The engine of the digital economy is the technology used to deliver finished digital services to businesses and consumers.
Comprising connected devices, broadband infrastructure, cloud software, internet-based services and many other markets, the societal benefits that this technology delivers is measured by proxy, by adding up the total spending by businesses and consumers on finished digital products and services.
Our analysis is that the digital economy could already account for 20% of the real value delivered by the global economy, which is dramatically different to the consensus view which is that the digital economy currently accounts for just 5% of global GDP.
This report provides a clear explanation and compelling examples and analysis for why the value benefits delivered by the digital economy cannot be correctly measured by using conventional economic measures such as spending by consumers or businesses. or GDP and what this implies.
What is the digital economy?6
Why are policy makers fixated on GDP & GDP growth?6
How is GDP defined?8
Where did GDP come from?8
Known Limitations of GDP9
GDP is merely a proxy for societal prosperity9
GDP excludes social factors9
GDP is calculated using a methodology defined in the 1940s10
GDP cannot measure work that is done ‘outside’ of the economy11
GDP assumes that planetary resources are infinite and the cost of pollution is zero12
Counter argument: everything is fine13
Using GDP To Measure The Digital Economy15
Example Industry Segments15
Analysis: How Big Is The Problem?20
The True Value of the Digital Economy22
More realistic estimates22
Dr Dave Taylor23
|Title:||GDP Cannot Explain The Digital Economy|
|Updated:||03 Jun 2016|
|Delivery:||Email and Online.|