MSMEs' Competitiveness and Innovation in the Digital Age

Transcription

1 2016/ISOM/SYM/013 Session IV MSMEs' Competitiveness and Innovation in the Digital Age Submitted by: OECD Symposium on Priorities for APEC 2017 Ha Noi, Viet Nam 8 December 2016

2 SYMPOSIUM ON APEC 2017 PRIORITIES Ha Noi, Viet Nam 8 December 2016 MSMEs Competitiveness and Innovation in the Digital Age Nicolas Pinaud, Head of Sherpa Office and Global Governance Unit nicolas.pinaud@oecd.org Outline 1. The Digital Economy Key Trends 2. Opportunities and challenges for MSMEs 3. Towards competitiveness and innovation in the digital age 1

3 1. THE DIGITAL ECONOMY: KEY TRENDS Digital technologies have spread rapidly across society Percentage of individuals using the Internet, 2000 and 2015 Source: ITU, World Telecommunication/ICT indicators Database. 2

4 and in business, with access to broadband now almost universal in most OECD countries Broadband connectivity by firms, 2010 and 2014 Percentage of enterprises % 100 All enterprises, 2014 All enterprises, Source: OECD, Digital Economy Outlook 2015, oe.cd/deo. Data at: and some other APEC economies, such as Viet Nam Internet use in Viet Nam in 2007 and 2011, by province (% of firms) % Firms using Internet in 2007 % Firms using Internet in 2011 Tuyen Quang Binh Phuoc Bac Lieu Lai Chau Thai Binh Quang Nam Binh Dinh Vinh Long An Giang Cao Bang Ha Nam Ninh Thuan Yen Bai Hoa Binh Gia Lai Son La Thanh Hoa Quang Ngai Nam Dinh Kon Tum Tay Ninh Hau Giang Bac Kan Bac Can Ha Tinh Quang Binh Phu Tho Ninh Binh Phu Yen Dac Nong Ha Giang Dak Lak Dac Lac Long An Dien Bien Hai Duong Quang Tri Lam Dong Tien Giang Ca Mau Lao Cai Thai Nguyen Bac Giang Thua Thien - Hue Ben Tre Dong Thap Hung Yen Nghe An Tra Vinh Can Tho Soc Trang Quang Ninh Hai Phong City Haiphong Da Nang City Da Nang Khanh Hoa Binh Thuan Vinh Phuc Binh Duong Dong Nai Ba Ria - VTau Ba Ria-Vung Tau Ha Noi City Hanoi Kien Giang Lang Son Bac Ninh Ho Chi Minh City Ho Chi Minh Source: Nguyen and Schiffbauer, 2015; data at: 3

5 2. OPPORTUNITIES AND CHALLENGES FOR MSMES Digital innovation is affecting all sectors of the economy Public Admin. Health Retail Agriculture Transportation Science & Education Manufacturing 8 4

6 . and provides new opportunities for MSMEs and start-ups Virtual marketplaces Crowd financing Global reach Pay as you go 9 The Internet can help MSMEs engage in new (and global) markets through e-commerce % Enterprises engaged in sales via e-commerce by size, 2013 (as a percentage of all enterprises in each employment size class) All SMEs Large NZL AUS CHE ISL NOR DNK CZE SWE DEU COL BEL IRL NLD JPN GBR OECD LTU FIN ESP CAN SVN EU28 AUT KOR FRA PRT EST SVK LUX HUN POL GRC LVA TUR ITA MEX 0 Source: OECD, ICT Database; Eurostat, Information Society Statistics Database and national sources, July

7 which can also contribute to more rapid productivity growth Vietnamese firms using e-commerce have higher TFP growth, % 3.50% 3.00% 2.50% 2.00% 1.50% 1.00% e-commerce internet use 0.50% 0.00% Labor productivity growth effect TFP growth effect Source: Nguyen and Schiffbauer, 2015; data at: But, small firms typically lag large firms in their use of ICT % Enterprises using cloud computing services, by size, 2014 As a percentage of enterprises in each employment size class All Small (10-49) Medium (50-249) Large (250 +) Source: OECD Science, Technology and Industry Scoreboard 2015, based on OECD, ICT Database; Eurostat, Information Society Statistics and national sources, July Data at: 6

8 at all levels of economic development Larger firms use the Internet more intensively across all income groups 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% sell online website broadband small medium large small medium large small medium large Low income Lower middle income Upper middle income Source: Hussain (2015), based on World Bank Enterprise Surveys, various years. Data at: 3. TOWARDS COMPETITIVENESS AND INNOVATION IN THE DIGITAL AGE 7

9 A comprehensive approach is needed to support access Sound Regulatory Frameworks: Predictable, technologically neutral and based on a forward looking approach. Regulatory agencies independent of governments in formulating and applying regulations, with a distinct legal mandate, with adequate authority, and a stable, adequate and independent source of funding. Digital strategies: Co-ordinating body and mechanisms for decision-making in areas where the competencies of different government bodies overlap. Clear responsibilities and objectives and effective oversight mechanisms. Competition and infrastructure: Issues such as licensing, openness to foreign direct investment, the role of state-owned enterprises, etc. Broadband access: Private sector can do the heavy lifting. National Broadband Plans (NBPs) to provide access to everyone and boost usage of technologies such as electronic commerce Build sound frameworks for electronic settlements and payments. Remove barriers that inhibit the growth of businesses engaging in e- commerce such as high custom taxes, high shipping cost or requirements for local installment of businesses. Encourage a digital security risk management approach that acknowledges risk as an economic and social issue rather than solely a technical challenge. Build a national privacy strategy including relevant legislation, enforcement authority and measures to encourage self-regulation 8

10 New skills will also be needed Individuals who judge their computer skills to be sufficient if they were to apply for a new job within a year, 2013 (as a percentage of all individuals) % All Individuals Individuals with high formal education Individuals with no or low formal education Source: OECD Measuring the Digital Economy: A New Perspective, 2014, A relevant and timely APEC priority OECD s experience in this area: Extensive experience at the OECD in policy analysis and recommendations: 200 policy reports, 20 telecommunication policy and country reviews. Many of the policy and regulatory issues faced in the APEC region are common to those in OECD countries, and sharing good practices can be a valuable resource. Regular and high-level engagement with policy makers 9

11 Thank you Website: Newsletter: