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MIT Initiative on the Digital Economy

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The MIT Initiative on the Digital Economy is a team of visionary thought leaders exploring solutions that will shape our destiny in a digital world.

The IDE examines how the rapidly advancing digital economy is changing how we work, interact, and live. We seek out the best practices that will impact the way businesses and people adapt in a world of profound digital transformation. No other initiative or center in the world is exploring the effects of the digital economy with the same determination, focus, perspective or purpose as the IDE.

While our research is inherently academic, its relevance has real-world, real-time impact. Corporations, governments, and foundations all turn to the IDE for insight, best practices, and solutions. We believe our efforts have the power to help people shape their destinies in a time of tremendous technological transformation. Ultimately, our mission is one of hope: There is great opportunity for humans to thrive and prosper in the digital revolution.

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We produce insights that help decision-makers rise to the challenges and opportunities in an era of profound digitization.

The Stanford Digital Economy Lab leverage the expertise and interests of Stanford faculty, researchers, and students to initiate and support a wide range of projects on the most pressing topics related to the digital economy. As an integral part of Stanford HAI , the Lab pursues a multidisciplinary approach that encourages dialogue and collaboration across the domains of economics, business, technology, policy, and beyond.

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What will the future of work look like? AI and other digital technologies have the potential to radically transform work

Our research team explores and creates better methods and models to measure the health of an increasingly digital-centric economy.

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Digital Economy and Sustainable Development

• Publishes in the interdisciplinary field of digital economy and sustainable development.
• Covers a wide range of topics including digital trade, E-commerce, big data analysis, and their contributions to sustainable development.
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How does digital inclusive finance improve rural economic resilience evidence from china, digital intermediate product imports and firms’export quality: evidence from china.

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Boosting the intra-African digital trade in the AfCFTA context: does regulatory framework matter?

• Manfred Kouty

Digital economy and China’s path to common prosperity

• Yingjie Liu

Public science and environmental sustainability: a national culture framework for innovation ecosystems en route to net zero

• Luca Cacciolatti

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Call for papers: the 5th international symposium on regional integration and financial development.

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Our team produce world-leading research in collaboration with business, government, and academic institutions in a cross-disciplinary partnership to deliver insights into a range of research themes.

Research themes

Our key research clusters span a diverse range of subject matters. 

Digital platforms and new business ecosystems

• Business strategy in the age of digital competition
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• Digital platforms, ecosystems performance and governance
• Digital value creation and capture and digital business models
• Ecosystems emergence and evolution

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• Unintended consequences of innovation and entrepreneurship

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• Automation and the digital advertising ecosystem
• Emotions, communication and interactions in social media platforms
• Evolution of social media platforms

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Government as a Platform (GaaP): New digital government models for the UK and Latin America

Principal investigators: Dr Carla Bonina, Dr Ben Eaton

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We drive forward joint projects with the Centre of Digital Economy to leverage the opportunities created by the digital economy to enhance society. Together we push the boundaries of knowledge and management practice through cutting-edge research and engagement with business and government.

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The Product Returns Research Group is an interdisciplinary team of academics from various universities working with retailers, manufacturers, service and technology providers, to address the root causes of product returns and returns fraud, influence customer behaviour, and increase sustainability.

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Managing in the Global Digital Economy

Companies like Uber, Tinder, Amazon and Airbnb have transformed the digital economy on an international level. What strategies did these platforms adopt, and how were they able to scale globally? How have retailers and news publications changed their business models to keep pace with digital and mobile trends?

Managing in the Global Digital Economy will help you understand digital platforms and their network effects at the local, national and global levels. Mauro Guillén , Dr. Felix Zandman Professor Emeritus of Management, uses real-world examples to illustrate how you can take advantage of new technology and adopt competitive omnichannel strategies for your business. You’ll also learn about international expansion considerations and the impact of regulations.

By the end of the global digital marketing course, you’ll have a sharper sense of digital innovation and be able to approach global management from a more informed, digitally-savvy point of view.

Why Study the Global Digital Economy?

