1 EBIP Synthesis Report Preliminary policy messages Vladimir López-Bassols, OECD EBIP Workshop October 2001, Rome

2 Background and goals Cross-country Synthesis Report Detailed responses from 179 firms 30 reports covering 14 sectors in 10 countries Need for policy-makers to understand the e- commerce environment from the perspective of participants Identify where the scope for positive policy intervention is greatest

3 Factors examined Although some factors relate to micro-environment, most are embedded within macro conditions No simple obstacle/advantage dichotomy Methodology (data reporting sheets) covers 6 areas: –Telecommunications infrastructure –Regulatory factors –Internal factors –Relations with other firms –Competitiveness –General government policy

4 Overall approach Initial focus was on messages from firms, followed by additional analysis (inferred messages) Also tried to capture size effects and sector differences (tangible/intangible) Initial analysis reveals a new set of 4 broad factors: –Cost factors –Technology factors –Confidence factors –Competence factors

5 Cost factors

6 Cost factors: some results 1 in 3 firms found it difficult to justify e-commerce implementation costs Declining equipment and software prices increase affordability; Web-based solutions often more affordable More than 50% of firms did not consider telecom costs a significant obstacle. Concerns about costs in foreign markets. Taxation: relatively neutral factor, perceived as somewhat negative by large firms R&D subsidy programmes: around 2/3 of firms considered them not applicable or not relevant

7 Technology factors

8 Technology factors: some results Installed technology base: significant factor, evenly split positive/negative Public network infrastructure: flexibility, and to a lesser extent reliability, deemed adequate (especially by large firms) Some concerns remain: bandwidth, insufficient liberalisation and competition in the telecom industry (Competing) transaction systems: high expectations regarding interoperability and standards

9 Confidence factors

10 Confidence factors: some results More than a technological problem. Gap between perceived risks and reality. Solving security, authentication, certification problems has a direct and positive impact Overall satisfaction with underlying legal framework: main problems cited were enforcement and uncertainty in foreign markets IPR protection: main concern in music industry (pace of technological change, need for clarification) Brands: important asset for large firms, mainly in markets where buyers perceive high risk (banking, travel, logistics) Public profile: disappointing results (sample? interpretation?). Consensus that government has a role to play.

11 Competence factors

12 Competence factors: some results Management attitude a strong driver Human factors: more difficulties for small firms Skills and training: only 10% of firms identified these as having no effect Significant challenge: away from technical skills, towards new e-business skills. Skill upgrading for higher value added tasks Education and training: challenges for both firms and governments

13 Other observations Type of asset base (tangible/intangible) did not yield significant differences except in isolated cases Quantitative analysis of implementation factors which accounts for positive and negative responses reveals an order of priorities (from the perspective of firms): –High: competence factors –Moderate: cost –Low: confidence –Lowest: technology

14 Considering policy options Refocusing the debate: from market governance (facilitate organisation and coordination) to stimulation (ensure opportunities and equity) Messages from proactive firms not fully representative

15 Policy: looking forward Enhanced electronic infrastructure (broadband) and greater coordination with physical infrastructure (logistics) Importance of international market governance, cross-border interoperability Competition policy should not assume e-commerce has innate dynamics that subvert competitive environment: new commercial hierarchies within networks, different degrees of intermediation, greater opportunities for value-chains to intersect More effective SME support through better understanding and analysis of sector and market characteristics