The paradigm shift of the ICT industry has created a huge change for the entire world, movie scene that we have learned from the famous Mission Impossible’s Saga has been realized in real life. As we are entering an intelligent world where everything is connected, the value of connectivity is being unleashed, and the digital economy is booming.
Digital economy worldwide was worth US$11.5 trillion, or 15.5 percent of global GDP in 2016. The outstanding performance of the digital economy is mainly attributable to the development of a consumer-driven Internet. By 2025, the industrial Internet is predicted to experience massive growth, with industries across the board seeing high levels of digitalization and intelligence. By then, we expect the digital economy to grow up to 24.3 percent of global GDP.
The +Intelligence era will surely make a different over the next decade and maximize the impact of digital spillovers on global economic growth. And it should be the key concern of every country and all organizations.
As the digital economy becomes a key driving force behind economic development, a key issue is measuring the output and true impact of the digital economy. Huawei has partnered with leading global advisory firm Oxford Economics to run a research project to serve that objective.
Several in-depth interviews with top think tanks around the world were conducted, including digital strategy advisors, digital economy academics, and policymakers from the World Bank, MIT, Stanford University, and Singapore Infocomm Development Authority. By establishing and applying methodologies and research models for quantifying the digital economy, we have identified the positive impact that digital technologies investments have on productivity boost and economic structure optimization, from the perspective of digital spillover. The aim in this is to uncover the underlying patterns of digital transformation and the development of the digital economy.
Our research shows that the long-term return on investment (ROI) for digital technologies is 6.7 times that of non-digital investments, and leveraging intelligent technologies to power traditional industries can maximize digital spillover. Industries and companies are turning digital technologies, including broadband, cloud, big data, artificial intelligence, and Internet of Things (IoT), into key capabilities for digital transformation. The technologies will enhance productivity and spur innovation. As a result, the supply side will be upgraded to better match and further promote ever-increasing consumer demands. Ultimately, +Intelligence will drive and sustain the accelerated growth of the economy as a whole.
We believe that technology will reshape the world and ideas will change how the world is viewed. To address future uncertainties, we look forward to working extensively with global institutions and think tanks in the areas of theory and research. As we do this, we will continue to explore how technology can boost economic development and innovation at both the industry and country levels.
Huawei has been releasing the annual Global Connectivity Index (GCI) report since 2014, to assess the development of countries from a technological perspective. The report on the digital economy expands on that work, aiming to verify the value of technologies on a broader economic scale. With GCI, we hope to shed light on digitalization for our partners, and help them to update their viewpoints, embrace new trends, and pioneer a new wave of digital transformation.
Click here to read the full report of Digital Spillover.
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