Digital Industrialization: Building Internationally Competitive Digital Industries With Global Value Chain Connectivity

This policy brief was published by the Task Force 1 “Open Trade and Sustainable Investment” on the T20 website.

The G20 is currently at risk of being distracted from making cooperative efforts to develop urgently-needed, new rules for digital trade. Formulating domestic strategies to develop digital industries and increase participation in fast growing “tech trade” has meanwhile emerged as a policy priority across the G20. This requires a balancing act between industrialization versus employment objectives, data protection and national security goals versus international competitiveness and openness. This paper offers an evidence-based framework of best practice policy parameters to balance these issues. International benchmarks are identified to guide structural reform efforts that can strengthen the digital potential of G20 members while avoiding protectionism. The key is to integrate into the global digital market by ensuring efficient, interoperable digital regulatory environments, enhancing online trust for business and consumer connectivity, and attracting investment to generate quality digital jobs. G20 adoption of this approach at the domestic level will improve the prospects for progress in digital trade governance.

Read the full policy brief.