How can we build a global economy driven by innovation when half the population is missing out on the action? The short answer is, we can’t.
Between 2000 and 2010, US manufacturing experienced a nightmare. The number of manufacturing jobs in the United States, which had been relatively stable at 17 million since 1965, declined by one third in that decade, falling by 5.8 million to below 12 million in 2010 (returning to just 12.3 million in 2016). Certainly, the 2007–08 recession accelerated the disruption, but the causes were also structural, not simply financial.
Space-based technologies are now as much a part of everyday life as electricity or running water. A range of activities from paying with a smart card to playing Pokémon Go use satellite networks to transmit data or get a positioning signal.
Economists working at the OECD were pioneers of a new approach that saw innovation not as something linear but as an ecosystem involving interactions among existing knowledge, research, and invention; potential markets; and the production process.
While the digital economy cannot be separated out from the rest of the economy, it is equally clear that some specific features of the digital economy may exacerbate the risks of base erosion and profit shifting for tax purposes–namely mobility (e.g. intangibles, business functions), reliance on data (and other forms of user input), network effects, and the spread of multi-sided business models.
Chile has established itself as a regional leader and has been rapidly closing the gap with other OECD countries in the field of digital government.
Digitalisation of goods and services destroys established business models and disrupts existing value chains. New value chains emerge. This is often called disruptive innovation.
Digital innovation is an opportunity—for governments, for business, for the public, and for the way in which they relate to each other.
The digital economy is here, and growing every day, sometimes in surprising ways. As ministers gather for major meetings in Paris and Cancun, government leaders should be in no doubt about the key role they must play in securing the digital economy’s future as a driver of productive and inclusive progress.
Disruptive innovation is redefining markets around the world and the Latin American and Caribbean region is no exception. In the run-up to the Latin American and Caribbean Competition Forum in Mexico-City on 12-13 April 2016, this article looks at the competition enforcement challenges and advocacy opportunities around disruptive innovations in the region.