1. The Role of the OECD in Shaping the Future of the Digital Economy USCIB/BIAC/OECD Conference Andrew Wyckoff Director STI 10 March 2014

2. OECD’s Role 1.Early adopter / shaper of the international dialogue 2.Provider of an evidence base 3.Forum for sharing experiences, collective learning

3. OECD’s Role 1.Early adopter / shaper of the international dialogue 2.Provider of an evidence base 3.Forum for sharing experiences, collective learning

4. OECD Internet Policy Making: Principles/Instruments C(2012)7 - International Mobile Roaming Services C(2011)154 - Principles for Internet Policy Making C(2010)61 - Information and Communication Technologies and the Environment C(2008)99 - The Future of the Internet Economy (The Seoul Declaration) C(2002)131/FINAL - Security of Information Systems and Networks - Towards a Culture of Security C(99)184/FINAL - Consumer Protection in the Context of Electronic Commerce C(80)58/FINAL – (revised in 2013) Protection of Privacy and Transborder Flows of Personal Data 4

5. OECD Internet Policy Making: Key Events  Ministerial Declaration signed by OECD MCs, Egypt, India, Indonesia, Latvia, Senegal, the EU  Interest in adhering from: Costa Rica and Lithuania  Communiqué signed by OECD MCs, Colombia, Costa Rica, Lithuania  First Ministerial on e- commerce in 1998  Google incorporated in 1998; Amazon launched in 1995; Skype didn‘t exist… 1998: Ottawa 2008: Seoul2016: Mexico2011: Paris Contribution of the Digital Economy to growth

6. The radar screen Deregulation Domain Names Mobile BroadBand E-commerce Identity 6

7. What is a digital company? TomTom has 5 trillion data points on traffic, adding 6 billion per day. BMW cars have 50 sensors, 7 cameras, could recognize open parking spots for other cars NEST makes Internet connected thermostats, that save energy use GE expects to connect all machines to the Internet, making them more efficient.

8. Internet of Things / M2M

9. The emergence of “Big Data” Estimated worldwide data storage Source: OECD based on IDC Digital Universe research project. in exabytes (billions of gigabytes) Source: OECD based on Pingdom (2011) Average data storage cost for consumers, 1998-2012 USD per GB

10. The Long Tail of the OECD 10

11. OECD’s Role 1.Early adopter / shaper of the international dialogue 2.Provider of an evidence base 3.Forum for sharing experiences, collective learning

12. High Performance of the ICT Sector 12 Top 250 ICT firms, Index 2000-13 (*) Estimates based on quarterly financial reports. Source: OECD, Internet Economy database, compiled from annual reports, SEC filings and market financials.

13. ICTs contribute significantly to GDP growth OECD Productivity Database, November 2013 13 ICT investment accounts for only 15% of total investment (GFCF), yet has a large impact on GDP. ICTs also impact multifactor productivity as a driver of productivity growth Decomposition of GDP growth Total economy, annual percentage point contribution

14. Benchmarking Diffusion OECD countries taking different approaches Fixed networks/Backhaul Spectrum Remote and rural Transition to IPv6 14

15. OECD’s Role 1.Early adopter / shaper of the international dialogue 2.Provider of an evidence base 3.Forum for sharing experiences, collective learning

16. Leverage the Internet for growth and innovation What needs to be done so economies and societies can fully benefit from the Internet? User adoption/inclusiveness Business integration Openness for innovation Regulation Example: VAT for E-books 0% 20% Effects: Lower e-book adoption Less hardware development Discourages e-learning Environmental impacts –VAT differences (CTP) UK: E-books (20%) UK: Physical books (0%) –E-book readers –Online learning (EDU) –Bookstores (ELS)

17. Country Reviews 17

18. Protecting E-Consumers Active and informed consumers drive innovation and competition.  Improving information disclosures and providing a minimum level of protection across transactions. Key issues –Improving disclosures and protections: What are my rights and obligations? –Combatting misleading practices: Should I believe that online testimonial? 18

19. Addressing cybersecurity risks Security is indispensable for trust but can also inhibit innovation and development  Helping leaders approach cybersecurity for economic and social prosperity Key issues: –National cybersecurity strategies –Risk approach –Government coordination –Public-private co-operation –Innovation and skills –International dialogue –Better metrics 19

20. Promoting responsible use of personal data Protecting privacy facilitates global data flows  Revisiting privacy protection in the context of “big data” Key issues –National strategies –Risk management –Data breach notification –Global interoperability and transborder data flows –Enforcement 20

21. 21 “We support the principles of multi-stakeholder Internet governance developed by the OECD.” – U.S. Secretary of State Hillary Clinton, Dec. 2011 2011 Internet Policy Making Principles