华为 -智能经济 实现可持续增长 Intelligent Economy Enabling Sustainable Growth

IntelligentEconomy

Enabling

SustainableGrowth

IntelligentEconomy

Chapter0210IntroducingtheIntelligentEconomy

Chapter04

QuantifyingthevalueoftheIntelligentEconomy

Executive02

Summary

Chapter0103Theglobaleconomywillbeimpactedbyseveralmegatrends

Chapter0321KeytechnologiesbehindtheIntelligentEconomy

Chapter0551

RealisingtheIntelligentEconomy

2

IntelligentEconomy

ExecutiveSummary

DefinitionoftheIntelligentEconomy

TheIntelligentEconomygeneratesvaluethroughtheseamlessintegrationofnext-generationtechnologiesincludingbutnotlimitedto5G+,ArtificialIntelligence(AI),andtheInternetofThings(IoT)toprogresssingle-pointintelligencesystemsworkinginisolationtowardsmultipleintelligencesystemsthatoperateintandem,thathavethestrongpotentialtocreatenewandinnovativesolutionstoenhanceproductivitygains,socialwell-being,andbenefitstotheenvironment.

KeyCharacteristicsoftheIntelligentEconomy

Labourvalueincreasedfrom

greateraccesstonewskills

andopportunities

Capitalenhancestheboundariesof

humancreativity

Agreaterintegrationof

technologies,revolutionising

productionprocesses

ValueoftheIntelligentEconomyin2030

Total:US$18.8trillion

=

Productivity:US$9.1

trillion

+

Social:US$5.2

trillion

+

Environmental:

US$4.5trillion

US$trillion

ManufacturingTrade

0.02.04.06.08.010.0

ProductivityImpactsoftheIntelligentEconomy

Economic

Value

1.11.01.00.8

2.9

2.3

Construction

RealEstateActivitiesProfessionalServicesOthers

SocialImpactsoftheIntelligentEconomy

ConsumerTimeSavings:+US$1.5trillion

Examples

•FutureRetail

•AutonomousVehicles

•CitizenServices

HealthandSafety:

+US$3.2trillion

Examples

•WorkplaceSafety

•CrimePrevention

•EmergencyResponseTime

SocialInclusion:

+US$0.4trillion

Examples

•AccesstoCredit

•MoreInclusiveWorkforces

EnvironmentalImpactsoftheIntelligentEconomy

US$trillion

ManufacturingConstruction

ElectricityMining

TradeOthers

Decarbonisation

Value

0.01.02.03.04.05.0

1.7

0.50.50.4

0.31.2

Numbersmaynotsumduetorounding

Chapter01

Theglobaleconomywillbeimpactedbyseveralmegatrends

Fromadvancementsinspaceexplorationtotheneedtobuildhealthsystemsresilienttofuturepandemics,theworldweliveinfacesanunprecedentednumberoftrendsthatarelikelytohaveprofoundimpactsonhowwelive,work,andplay.Thischapterhighlightsfourtrendsthatarelikelytohavemajorimplicationsonthefuturelandscapeoftheglobaleconomy:i)thestructuraldeclineinlabourproductivity;ii)therisingrisksofclimatechange;ii)theneedtoredefinebusinessvaluationsduetodigitalisation;andiv)afundamentalshiftinconsumerandworkerexpectations.

