Past and potential contributions of the state to innovation and the creation of the digital economy need to be understood now, more than ever. The state is under attack, and its role in innovation and technological transformation is being increasingly challenged and dismantled in many countries. This article takes an alternative view of state role in the digital age, one that is supported by historical evidence. The article examines the increasing demand for an entrepreneurial state and draws on lessons from pioneering countries. It shows the variety of roles and strategies that the state can play in creating the digital economy. These roles include nurturing a national digital transformation ecosystem and building an innovative and inclusive digital economy. These roles call for new state capabilities to fit with the demands of the digital age. This is a call for strategic learning and partnership, not for dirigisme and protectionism. The paper proposes an agenda for learning to master digital transformation and suggests that the appropriate role of the state must evolve in sync with a learning economy and society.
Software presents an unusual set of problems for policy makers. As a major global industry, it has been successfully targeted by a growing number of countries for its potential to generate export revenue. At the same time, it is an essential, high‐risk, and increasingly expensive component of Information and Communications Technology (ICT)‐related programs to increase government effectiveness and to bring local firms in other industries up to globally competitive performance levels. This paper outlines the range of considerations specific to software within ICT planning and discusses government's role in accelerating and shaping that growth in support of social and economic priorities. We draw on the experience of both developed and emerging economies to argue that government should take an active role in software industry development, and to lay out the full range of possible government actions (both policies and programs). Every country's path seems to be different – the best course of action will depend on the resources available (including infrastructure and human resources), on the state of the global software industry at that specific time, and on the country's unique situation, such as languages spoken, regional or cultural ties with major markets, a tradition of entrepreneurship, or an expatriate business community.
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