Transformative direction of innovation and measurement of uncaptured GDP in the digital economy
The Internet has dramatically changed business dynamics and our daily lives
by providing extraordinary services and welfare never anticipated before.
However, productivity in industrialized countries has confronted an apparent
decline. The ICT advanced firms and countries are suffering with low marginal
productivity of their ICT investments. This reveals the two-faced nature of ICT
and productivity paradox in the digital economy.
With the progression of technology and transition from commodity-
oriented to information society, the consumers’ preferences are believed to be
shifted beyond economic value. The digitization has promoted the free and un-
monetized consumption of digital goods and services that provides utility and
happiness to consumers, but it cannot necessarily be captured through GDP
(gross domestic product) statistics. This research conceptualizes it as “uncaptured GDP” and develops a new method for its measurement. The comparison
of two ICT advanced countries reveals their contrary ICT-driven development
trajectories, “happiness-oriented” in Finland versus “growth-oriented” in Singapore. It signifies how nations and industries use technology differently to
create their unique competitiveness.
The digitization of taxi and music industries is studied to analyze the impact of ICT-driven disruptive innovations on traditional industries and their
consolidation challenges with institutions. The national level analyses explore
useful insights for developing ICT-driven competitiveness through higher education (20 countries) and gender equality (44 countries) in the digital economy.
These results reveals, how industries and countries are harnessing the potential
of untapped and non-economic resources so-called “soft value innovation” to
create unique competitiveness in the digital economy. With the analyses of
transformative direction of innovation (by 500 ICT firms), it is anticipated that
the role of soft value innovation will further increase in addressing the challenges of digital economy such as declining marginal productivity of technology, increasing role of uncaptured GDP and intense competition.
...
Publisher
University of JyväskyläISBN
978-951-39-7296-7ISSN Search the Publication Forum
1456-5390Keywords
Metadata
Show full item recordCollections
- Väitöskirjat [3558]
License
Related items
Showing items with similar title or keywords.
-
A new paradox of the digital economy : Structural sources of the limitation of GDP statistics
Watanabe, Chihiro; Tou, Yuji; Neittaanmäki, Pekka (Pergamon Press, 2018)The Internet has dramatically changed the way we conduct business and our daily lives by provided us with unprecedented services and conveniences. However, contrary to such accomplishments, productivity in industrialized ... -
Soft Innovation Resources : Enabler for Reversal in GDP Growth in the Digital Economy
Tou, Yuji; Moriya, Kuniko; Watanabe, Chihiro; Ilmola, Leena; Neittaanmäki, Pekka (AIRCC Publishing Corporation, 2018)While Finland and Singapore have been maintaining world digital leaders position, they demonstrate interlaced contrast: high welfare with low GDP growth in Finland and higher GDP growth with lower welfare in Singapore. ... -
Co-Evolutionary Coupling Between Captured and Uncaptured GDP Cycles : Cross Learning from Amazon and Finland Models for Sustainability
Kuniko, Moriya; Tou, Yuji; Watanabe, Chihiro; Neittaanmäki, Pekka (AIRCC Publishing Corporation, 2019)A solution to the critical problem of a dilemma between R&D expansion and productivity decline that a majority of information and communication technology (ICT) leaders have been confronting in the digital economy is ... -
Digitalization of global economy and public sector funding
Watanabe, Chihiro; Ilmola, Leena (Jyväskylän yliopisto, Informaatioteknologian tiedekunta, 2018)This report aims to trigger discussion. Our recent research reveals that digitalization, platform economy, Internet of Things, and artificial intelligence will change the structures of the global economy. All this will ... -
Transformative Direction of R & D into Neo Open Innovation
Watanabe, Chihiro; Tou, Yuji (Springer, 2023)The advancement of the digital economy has transformed the concept of growth. Advanced economies have confronted a dilemma between increasing inputs and declining output. Contrary to traditional expectations, excessive ...