LabourproductivitygrowthhasbeenonadeclinesincetheGreatFinancialCrisis

Aftermanyyearsofeconomicgrowthwhichsaw1.3billionpeopleliftedoutofpovertybetween1990and2018,'theworldisnowgoingthroughastructuraldeclineinlabourproductivitygrowthwhichisdragginggrowth.Manygovernmentshaveattemptedtoreversethistrendthroughinitiativessuchaslabourforceupskillingprogrammes.However,theseeffortshaveyieldedlimitedresultssofarinsolvingtheproductivitypuzzle.Theaveragegrowthrateoflabourproductivityinadvancedeconomieshas

decreasedfrom1.3%perannumintheperiod2002-2007to0.8%perannumintheperiod2013-2018.Thisslowdowninlabourproductivityisnotuniquetoadvancedeconomies,astheaveragegrowthrateoflabourproductivityinemergingmarketsanddevelopingeconomies(EMDEs)hasalsodecreasedfrom4.9%perannumintheperiod2002-2007to3.5%perannumintheperiod2013-2018.²

Theaveragegrowthrateoflabourproductivityinemergingmarketseconomieshasdecreasedto3.5%perannumbetween2013and2018-downfrom4.9%between2002and2007.

'TheWorldBank(2018).PiecingTogetherthePovertyPuzle.Availableat:htps://en/publication/poverty-

and-shared-prosperity-2018#:~:text=and%20shared%20prosperity.-The%202018%20edition%20%E2%80%94%20Piecing%20Together%20the%20Poverty%20Puzzle%20%E2%80%94broadens%20the,differences%20in%20needs%20across%20countries.

²TheWorldBank(2021).GlobalProductivity,Trends,Drivers,andPolicies.Availableat:

/en/research/

publication/global-productivity

5

IntelligentEconomy

Thenegativeeconomicimplicationsofaslowdowninlabourproductivitygrowtharecompoundedbythefactthattheglobaldemographicdividendiscomingtowardsitstail-end.AccordingtotheWorldHealthOrganisation(WHO),thepercentageoftotalpeopleaged60yearsandolderwillrisefrom13%todayto17%and22%in2030and2050respectively.3Theglobalaveragefertilityratehasdeclinedfrom5.0in1960to2.4in2020,4afigurejustabovethe2.1replacementlevelfertilityneededtomaintainpopulationsizes.5In2019,more

than40%oftheworld’spopulationlivedincountriesthatwereatofbelowthereplacementrateof2.1childrenperwoman,andthissharehasclimbedtonearly60%in2021.6Oneofthemajorrisksofslowereconomicgrowthinthedevelopedworldisawideningwealthgapthatincreasesinequalityinsociety.7Thishasalreadycontributedtothegrowingsocialandpoliticaldivergenceseeninmanycountries,aswellasincreasinglyprotectionistpoliciesintradeandthelabourmarkets.

Climatechangeposesasignificantchallengeforfutureeconomicgrowth

Climatechangereferstolong-termshiftsintemperaturesandweatherpatterns.Theseshiftsmaybenatural,suchasthroughvariationsinthesolarcycle,butsincethe1800s,humanactivitieshavebeenthemaindriverofclimatechangedueprimarilytotheburningoffossilfuels.Greenhousegasconcentrationsarecurrentlyattheirhighestlevelsintwomillionyearsand

emissionscontinuetobeontherise.Globalcarbonemissionshaverisentoahistoricallyhighlevelof36.3billiontonnesin2021asestimatedbytheInternationalEnergyAgency(IEA).8Asaresult,theEarthisnowabout1.1degreesCelsiuswarmerthanitwasinthelate1800s,withthelastdecadebeingthewarmestonrecord.Theenvironmentalconsequencesofclimatechangeincludeintensedroughts,waterscarcity,fires,risingsealevels,flooding,anddecliningbiodiversity,resultinginsevereeconomicdestruction.

3WHO(2021),“Ageingandhealth”,Availableat:

/news-room/fact-sheets/detail/ageing-and-health

4WorldBank(2022),Fertilityrate,total(birthsperwoman,Availableat:

/indicator/SP.DYN.TFRT.IN

5J.Craig(1994).Replacementlevelfertilityandfuturepopulationgrowth.Availableat:

https://pubmed.ncbi.nlm.nih.

gov/7834459/#:~:text=In%20developed%20countries%2C%20replacement%20level,need%20to%20be%20much%20higher.

