Ict policy for networked society

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CAPITALS

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ICT POLICY FOR THE NETWORKED SOCIETY

POLICY INSPIRATION

ICT POLICY FOR THE NETWORKED SOCIEY

ITU EVENT BAHRAIN “NEW TRENDS FOR BUILDING AND FINANCING BROADBAND”: POLICIES & ECONOMICS

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text in the footer area ICT POLICY FOR THE NETWORKED SOCIETY | Public | © Ericsson AB 2013 | 2013-09-24 | Page 2

The Networked society networked society VISION

Is about new ways to collaborate, CREATE, share

and get informed.

Is about innovative ways of doing business and

shaping the future.

Is a renewed policy approach to challenges such

as innovation, job creation, education,

healthcare, governance, climate change AND etc.

“ When one person connects, their world changes.

When everything is connected, our world changes.”

Collaboration

Innovation

Integrity

Community

Trust

Motivation

Competence

Sustainability

Interaction

Infrastructure

Link to Networked Society

http://www.ericsson.com/thinkingahead/networked_society

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TOWARDS THE NETWORKED SOCIETY

FUNDAMENTAL TECHNOLOGY DRIVERS

MOBILITY BROADBAND CLOUD DIGITIZATION

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Economic impact of broadband (BB)

+ 1000 BB USERS > + 80 Jobs

+ 10% POINTS BB PENETRATION

> + 1% POINT GDP

+ 2 x BB SPEED > + 0.3% increase in GDP

Sources: Chalmers Institute of Technology, Arthur D Little.

TRANSFORMING BASIC

VALUE CREATING

CONDITIONS

› BUILDING KNOWLEDGE

SOCIETY (IMPROVING

QUALITY OF LABOUR)

› NEW JOB CREATION

› WEALTH CREATION

› PRODUCTIVITY

› EFFICIENCY

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Sources: Chalmers Institute of Technology, Arthur D Little,

OECD Broadband and the Economy, Future of Internet 2008

Significance of BB & IT (ICT)

Increased global market reach

expanding trade but also

intensified competition,

General increase in economic

efficiency and labor productivity,

Increased pace of knowledge

diffusion and increased positive

spill-over effects,

Revised view of the role of

innovation (innovation-led

growth).

Economic Impact of ICT Changing Economic Thinking > ICT

Source: Jati Sengupta, Understanding Economic Growth, Springer 2011

DIRECT INDIRECT INDUCED

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ICT And Competitiveness

Competitiveness of Nations impact of ICT

Source: World Economic Forum, Global Competitiveness Report 2010-11

INNOVATION & SOPHISTICATION

• Business sophistication

• Innovation

EFFICIENCY ENHANCERS

• Higher education and training

• Goods market efficiency

• Labor market efficiency

• Financial market development

• Technological readiness

• Market size

BASIC REGUIREMENTS

• Institutions

• Infrastructure

• Macroeconomic environment

• Health and primary education

Key for

factor-driven

economies

Key for

efficiency-driven

economies

Key for

Innovation

-driven

economies

Direct BB impact: Infrastructure deployment

Digital readiness

Indirect impact from BB

(enabler): E-education/-commerce

Efficiency, Market expansion

Induced impact from BB

(enabler) Innovation (product, service,

process, market) coupled with

transformation

Source: Ericsson Analysis

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Policy makers in control of conditions unleashing benefits of ICT-led transformation

Source: Manuel Castells, The Rise of the Network Society, Second Edition, 2001

Technology (or lack of it) embodies the

capacity of societies to transform themselves

The ability or inability of societies to master

technology largely shapes their economic destiny

and social well-being

The state can suffocate or enable an accelerated

process of technological transformation

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› to enable transformations e.g. new productive shifts in economies associated with the rise of the networked society

› mastering this change in the most advantageous societal direction should be at the center stage of a progressive policy agenda

policy makers’ fundamental Role in the transformation of the society

act as socio-economic accelerators

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Policy makers’ tool-kit: Regulatory Frameworks

WHY

WHAT

HOW Policy/Regulatory Framework

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WHY the ”why” is changing !

HOLICTIC APPROCH

A PRECONDITION TRANSFORMATION

REQUIRED

INCREMENTALISM

NOT GOOD ENOUGH

Innovation-driven

value creation

LAISSEZ-FAIRE NOT GOOD ENOUGH

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Key COMPONENTS of technology lead societal transformation

INVENTION INNOVATION DIFFUSION

ECONOMIC GROWTH CHANGE

TRANSFORMATIONAL APPROCH

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The new “what”> what New ends in mind?

Public interest

Rights based

Networked governance

Transformational

Consumer

Citizen

Individual

Societal

Transformation

Effectiveness

Market efficiency

APPROACH END-GOALS

Economic Maturity

Institutional Capability

ICT Readiness

Regulatory complexity &

coherence of policies

Globalization /openness

Competitivness &

technologicial changes

CONTEXT

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eND GOALS of A TRANSFORMATIONAL APPROCH

› Sustain economic growth

› Increase competitiveness of nations and industries

› Grow new businesses

› Create new jobs

› Minimize exclusion and poverty

› Increase public sector efficiency

› Address climate change, environment and ageing population

› Manage scare resources more efficiently

› Cope with increasing level of urbanization

This is not a destination but a continuous journey

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FISCAL,

MONETARY,

AND LABOUR POLICIES

SECTOR SPECIFIC

POLICY

FRAMEWORKS

GOVERNMENT PROCUREMENT

(INNOVATION)

INNOVATION

& INDUSTRIAL

POLICIES

HOW to Implement a TRANSFORMATIONAL ICT POLICY

1

3 2

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SUMMARY of a transformational approach

JUSTIFICATION /

DESIRABILITY

LEGITIMACY

END GOALS

HOLISM, SOCIO-ECONOMIC BENEFITS

OF A TRANSOFRMATIONAL CHANGE,

INCREMENTALISM, PATH DEPENDENCE

SOCIETAL COST OF NEGATIVE EXTERNALITIES

DISTRIBUTIONAL JUSTICE

STRCTURAL ADVANCEMENT/SHIFT

IN SOCIETY/ECONOMY, LONG TERM

GROWTH

IMPLEMENTATION HOLISTIC/CROSS SECTOR COORDINATION

COORDINATION / INTERCONNECTNESS

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key ICT policy issues going forward

Convergence

Spectrum Management

Network Regulation

Media & Content Regulation

Copyright

Information Management – Data Privacy

Information Management - Cyber Security

TO BE CONTIUNUED….

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RISK of status-quo > outdated regulatory framework

› Increased market distortions;

regulatory flight, race to the

bottom, overlapping remits.

› Decreased investments,

innovation and competitiveness.

› Decreased economic and

societal benefits and increased

inequality.

› Delays in societal transformation,

falling behind.

The future of ICT POLICY