• The digital economy accounted for 6.9% of the United States GDP in 2017, and continues to grow. 1
• Many economists claim data is more valuable than oil as a commodity. 2
• The amount of data created worldwide has grown exponentially, creating demand for cloud storage innovation and data professionals. 3

1 https://www.ntia.doc.gov/blog/2019/digital-economy-accounted-69-percent-gdp-2017 2 https://www.economist.com/leaders/2017/05/06/the-worlds-most-valuable-resource-is-no-longer-oil-but-data 3 https://www.statista.com/study/52194/digital-economy-compass/

Program Details

Start Dates:  Enroll Immediately

Duration: 4 weeks

Commitment: 2 hours per week

Program Format: 100% Online

Program Tuition: $599

READY TO START?

Need a little more info, course modules, module 1: the growth of the global digital economy.

In this module, you’ll explore the growth of digital platforms and examine the increase in the digital populations of different countries and socio-demographic segments. You’ll analyze the emergence of digital firms and learn the importance of detailed analysis of digital access in different parts of the world. Through case studies of companies such as Lego and Amazon, you’ll learn how they achieved successes as digital firms. You’ll also learn how digital currencies propelled Africa to the forefront of the digital economy. By the end of this module, you will have a better understanding of the digital economy and be able to implement successful strategies to propel digital transformation for your firm or organization.

MODULE 2: Digital Platforms and Network Effects

In this module, you’ll examine the fundamentals of network effects, and delve deeper into network analysis with case studies. You’ll learn about the types of digital platforms and gain a better understanding of one-sided versus two-sided network effects through a mapping exercise. By analyzing the case studies of Tinder and Uber, you’ll explore how network effects can unfold at the local, national or global levels. By the end of this module, you will have a better understanding of the nature of network effects and the types of strategies that digital platforms can implement in order to successfully compete.

MODULE 3: The Digital Transformation of Traditional Business

In this module, you will explore digital transformation within retail, printed media, and financial services. Through close examination of Zara’s retail strategy, you’ll learn about the advantages of the omnichannel approach in online retail sales. By studying the failed digitalization of eBooks and wines, you will better understand the importance of forming a competitive strategy that takes advantage of the potential of new technologies. By the end of this module, you’ll have a richer understanding of both successful and unsuccessful digital transformations and know what strategies are more successful than others.

MODULE 4: The Internationalization of Digital Firms

In this module, you’ll learn about international expansion and its network effects on digital platforms. Through close analysis of the case study of AirBnB, you’ll understand the importance of key decisions such as timing, market sequence, and speed in international expansion. You’ll also analyze the comparisons among Spotify, Apple Music, and Netflix, and learn how margins depend on the threat of substitutes, the degree of competition, and the possibility of new entrants. By the end of this module, you’ll be able to better navigate the risks of international expansion for your organization and develop a more successful digital strategy for your business.

Ready to get started?

Key program takeaways, in this global digital marketing course, participants will learn how to:.

• Distinguish between one and two-sided networks
• Analyze the local, national and international effects of digital platforms
• Craft digital platform strategies based on network effects
• Advocate for omnichannel strategies that improve user experience
• Approach international expansion — understanding when to start, what sequence of markets to enter and how quickly to expand

Managing in the Global Digital Economy Faculty

MAURO GUILLEN

Dr. Felix Zandman Professor Emeritus of Management

Faculty research interests

He holds the Zandman Endowed Professorship in International Management at the Wharton School. He received a PhD in sociology from Yale University and a Doctorate in political economy from the University of Oviedo in his native Spain.

He is a trustee of the Royal Foundation of Spain, known as the Fundación Princesa de Asturias, a member of the advisory board of the Escuela de Finanzas Aplicadas (Grupo Analistas), and serves on the World Economic Forum’s Global panel of experts.

He has won the Aspen Institute’s Faculty Pioneer Award. He is an Elected Fellow of the Sociological Research Association and of the Macro Organizational Behavior Society, a former Guggenheim and Fulbright Fellow and a Member in the Institute for Advanced Study in Princeton. In 2005 he won the IV Fundación Banco Herrero Prize, awarded annually to the best Spanish social scientist under the age of 40. He has delivered the Clarendon Lectures at Oxford University, the Otto Krause Memorial Lecture at the University of Johannesburg, and the Laurent Picard Distinguished Lecture at McGill University.