6UnitedNations(2022).“TheGlobalPopulationWillSoonReach8Billion—ThenWhat?”.Availableat:

/en/un

-chronicle/global-population-will-soon-reach-8-billion-then-what

7T.Piketty,(2013).CapitalintheTwenty-FirstCentury,Availableat:

/wp-content/uploads/2014/06/14Thomas

-Piketty.pdf

8IEA(2021).GlobalEnergyReview:CO2Emissionsin2021.Availableat:

/assets/c3086240-732b-

4f6a-89d7-db01be018f5e/GlobalEnergyReviewCO2Emissionsin2021.pdf

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IntelligentEconomy

Arecentstudyshowsthatintheseverescenariowheretemperaturesriseby3.2degreesCelsiusduetonomitigatingactionsbeingtaken,upto18%ofglobalGDPcouldbewipedout.Underthisseverescenario,Asianeconomiesareestimatedtobehitworst,withup26%oftheirGDPunderthreat.9Themainriskstotheeconomyasaresultofclimatechangecomesfrompropertydamage,disruptiontotradeduetoclimateshocks,andfurtherlossinproductivity.Moreover,over80%ofthecaloriesconsumedgloballycomefromjust10cropsincludingwheat,rice,andmaize.10Thisisalarmingconsideringthefactthatglobalriceandwheatyieldshavebeendecliningby0.3%and0.9%onaverageeachyearasaresultofclimatechange.11Anotherstudyalsoestimatesthatmaizecropyieldscoulddecline24%asearlyas2030underahighgreenhousegasemissionsscenario.12

Intheseverescenariowheretemperaturesriseby3.2degreesCelsius,upto18%ofglobalGDPcouldbewipedout

Whiletheestimatedamountofinvestmentrequiredtocombatclimatechangevarieswidely,theyareallverysignificant.Forexample,theInternationalRenewableEnergyAgencyforecaststhatUS$750billionannuallyisneededjustforrenewables,13whileMorganStanleysuggeststhatUS$50trillionofinvestmentisrequiredacrossrenewables,electricvehicles,carboncaptureandstorage,biofuels,andhydrogenby2050tocutemissionssufficientlytomeettheParisAgreement’sgoalofhaltingglobalwarming.14Unfortunately,theIntergovernmentalPanelonClimateChange’s(IPCC)latestreportconcludesthatglobaleffortshavefallenshortofwhatisneededtocombatclimatechange,withinvestmentintheshifttoalow-carbonworldalmostsixtimeslowerthanwhatisrequired.15Itisclearthattheriskstofoodsecurity,productivityandeconomicgrowtharenotpurelyphysical,butalsoincludetransitionalrisks.Tacklingclimatechangewillrequireareassessmentofassetvalues,areductioninourdependencyonassetssuchasfossilfueldepositsorcoalreserves,andwillbringsystemicdevaluationriskstotheglobalfinancialsector.16

9SwissReInstitute(2021).Theeconomicsofclimatechange.Availableat:

/dam/jcr:e73ee7c3-7f83-4c17-

a2b8-8ef23a8d3312/swiss-re-institute-expertise-publication-economics-of-climate-change.pdf

10D.Tilman(2011).Globalfooddemandandthesustainableintensificationofagriculture.Availableat:

/doi/

full/10.1073/pnas.1116437108

11TheConversation(2019).“Climatechangeisaffectingcropyieldsandreducingglobalfoodsupplies”.Availableat:

https://

/climate-change-is-affecting-crop-yields-and-reducing-global-food-supplies-118897

12J.Jägermeyr(2021).Climateimpactsonglobalagricultureemergeearlierinnewgenerationofclimateandcropmodels.Available

at:

/articles/s43016-021-00400-y

13RIA(2020).”InvestinginGreenBonds:How“Green”isGreen?”Availableat:

https://www.riacanada.ca/magazine/investing-in

-green-bonds-how-green-is-green/

14Bloomberg(2019).“MorganStanleySaysTheseFirmsWillProfitFromClimateChange”.Availableat:

