The Accenture Digital Productivity study 2014 produced new insights into the way digitalization affects economic performance in the world’s major economies. The study produced a comprehensive digital density scorecard that captures not just the integration of digital technologies and processes into business practices, but also the degree to which digital is enabled in the surrounding institutional and economic environment. This study found empirical evidence that higher degrees of digital density are related to better economic performance.
Canada gains a high digital density score, revealing the country’s consistently forward-leaning approach to digitalization across the scorecard. This high score is in spite of relatively slow internet speeds and a relatively small pool of information and communications technology (ICT) skilled labour. Canada’s success is built on institutions, behaviours and attitudes towards digital change as much as hard infrastructure.
The Accenture and Oxford Economics study on Digital Density was based on three principal research components:
Collection of internationally comparable observations across hundreds of measures of digital technology and related indicators, from public and private sources.
From more than 50 of those indicators, the construction of a statistically tested composite Digital Density Index for 33 major economies, 16 of which included partially imputed scores.
Multivariate regression analysis to estimate equations that explain variation in countries’ total factor productivity by reference to their relative Digital Density Index scores.
The study estimates only the effect of changes in total factor productivity on GDP. Expanding Digital Density likely will have additional positive GDP effects from factors including expansion of the digital/ICT sector and capital deepening across the economy. Further analysis could also consider other effects of expanding Digital Density, including effects on labour markets, public finances, and investment patterns. This report focuses on the Canadian findings. You may also be interested in reading the Global report available at www.accenture.com/digitaldensity.