The Role of the OECD in Shaping the
Future of the Digital Economy
USCIB/BIAC/OECD Conference
Andrew Wyckoff
Director STI
10 March 2014
OECD’s Role
1. Early adopter / shaper of the
international dialogue
2. Provider of an evidence base
3. Forum for sharing experiences,
collective learning
OECD’s Role
1. Early adopter / shaper of the
international dialogue
2. Provider of an evidence base
3. Forum for sharing experiences,
collective learning
OECD Internet Policy Making: Principles/Instruments
• C(2012)7 - International Mobile Roaming Services
• C(2011)154 - Principles for Internet Policy Making
• C(2010)61 - Information and Communication Technologies and
the Environment
• C(2008)99 - The Future of the Internet Economy (The Seoul
Declaration)
• C(2002)131/FINAL - Security of Information Systems and
Networks - Towards a Culture of Security
• C(99)184/FINAL - Consumer Protection in the Context of
Electronic Commerce
• C(80)58/FINAL – (revised in 2013) Protection of Privacy and
Transborder Flows of Personal Data
4
OECD Internet Policy Making: Key Events
1998: Ottawa
2008: Seoul
2011: Paris
2016: Mexico
Contribution
of the Digital
Economy to
growth
 First Ministerial on ecommerce in 1998
 Ministerial Declaration  Communiqué signed by
signed by OECD MCs, OECD MCs, Colombia,
 Google incorporated Egypt, India, Indonesia, Costa Rica, Lithuania
Latvia, Senegal, the EU
in 1998; Amazon
launched in 1995;
 Interest in adhering
Skype didn‘t exist…
from: Costa Rica and
Lithuania
The radar screen
•
•
•
•
•
•
Deregulation
Domain Names
Mobile
BroadBand
E-commerce
Identity
6
What is a digital company?
• TomTom has 5 trillion data points on traffic, adding 6
billion per day.
• BMW cars have 50 sensors, 7 cameras, could
recognize open parking spots for other cars
• NEST makes Internet connected thermostats, that
save energy use
• GE expects to connect all machines to the Internet,
making them more efficient.
Internet of Things / M2M
The emergence of “Big Data”
Average data storage cost for consumers,
1998-2012
Estimated worldwide data storage
HHD
56.30
in exabytes (billions of gigabytes)
USD per GB
60
SSD
50
40
40
30
20
CAGR 1998-2012: -39%
CAGR 2007-12: -51%
10
1
0.05
0
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Source: OECD based on Pingdom (2011)
Source: OECD based on IDC Digital Universe research
project.
The Long Tail of the OECD
10
OECD’s Role
1. Early adopter / shaper of the
international dialogue
2. Provider of an evidence base
3. Forum for sharing experiences,
collective learning
High Performance of the ICT Sector
Top 250 ICT firms, Index 2000-13
(*) Estimates based on quarterly financial reports.
Source: OECD, Internet Economy database, compiled from annual reports, SEC filings and market financials.
1
2
ICTs contribute significantly to GDP growth
Decomposition of GDP growth
Total economy, annual percentage point contribution
1995-2011
5
Labour input
ICT capital
Non-ICT capital
Multifactor productivity
3
1
-1
-3
-5
ICT investment accounts for only 15% of total investment (GFCF), yet has a
large impact on GDP. ICTs also impact multifactor productivity as a driver
of productivity growth
13
OECD Productivity Database, November 2013
Benchmarking Diffusion
• OECD countries taking
different approaches
• Fixed networks/Backhaul
• Spectrum
• Remote and rural
• Transition to IPv6
14
OECD’s Role
1. Early adopter / shaper of the
international dialogue
2. Provider of an evidence base
3. Forum for sharing experiences,
collective learning
Leverage the Internet for growth and
innovation
What needs to be done so
economies and societies can
fully benefit from the
Internet?
• User adoption/inclusiveness
• Business integration
• Openness for innovation
• Regulation
Example: VAT for E-books
0%
20%
Effects:
• Lower e-book adoption
• Less hardware development
• Discourages e-learning
• Environmental impacts
Country Reviews
17
Protecting E-Consumers
• Active and informed consumers drive innovation and
competition.
 Improving information disclosures and providing a minimum
level of protection across transactions.
• Key issues
– Improving disclosures and protections:
What are my rights and obligations?
– Combatting misleading practices:
Should I believe that online testimonial?
18
Addressing cybersecurity risks
• Security is indispensable for trust but can also inhibit
innovation and development
 Helping leaders approach cybersecurity for economic and
social prosperity
• Key issues:
– National cybersecurity strategies
– Risk approach
– Government coordination
– Public-private co-operation
– Innovation and skills
– International dialogue
– Better metrics
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Promoting responsible use of personal data
• Protecting privacy facilitates global data flows
Revisiting privacy protection in the context of “big
data”
• Key issues
– National strategies
– Risk management
– Data breach notification
– Global interoperability
and transborder data flows
– Enforcement
20
2011 Internet Policy Making Principles
“We support the principles of multi-stakeholder Internet
governance developed by the OECD.”
– U.S. Secretary of State Hillary Clinton, Dec. 2011
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