Digitization plays an essential role in growth
A new study on a highly strategic sector - May 2011
23/05/2011
Coe-Rexecode has calculated the impact of the digital economy on growth. It is globally positive but digital economy contributes much more to growth in the United States than in Europe. This calls for a response in the way of an industrial policy and the definition of a real digital economy development strategy for Europe and for France.
Suppliers of equipment and services for information and communication technologies now constitute a real "digital economy sector". It has been included in the agenda of the G8 meeting on May 26 and 27, 2011 in Deauville .
Coe-Rexecode has calculated the global impact of the digital economy on growth in France, the United States and several other major countries (Japan, United Kingdom, Germany).
The digital economy contributes much more to growth in the United States than to growth in Europe.
This gap calls for a response in the way of an industrial policy and the definition of a real digital economy development strategy for Europe and for France.
Two priorities :
1 - Rapid development of high speed broadband infrastructures
The development of high speed broadband infrastructures is a framework for the future of the digital economy and for the economy as a whole. An annual investment of 2 billion euro in the deployment of optical fiber would lead to an increase in potential French growth of at least 0.2 points per year (4 billion euro per year).
The cost-benefit analysis of these investments is largely positive. So that the French economy can benefit rapidly, it is desirable that conditions for the attainment of these investments be met as quickly as possible.
2- Implement a policy of competitiveness
A general policy of competitiveness which applies to the digital economy sector like the rest of industry is necessary. Becoming competitive once again would bring about a reindustrialization. Applied to the production of digital material, this process would generate gains in productivity beneficial to the entire economy in terms of employment and activity
