The digital economy is becoming the economy, and strategies are needed to ensure that technology serves people, said Don Tapscott on March 17, in an interview for the Mingyue Lake Innovation and Development Conference on Digital Economy and Satellite Internet.

The Digital economy is becoming the economy

Tapscott proposed the concept of the digital economy in 1994. He said in the interview that the world has seen the rise of the second era for the digital economy, based on technologies such as artificial intelligence, blockchain, and the internet of things.

Even though these technologies present some challenges, they do not outweigh the new opportunities that they bring. 

For example, artificial intelligence is now not only analyzing data to help with marketing, but is also generating new content. In regards to the supply chain, traditional old technologies are likely to cause delays and errors. New technologies now feature a single digital platform for everyone to share, where transactions can be settled instantly.

"The digital economy is really becoming the economy as every business process, many activities are all becoming different," Tapscott said.

"There can be no successful economy unless things are digital and digitized," he said. This does not mean that people are no longer in the picture but that everyone now has access to the infrastructure and the tools for wealth creation, innovation, solving social problems, and building better governments. The digital economy also includes more people in the economy, and allows for a better financial system.

Technology should serve people

China has included developing the digital economy in its government work report for six consecutive years and issued the 14th Five-Year Plan (2021-25) for digital economy development in 2021. Tapscott commented that "every country should be doing this."

Tapscott explained that the government, the private sector, and other parts of society should jointly develop sensible strategies and plans to develop the digital economy. These strategies should enable technology to not only make changes in multiple sectors, but to also ensure that technology serves people, not just big businesses.

"That means creating rights and policies on technology implementation so that this world becomes a better place. For example, exploring how technology can help the economy, innovation, and global problems," he elaborated.

On the topic of Chongqing's digital economy development, Tapscott said the city has many key assets and characteristics, such as a large population, an immediate marketplace for technology, a myriad of young people, good education, and access to capital and financing.

The transformation of business models and government structures, and the creation of policies that protect the rights of people are important when it comes to the development of the digital economy. Tapscott explained that governments should ensure that everyone benefits from this technology.

"I would just encourage people to think in a comprehensive and global way, even though you're building something regional, you need to think global and act locally," he added.

Chongqing has been actively promoting the development of its digital economy in recent years. Its digital economy has registered an annual growth of more than 15 percent from 2019 to 2021.