The foundations of the digital economy

The Internet, broadband networks, mobile applications, IT services and hardware constitute the foundations of the digital economy. This chapter examines recent trends and structural features of the ICT sector, telecommunication markets, and broadband infrastructures and services. By looking at growth in value added and employment, changes in international trade, R&ampD expenditures, innovation activities and communication revenue, penetration, network size, broadband speeds and prices, and IPv6 indicators, the chapter highlights the fundamental role of information and communication industries as a driver of growth and innovation in the digital economy.