Data shaping firms and markets

Abstract

This report analyses how firms use data, and how that use shapes markets. It presents policy lessons to encourage the more even use of data in the business population, which is necessary to realise the potential of data for growth and well-being. This report was drafted by Angela Attrey and James Mancini, under the guidance of Antonio Capobianco and Jeremy West, and the supervision of Audrey Plonk, Head of the OECD Digital Economy Policy Division. The report benefits from the input and research of focal points across the OECD Secretariat, including the Directorate for Science, Technology and Innovation (Sara Calligaris, Flavio Calvino, David Gierten, Simon Lange and Vincenzo Spiezia), the Centre for Entrepreneurship, SMEs, Regions and Cities (Marco Bianchini, Lucia Cusmano, Sandrine Kergroach and Lora Pissareva), the Directorate for Financial and Enterprise Affairs (Oliver Garrett-Jones and Iota Nassr) and the Economics Department (Lilas Demmou). The insights from participants of the virtual OECD Workshop "Data Shaping Firms and Markets", held on 11 May 2022, are gratefully acknowledged. Angela Gosmann and Mark Foss provided editorial support. This publication is a contribution to IOR 1.3.1.2.3 of the 2021-2022 Programme of Work and Budget of the Committee on Digital Economy Policy. This report was approved and declassified by the Committee on Digital Economy Policy on 27 September 2022 and prepared for publication by the OECD Secretariat.This publication is a contribution to Phase III of the OECD Going Digital project, which aims to provide policy makers with the tools they need to design and implement better data policies to promote growth and well-being.For more information, visit www.oecd.org/going-digital.

Measuring the value of data and data flows

“…Another shortcoming of international bandwidth and IP traffic measures is that, according to some estimates (OECD, 2019 [64]), the bulk of data traffic seems to occur within data centres (Figure 3.7b). This implies that, if two businesses exchange data within a data centre in a third country, international bandwidth and IP traffic metrics would record no cross-border flow (Nguyen and Paczos, 2020 [66]).…”