The Internet: Spurring innovation and economic growth
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The Internet: Spurring innovation and economic growth INET Qatar 2012 Taylor REYNOLDS The views expressed in this presentation are those of the author and do not necessarily reflect the opinions of the OECD or its
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Taylor Reynolds, Senior Economist OECD, presentation at INET Qatar on Nov 27 2012. How a robust Internet, based on an open and collaborative development model spurs innovation and economic growth
Transcript of The Internet: Spurring innovation and economic growth
The Internet: Spurring innovation and economic growth
INET Qatar 2012Taylor REYNOLDS
The views expressed in this presentation are those of the author anddo not necessarily reflect the opinions of the OECD or its Membership.
The Internet economy roars on despite crisis Performance trends of top 250 ICT firms, 2000-11
2
Revenue Employment R&D spending0
20
40
60
80
100
120
140
160
180
200
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Key Internet trends
Productivity gains Mobile Internet growth
0100 000 000200 000 000300 000 000400 000 000500 000 000600 000 000700 000 000800 000 000 Fixed broadband
Wireless Internet
Up to 13% of the United States’ business sector value added could be attributed to Internet-related activities in 2010.
USD 1.2 trillion(QAR 4.2 trillion)
Size of the US Internet economy
Why an open Internet?
Closed mobile system
Feature phones
Applications
DictionaryDigital clockRecorderCalculatorClockWorld clockCalendarPhonebookConverterFixed dialing numberExpense managerNotesAlarm clock
Open systems → Innovation
iOS 740,000
Android 700,000
Comparative advantage
Internet taxes
Elastic demand
Firms/Consumers• Prices: Increase• Usage: Falls
Governments• Revenue: May Fall
Innovation: Falls significantly
Inelastic demand
Firms/Consumers• Prices: Increase• Usage: Falls
Governments• Revenue: Increases
Innovation: Falls significantly
The result of Internet taxes
Social impact: The Internet & local content
Policy goals
Local content
Internet infrastructure
Network prices
More local content is good
More Internet connectivity is
good
Lower prices are good
Results: Internet and local contentLOCAL CONTENT
Wikipedia entries
INTERNET DEVELOPMENT
A. Broadband penetrationB. Autonomous systemsC. International bandwidth
LOCAL CONTENT
Web pages per ccTLD per capita
INTERNET DEVELOPMENT
Autonomous systems
LOCAL CONTENT
Blogs per country, per capita
INTERNET DEVELOPMENT
Routed IPv4 addresses per capita
Results: Internet and access prices
PRICE
Fixed broadband monthly price(Domestic)
INTERNET DEVELOPMENT
International bandwidth capacity (International)
PRICE
IP transit price (International)
INTERNET DEVELOPMENT
Autonomous systems per 10 000 inhabitants(Domestic)
INTERNET DEVELOPMENT
Broadband penetration rates(Domestic)
Shokranشكرا
Pace of innovation
iOS 740,000
Android 700,000
2012
iOS 500,000
Android 350,000
2011
