Page 30 - The European Business Review

Technology

The World Bank calculates that with “a 10% increase in high

speed Internet connections, economic growth increases by
1.3%” and leads to “democratisation of innovation”.

at different stages of development. Never- activities, and thus enhances competitiveness,
theless, one policy area has a nearly universal BCG found that “the companies focused on
applicability. This ‘silver bullet’ of economic mobile’s core technologies invest a larger share
development is broadband connectivity. of revenue (21%) in R&D than those in any
$OO WKUHH SLOODUV RI FRPSHWLWLYHQHVV DV GHÀQHG other industry except biotechnology.”
by the World Economic Forum, incorporate
the connectivity component, be it telecoms
infrastructure under the basic sub-index, tech-
QRORJLFDO UHDGLQHVV XQGHU HIÀFLHQF\ HQKDQFHUV
or the entire pillar of innovation and business
sophistication where a high degree of connec-
tivity is a basic precondition.
The World Bank calculates that with “a
10% increase in high speed Internet connec-
tions, economic growth increases by 1.3%”
and leads to “democratisation of innovation.”
In a world where only 40% of the population
have access to the Internet; we could boost

the global GDP by $1 trillion by connecting
another 327 million people. More importantly,
this will contribute to sustainable and inclusive ! " # !" !$&% " "$
!"! #! $#% !& #
growth, supporting economic development in
the emerging markets where Internet penetra-
$%
tion is lagging. While a consensus is yet to be
reached over the scope and scale of the effect
we should expect from mobile connectivity on
poverty-reduction, some argue that it might be
the best hope we have.
'( ) (
* + "

,(
*
GSMA postulates that “Mobile internet

-
. - ./

*
0 + 0
+
access can create a virtuous cycle in devel-
oping countries” and has calculated that a !"
$#"%"& 8/""9""' $#"%"&
"
# #"'"" ( *"%
"
9' #"'"" (
better part of a mobile ecosystem’s impact on
the global economy comes from productivity ) !"
&2"
&""+,
"*+, ' 0
#. "*" &2"
&""+,
gains elsewhere. ..."3& "'"0"
"#.
When researching the impact of mobile tech-
"* 4&""&"#"'
nologies across six countries (U.S., Germany, 3&

*
0 + 0

+.
+
South Korea, Brazil, China and India), BCG ""(:"/
*
7
/
."#"%"
-!"
$-+ . /0 #* %"* *&"'"""
termed this sector a growth engine and looked #* %
* 1 '
' /
"%"*"
at the impact it has on SMEs, jobs, as well as
EHQHÀWV WR FRQVXPHUV "& 5
6
7/ !("
*
"
/"
."
"%. #* ( "
/ '"0"
"#.
1RW RQO\ GRHV WKH VHFWRU HQDEOH HIÀFLHQF\
gains across the widest range of economic

30 The European Business Review January - February 2018