/

news/articles/2019-10-24/-50-trillion-is-needed-to-stop-global-warming-morgan-stanley

15IPCC(2022).ClimateChange2022,MitigationofClimateChange.Availableat:

https://www.ipcc.ch/report/sixth-assessment-report

-working-group-3/

16SwissReInstitute(2021).Theeconomicsofclimatechange.Availableat:

/dam/jcr:e73ee7c3-7f83-4c17-

a2b8-8ef23a8d3312/swiss-re-institute-expertise-publication-economics-of-climate-change.pdf

IntelligentEconomy

7

Digitaldisruptionisredefiningthewaybusinessesarevalued

Therateoftechnologicaladoptionanddatacreationisrisingexponentially.OverallenterpriseInternetofThings(IoT)spendinggrewby22%in2021andisexpectedtocontinuegrowingatarateofover20%tomorethanUS$520billionby2027.17Itisestimatedthat90%oftheworld'sdatawascreatedinthelasttwoyears,with2.5quintillionbytes(18zeroeslong)ofdatabeingcreatedeachday.18In2018,thetotalamountofdatacreated,captured,copied,andconsumedintheworldwas33trilliongigabytes.Thisgrewto59trilliongigabytesin2020andispredictedtoalmosttripleby2025.19

90%oftheworld'sdatawascreatedinthelasttwoyears,with2.5quintillionbytesofdatacreateddaily

A2022globalsurveyhasshownthat35%ofcompaniestodayreportusingsomeformofAIintheirbusiness,withanadditional42%reportingthattheyarecurrentlyinthemidstofexploringthefutureuseofAI.20ThesefirmsareincreasinglyusingAItotransformthecustomerexperiencefromproducingtargeted

productrecommendationsthatincreasecustomerloyaltytoprovidingconsumerswiththeirveryownelectronicpersonalassistant(suchasAmazonEchoandGoogleHome)thatcanactasthecentralhubthatconnectsvariousdevicesthroughoutone’shousehold.By2025,20billionsmarthomedevicesareestimatedtobeinoperation,with14%offamiliesworldwidehavingasmartdomesticrobotathome,and90%ofpeopleusingpersonalassistantsontheirsmartdevices.21Furthermore,itispredictedthatby2030,every10,000employeeswillbesupportedby390robots.22

Technologyisnotonlyimprovingpeople’slives,butisalsochangingthewaypeople,governments,andbusinessesinteract.AttheheightoftheCOVID-19pandemic,manycompaniesthathaddigitalcapabilities,particularlythoseintheservicesector,faredmuchbetterthanthosewithout.Thishasservedasacatalystfordigitaladoptioninboththeprivateandpublicsectors.Digitaltransformationswillbenecessaryforcompaniestokeepupwithemergingcustomerdemandsandsurviveinthefaceofthefuture.WiththeongoingriseinprominenceoftechnologiessuchasBigData,AI,IoT,CloudServices,andScalablePlatforms,companiesthatdonotdigitaliseareatriskoffallingbehind.

17IoTAnalytics(2022).“GlobalIoTmarketsizegrew22%in2021—these16factorsaffectthegrowthtrajectoryto2027”.Availableat:

/iot-market-size/

18Forbes(2018).“HowMuchDataDoWeCreateEveryDay?TheMind-BlowingStatsEveryoneShouldRead”.

https://www.

