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  • 10-February-2021

    English

    Going Digital in Latvia

    Going Digital in Latvia analyses recent developments in Latvia’s digital economy, reviews policies related to digitalisation and make recommendations to increase policy coherence in this area, based on the OECD Going Digital Integrated Policy Framework. The review uses strategic foresight to explore three alternative future scenarios, which could result from the digital transformation of the global economy and society. It also examines the availability and quality of communication networks and services in Latvia as well as related policies and regulations. Further, it reviews trends in digital technology usage among individuals, businesses and the government, and examines policies to foster diffusion. Finally, the review analyses opportunities and challenges raised by digitalisation in key areas, from innovation and skills to digital security and data governance, and evaluates policy responses to these changes in Latvia.
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  • 10-February-2021

    English

    Science, technology and innovation in the time of COVID-19

    Science, technology and innovation (STI) have played a key role in responding to the COVID-19 pandemic and the unprecedented socio-economic crisis it has triggered. This paper explores how the pandemic affected STI in 2020, including how STI was mobilised to provide vaccines, treatments and innovative (often digital) solutions to address 'social distancing'. The paper also reviews the quick and agile STI policy responses implemented across countries to stimulate research and innovation activities to find solutions to the pandemic. Moreover, the paper covers STI policies that targeted universities, research centres, innovative businesses and entrepreneurs most affected by the crisis. It also raises key debates on the effectiveness of such policies. Follow-up work will leverage more and better data to improve this early assessment of the impacts of the crisis and STI policy responses.
  • 9-February-2021

    English

    Understanding the digital security of products - An in-depth analysis

    Economies and societies are increasingly reliant upon 'smart products' that contain code and can connect to one another, e.g. through the Internet. Recent cyber-attacks such as Mirai, WannaCry, NotPetya and SolarWinds have underlined that the exploitation of vulnerabilities in smart products can have severe economic and social consequences. Such attacks increasingly threaten users’ safety and well-being, as well. This report shows that economic factors play an important role in the relative 'insecurity' of smart products. It develops an analytical framework based on the value chain and lifecycle of smart products, and applies the framework to three case studies: computers and smartphones, consumer Internet of Things (IoT) devices and cloud services. It demonstrates that complex and opaque value chains lead to a misallocation of responsibility for digital security risk management, while significant information asymmetries and externalities often limit stakeholders’ ability to behave optimally.
  • 9-February-2021

    English

    Enhancing the digital security of products - A policy discussion

    From 'traditional' software to cloud services and Internet of Things (IoT) devices, our economies and societies are increasingly reliant upon 'smart products' that contain code and can connect to each other, e.g. through the Internet. Such products are vulnerable to cyber security risk, and economic factors often play a major role in their relative ‘insecurity’. This report discusses how policy makers can address key challenges that prevent smart products from reaching an optimal level of digital security. Increasing transparency and information sharing, promoting co-operation (including at the international level), and ensuring the duty of care of supply-side actors (e.g. through the principles of security-by-design, security-by-default and responsible end-of-life) are important avenues for policy action. Policy makers can leverage many tools to achieve these objectives, from public procurement, certification and multi-stakeholder partnerships, to labels and ex ante legal requirements.
  • 3-February-2021

    English

    The Digital Transformation of SMEs

    Despite potentially tremendous benefits, small and medium-sized enterprises (SMEs) lag in the digital transformation. Emerging technologies, as diverse as they are, offer a range of applications for them to improve performance and overcome the size-related limitations they face in doing business. However, SMEs must be better prepared, and stakes are high. SMEs make the most of the industrial fabric in many countries and regions, they create jobs (most jobs sometimes) and are the cement of inclusive and sustainable societies. The SME digital gap has increased inequalities among people, places and firms, and there are concerns that the benefits of the digital transformation could accrue to early adopters, further broadening these inequalities. Enabling SME digitalisation has become a top policy priority in OECD countries and beyond. The report looks at recent trends in SME digital uptake, including in the context of the COVID-19 crisis. It focuses on issues related to digital security, online platforms, blockchain ecosystems, and artificial intelligence. The report identifies opportunities, risks of not going digital, and barriers to adoption. It looks to concrete policy action taken worldwide to speed the SME transformation and raises a series of considerations to advance the SME digital policy agenda.
  • 3-February-2021

