Sharing the Benefits of Innovation-Digitization : A Summary of Market Processes and Policy Suggestions
Governments play a very important role in supporting innovation, managing the disruptive effects of innovation, and ensuring that the benefits of innovation are broadly shared in the long run. This paper reviews the literature on market mechanisms...
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World Bank, Washington, DC
2018
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| Online Access: | http://documents.worldbank.org/curated/en/971341523906776382/Sharing-the-benefits-of-innovation-digitization-a-summary-of-market-processes-and-policy-suggestions http://hdl.handle.net/10986/29708 |
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okr-10986-297082021-06-08T14:42:45Z Sharing the Benefits of Innovation-Digitization : A Summary of Market Processes and Policy Suggestions Islam, Roumeen EMPLOYMENT TECHNOLOGY PUBLIC POLICY DIGITIZATION COMPETITION POLICY INNOVATION INTERVENTION REGULATION INCENTIVES SKILLS DEVELOPMENT INFRASTRUCTURE LABOR SKILLS Governments play a very important role in supporting innovation, managing the disruptive effects of innovation, and ensuring that the benefits of innovation are broadly shared in the long run. This paper reviews the literature on market mechanisms that translate innovation into jobs and policies that are needed to improve outcomes. Although many countries now recognize the importance of modifying fiscal redistribution and insurance mechanisms to deal with the challenges of the digitization age, no country has yet done so feasibly. Developing country governments, having lower institutional capacity and usually fewer resources, will likely find it even more difficult to manage these changes. Global production patterns are likely to continue shifting. These shifts will depend on a combination of factors: the direction of technological change, trade agreements, global demand patterns, policies, and endowment shifts. Developing countries may not follow the same structural route of the past, through manufacturing, to higher income, but with appropriate investments, they can develop high-productivity service sectors. The policies that are needed to harness the benefits of digitization span a wide range of sectors: finance, competition policy, public support to innovation, fiscal and regulatory incentives for innovation, macroeconomic frameworks supporting demand growth, public support to education and reskilling, infrastructure provision for the digitization age, and sustainable fiscal insurance and redistribution systems. Finally, a lot more research needs to be done to understand how the gig economy affects the welfare of workers of different types, its macro effects, and how digitization interacts with an aging or shrinking labor force in the growth process. 2018-04-20T13:58:07Z 2018-04-20T13:58:07Z 2018-04 Working Paper http://documents.worldbank.org/curated/en/971341523906776382/Sharing-the-benefits-of-innovation-digitization-a-summary-of-market-processes-and-policy-suggestions http://hdl.handle.net/10986/29708 English Policy Research Working Paper;No. 8406 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Europe and Central Asia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English |
| topic |
EMPLOYMENT TECHNOLOGY PUBLIC POLICY DIGITIZATION COMPETITION POLICY INNOVATION INTERVENTION REGULATION INCENTIVES SKILLS DEVELOPMENT INFRASTRUCTURE LABOR SKILLS |
| spellingShingle |
EMPLOYMENT TECHNOLOGY PUBLIC POLICY DIGITIZATION COMPETITION POLICY INNOVATION INTERVENTION REGULATION INCENTIVES SKILLS DEVELOPMENT INFRASTRUCTURE LABOR SKILLS Islam, Roumeen Sharing the Benefits of Innovation-Digitization : A Summary of Market Processes and Policy Suggestions |
| geographic_facet |
Europe and Central Asia |
| relation |
Policy Research Working Paper;No. 8406 |
| description |
Governments play a very important role
in supporting innovation, managing the disruptive effects of
innovation, and ensuring that the benefits of innovation are
broadly shared in the long run. This paper reviews the
literature on market mechanisms that translate innovation
into jobs and policies that are needed to improve outcomes.
Although many countries now recognize the importance of
modifying fiscal redistribution and insurance mechanisms to
deal with the challenges of the digitization age, no country
has yet done so feasibly. Developing country governments,
having lower institutional capacity and usually fewer
resources, will likely find it even more difficult to manage
these changes. Global production patterns are likely to
continue shifting. These shifts will depend on a combination
of factors: the direction of technological change, trade
agreements, global demand patterns, policies, and endowment
shifts. Developing countries may not follow the same
structural route of the past, through manufacturing, to
higher income, but with appropriate investments, they can
develop high-productivity service sectors. The policies that
are needed to harness the benefits of digitization span a
wide range of sectors: finance, competition policy, public
support to innovation, fiscal and regulatory incentives for
innovation, macroeconomic frameworks supporting demand
growth, public support to education and reskilling,
infrastructure provision for the digitization age, and
sustainable fiscal insurance and redistribution systems.
Finally, a lot more research needs to be done to understand
how the gig economy affects the welfare of workers of
different types, its macro effects, and how digitization
interacts with an aging or shrinking labor force in the
growth process. |
| format |
Working Paper |
| author |
Islam, Roumeen |
| author_facet |
Islam, Roumeen |
| author_sort |
Islam, Roumeen |
| title |
Sharing the Benefits of Innovation-Digitization : A Summary of Market Processes and Policy Suggestions |
| title_short |
Sharing the Benefits of Innovation-Digitization : A Summary of Market Processes and Policy Suggestions |
| title_full |
Sharing the Benefits of Innovation-Digitization : A Summary of Market Processes and Policy Suggestions |
| title_fullStr |
Sharing the Benefits of Innovation-Digitization : A Summary of Market Processes and Policy Suggestions |
| title_full_unstemmed |
Sharing the Benefits of Innovation-Digitization : A Summary of Market Processes and Policy Suggestions |
| title_sort |
sharing the benefits of innovation-digitization : a summary of market processes and policy suggestions |
| publisher |
World Bank, Washington, DC |
| publishDate |
2018 |
| url |
http://documents.worldbank.org/curated/en/971341523906776382/Sharing-the-benefits-of-innovation-digitization-a-summary-of-market-processes-and-policy-suggestions http://hdl.handle.net/10986/29708 |
| _version_ |
1764470031716974592 |