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The biennial OECD Digital Economy Outlook examines and documents evolutions and emerging opportunities and challenges in the digital economy. It highlights how OECD countries and partner economies are taking advantage of information and communication technologies (ICTs) and the Internet to meet their public policy objectives. Through comparative evidence, it informs policy makers of regulatory practices and policy options to help maximise the potential of the digital economy as a driver for innovation and inclusive growth.

This chapter discusses government policy and regulation in four main areas: access and connectivity, usage and skills, digital innovation, and digital risk and trust. For each of these areas, it provides an overview of policy trends, identifies the most common policy measures and instruments, and discusses good practices as well as challenges to be addressed.

Digital innovation drives the development of the digital economy and society, enables applications in many areas, and leads to transformations. This chapter first examines recent trends and evolutions in digital innovation, business models and markets, focusing on information and communication technology investment, business dynamism, data-driven innovation, and online platform markets, then presents expanding digital applications and services in selected areas – sciences, healthcare, agriculture, governments, and cities – and finally discusses the ongoing digital transformations of jobs and trade. Policy and regulation related to digital innovation, applications and transformation are discussed in .

The digital transformation is high on the global agenda and OECD countries are working towards making the transformation work for the economy and society. This chapter provides an introduction to the digital transformation, with a discussion of how it affects multiple policy areas, a presentation of key policy and measurement building blocks that can be considered for developing an integrated policy framework, and an analysis of the current state of national digital strategies that are being implemented across the OECD.

With its potential to galvanise economies, digital transformation is now high on the global agenda. OECD countries have set their objectives at the 2016 Cancún Ministerial on the Digital Economy. To maximise the benefits of digital transformation for innovation, growth and social prosperity, they are focusing efforts on the policy implications of the digital transformation, improving measurement, and developing an integrated policy framework for a whole-of-government approach. Despite good progress in the implementation of national digital strategies (NDSs) across the OECD co-ordination remains a major challenge. Only few countries have charged a high-level official or body dedicated to digital affairs with the co-ordination of their NDS.

The biennial OECD Digital Economy Outlook examines and documents evolutions and emerging opportunities and challenges in the digital economy. It highlights how OECD countries and partner economies are taking advantage of information and communication technologies (ICTs) and the Internet to meet their public policy objectives. Through comparative evidence, it informs policy makers of regulatory practices and policy options to help maximise the potential of the digital economy as a driver for innovation and inclusive growth. This second edition of the OECD Digital Economy Outlook provides a holistic overview of converging trends, policy developments and data on both the supply and demand sides of the digital economy, and illustrates how the digital transformation is affecting economies and societies.

Information and communication technology (ICT) usage determines the potential of ICTs, and skills of ICT users their effectiveness for the economy and society. This chapter examines recent trends and patterns in ICT usage by firms and individuals, as well as the evolving demand and supply of ICT specialists, ICT generic skills, and complementary skills, including in relation to the rise of robots in industrial production.

Information and communication technologies (ICTs) are the backbone of the digital economy and society. This chapter examines recent trends and structural features of the ICT sector, telecommunication markets, and broadband infrastructures and services. It focuses on the one hand on recent trends in ICT sector value added and employment, growth of ICT manufacturing and services, trade in ICT goods and services, and ICTs’ role for innovation, and on the other hand on investment and revenues in communication markets, fixed and mobile broadband subscriptions, and core aspects in the development of the Internet of Things. Policy and regulation related to access and connectivity are discussed in .

The technology ecosystem that drives digital transformation is composed of many core technologies and is continuously evolving. This chapter explores the characteristics, opportunities and challenges raised by two of the currently most promising technological developments: machines performing human-like cognitive functions, also known as artificial intelligence, and blockchain, a distributed and tamper-proof database technology.

Trust underpins most digital relationships and transactions and depends on the perception and the management of risk. This chapter examines trust concerns, in particular related to privacy and digital security risks, as barriers to the adoption of digital technologies, reviews trends in digital security and privacy incidents and online fraud, and discusses how to build trust in the digital economy, including through consumer protection. Policy and regulation aimed at enhancing trust in the digital economy are discussed in .