.
Sustainability science is a rapidly expanding field, particularly given the current ecological crises facing many parts of the globe today. To generate a snapshot of the state of sustainability science, we analyzed the current status of sustainability research using citation and text analysis. By reflecting social needs on sustainability science and the increasing number of publications in this field, the landscape is expected to change during the last decade. Our results indicate that previously separated research clusters investigating discipline-focused issues are becoming integrated into those studying coupled systems. We also found the existence of hub clusters bridging different clusters like socio-ecological systems and transition management. We also observed a variety of other emerging research clusters, especially in energy issues, technologies, and systems. Overall, our analysis suggests that sustainability science is a rapidly expanding and diversifying field, which has affected many disparate scientific disciplines and has the potential to feed scientific understanding on socio-ecological systems and to drive society toward transition for sustainability.
The dramatic advancement of the Internet has led all nations to an information communication technology (ICT) driven development trajectory. This trajectory has resulted in bi-polarization between ICT growing economies and ICT advanced economies. While the former enjoys a virtuous cycle between ICT advancement and productivity increase, the later has fallen into a trap of a vicious cycle between ICT advancement and productivity decrease.This paper identifies that this trap can be attributed to the two-faced nature of ICT in which advancement of ICT contributes to price increases due to functionality development while dramatic advancement of the Internet has resulted in price decreases due to freebies, easy copying and standardization.Based on an empirical analysis of a customer preference shift from economic functionality to supra-functionality beyond economic value, this paper unveils the increasing conflict between captured GDP and un-captured GDP derived from the Internet advancement which promotes a freer culture, the consumption of which provides utility and happiness but cannot be captured through GDP data that measures revenue.It was demonstrated that this conflict has led to an emerging growing anger of consumers which can be transformed into a springboard for new innovation leading to a trigger of innovation-consumption co-emergence.
Many networked systems, including physical, biological, social, and technological networks, appear to contain ``communities'' -- groups of nodes within which connections are dense, but between which they are sparser. The ability to find such communities in an automated fashion could be of considerable use. Communities in a web graph for instance might correspond to sets of web sites dealing with related topics, while communities in a biochemical network or an electronic circuit might correspond to functional units of some kind. We present a number of new methods for community discovery, including methods based on ``betweenness'' measures and methods based on modularity optimization. We also give examples of applications of these methods to both computer-generated and real-world network data, and show how our techniques can be used to shed light on the sometimes dauntingly complex structure of networked systems.
Institutions drive innovation and stimulate broad diffusion. Not surprisingly, national systems of innovation are influenced by their institutional flexibility in response to changing market conditions. As nations move from industrial to information-based societies, a key factor governing institutional “elasticity” is how institutions integrate information technology (IT). Since IT functionality is intimately connected with institutional dynamics, unlike simple manufactured products such as refrigerators, IT's specific functionality is formed through dynamic interaction with institutional systems. Consequently, institutional elasticity is a critical factor in the functionality of IT and its subsequent self-propagating behavior.This paper analyzes the mechanism of IT functionality development, with special attention to the interaction of the technology with institutional systems.
This paper examines the factors influencing investment in information technology (IT), and the payoffs from investment in IT use on productivity and economic growth in 12 Asia Pacific countries for 1984–1990. It finds a significant positive correlation between growth in IT investment and growth in both GDP and productivity over the seven-year period. Countries with higher growth rates in IT investment achieved consistently higher growth rates of GDP and productivity. This finding is consistent with the notion of IT-led development. It challenges the so-called productivity paradox, or the notion that investment in IT has not paid off in productivity improvements.
We present a framework and empirical estimates that quantify the economic impact of increased product variety made available through electronic markets. While efficiency gains from increased competition significantly enhance consumer surplus, for instance, by leading to lower average selling prices, our present research shows that increased product variety made available through electronic markets can be a significantly larger source of consumer surplus gains.
One reason for increased product variety on the Internet is the ability of online retailers to catalog, recommend, and provide a large number of products for sale. For example, the number of book titles available at Amazon.com is more than 23 times larger than the number of books on the shelves of a typical Barnes & Noble superstore, and 57 times greater than the number of books stocked in a typical large independent bookstore.
Our analysis indicates that the increased product variety of online bookstores enhanced consumer welfare by $731 million to $1.03 billion in the year 2000, which is between 7 and 10 times as large as the consumer welfare gain from increased competition and lower prices in this market. There may also be large welfare gains in other SKU-intensive consumer goods such as music, movies, consumer electronics, and computer software and hardware.
The "productivity paradox" of information systems (IS) is that, despite enormous improvements in the underlying technology, the benefits of IS spending have not been found in aggregate output statistics. One explanation is that IS spending may lead to increases in product quality or variety which tend to be overlooked in the aggregate statistics, even if they increase output at the firm-level. Furthermore, the restructuring and cost-cutting that are often necessary to realize the potential benefits of IS have only recently been undertaken in many firms. Our study uses new firm-level data on several components of IS spending for 1987-1991. The dataset includes 367 large firms which generated approximately 1.8 trillion dollars in output in 1991. We supplemented the IS data with data on other inputs, output, and price deflators from other sources. As a result, we could assess several econometric models of the contribution of IS to firm-level productivity. Our results indicate that IS spending has made a substantial and statistically significant contribution to firm output. We find that the gross marginal product (MP) for computer capital averaged 81% for the firms in our sample. We find that the MP for computer capital is at least as large as the marginal product of other types of capital investment and that, dollar for dollar, IS labor spending generates at least as much output as spending on non-IS labor and expenses. Because the models we applied were similar to those that have been previously used to assess the contribution of IS and other factors of production, we attribute the different results to the fact that our data set is more current and larger than others explored. We conclude that the productivity paradox disappeared by 1991, at least in our sample of firms.
Measuring GDP in a digital economy
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Richard Stone: An Annotated Bibliography
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Independent review of UK economic statistics
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Race Against the Machine. Digital Frontier
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The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies
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The intangible costs and benefits of computer investments: evidence from financial markets
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