/sites/bernardmarr/2018/05/21/how-much-data-do-we-create-every-day-the-mind-blowing-stats-everyone-should-

read/?sh=510491b660ba

19IDC(2020).DataSphereandStorageSphereforecasts.Availableat:

/getdoc.jsp?containerId=US47509621

20IBM(2022).IBMGlobalAIAdoptionIndex2022.Availableat:

/downloads/cas/GVAGA3JP

21Huawei(2021).“TheFutureoftheDigitalEconomy:BuiltontheCloud,FuelledbyData,andDrivenbyAI”.Availableat:

https://

/tr/eblog/industries/insights/2021/digital-economy-built-cloud-fueled-data-driven-ai

22Huawei(2021).IntelligentWorld2030.Availableat:

/-/media/CORP2020/pdf/giv/Intelligent_

World_2030_en.pdf

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8

Ascompaniescontinuetodigitalise,newmethodologiesareneededtoanalyseandvaluethesecompanies.Thiswouldentaillookingintootheravenuestounderstandwherethefutureofeachcompanyliesasjudginghowlongacompanywillgrowrapidly,theeffectivenessoftheirbarrierstoentry,andidentifyingwhichcompanieswillbeabletogainlong-termmarketpower,willbecomeincreasinglychallenging.Whilestillimportant,thetraditionalwayofvaluingabusinessbymeasuringtheworthoftheirphysicalassets(cash,machines,andland

etc.)wouldneedtobecomplementedwithanincreasingneedtoaccuratelyvalueotherintangiblessuchasinternettraffic,datacreatedandanalysed,totalnumberofsubscribers,thenumberofdailyactiveusers(DAU),itssocialimpactandsoon.Atransitionintothisnewformofcapitalwilllikelycomewithitsownsetofchallengesincludingtheneedtoapplymonetaryvaluestothesemeasurementareastomorecomprehensivelyunderstanditsoverallvalue.

Changingworkerandconsumerexpectationsareforcingbusinessestoadapt

Withrapidtechnologicaladoption,theexpectationsofworkersandconsumersarecurrentlyundergoingrapidchanges.

i.Forworkers,technologyhasmadeitmorefeasibletoworkremotelyandhaveflexibleworkinghours,andCovid-19hasacceleratedthistrend.Althoughworkersreportedhavingworkedlongerhours,theyalsodescribedhigherlevelsofhappinessandproductivity.23Inaddition,Covid-19alsojumpstartedtheso-called“GreatResignation”,whichsawtherateofmonthlyvoluntaryquitsrisetoitshighestlevelthiscentury.Manyworkershavetakenthepandemicasanopportunetimetoregaincontrolovertheirtimeandlives,forcingfirmstoinnovateonwaystoaddresstheissue

ofjobdissatisfactioninthelabourmarket,includingtheuseofadvancedtechnologiessuchasthepotentialofmetaverseapplicationstoreshapethewayorganisationsworkinthefuture.

ii.Forconsumers,thedefinitionofwhatconsumersconsider“fast”hasdrasticallychangedduetosocialmediaandthesmartphone.Socialmediahasalloweduserstoconnecttoaninstantfeedofbreakingnews,liveupdatesofpeople,andmessages.This24/7and“alwayson”culturewillrequirebusinessestoadapttheirservicestomatchconsumerneeds.Therequirementstosucceedintoday’sconsumerbusinesslandscapeismorecompetitivethaneverduetotheavailabilityoftheinternet.Customersarebecomingmoresophisticatedduetotheinternetincreasingtheavailabilityofpublicreviewsonproductsandprovidingconsumerswiththeabilitytofindtheproductsof

23TheEconomist(2021).Theriseofworkingfromhome.Availableat:

/special-report/2021/04/08/the

-rise-of-working-from-home

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9

alternativebrandsthatprioritizesustainability.Thisincreasinglychallengingrequirementswillrequirebusinessestotransformthewayinwhichtheyoperatedpreviouslytoensurethattheirproductswillareabletothriveintoday’scompetitivelandscape.

