Consequences of the Digital Econmy : Transformation of the Growth Concept
Chihiro Watanabe1,2, Kuniko Moriya3, 4, Yuji Tou5
, Pekka Neittaanmäki6
1
Faculty of Information Technology,University of Jyväskylä, Finland
2
International Institute for Applied Systems Analysis (IIASA), Austria
3
Research and Statistics Department, Bank of Japan, Tokyo, Japan
4
Faculty of Information Technology,University of Jyväskylä, Finland
5
Dept. of Ind. Engineering & Magm., Tokyo Institute of Technology, Tokyo, Japan
6
Faculty of Information Technology, University of Jyväskylä, Finland
ABSTRACT
The digital economy is transforming the traditional concepts of economic growth.The recent reversal trend
in GDP growth of ICT leaders can be attributed to effective utilization of soft innovation resources in
Finland and adherence to traditional resources in Singapore.Confronting a productivity decline in the
digital economy, global information and communication technology (ICT) leaders are transforming
business models into those with uncaptured GDP creation. This can be attributed tothe harnessing soft
innovation resourcesagainst a productivity decline. This in turn activates a self-propagating function and
induces supra-functionality beyond economic value corresponding to a shift in people’s preferences. It also
contributes to removingstructural impediments in GDP growth.Empirical analyses utilizing the
development trajectories of 500 global ICT firms and also world ICT leadersFinland and Singapore
demonstratedthese hypothetical views andprovided an insightful suggestion as to overcome aproductivity
decline in the digital economy.
KEYWORDS
Digital economy, soft innovation resources, structural impediments in growth, global ICT firms, Finland
and Singapore
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