Consequences of the Digital Economy : Transformation of the Growth Concept

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.