He has received a Wharton MBA Core Teaching Award, a Wharton Graduate Association Teaching Award, a Wharton Teaching Commitment and Curricular Innovation Award, the Gulf Publishing Company Best Paper Award of the Academy of Management, the W. Richard Scott Best Paper Award of the American Sociological Association, the Gustavus Myers Center Award for Outstanding Book on Human Rights, and the President’s Book Award of the Social Science History Association.

His current research deals with the internationalization of the firm, and with the impact of globalization on patterns of organization and on the diffusion of innovations and crises. His most recent books are Rude Awakening: Threats to the Global Liberal Order (2018), The Architecture of Collapse: The Global System in the Twenty-First Century (2016), Global Turning Points (2012), and Emerging Markets Rule (2012). He is also the author or co-author of The New Multinationals (2010), Green Products (2011), Building a Global Bank: The Transformation of Banco Santander (2008), The Rise of Spanish Multinationals (2005), The Taylorized Beauty of the Mechanical (2006), The Limits of Convergence: Globalization and Organizational Change in Argentina, South Korea, and Spain (2001), Models of Management (1994), and The AIDS Disaster (1990).

His personal website is at: http://www.management.wharton.upenn.edu/guillen/

Request Info

Learn more about Wharton Online’s Leadership in the Global Digital Economy course before enrolling in the program.

The Wharton School is accredited by the International Association for Continuing Education and Training (IACET) and is authorized to issue the IACET CEU.

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Who Gets to Work in the Digital Economy?

• Scott Counts,
• Siddharth Suri,
• Alaysia Brown,
• Sharat Raghavan

The labor market for jobs you can do on a laptop is expanding beyond major cities.

Remote work has become commonplace since the beginning of the Covid-19 pandemic. But the focus on daily remote work arrangements may miss a larger opportunity that the pandemic has unearthed: the possibility of a substantially increased labor pool for digital economy work. To measure interest in digital economy jobs, defined as jobs within the business, finance, art, science, information technology, and architecture and engineering sectors, the authors conducted extensive analyses of job searches on the Bing search engine, which accounts for more than a quarter of all desktop searches in the U.S. They found that, not only did searches for digital economy jobs increase since the beginning of the pandemic, but those searches also became less geographically concentrated. The single biggest societal consequence of the dual trends of corporate acceptance of remote work and people’s increased interest in digital economy jobs is the potential geographic spread of opportunity.

The Covid-19 pandemic shifted the public conversation about remote work. This shift raises the possibility that remote may become commonplace or even the the norm for many digital economy jobs, which are loosely defined as jobs using computers to produce digital goods and services. The focus on daily work arrangements may, however, miss an even larger opportunity that the pandemic has unearthed: the possibility of a substantially increased labor pool for digital economy work.

• SC Scott Counts is a senior principal research manager at Microsoft Research, where he works in the area of computational social science and manages the Urban Innovation research team. His research seeks to address challenges at the nexus of climate resilience, workforce and economic development, and social equity in urban areas. Scott holds a PhD from the University of Washington.
• SS Siddharth Suri is a senior principal researcher at Microsoft Research, where he works in the area of computational social science. He recently coauthored Ghost Work as part of a broader research agenda on the future of work. He holds a PhD in computer science from the University of Pennsylvania.
• AB Alaysia Brown will receive her PhD in human development and family science from the University of Missouri in August 2022. Her research aims to identify the correlates and consequences of racial, ethnic, and phenotypic-related stratification. After graduating, Alaysia will continue her work as a postdoctoral research fellow at Harvard University.
• BX Brian Xu is a senior data scientist on the economic graph team at LinkedIn. He is also a content creator with 1.4 million followers on TikTok, where he creates videos on data and Asian American experiences. He graduated from Stanford University with a bachelor’s in economics and master’s in public policy.
• SR Sharat Raghavan leads the US economic graph team at LinkedIn. He also is a lecturer at the Haas School of Business at UC Berkeley where he teaches courses in data science and entrepreneurship. He completed his PhD from UC Berkeley and received an economics degree from Dartmouth College.

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Past Series

An official website of the United States government

• Special Topics

Digital Economy

BEA is developing tools to better capture the effects of fast-changing technologies on the U.S. economy and on global supply chains. The project seeks to calculate the digital economy's contribution to U.S. GDP, improve measures of high-tech goods and services, and offer a more complete picture of international trade. Other goals are to advance research for digital goods and services, the sharing economy, and free digital content.

