Digital Australia an Economic and Trade Agenda

Abstract

The use of digital technologies is a key driver of productivity gains and it will shape the global economy over the next decades. In fact, Australia’s Commonwealth Scientific and Industrial Research Organization (CSIRO) has identified increased immersion in a digital world—characterized by data-driven new business models, platforms, and e-commerce, enabled by global supply chains—as one of the global megatrends for the next 20 years. For Australia, this will require using the global internet and data flows as drivers of innovation and productivity to underpin further decades of economic growth, jobs, and rising living standards. For instance, in the US, it is estimated that the internet has improved productivity in the digitally-intensive sectors of the economy by 7.8-10.9 percent. According to one estimate, taking full advantage of the opportunities presented by the ‘internet of things’, big data analytics, automation and online talent platforms could increase Australia’s gross domestic product (GDP) by an additional A$140 billion-A$250 billion by 2025.