Thesefundamentalchangesinworkersandconsumershaveimplicationsonthewaybusinesseshavetoreactandadapt,leadingtothedevelopmentofnewtypesofbusinessmodels.Forexample,thesharingandgigeconomieshavegrowndrasticallyinrecent

yearsalongsidetheriseofplatformbusinessmodels.TheseincludecompaniessuchasUber

-theworld’slargesttaxicompanythatownsnovehicles;andAirbnb-theworld’slargestaccommodationproviderthatownsnorealestate.24Thesenewbusinessmodelsnotonlycreatenewmarkets,buttheyalsoacceleratedthecontractionofcompanieslaggingbehindininnovation.Forexample,thecontinualriseofonlineshoppingandfooddeliveryservicesisexpectedtoleadtotheclosureofanestimated25%ofAmerica’smallsoverthenextthreetofiveyears.25

TransitioningintotheIntelligentEconomycanhelpusovercomethesechallenges

Whilethesetrendsappeartocreatenewsocial,policy,andbusinesschallenges,thegoodnewsisthatthereareleversavailabletoaddressthesechallenges.Thesearewellcoveredintheliteratureandpublicdiscourse,andarenotthefocusofthisstudy.Rather,theobjectiveofthisresearchistointroduceanewconcepttohighlighthowtheworldisalreadybeginningatransitionontoanewtrajectoryofdigitaldevelopment-oneunderlinedbythewidespreadadoptionoffrontiertechnologiesthathelpcreatesmartsolutionsfortheemergingsocial,policyandbusinesschallengesintheworldtoday.ThisconceptisthatofanIntelligentEconomy–thenextstageoftheDigitalEconomyandthekey

tounlockingitsfullpotential.ThisstudyfurtheraimstoshowhowatransitiontowardstheIntelligentEconomywillheraldnewpossibilitiesandalsoyieldsocioeconomicandenvironmentalbenefits.

Currently,thevalueoftheseintelligentapplicationsarelimitedtoisolatedcasestudiesandnotunderstoodholistically.Usingacombinationofcomputationalgeneralequilibrium(CGE)modellingandbottom-upestimations,thisstudyattemptstoquantifythepotentialglobalvalueofthecontinuedadoptionofthesetechnologiesacrossvariousindustries.ThehopeistofueloptimismandexcitementintheprivatesectorandamongstregulatorstoembraceandenablethefullIntelligentEconomytransition.TheAppendixsectionprovidesmoredetailsoftheCGEmodelusedinthisstudy.

24T.Goodwin(2018).DigitalDarwinism:SurvivaloftheFittestintheAgeofBusinessDisruption.Availableat:

https://www.amazon.

com/Digital-Darwinism-Survival-Business-Disruption/dp/0749482281

25CNBC(2020).“25%ofU.S.mallsareexpectedtoshutwithin5years.Givingthemanewlifewon’tbeeasy”.Availableat:

https://

/2020/08/27/25percent-of-us-malls-are-set-to-shut-within-5-years-what-comes-next.html

Chapter02

Introducingthe

IntelligentEconomy

10

11

TheaveragegrowthrateofglobalGDPbetween2015-2030isexpectedtobe2.7%.2⁶BasedonapaststudydonebyHuawei,theDigitalEconomyisdefinedasthetotaleconomicreturnandimpactthattechnologicalinvestmentshaveonGDP?⁷Inthatstudy,itwasnotedthattheDigitalEconomyforseveraloftheworld'sadvancedeconomieshavealreadyreachedalevelofmorethan30%ofGDP,andthatroughly55%ofglobaleconomicgrowthbetween2015-2025isexpectedtocomefromtheDigitalEconomy.WhiletheDigitalEconomy'scontributingsharetooverallGDPisstillrising,theoverallgrowthrateoftheDigitalEconomyiscurrentlyonadownwardtrend(Exhibit1).Thegrowthrate

oftheDigitalEconomyisexpectedtoslowfrom14.0%in2017to4.9%in2030.WiththeNon-DigitalEconomy'sgrowthrateexpectedtoaverage1.6%throughouttheperiod2015-2030,thisimpliesalikelydecelerationinglobalgrowth.Chapter1hasalreadyhighlightedsomeofthepotentialrisksofaglobaleconomicslowdown.Therefore,inordertomitigatetheserisks,thereisaneedtolookforthenextstageofdigitalgrowth:theIntelligentEconomy.