• Current release:  December 6, 2023
• Next release:  Data covering 2021 expected in late 2022

Digital Economy Satellite Account

BEA includes in its definition of the digital economy four major types of goods and services:

• Infrastructure, or the basic physical materials and organizational arrangements that support the existence and use of computer networks and the digital economy, primarily information and communications technology (ICT) goods and services.
• E-commerce, or the remote sale of goods and services over computer networks.
• Priced digital services, or services related to computing and communication that are performed for a fee charged to the consumer.
• Federal nondefense digital services represents the annual budget for federal nondefense government agencies whose services are directly related to supporting the digital economy.

BEA is continuing to explore data and methodology to expand the coverage of the digital economy estimates. For more information on the goods and service currently included in the BEA estimates, please see the latest article " U.S. Digital Economy: New and Revised Estimates, 2017–2022 ."

Please email all comments to [email protected]

• U.S. Digital Economy: New and Revised Estimates, 2017–2022 Survey of Current Business , December 6, 2023
• Data | 2017–2022 XLSX
• Infographic | How Big Is the Digital Economy in 2022 PDF and image PNG

Articles and Blog Posts

• Introducing Consumer Durable Digital Services into the BEA Digital Economy Satellite Account by Benjamin Bridgman, Tina Highfill, and Jon Samuels | June 2023
• Measuring Digital Intermediation Services: Experimental Estimates of Gross Output for Rideshare, Travel Services, and Food/Grocery Delivery Service Platforms by Tina Highfill and Brian Quistorff | October 2023
• Research Spotlight Measuring the Digital Economy Survey of Current Business, May 2019

Frequently Asked Questions (FAQs)

• How do the initial digital economy measures compare with industry economic impact reports and BEA satellite accounts?
• Can the initial digital economy estimates show how much the digital economy contributed to the overall economy as a percent of GDP?
• What is gross output by industry and how does it differ from gross domestic product (or value added) by industry?
• What is a satellite account?
• How is the digital economy captured in the core statistics currently produced by the Bureau of Economic Analysis (BEA)?
• How does BEA define the digital economy?
• What is missing from the digital economy estimates?
• How are free social media, email, and other ad-supported Internet services included in the BEA digital economy estimates?

Previously Published Estimates

• New and Revised Statistics of the U.S. Digital Economy, 2005–2021 PDF
• Data | 2005–2021 XLSX
• Infographic | How Big Is the Digital Economy in 2021 PDF and image PNG
• New and Updated Digital Economy Statistics—May 2022 PDF
• Data | 2005–2020 XLSX
• Infographic | How Big Is the Digital Economy in 2020 PDF and image PNG
• Updated Digital Economy Estimates – June 2021 PDF
• Data | 2005–2019 XLSX
• Infographic | How Big Is the Digital Economy in 2019 PDF and image PNG
• New Digital Economy Estimates—August 2020 PDF
• Data | 2005–2018 XLSX
• Infographic | How Big Is the Digital Economy in 2018 PDF and image PNG
• An Update Incorporating Data from the 2018 Comprehensive Update of the Industry Economic Accounts—April 2019 PDF
• Data | 1997–2017 XLSX
• Defining and Measuring the Digital Economy BEA Working Paper, March 2018
• Data | 2005–2016 XLSX
• Infographic | How Big is the Digital Economy in 2017 PDF and image PNG

International Trade in ICT and Potentially ICT-Enabled Services

BEA's statistics on trade in information and communications technology (ICT) and potentially ICT-enabled services complement its standard presentation of international trade in services statistics by examining the extent to which ICT may be used to facilitate trade in services. ICT services are those used to facilitate information processing and communication; potentially ICT-enabled services are services that  can predominantly  be delivered remotely over ICT networks. BEA measures  potentially  ICT-enabled services rather than ICT-enabled services themselves because for many types of services the actual mode of delivery is unknown.

