The growing and expanding digital economy

The digital economy transcends the ICT sector. While the Internet, broadband, mobile applications and IT services constitute its foundations, the digital economy today encompasses all sectors of the economy and society. The ways in which individuals use ICT goods and services affect the benefits they receive from the digital economy. The success and growth of firms is also crucially dependent on their capability to compete in the new economic environment, which ICTs are helping to shape. Despite the universal availability of ICTs, their use continues to differ across firms, individuals and countries. Difference in age and education significantly affect how people use the Internet. Differences in firm size and market characteristics influence the diffusion of e-business. This chapter looks at ICT usage by individuals and firms, the emergence of new sectors and new business models, and the overall contribution of the digital economy to growth and employment.