The OECD report identifies 10 key policy challenges for digital transformation in G20 countries and provides policy recommendations. The challenges are: 1) access to digital technologies, 2) digital infrastructure, 3) financing infrastructure, 4) developing standards, 5) regulating ICT, 6) digital security, 7) skills, 8) supporting SMEs and startups, 9) consumer rights, and 10) legal frameworks. For each challenge, the report outlines key areas for G20 policy action, such as developing national digital strategies, improving broadband access, fostering competition, and enhancing cross-border cooperation. The report aims to help the G20 coordinate digital policies and priorities related to issues like the future of work, fintech, and

1. The OECD Background Report:
“Key Issues for the Digital
Transformation in the G20”
Andrew Wyckoff , Director
Directorate for Science, Technology and Innovation
Andrew.wyckoff@oecd.org
G20 “Digital Economy”
Task Force Meeting
13 January 2017
Berlin, Germany

2. IBM 360 (1964) – the first commercial mainframe
Computing is not new…

3. …but ubiquitous computing is…
0
50
100
150
200
250
300
350
Millions Smartphones Other mobile phones
Quarterly shipping trends of smartphones, 2010-13
Sources: www.washingtonpost.com and OECD Broadband Portal
2005 2013

4. 4
…marking the beginning of
digital transformation…
https://thepowerofus.org/2016/08/09/the-internet-of-things/

5. …with data and analytics
transforming production...
Source: http://www.nytimes.com/2012/08/19/business/new-wave-of-adept-robots-is-changing-global-industry.html 5

6. 6
… fueling new types of
disruptive innovation…
Algorithmic trading as share of total trading
Note: 2013-14 based on estimates.Source: OECD based on The Economist (2012) and Aite Group
Driverless car
Siri

7. Health
Public
Administration
Energy
Transportation
Agriculture
Manufacturing 7
Digitalisation
…and affecting all activities.

8. G20 Engagement
“Breaking a new
path to growth”
“Shaping an inter-
connected world"

9. The OECD Report in support
of the G20

10. 1. Assessment of G20 economies’
performance with respect to
digitalisation
2. 10 Most pressing policy challenges
3. Core policy recommendations for
consideration
Report Structure: 3 Parts

11. Part 1. Assessing digitalisation
in G20 countries
• Digital infrastructure
• Access and use
• Innovation
• Skills
• Trust
 G20 countries need to work
together to fill the data gaps.

12. Part 2. 10 Key Policy Challenges
1. Access to digital technologies and services
2. Digital infrastructures
3. Financing digital infrastructures and new
business models
4. Developing standards for a digital world
5. Regulation of the ICT sector
6. Digital security
7. Skills and the digital economy
8. Digitalisation, SMEs, Start-ups and dynamism
9. Consumer rights in the digital era
10. Digitalisation and legal frameworks

13. 1
Individuals using the Internet, 2005 and 2015
0
20
40
60
80
100
%
2015 2005
Source: OECD (2017), Key Issue for digital transformation in the G20, page 23, ICT Database; Eurostat, Information
Society Statistics Database; ITU, World Telecommunication/ICT indicators Database and national sources, July 2015.
1. Access to digital
technologies and services
Source

14. 1. Access:
Key areas for G20 policy action
 Develop and implement National
Digital Strategies

15. 3
Fixed and Mobile broadband subscriptions per 100 inhabitants
0
20
40
60
80
100
120
140
160
%
Mobile boadband Fixed broadband
Source: OECD (2017), Key Issue for digital transformation in the G20, pages 20-21
2. Digital infrastructures

16. Fixed networks
• Encourage deployment of more fibre
• Reduce administrative obstacles
• Ensure access to passive infrastructure
Mobile networks
• Encourage deployment of 5G networks
• Exercise caution with potential mergers of mobile operators
Deploy (fibre & 4/5G, IXPs, IPv6)
Spur competition
Rethink nature of digital infrastructures
2. Digital infrastructures
Key areas for G20 policy action

17. Telecommunication infrastructure investment as a
percentage of GDP
3. Financing digital infra-
structures and business models
0.0
0.2
0.4
0.6
0.8
%
2015 2013
Source: OECD (2017), Key Issue for digital transformation in the G20, page 62

18. • Strenghten infrastructure deployment
through both public and private
(PPPs) financing;
• Seek to reduce costs of deployment;
• Improve framework policies;
Improve the evidence base for
network investment: Data flows
3. Financing
Key areas for G20 policy action

19. 4. Developing standards for
a digital world
0
2
4
6
8
10
12
14
0
10
20
Millions
M2M cards, per 100 inhabitants (left-hand scale) M2M cards, millions (right-hand scale)
USA: 49.3 million cards China: 43.4 million cards
Source: OECD (2017), Key Issue for digital transformation in the G20, page 22

20. Promote open, voluntary standards
through collaborative mechanisms
Encourage an interoperable environment
• in support of the IoT and Industrie 4.0,
• smart cities / smart mobility
Encourage SMEs’ participation in
standards bodies
Embrace industry-led efforts; but
ensure global interoperability
4. Developing standards
Key areas for G20 policy action

