The WTO’s World Trade Report 2020 also emphasised the importance of big data for the digital economy, wherein it’s described that Big Data, a key input in digital technology innovation, present public good characteristics.
Explained: How Big Data is Crucial for The Digital Economy?
New Delhi (ABC Live India): The
COVID-19 pandemic apart from causing a negative impact on the global economy has able
to draw the public attention towards the potential of the digital economy as it kept
an essential part of our economy running during the pandemic.
ABC Research team working on
digital economy opined that data is a key input of an efficient and reliant digital
The WTO’s World
Trade Report 2020 also emphasised the importance of big data for digital
economy, wherein it’s described that Big Data, a key input in digital
technology innovation, present public good characteristics.
Data as a key input into the
The digital economy arose
out of the extraordinary amounts of detailed machine-readable information that
have become available about practically all personal, social and business
activities and interactions.
The internet has also
allowed a massive amount of information to be carried by modern communication
networks and transmitted instantaneously over any distance. The quantity of
data flowing globally over the internet has grown exponentially over the past
three decades. Global internet traffic, a proxy for data flows, grew from about
100 gigabytes per day in 1992 to more than 45,000 gigabytes per second in 2017.
Today 3.9 billion people, or
51 per cent of the global population, use the internet, and it is predicted that
nearly two-thirds of the global population will have internet access by 2023
(Cisco Systems, 2020).
Currently 80 per cent of the
processing and analysis of data take place in data centres and centralized
computing facilities, and 20 per cent in smart connected objects such as cars,
home appliances, manufacturing robots and computing facilities (Gartner, 2018).
In the future, even more
data are likely to be generated by smart connected objects and personal
computing devices. Not only do digital technologies modify the functionalities
of available goods and services, but the range and extent of such
functionalities will depend on the quantity of data that can be transmitted.
For example, the availability and diversity of data are crucial for training AI
systems, which work by combining large amounts of data with fast, iterative
algorithms to allow the software to learn automatically from patterns or
Although data are becoming
evermore ubiquitous, creating value out of data requires complementary assets,
individual skills, and data assessment tools, enabling those individuals and
firms with the strongest capacities to take full advantage of the data (Guellec
and Paunov, 2018).
An entirely new value chain
has evolved around firms that support the production of insights from data,
including data acquisition, data storage, data modelling and data analysis to
generate data intelligence.
This digital value chain
runs through every aspect of the economy, enabling the efficient management of
supply chains and increasing product diversity and in-depth insights about
consumer preferences, In essence, the amount of data and the speed of data
transmission enabled by data infrastructure is crucial for the functioning of
the digital economy.
Read Full World Trade Report 2020