    English

    State-owned enterprises in the shipbuilding sector

    This paper uses firm-level data analysis to assess the extent, and the economic and policy implications of state-owned enterprises (hereafter SOEs) in the shipbuilding sector. Even though the available data appears to be limited in certain respects, one of the paper’s key findings demonstrates that SOEs occupy a significant share in global ship completions, but are likely to operate with lower profitability rates and to be more highly leveraged than private enterprises. This report also presents a number of guiding principles to assess SOEs’ behaviour and their potential impact on the shipbuilding market, such as good corporate governance frameworks and the principle of competitive neutrality. To provide a concrete comparative analysis of SOEs and their private counterparts, the paper examines a case-study comparing the Chinese central state-owned enterprise CSIC and its private counterpart Yangzijiang Shipbuilding.
  • 26-January-2021

    English

    Managing tourism development for sustainable and inclusive recovery

    Despite the significant negative impacts of COVID-19 on tourism, the crisis is providing an opportunity to rethink tourism for the future. Achieving this greener and more sustainable tourism recovery, calls for a greater policy focus on the environmental and socio-cultural pillars of sustainability. The paper focuses on five main pillars of policy solutions, and best practices, to help destinations rebuild and flourish in this dramatically changed policy context for tourism development. Recommended policy solutions aim to: i) rethink tourism success, ii) adopt an integrated policy-industry-community approach, iii) mainstream sustainable policies and practices, iv) develop more sustainable tourism business models, and v) implement better measure to better manage. The report presents a selection of 9 case studies on destination strategies to support a sustainable and inclusive recovery.
  • 22-January-2021

    English

    SME and Entrepreneurship Policy in Viet Nam

    This publication presents the findings of the OECD review of SME and Entrepreneurship Policy in Viet Nam. It offers an in-depth examination of the performance of small and medium enterprises (SMEs) and entrepreneurship in Viet Nam, the quality of the business environment, and national policies in support of new and small businesses. The report shows that Viet Nam is one of the most globally integrated economies in the world, building its solid growth performance on the attraction of foreign direct investments and export promotion. Viet Nam’s business environment has considerably improved in recent years, although important reforms are still needed in certain policy areas. Viet Nam's SMEs contribute to national employment and national GDP proportionally less than in the OECD area, although official statistics do not take into consideration the large informal sector that mostly consists of self-employed people and micro-enterprises. Viet Nam’s SME and entrepreneurship policies are relatively new, dating back to the early 2000s. In this respect, the 2018 SME Support Law is an important milestone which may help address some of the challenges that are holding back the development of a more vigorous domestic enterprise sector. Key policy priorities in this regard, building better business linkages between multinationals and local enterprises and stronger business development services, are the subjects of two thematic chapters of the report.
  • 18-January-2021

    English

    The effects of online disclosure about personalised pricing on consumers - Results from a lab experiment in Ireland and Chile

    Online personalised pricing is a form of price discrimination that involves charging different prices to different consumers, often based on a consumer’s personal data. Policymakers are currently discussing ways to protect consumers from potential adverse effects of personalised pricing. One option involves displaying disclosures on the websites of retailers that use personalised pricing, in order for consumers to make informed purchase decisions. This paper summarizes findings from a laboratory experiment on the effects that online disclosures about personalised pricing have on consumers. Results from the experiment suggest that online disclosures have only limited effects on consumers’ ability to identify and comprehend online personalised pricing, and cannot confirm a significant effect on participants’ purchasing behaviour. Results from a questionnaire distributed to participants reveal that on average personalised pricing is considered an unfair practice that should be prohibited.
  • 18-January-2021

    English

    Scale, market power and competition in a digital world - Is bigger better?

    This report assesses the impact of digitalisation on competition by examining the evolution of mark-ups and multifactor productivity (MFP) across firms of different sizes. It finds that size is positively related to mark-ups and that this relationship has strengthened over time. This trend has been accompanied by an increase in the relative productivity advantage of larger firms and both changes are more pronounced in digital-intensive sectors, suggesting that digitalisation may be an underlying driver. Policy makers may need to consider appropriate responses if digital technologies affect larger and smaller firms in a heterogeneous manner.
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