Sharing the Benefits of the Data Economy for Economic Development

Abstract

This paper discusses the relationship between the data economy and economic development and examines the benefits and challenges for emerging economies. In particular, it examines the market concentration and offers some reasoning for why we should expect that the data economy may end up increasing, not decreasing, the gaps between developed and underdeveloped economies. The paper makes use of the concepts of digital commoditisation (Arbache, 2018) and digital divide (OECD, 2000) to help frame and examine the potential benefits and to identify the challenges that emerging economies may face as a consequence of that commoditisation. The paper proposes some possible way forward for policy-makers to overcome the current technology development asymmetries to reap the benefits and opportunities of the data economy.