EBIP Synthesis Report Preliminary policy messages

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EBIP Synthesis ReportPreliminary policy messages

• Vladimir López-Bassols, OECD
• EBIP Workshop29-30 October 2001, Rome

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Background and goals

• Cross-country Synthesis Report
• Detailed responses from 179 firms
• 30 reports covering 14 sectors in 10 countries
• Need for policy-makers to understand the
  e-commerce environment from the perspective of
  participants
• Identify where the scope for positive policy
  intervention is greatest

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Factors examined

• Although some factors relate to
  micro-environment, most are embedded within macro
  conditions
• No simple obstacle/advantage dichotomy
• Methodology (data reporting sheets) covers 6
  areas
• Telecommunications infrastructure
• Regulatory factors
• Internal factors
• Relations with other firms
• Competitiveness
• General government policy

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Overall approach

• Initial focus was on messages from firms,
  followed by additional analysis (inferred
  messages)
• Also tried to capture size effects and sector
  differences (tangible/intangible)
• Initial analysis reveals a new set of 4 broad
  factors
• Cost factors
• Technology factors
• Confidence factors
• Competence factors

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Cost factors
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Cost factors some results

• 1 in 3 firms found it difficult to justify
  e-commerce implementation costs
• Declining equipment and software prices increase
  affordability Web-based solutions often more
  affordable
• More than 50 of firms did not consider telecom
  costs a significant obstacle. Concerns about
  costs in foreign markets.
• Taxation relatively neutral factor, perceived as
  somewhat negative by large firms
• RD subsidy programmes around 2/3 of firms
  considered them not applicable or not relevant

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Technology factors
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Technology factors some results

• Installed technology base significant factor,
  evenly split positive/negative
• Public network infrastructure flexibility, and
  to a lesser extent reliability, deemed adequate
  (especially by large firms)
• Some concerns remain bandwidth, insufficient
  liberalisation and competition in the telecom
  industry
• (Competing) transaction systems high
  expectations regarding interoperability and
  standards

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Confidence factors
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Confidence factors some results

• More than a technological problem. Gap between
  perceived risks and reality.
• Solving security, authentication, certification
  problems has a direct and positive impact
• Overall satisfaction with underlying legal
  framework main problems cited were enforcement
  and uncertainty in foreign markets
• IPR protection main concern in music industry
  (pace of technological change, need for
  clarification)
• Brands important asset for large firms, mainly
  in markets where buyers perceive high risk
  (banking, travel, logistics)
• Public profile disappointing results (sample?
  interpretation?). Consensus that government has a
  role to play.

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Competence factors
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Competence factors some results

• Management attitude a strong driver
• Human factors more difficulties for small firms
• Skills and training only 10 of firms identified
  these as having no effect
• Significant challenge away from technical
  skills, towards new e-business skills. Skill
  upgrading for higher value added tasks
• Education and training challenges for both firms
  and governments

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Other observations

• Type of asset base (tangible/intangible) did not
  yield significant differences except in isolated
  cases
• Quantitative analysis of implementation factors
  which accounts for positive and negative
  responses reveals an order of priorities (from
  the perspective of firms)
• High competence factors
• Moderate cost
• Low confidence
• Lowest technology

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Considering policy options

• Refocusing the debate from market governance
  (facilitate organisation and coordination) to
  stimulation (ensure opportunities and equity)
• Messages from proactive firms not fully
  representative

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Policy looking forward

• Enhanced electronic infrastructure (broadband)
  and greater coordination with physical
  infrastructure (logistics)
• Importance of international market governance,
  cross-border interoperability
• Competition policy should not assume e-commerce
  has innate dynamics that subvert competitive
  environment new commercial hierarchies within
  networks, different degrees of intermediation,
  greater opportunities for value-chains to
  intersect
• More effective SME support through better
  understanding and analysis of sector and market
  characteristics