Powering National Outcomes from New Digital Technologies: An analysis of government policies to maximize the economic and social benefits
- Publisher:
- Asian Productivity Organization
- Publication Type:
- Internet Publication
- Citation:
- 2023
- Issue Date:
- 2023-01-31
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The accelerating advancement of digital technologies is providing a myriad of opportunities for nations, both economically and socially. This study was a collaboration between the Asian Productivity Organization (APO) and the University of Technology Sydney (UTS). It considered how APO member governments might approach the advancement of digital technologies to maximize benefits for their nations.
Specifically, the study considered which digital technologies, industry sectors, and regulatory and policy initiatives had the greatest potential to deliver national outcomes in areas of economic growth, productivity, and social impact.
Overall, the research found that virtually all countries believed that the latest wave of digital technologies would deliver significant economic and productivity growth and that having policies and regulations in place to support a digital economy was important. It also highlighted the different opportunities, constraints, and challenges that individual APO nations faced, which meant that a one-size approach would be inappropriate. So, this report outlines a range of approaches that can be employed by nations, depending on where a country is currently positioned on the spectrum of digital economic development. It provides an initial framework that can be applied to any country, and offers some useful generic approaches, while also proposing specific recommendations for countries at different stages of digital readiness.
The study led us to segment APO member economies into four ‘digital economy’ groups: the embryonic, the nascent, the emergent, and the leaders. In addition, we paid particular attention to three exemplars or ‘case study countries,’ each representing a different level of economic development and digital maturity. These were: Indonesia (nascent), Malaysia (emergent), and the Republic of Korea (leaders). Individual countries can get feedback from this report, in the first instance, by considering their relative standing, i.e., by comparing their individual ratings against the rating of the exemplar country in their respective digital economy group (See Appendix 1 for a list).
At a digital economy group level, our research finds that countries classified as embryonic or nascent would struggle to secure the maximum benefits from digital technologies without further development of technological infrastructure, particularly in telecommunications. Governments in the embryonic group need to support the modernization of technology as well as the accessibility and affordability of broadband. In addition, they need to improve government accountability.
Members of the nascent group also need to support modernization and R&D, while also engaging with the industry, especially in the area of payment systems. In education, they could develop a strategy for integrating ICT capability in the school curriculum, in collaboration with the industry. An efficient and trusted bureaucracy should contribute to a productive business climate, while e-government initiatives could lead the way in digital development. Indonesia, as an exemplar in this group, is also making efforts to support startups and innovations.
One of the biggest challenges for emergent countries is regarding access to digital skills and talent. These countries need to consider how they can develop digital technology skills in their education
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