The OECD Digital Economy Outlook 2020 examines and documents evolutions and emerging opportunities and challenges in the digital economy. It highlights how OECD countries and partner economies are taking advantage of information and communication technologies (ICTs) and the Internet to meet their public policy objectives. Through comparative evidence, it informs policy makers of regulatory practices and policy options to help maximise the potential of the digital economy as a driver for innovation and inclusive growth.

Measures to contain the COVID-19 pandemic have profoundly affected OECD countries’ relationship with digital technologies. Perhaps never before has our global dependency on digital technology touched all aspects of society – from education to health. Teleworking, distance learning and e-commerce have surged across the OECD, as has uptake of digital tools in businesses. Governments, businesses and academia have been quick to grasp the potential of artificial intelligence (AI) to contribute to the crisis response, as well as the need for timely, secure and reliable access to data within nations and across borders. Global sharing and collaboration in research data have reached unprecedented levels.

Designing and implementing well-suited policies for the digital age is a complex challenge, but one that can produce many benefits. This chapter introduces the Going Digital Integrated Policy Framework (hereafter “the framework”), which helps countries shape policies for an inclusive digital future. The framework recognises technologies, data and business models as driving forces underlying digital transformation (OECD, 2019[1]).

National digital strategies (NDSs) help governments shape the way digital transformation takes place in a country. Such strategies define policy priorities, set objectives and outline actions for implementation. As such, their development should involve representatives from a wide range of stakeholder groupsStakeholder groups include business, civil society, the Internet technical community and trade unions, among others. and different parts of the government, including at the subnational level. Today, almost all OECD countries and many partner economies have developed NDSs.

This chapter analyses recent trends in communication markets, broadband networks and the Internet of Things (IoT), which provide the foundation of connectivity within digital environments. It then discusses recent changes in communication policies and regulatory frameworks, the potential regulatory implications of the evolution of broadband networks, as well as developments in convergence with the associated effects on market structures.

This chapter provides an overview of recent developments in the use of digital technologies by individuals and businesses. It examines policies to support digital uptake based on countries’ responses to the 2019 OECD Digital Economy Policy Questionnaire. Further, it sheds light on individuals’ use of online public services and on the uptake of digital technologies by governments. It provides stylised facts on digital natives and the adult population, examines new facets of the digital divide and sheds light on ICT skills demand in the workplace and possible mismatches. Finally, it reviews policies to develop the skills required to prosper in the digital society.

Data, and data access and sharing, have become fundamental for social and economic activities. In the context of the COVID-19 pandemic, leveraging data has been centre-stage in establishing effective frontline responses to the crisis. It will also be an essential part of the recovery and resilience-building phase.

In recent years, the generation and sharing of personal data have increased. This has been driven by, and in turn contributed to, changes in organisational practices and the data-sharing behaviours of individuals. This chapter delves into recent trends and challenges in privacy and personal data protection, and analyses evolving national and international regulatory and policy responses.

Digital security incidents harm businesses, governments and individuals by undermining the availability, integrity and/or confidentiality of their data, information systems and networks. Victims can face tangible and intangible damages, including monetary losses, reduced competitiveness, reputational damages, interruption of operations and privacy breaches. With the advent of the consumer and industrial Internet of Things (IoT) bridging the online and offline worlds, damages can extend to the physical environment and affect safety.

This chapter outlines some of the key technological trends and developments affecting consumer policy in the digital transformation. It provides an overview of consumer benefits and risks associated with new technologies, including the Internet of Things and artificial intelligence. It discusses how these new technologies can, or could, be employed to enhance consumer protection and product safety. It also examines how consumer biases impact consumer behaviour online. It highlights policy makers’ growing recognition of the need to consider behavioural insights in designing more effective consumer policies. It reflects on how policies can enhance consumer trust and thereby maximise the development and adoption of new technologies.

Digital technologies are both a key area of research and innovation and themselves a key foundation for developments in research and innovation. This chapter looks at recent trends in innovation in digital technologies before examining how digitalisation and data are profoundly impacting the science, research and innovation that help drive those technological developments. Subsequently, it looks at how digital technologies, and particularly artificial intelligence (AI), are helping search for ways to manage and treat the COVID-19 pandemic. Finally, the chapter touches upon the increasing role of digital technologies in managing national science and innovation systems and policy.

Digital technologies are enabling business models and organisations. In some cases, firms are creating entirely new markets. In others, new players are shaking up the terrain, forcing traditional businesses to reinvent themselves to survive. This chapter examines new e-commerce business models and their implications for policy. It discusses the variety of business models adopted by online platforms, as well as implications for work in the digital era. Finally, it sheds light on the changes in business models and work practices implied by the COVID-19 pandemic.

This chapter explores three technologies that are – or have the potential to become – key drivers of digital transformation: artificial intelligence (AI), distributed ledger technologies (DLTs) and quantum computing.