• Interactive data:  International Services Tables
• Trade in Services in 2021 and Services Supplied Through Affiliates in 2020   Survey of Current Business October 2022 - includes a section on ICT and potentially ICT-enabled services.
• Trends in U.S. Trade in Information and Communications Technology (ICT) Services and in ICT-Enabled Services   PDF Alexis Grimm - Survey of Current Business May 2016
• Paper: Trends in Digitally-Enabled Trade in Services   PDF
• Blog: Trade in Digitally Enabled Services Shows Strong Growth
• Previously Published Estimates XLS Country estimates in these files use a slightly different definition of ICT and potentially ICT-enabled services than in the interactive data.

Price Measurement of High-Tech Goods and Services

BEA is consistently working toward improving price measurement, especially for high-tech goods and services which frequently experience changing characteristics, improved quality, and price changes relative to other goods and services.

Research Publications and Working Papers

• Implications of Consumer Heterogeneity on Price Measures for Technology Goods by Adam Hale Shapiro and Ana Aizcorbe | August 2010
• Why Are Semiconductor Price Indexes Falling So Fast?: Industry Estimates and Implications for Productivity Measurement by Ana Aizcorbe | September 2005
• Differences in Hedonic and Matched-Model Price Indexes: Do the Weights Matter? by Ana Aizcorbe and Yvon Pho | September 2005
• Price Deflators for High Technology Goods and the New Buyer Problem March 2005

Data as an Asset

• Capitalizing Data: Case Studies of Tax Forms and Individual Credit Reports   PDF by Rachel Soloveichik | June 2023
• Valuing the U.S. Data Economy Using Machine Learning and Online Job Postings   PDF by José Bayoán Santiago Calderón and Dylan G. Rassier | August 2022
• Presentation: Valuing Stocks and Flows of Data Assets for the U.S. Business Sector   PDF BEA Advisory Committee Meeting | May 2022
• Treatment of Data in National Accounts   PDF by Dylan G. Rassier, Robert J. Kornfeld, and Erich H. Strassner | May 2019
• Value of Data: There's No Such Thing as a Free Lunch in the Digital Economy by Wendy C.Y. Li, Makoto Nirei, and Kazufumi Yamana | February 2019

Other Research and Information

Research papers.

• Marketing, Other Intangibles, and Output Growth in 61 United States Industries by Leo Sveikauskas, Rachel Soloveichik, Corby Garner, Peter B. Meyer, James Bessen, and Matthew Russell
• Measuring the Cost of Open Source Software Innovation on GitHub by J Bayoán Santiago Calderón , Carol Robbins , Ledia Guci , Gizem Korkmaz , and Brandon L. Kramer | July 2022
• Is Productivity on Vacation? The Impact of the Digital Economy on the Value of Leisure   PDF by Benjamin Bridgman | February 2018
• Measuring the "Free" Digital Economy within the GDP and Productivity Accounts   PDF by Leonard Nakamura, Jon Samuels, and Rachel Soloveichik | October 2017
• Valuing 'Free' Media in GDP: An Experimental Approach   PDF by Leonard Nakamura, Jon Samuels and Rachel Soloveichik | June 2016

Of Interest

• OECD Handbook on Compiling Digital Supply and Use Tables , November 2023
• Videos: Measuring the Digital Economy from the Fifth IMF Statistical Forum, November 2017
• Podcast: GDP and the Value of "Free" featuring BEA's Rachel Soloveichik, with The Economic Statistics Centre of Excellence, July 2017

What is the Digital Economy Satellite Account?

Measures the digital economy's contribution to U.S. GDP, improves measures of high-tech goods and services, and offers a more complete picture of international trade. Includes valuing digital-enabling infrastructure, e-commerce transactions, and digital media.

What's a Satellite Account?

Stay on top of updates...

• Digital Economy Tina Highfill (301) 278-9266 [email protected]

Digital Economy Thesis Topics

Thesis Topics

In this new blog post we will develop some ideas for topics of the thesis of Digital Economy 2020. First of all, we go into what economists call the fourth industrial revolution that consists of the convergence of different technological currents allowing changes in all the economic areas of industry, health and commerce. Including education. According to this, Schwab, author of the book The Fourth Industrial Revolution:

We are on the verge of a technological revolution that will fundamentally modify the way we live, work and relate. In its scale, scope and complexity, the transformation will be different from anything that the human race has experienced before.

