The Emerging Digital Economy

The rapid developments in information and communication technologies (ICTs) and the increased use of ICTs motivate the vision of an evolving digital economy. ICTs are composed of a wide range of product and service technologies including computer hardware, software and services and a host of telecommunications functions that include wire or wireline, and wireless, satellite products and services. The rapid diffusion of ICTs has produced important changes in how goods and services are produced, the nature of the goods and services produced, and the means by which goods and services are brought to the market and distributed to customers. During the last decade this evolving digital economy has been the preeminent driver of structural change and economic growth at both the national and the regional level in the developed, industrialised economies. However, there are substantial differences among countries and regions as regards their role in the development of ICTs and their propensity to adopt and apply ICTs applications in various sectors and activities. Hence, countries and regions differ markedly in how far they have come on the road to the digital economy. The emerging digital economy has attracted much interest in recent years and various authors have used different concepts to characterise the new developments. Besides the digital economy we also find in the literature concepts such as e-economy (Cohen et al. 2000) and information economy1. In the more popular debate it also has been nicknamed “the new economy” (Castells 1996, p.66). The unexpected economic strength of in particular the US economy in the late 1990s stimulated much discussion about the ‘new economy’, and what the emergence of