21. 5. Regulation of the ICT sector
http://www.mindseyesolutions.com/2012/10/09/the-great-early-assessment-convergence/

22. Foster competition and innovation as the ICT
sector consolidates
Develop regulatory approaches adapted to a
converged environment
Rethink nature of “telecomm” regulations in
era of digital economy [#2]
Embrace enhanced regulatory co-
operation
5. Regulation of the ICT sector
Key areas for G20 policy action

23. Spear-phishing attacks, by size of targeted organisation
18 %
31 % 30 % 34 %
43 %
32%
19 %
31 % 25 %
22 %
50 % 50 %
39 % 41 %
35 %
0
20
40
60
80
100
2011 2012 2013 2014 2015
%
Small businesses
(1-250 employees)
Medium-size businesses
(251-2 500 employees)
Large businesses
(2 500+ employees)
Source: OECD (2017), Key Issue for digital transformation in the G20, page 94
6. Digital security / privacy

24. 6. Digital security / privacy
Key areas for G20 policy action
 Public-private dialogue is essential (PPPs);
 Security must be informed by an assessment of the
risk; the economic and social objectives and the cost
and impact of the measures;
• Need to pool data, develop indicators of trust based on
an agreed methodology;
 Develop national privacy strategies and
increase interoperability to ensure flows of
data
 Foster capacity building and greater
awareness in developing countries (ITU led
consortia)

25. Two thirds of people surveyed lack the skills to succeed in technology-rich
environments
very low skills or opted
out of the test
low skills
medium skills
solid skills
2 out of
3
people
lack
skills
for the
digital
age
25
7. Skills and the digital
economy

26. 7. Skills and the digital economy
Key areas for G20 policy action
 Assist people, especially the least able, in
navigating the transition; starting with skills
 Take advantage of the technology to improve skills
development and training
 Foster digitally competent consumers
 Empower individuals
 Share « best practices » helping displaced
workers, including apprenticeship
programmes, retraining, « nano-degrees »
and vouchers

27. Laggards
Frontier
Laggards
Average of labour productivity across each 2-digit sector (log, 2001=0)
Frontier
Source: Andrews, D., C. Criscuolo and P. Gal (2016), "The Best versus the Rest: The Global Productivity Slowdown,
Divergence across Firms and the Role of Public Policy", OECD Productivity Working Papers, No. 5, OECD
8. SMEs, start-ups & dynamism

28. 8.SMEs, start-ups & dynamism
Key areas for G20 policy action
Keep a level-playing field; don’t tilt
towards incumbents
Improve access to finance
Improve access to skills (extension
programmes to SMEs)
Improve access to technology (e.g. cloud)
Diagnose the decline in dynamism
Nuture start-ups and help them
scale

29. 9. Consumer rights
http://www.consumersinternational.org/news-and-media/news/2016/04/new-report-internet-of-things/

30. 9. Consumer rights
Key areas for G20 policy action
Enhance cross-border co-operation; improve
enforcement information sharing
Be attentive to role of platforms and how to
build trust
Identify good practice approaches to making
data portability work for consumers &
business
Adopt new international (UN, OECD)
standards for consumer protection

31. 10. Legal frameworks
... and are spreading more and more quickly
1878
1979
1990
2003
2004
2008
2009
2010
2012
… 25 social media users
Year of
launch
Time to reach 100 million users worldwideFor every 100 people in
the world, there are …
Digital technologies have a huge reach …
… 32 active mobile-
broadband subscriptions
… 95 mobile-phone
subscriptions
… 40 internet users
1 yr, 3 mos
2 yrs, 2 mos
2 yrs, 4 mos
3 yrs, 3 mos
4 yrs, 5 mos
6 yrs, 5 mos
7 years
16 years
75 years
0 20 40 60 80
Candy Crush Saga
Instagram
WhatsApp
Apple App Store
Facebook
iTunes
World Wide Web
Mobile phone
Telephone
YearsSource: OECD, based on BCG (2015).

32. 10. Legal frameworks
Key areas for G20 policy action
 Need for a whole-of-government approach;
 Periodic review is needed; not regulate and ignore
for a decade
 Competition policy needs to better encompass the
growing competitive importance of data and data
analytics
 Online platforms provide a host of opportunities and
challenges; need for experimentation / “sand boxes”
Elaborate and pilot a policy framework
for analysing digital readiness

33. • What are the digital policy priorities for the
G20?
• Is there a natural sequence to activities?
• How best does the G20 take this forward?
• How to ensure coordination with “Future of
Work” (EWG); Fin TECH (Finance); Digital
Trade (TIWG); etc.
Discussion

34. Thank you
34
Contact: andrew.wyckoff@oecd.org
Website: www.oecd.org/sti
Twitter: @OECDinnovation
Newsletter: www.oecd.org/sti/news.htm