Therefore, the economy will also be incorporated into this trend. It is necessary to conduct scientific research on how to use academic resources and tools in the incorporation and use of the digital economy in the various areas mentioned above.

In this order of ideas and seeing the need for this type of academic research, we will develop to give ideas to those professionals who are in search of novel thesis topics in this important area

What is the digital economy and what is its importance?

There are many definitions of the digital economy, I consider that the most complete is that of Don Tapscott. That defines it as:

Revolutionary and comprehensive phenomenon driven by the convergence of communications, information and content. That also creates an interactive multimedia and an information highway.

It is a process and an economic trend affected by the digital trend. That will mark a difference between those who dare to incorporate it and those who manage with traditional economies.

The professional in the area of ​​Economics must learn to manage digital resources and take advantage of these tools to join their work area in a successful and up-to-date manner.

When the technological implementation is started as a tool to streamline processes and digital marketing is incorporated to increase sales, a commercial field was opened that was not perceived at the beginning.

However, nowadays, I displace traditional economies and catapult sales around the world. In order for a company to maintain its optimized internal controls, it must incorporate everything that the digital economy encompasses. Otherwise, weaknesses in their processes will begin to appear, which will affect their market permanence in the medium and long term.

And I mean all the areas, such as the administration of all the resources that the company has. Hence the importance of this subject. That will be more powerful for the following years.

We developed some titles and contents that can be used for thesis of this area. Let’s start:

Ideas for digital economy thesis topics 2020

Issue. When the technology was incorporated into the different business processes, weaknesses began to be detected in some areas of the company. As well as the loss of customers and decrease in sales. Especially the medium and small companies. Since they consider that investment in technology would increase their operational costs and have no knowledge if this will help them increase their profits.

Therefore, it is pertinent to carry out an analysis of how small and medium-sized companies will be affected by the use, incorporation and management of digital technologies in the process of digital transformation of small and medium-sized companies.

Title: Impact of the digital economy on the businesses of small and medium enterprises.

Issue. Due to these changes, workers may consider being affected in their jobs within an organization. Especially those who have not needed to handle technology and have not trained in this area. Therefore, an analysis can be made of how the digital economy impacts on working conditions and its medium and/or long-term change in labor law.

Title: Digital economy. Its impact on working conditions and employment.

Issue. The same order of ideas, companies have increased job offers looking for specialists in the area of ​​technology. Increased job opportunities for these professionals. For this reason, we can investigate the incorporation of the digital economy in the talent demand of engineers specialized in blockchain and other digital trends. Increasing the supply of employment in this area by companies that have already joined the digital economy.

Title: Analysis of occupational profiles of professionals specialized in digital tools.

Issue . Also, the tourist area, especially hotels can obtain multiple benefits using these tools. Since it is not necessary that the tourist or client visit the area to inquire about prices and packages. The recommendations will be directly searched online.

Therefore, the aim is to incorporate the tourism sector in the region to the use of the digital economy, since through this technology, hotel room reservations, prices, offers, among others, would be reduced in time and effectiveness. Updating this sector to the internet economy.

Title: The digital economy as a strategy to improve competitiveness in the tourism sector A variation of this work can be:

Use of Virtual Reality as a strategy to improve competitiveness in the tourism sector. Issue. By incorporating virtual reality in the use of tourism sector strategies, customers can observe in a clearer way, the site that is offered without having to reach the site and achieve a reality totally different from that offered by the entrepreneur. The advantages of staying in their facilities are visually enhanced.

The important thing in this type of thesis is to incorporate the new technologies that come hand in hand with the digital economy. Companies that have not yet decided to use them will be affected in the short term, since the trend is the increase in connections through the Internet. This service allows the saving of time and effort, being simple, fast and comfortable.

Conclusion:

Economics professionals must upgrade to the digital area. The technology made its appearance improving the quality of life of users. We go into what specialists call the fourth industrial revolution. Therefore, digital economy specialists must update their knowledge and develop thesis topics that demonstrate that they are at the forefront of digital information.

Initially it focused on increasing sales, improving advertising and reaching potential buyers in more foreign areas. Its penetration in the market was so fast and effective, that what a traditional store generated a time of 10 years to the online did it in 1 year. This was affecting all business areas, without discarding their human resources.

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