Derivations on the Influence of Digitization on the National Economy

Digitization has captured many areas of the economy. This chapter deals with what is special about digitization from an economic perspective and how digitization affects the national economy. The first thing to mention would be the dynamics, which set digitization apart from other developments, such as electrification. Accompanying structural changes have to be managed in a short time, which further intensifies them. The second peculiarity is the ubiquitous data. Increasing amounts of data are used to optimize processes or even measure individuals. This has advantages, such as more efficient production routes, but can also have negative consequences, for example in the insurance of individuals. The third peculiarity is the increased emergence of platform markets. Whether platforms like eBay or Airbnb or social media platforms like Facebook or Snapchat—these are among the biggest winners of the digital transformation. Often the services on one side are offered at zero prices, which makes their regulation difficult for competition authorities. In addition, data has become a means of payment, in response to which the Act against Restraints of Competition (GWB) was revised. However, one puzzle remains: The expected efficiency gains in production are not visible in the traditional measures of productivity.