" ITREALMS: e-Friction: Countries with fewer limitations engender digital GDP - Research

Thursday, May 01, 2014

e-Friction: Countries with fewer limitations engender digital GDP - Research


The recent research by the Boston Consulting Group (BCG) showed that the difference between countries with low e-Friction and those with high e-Friction can amount to 2.5 per cent of the Gross Domestic Group (GDP), ITRealms reports.

Part of the executive summary of the report tagged ‘Greasing the Wheels of the Internet Economy’ made available to ITRealms indicated that easy access and use of the Internet could dramatically affect the growth of national economies, according to new research by BCG.

The research, ITRealms gathered measured the constraints on Internet use in 65 countries and found that those with fewer limitations on online activity could have larger digital economies, just as the difference could amount to 2.5 per cent of GDP.

The report, introduces the BCG e-Friction Index, which ranks countries according to four types of e-friction: infrastructure-related frictions that limit basic access; industry and individual frictions that affect the ability of companies and consumers to engage in online transactions; and information frictions that involve availability of, and access to, online content.

Paul Zwillenberg, a BCG partner and a co-author of the report was quoted as saying that because the digital economy is growing quickly, often outpacing the offline economy, high e-friction countries are in danger of missing out on a high-impact propellant of growth and job creation.”


“On the other hand, high-friction countries that address their sources of e-friction have the potential to add significant value to their economies,” he said.

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