University of Jyväskylä

Dissertation: 20.12.2017 Transformative Direction of Innovation and Measurement of Uncaptured GDP in the Digital Economy (Naveed)

Start date: Dec 20, 2017 12:00 PM

End date: Dec 20, 2017 03:00 PM

Location: Mattilanniemi, Agora auditorium 2

KashifNaveednetti.jpg
Kashif Naveed
M.Sc. Kashif Naveed defends his doctoral dissertation in Mathematical Information Technology "Transformative Direction of Innovation and Measurement of Uncaptured GDP in the Digital Economy". Opponent PhD Leena Ilmola-Sheppard (International Institute for Applied Systems Analysis) and custos Professor Pekka Neittaanmäki (University of Jyväskylä).


In today’s digital world, the technology has become the vital part of our social, business and institutional culture and the source of competitiveness among countries. The Internet, online intermediaries and digital platforms provide extra ordinary services, convenience and welfare never anticipated before. However, the ICT advanced firms and countries are suffering with low marginal productivity of their ICT investments. The Internet and massive digitization has also promoted free and non-monetary consumption of digital goods and services which are difficult to be captured by GDP (gross domestic product) statistics.

By realizing the importance of issue, this research conceptualizes the term “uncaptured GDP” and develops a new method to measure its magnitude. The comparison of two ICT advanced countries reveals their contrary ICT-driven development trajectories, “happiness-oriented” in Finland versus “growth-oriented” in Singapore. It signifies how nations and industries use technology differently to create their unique competitiveness and try to achieve optimal balance between economic development and social wellbeing.

Indeed, new digital technologies are reshaping industries, business models, organizational structures and nature of jobs. Due to the complexity of the situation, governments are facing “decision maker’s dilemma” in terms of devising ICT strategies, economic and social policies. So well-informed innovation strategies at industrial and national level are indispensable.

In the light of above, the transformative direction of innovation and significance of uncaptured GDP is analyzed at industry and national level through several case studies. The digitization of music and taxi industries reflect the impact of digital innovations on traditional industries, uncaptured GDP and their consolidation with public and private institutions. The national level analyses explore useful insights for developing ICT-driven competitiveness through higher education (20 countries) and gender equality (44 countries) in the digital economy.

These results reveal, how industries and countries are harnessing the potential of untapped and non-economic resources so-called “soft value innovation” to create unique competitiveness and to address the challenges of digital economy such as declining marginal productivity of technology, increasing role of uncaptured GDP and intense competition.

Despite aforementioned challenges, the technological advancement is indeed an important driver for economic and social development. By better understanding the phenomenon of digitization, measuring it’s positive and negative impacts, understanding the changing organizational structures and by devising responsive ICT strategies, economic and social policies, we can turn the crisis into a springboard for innovation and future opportunities.

For more information:

Kashif Naveed, +358469327016, kashif.k.naveed@jyu.fi

Communications Manager Liisa Harjula, tel. +358 40 8054403, viestinta@jyu.fi 

The book has been published in Jyväskylä Studies in Computing series, number 274, 102 p. (+ Articles), Jyväskylä 2017, ISSN 1456-5390, ISBN 978-951-39-7295-0 (nid.), ISBN 978-951-39-7296-7 (PDF). Permanent link: http://urn.fi/URN:ISBN:978-951-39-7296-7

Kashif Naveed has completed his Bachelor’s Degree in Computer Science from Hamdard University Karachi, Pakistan in 2002.  Since 2003 he has been working in several industries in Pakistan at different positions e.g. software engineer, System Analyst and IT manager. In 2013, he completed his Master's of Science Degree in Economics and Business Administration from University of Jyväskylä, Finland and in the same year he also started his PhD. Since then he is working as a doctoral student at University of Jyväskylä. His research has been contributing to the “Platform Value Now: Value capturing in the fast emerging platform ecosystems” project funded by the Strategic Research Council at the Academy of Finland.

Abstract

The Internet has dramatically changed business dynamics and our daily lives by providing extraordinary services and welfare never anticipated before. However, productivity in industrialized countries has confronted an apparent decline. The ICT advanced firms and countries are suffering with low marginal productivity of their ICT investments. This reveals the two-faced nature of ICT and productivity paradox in the digital economy. With the progression of technology and transition from commodity-oriented to information society, the consumers’ preferences are believed to be shifted beyond economic value. The digitization has promoted the free and non-monetary consumption of digital goods and services that provides utility and happiness to consumers, but it cannot necessarily be captured through GDP (gross domestic product) statistics. This research conceptualizes it as “uncaptured GDP” and develops a new method for its measurement. The comparison of two ICT advanced countries reveals their contrary ICT-driven development trajectories, “happiness-oriented” in Finland versus “growth-oriented” in Singapore. It signifies how nations and industries use technology differently to create their unique competitiveness and try to achieve optimal balance between economic development and social wellbeing.

Indeed, new digital technologies are reshaping industries, business models, organizational structures and nature of jobs. Due to the complexity of the situation, governments are facing “decision maker’s dilemma” in terms of devising ICT strategies, economic and social policies. So well-informed innovation strategies at industrial and national level are indispensable.

The digitization of taxi and music industries is studied to analyze the impact of ICT-driven disruptive innovations on traditional industries and their consolidation challenges with institutions. The national level analyses explore useful insights for developing ICT-driven competitiveness through higher education (20 countries) and gender equality (44 countries) in the digital economy. These results reveals, how industries and countries are harnessing the potential of untapped and non-economic resources so-called “soft value innovation” to create unique competitiveness in the digital economy. With the analyses of transformative direction of innovation (by 500 ICT firms), it is anticipated that the role of soft value innovation will further increase in addressing the challenges of digital economy such as declining marginal productivity of technology, increasing role of uncaptured GDP and intense competition.


More information

Kashif Naveed
kashif.k.naveed@student.jyu.fi
Filed under: