PROMOTING THE ICT SECTOR The Importance of Internationally Comparable Data
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1 PROMOTING THE ICT SECTOR The Importance of Internationally Comparable Data Torbjörn Fredriksson Chief, ICT Analysis Section, UNCTAD Measuring the IT Industry Globally GPATS, Sao Paulo, Brazil 13 November 2013
2 Research and analysis UNCTAD Work on ICT4D Three pillars Information Economy Report Stand alone studies Technical assistance Measuring the information economy Reviewing national ICT policies Strengthening cyberlaw frameworks Consensus-building and collaboration 2
3 Collaboration Within UN system and Beyond UN Group on the Information Society (UNGIS) UNCTAD Vice-chair 30 member organizations Co-organizer of the annual WSIS Forum/WSIS+10 Review Lead facilitator of Action Line C7 on E-business Secretariat of the CSTD Follow-up to the WSIS Partnership on Measuring ICT for Development Member of Steering Committee Responsible for information economy indicators 3
4 Why Promote the ICT sector? Vibrant ICT sectors contribute to jobs, innovation, exports and GDP growth o Kenya: ICT sector accounted for 24% of total GDP growth since 2000 o India: ICT sector grew at over 20% annually since 2000 o Cameroon: Growth was 15-46% per year from 2000 Local ICT capabilities needed to sustain ICT use throughout economy and society Within ICT sector, software and IT services offer the most promising opportunities in low- and middle-income countries
5 Software is Everywhere Growing emphasis on ICTs in the delivery of government, healthcare, education and other goods and services demands customized applications. Countries therefore need the capacity to adopt, adapt and develop relevant software. BAN Ki-moon, UN Secretary-General
6 Software Sector Opportunities Low capital barriers to entry Generator of employment not least for the skilled youth o Some 10 million people work in computer software and services Source of innovation o Software top recipient of venture capital in the US Source of export revenue o Top exporters from the South: India, China, Philippines, Singapore Key to sustain productive ICT use in society o Software increasingly important for functionality of goods and services
7 Why Measure the ICT sector? Data needed for informed policy-making Data missing for the majority of developing countries o No LDCs are currently reporting ICT sector data Lack of official data means that policy makers and other decision makers will rely on private sources of data o Forrester, Gartner, IDC, EITO, etc o Methodologies are not harmonized o Strong focus on sales rather than production
8 ICT Sector s Share of Business Sector Employment Israel (2011) Japan (2010) New Zealand (2011) Mauritius (2011) Switzerland (2008) Uruguay (2010) Costa Rica (2010) Hong Kong (China) (2010) Russian Fed. (2008) Singapore (2010) United States (2009) Armenia (2010) Cameroon (2009) Mexico (2009) Azerbaijan (2011) Kazakhstan (2008) Egypt (2011) Oman (2011) Source: UNCTAD
9 Distribution of ICT sector employment IT services and telecoms dominate ICT sector in most countries.
10 UNCTAD-WITSA 2012 Survey of IT/Software Associations Online survey conducted March April out of 80 IT/Software Associations responded Countries represented accounted for more than half of global spending on software and IT services, and more than half of all ICT spending. o 8 associations in developed economies o 26 in developing economies o 4 in transition economies. The responding associations had more than 16,000 member companies, employing more than 5 million people
11 Influencing Policy Key Task Most associations actively contribute to the process of national policy making relevant to the software industry. All respondents support national policy formulation and engage in policy advocacy and lobbying. More than 80% are engaged in raising awareness of the IT/Software industry, promoting interaction between industry and academia and promoting the national sector abroad. Relatively few are involved in incubation, certification or facilitation of internships or scholarships. Good data important to influence policy and raise awareness!
12 Less than 50% Survey their Members at Least Annually Source: UNCTAD and WITSA.
13 Proposal to Enhance Data Availability Explore collaboration with the private sector - WITSA Build on the IT Industry Barometer (BMZ/GIZ) Develop a harmonized tool that all WITSA members could use Leverage good national practice (such as Assesspro/ALETI) Use approach that allows data to be compared with official statistics
14 What is in it for WITSA and its Members? Show importance and evolution of the sector Compare IT sector performance of different countries Identify barriers to growth Use in interaction with governments To Fulfill the Promise of the Digital Age!
15 INFORMATION ECONOMY REPORT 2012 can be downloaded free of charge at
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