The United Kingdom is far ahead of the rest of the world regarding technological advancement. According to the World Economic Forum's 2019 Global Competitive Index, the country's competitive advantage stems from its business dynamism, strong institutional pillars, funding mechanisms, and a vibrant innovation ecosystem. Since the post-World War II industrial revolution, competitiveness has been fuelled by innovation, a defining feature of the UK's competitiveness. Countries that are pioneers in developing cutting-edge technologies, prescriptive analytics, blockchain technologies, digital twins, and fully utilizing their digital economies' productive capacity can achieve a strategic competitive advantage.
Economic growth, national security, and international competitiveness are all dependent on digital technologies. The digital economy has a sizable impact on both the global economy's trajectory and the general well-being of the public. It affects every aspect of life, from resource distribution to economic growth.
Impact of Technological Trends in Economic Growth.
How do we quantify the digital economy's impact on economic growth and other relevant social indicators? Researchers recognize the difficulty of accurately evaluating a rapidly evolving digital economy. The researchers estimate that the digital economy is worth $11.5 trillion globally, or 15.5 percent of global GDP, and has grown two and a half times faster than global GDP over the last 15 years.
According to Bea's analysis, measurement difficulties result from a lack of agreement on the activities that should be included in the definition and the rapid evolution of the underlying nature of digital technologies and cloud analytics. According to the BEA, the UK’s digital economy grew at an annual average rate of 5.6 percent between 2010 and 2016, accounting for 6.5 percent of current-pound GDP.
Regardless of how difficult it is to compile accurate national statistics, tracking the digital economy's growth trajectory is critical for determining the UK's economic and global competitiveness.
To put it another way, the digital economy's goods and services were either created with or incorporated digital technologies. ICT is at the heart of this, serving as a reliable barometer of the digital economy's performance while underpinning much of this activity.
According to Niebel, between 1995 and 2010, ICT significantly contributed to economic growth in developed, developing, and emerging countries.
UK's competitive edge in the digital era will be built on innovation, entrepreneurialism, and information and information technology production. The information and communications technology (ICT) sector and the industries it supports contribute significantly to economic growth. The sector's contribution to the small business ecosystem is examined, as are its investments in retraining and skill enhancement initiatives.
Advancements in ICT.
Advanced economies rely on investments in information and communications technology (ICT) assets such as computer hardware, software, NVDA, and broadband internet infrastructure. According to Vincenzo Spiezia's OECD research, ICT investment is the primary driver of GDP growth and global competitiveness. The value of ICT capital services as a percentage of GDP enables an accurate assessment of the ICT sector's contribution to growth.
The United States leads the world in this area and enjoys a competitive advantage over other OECD members. Even though ICT assets account for a sizable portion of capital (or capital services) in GDP growth, India and China have emerged as market leaders in this space.