How the Digital Transformation of the Economy Can Succeed

The digital transformation is one of the greatest challenges of our time. High-speed internet, mobile devices, intelligent software algorithms as well as data storage and processing are changing economic and social processes. Digitalisation has multiple dimensions, making a successful economic and social transformation difficult. However, the opportunities presented by digitalisation, such as the development of new products and services as well as increases in productivity, can only benefit society if the challenges that come with it are tackled in an active and creative manner. In its coalition agreement, the new federal government has specified numerous and ambitious goals regarding digitalisation that will affect several social and economic sectors as well as nearly all federal ministries. From an economic perspective, three aspects are of particular importance, that is, further expanding broadband infrastructure, supporting the digitisation of small and medium-sized enterprises and strengthening digital skills. Germany has a lot of catching up to do in all of these fields.

Bertschek, Irene and Wolfgang Briglauer (2018), How the Digital Transformation of the Economy Can Succeed, ZEW policy brief No. 18-05, Mannheim