DSTI/ICCP/IE(2007)3/FINAL2
FOREWORD
This report was presented to the Working Party on the Information Economy (WPIE) at its meeting inMay 2007
as part of the work for the 2008 OECD Ministerial on ―The Future of the Internet Economy‖
. Itwas discussed and recommended to be made public by the Committee for Information, Computer andCommunications Policy in October 2007.The report was prepared by Desirée van Welsum, OECD Secretariat. It forms part of a larger body of work on the economic impacts of ICTs carried out in the Working Party on the Information Economy,under the overall direction of Graham Vickery, OECD Secretariat. It is published under the responsibilityof the Secretary-General of the OECD.
© OECD / OCDE 2008.
DSTI/ICCP/IE(2007)3/FINAL3
TABLE OF CONTENTS
BROADBAND AND THE ECONOMY 5
Summary 5
1. Introduction 6
2. The expected economic impact of broadband 7
Broadband as a general purpose technology enabler 8
Applications and Internet use generated by broadband 10
Broadband is enabling the globalisation of services 14
3.
What‘s the evidence on the productivity impacts of broadband?
14
Productivity effects of ICTs 15
The impact
of the ―C‖ in ―ICT‖
20
The productivity impacts of broadband 22
The impact from informational mobility 25
The productivity impact of ICT and broadband-enabled globalisation 28
4. The impact of broadband on trade in services and global restructuring 29
Rapid advances in ICTs have contributed to growth of trade in business services 29
Non-OECD countries emerge as important players 31
Scope and limitations of ICT-enabled globalisation and offshoring of services 34
5. Employment impacts 36
Employment and ICT and broadband-enabled globalisation 36
Telework 38
6. Other areas and channels with a promise of great broadband impacts 43
6.1 Impacts on individuals and their role in economic processes 43
Consumer surplus 43
Quality of life 44
Measuring the social impact of ICTs 45
The social and cultural impact of broadband-enabled user created content (UCC) 45
ICT-enabled innovation driven by individuals 46
6.2 SMEs and broadband 46
The importance of SMEs 46
The impact of ICTs on SMEs 47
7.
Policy implications 48
ICTs as transformative technologies 48
Economy-wide impacts of ICTs and broadband 48
Investment, innovation, competition and collaboration 49
Employment and skills impacts 49
The role of government(s) 50
BIBLIOGRAPHY 51
APPENDIX 58
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