Why -Policy Matters: Why E E-Policy Matters: New New ICT ICT Indicators Indicators for for Knowledge Knowledge Economy Economy UNCC, Bangkok, 6-8 November 2007 Daewon Choi Chief, ICTPS/ICSTD UNESCAP Q&A. Is car a mobile ICT product? If so, what classification should apply? 2 Example: 30% of Car Value = ICT components 3 Convergence on Knowledge Economy Technology Development KE Integration - Integrated Nan o technology - Digital Bio technology - Home Space technology - Ubiquitous banking services KE Integration Service Devices - Digital broadcasting - Telematics - Home networking Next Generation - Intelligent robots Mobile Telecom - Digital Contents Component Network Next Generation Mobile Personal Kit KE integrated PC (4G, HPi) Next Generation PC Ubiquitous Flexible Display Mobile Telecom Computer Display Semiconductor Wired Telephone Voice Network (modem) Analogue Era Non-memory Semicon (IT-SoC) Display Broadband Convergence Network (BcN) Super Convergence Network (ScN) Broadband Telecom Network (ATM, xDSL) Digital Era Source: ESCAP secretariat based on NCA 2006 Digital Convergence Era KE Convergence Era Regulatory Changes 4 Analytical Framework on Techno-Regulatory Convergence Digital Tobin’s q ? 1. Tobin’s q: Market value of K / Replacement cost of K MPK/ 1 + r, 0<q<1, q>1 MPK/ 1 + r = 1 + p (p = additional cost) 2. Digital Tobin’s q: Market value + Digital Marketplace value of K* / Replacement cost + Digital replacement cost of K* MPK/ 1 + r = 1 + p + d (d= digital cost: efficiency, effectiveness, equity) Source: DWC 2002 KE Technology Progress Vs. Digital Tobin’s q: Impact of ICT policy on p, d (supply & demand) R Output k* Output k Capital Stock 1 + r + (p + d) O Source: DWC 2002 K K* KE Technology Progress Vs. Digital Tobin’s q: Impact of R ICT policy on p, d (supply & demand) Output k* Output k Capital Stock 1 + r + (p + d) O Source: DWC 2002 K K* Techno-legal convergence for KE R0 1 + r + p2 + d2 F(k**)R** 1 + r + p1 + d1 R* Output F(k*) F(k) Capital Stock O Source: DWC 2002 K K* K** Contribution of KE Policy on TechnoRegulatory Convergence - Conventional ICT Indicators: 1+p1 - P1=ICT infrastructure - New ICT Indicators: 1+r+p*+d - r=economic policy - p*=ICT infrastructure - d=digital rights management - Examples of d: - Cyberspace disputes: data protection, digital rights management - Technical innovation: odrXML, digital certification recognition - Legal framework: cross-border jurisdiction and applicable law - New ICT Indicators for KE: 1+r+p*+d+p**+kd - p**=new technology infrastructure (bio, nano, etc.) - kd=knowledge-based rights management 10 E-Policy and New Indicator Areas: Investment p, digital rights management d F(k**)R** R0 R* Output F(k*) 1+r+p+d 1+r+p+d O Source: DWC 2002 Capital Stock K* K** The Case of Mobile Economy in Asia Network Effect Mobile Ln>1 Internet PC Ln<1 New Technology 1990 Source: DWC 2001 2000 2010 KE Path 2000 2020 2010 Economic reform KE Development Knowledge Economy Macroeconomic Stabilization Structural Reform Integration into Regional and World Economy GTS ICT KE Infrastructure Integration into Regional & Global Knowledge Economy DTS Meta Coordination of Knowledge Economy Global Trading System (GTS) = f(MTS, DTS) DTS MTS MTS: Multilateral Trading System DTS: Digital Trading System WTO E-Commerce Programme Dispute Resolution E-Commerce Financial Services Competition Basci TelcomPolicy Services Trade Facilitation Secure Transaction Data Exchange ITA International Trade ECommerce Cyber Business EU E-Europe (+) Initiative Dispute Resolution Secure Transaction Data Exchange ADR. Art 17, EC Dir 2000/31 Proposed Dir VAT 7/2000 E-Sig Dir E-Money Dir 99/93 Personal Data Database Protec Dir Protection Dir 96/9 95/46 International Trade ECommerce Cyber Business WIPO Digital Agenda Dispute Resolution Secure Transaction Data Exchange Artit.Media Centre gTLDs WPerfor.Phono Tr Patent Coop Treaty WCopyR.Treaty Global Licensing of Digital Assests(study) E-Rights Hague Ind. Design Madrid Marks International Trade ECommerce Cyber Business UNECE CEFACT Dispute Resolution ? Secure Transaction Data Exchange CEFACT LWG UN/EDIFACT XML Trade Facilitation Rec. International Trade ECommerce Cyber Business Example: ICT GTS=f(MTS, DTS) Dispute Resolution CDR. WTO ADR (ICC, OECD) Secure Transaction VAN PKI DRM+NT Data Exchange Doc.EDI Open EDI XML, XSL International Trade E-Commerce ODR Cyber Business Thus, z z E-Policy matters for ICT Development ICT matters for KE Development ICT Indicators need to be in the new Context ICT Indicators for KE requires further work (eg. OECD, EU, ESCAP) Regional cooperation is a key factor. ESCAP mandate on multisectoral economic development bodes well with ICT/KE policy issues International cooperation needs to be further enhanced. z Thank you z z z z z 20