As economies continue to emerge from the epidemic and its economic effects, they need to consider how to transform their industries to compete in the new standard. ICT will now be at the forefront of any organizational strategy. It is important for policymakers to understand how the competitive landscape has changed and how to build national competitive advantage.
American economist Michael Porter said the benefits of a competitive economy arise from a combination of basic and advanced national causes that are taken care of by local needs and related local suppliers, all working together for national benefit.
Basic Reasons Gifts are hard to come by. Basic factors are hereditary and require little or no new investment to be used in the production process. Factory gifts are not static. Education and training, for example, may change labor behavior. Countries such as Singapore, Japan, and Ireland not only explain the root causes of their economic growth.
Contrary to popular belief, sophisticated causes are man-made. They are then redefined and innovated for special reasons. According to Porter, these are the basis for the country’s sustainable competitive advantage. Countries with limited motives can overcome (and often force) their peers by developing sophisticated conditions.
Government policies play a key role in developing sophisticated products. Investments in advanced technologies are needed to increase the productivity and quality of an economy and to enter the high-value sectors that produce new economic resources and jobs. This is one of the most important reasons why a country can increase its productivity and quality of life and work. Porter noted that the following advanced gifts are essential, and that their development must be carefully coordinated to build on each other – investments in secondary and university education support the development of skilled manpower and technology research, and support digital infrastructure. Encourages better national level relationships and new technological innovations, inspires further learning and
Not all advanced investments are equally effective in declaring national productivity. In an increasingly digital world, high-impact investments in ICT focus on the value of an economy in a self-sustaining innovation cycle. In the next few years, we expect most of our global production to be driven by ICT-enabled digital products and services.
In fact, digital investments strengthen other investments and are an important step in increasing national productivity and competitiveness. To accelerate economic growth, digital flow occurs as technology accelerates knowledge transfer, entrepreneurship, and performance improvement within the company, supply chain, and industry. The digital flow is critical to the growth of the digital economy. For more than three decades, a global survey of nearly 100 countries has had a far greater impact on the digital investment economy than direct investment. This additional impact is driven by the digital flow, and makes a big difference. The analysis shows that every US dollar invested in digital technologies over the past three decades has increased by an average of $ 20 billion in gross domestic product. This is a huge return on non-digital investments, with an average investment of about $ 3 to $ 1. Shows. Non-digital investments.
The indirect impact of digital investments can often return directly to the investor. Every investment business invests in digital assets – such as upgrading computer hardware, building new software solutions, strengthening network infrastructure – designed to increase productivity. But the emphasis on investment decisions in these circumstances is that the real economic impact of digitalization is much broader, more complex and much broader. Beyond the investor’s personal profits, more and more, when businesses invest in digital technologies, a deeper chain of return benefits emerges. There are three key channels that can be created: internal, horizontal and vertical channels.
These elements will be examined in more detail in the following article. It is clear from evidence and literature that digital investments should be at the heart of any economic recovery strategy and vision. A smart country and digital will be the key to ensuring long-term productivity, attractive investment and sustainable quality of life.
The author is the co-founder of the Branch, an international research consulting firm with offices in Europe and the Middle East.