TheDigitalEconomy'sgrowthrateislikelytodedinetounder5%betweennowtill2030

2OxfordEconomics(2022).OxfordEconomicsDatabase.Availableat:

https:/M/

"OxfordEconomics(2017).DigitalSpillover.

/minisite/gci/en/digital-spillover/iles/gci_digitaLsillverpdf

12

IntelligentEconomy

US$trillion

97.2

100

95

90

85

80

75

70

65

60

55

10

5

0

81.2

20.7%

74.8

15.2%

84.8%

79.3%

24.3%

75.7%

201520202025F

DigitalEconomyNon-DigitalEconomy

GrowthRatesoftheDigitalEconomy

2015-2020CAGR

8.1%

2020-2025CAGRF

7.0%

2025-2030CAGRF

5.2%

F=forecastSource:Huawei,OxfordEconomics,EYanalysis

Exhibit1:TheDigitalEconomy’shasbeenakeydriveroftheglobaleconomy,however,itsgrowthrateisprojectedtoslowoverthenextdecade

WhatistheIntelligentEconomyandhowdoesitdifferfromtheDigitalEconomy?

ThisstudyattemptstohighlightasubtlebutimportantdistinctioninourunderstandingoftheDigitalEconomy,itspurpose,anditspossibilities.SeenasthenextiterationoftheDigitalEconomy,theIntelligentEconomygeneratesvaluethroughtheseamlessintegrationofnext-generationtechnologiesincludingbutnotlimitedto5G+,ArtificialIntelligence(AI),andtheInternetofThings(IoT)toprogresssingle-pointintelligencesystemsworkinginisolationtowardsmultipleintelligencesystemsthatoperateintandem,thathavethestrongpotentialtocreatenewandinnovativesolutionstoenhanceproductivitygains,socialwell-being,andbenefitstotheenvironment.

TheIntelligentEconomygeneratesvaluethroughtheseamlessintegrationofnext-generationtechnologiesincludingbutnotlimitedto5G+,ArtificialIntelligence(AI),andtheInternetofThings(IoT)toprogresssingle-pointintelligencesystemsworkinginisolationtowardsmultipleintelligencesystemsthatoperateintandem,thathavethestrongpotentialtocreatenewandinnovativesolutionstoenhanceproductivitygains,socialwell-being,andbenefitstotheenvironment.

WhiletheendgoalintheDigitalEconomyiscentredaroundmaximisingthereachofexistingproductandserviceofferingsbyfirms,allowingthemtoengagewithagreaternumberofconsumers,thescopeandobjectivesofthe

IntelligentEconomy

IntelligentEconomycouldbeviewedaswider

-andconcernstacklinglongstandingmarketfailures(e.g.,informationasymmetry)andpromotingoverallsocialandenvironmentalwell-being.

Forexample,blockchaintechnologywascreatedtoensuredigitalrecordscannotbealteredordestroyed,leadingtoanimprovementinthesecurityandtransparencyoftransactions,whileitsapplications,suchascryptocurrency,hasprovidedapaymentsystemthatisfreeofcentralgovernmentcontrol.TechnologyintheIntelligentEconomyenablesthecreationofentirelynewproductsandassetclasses(e.g.,NFTsandcryptocurrency)whosefullpotentialareconstantlyevolvinganddeveloping.

First,theIntelligentEconomyprovidesincrementalbenefitstolabourbyprovidingamoreefficientandgreateraccesstoskills,leadingtoanincreaseinoveralllabourmobility.Second,capitalintheIntelligentEconomyisnowcomplementinglabourtopushtheboundariesofhumancreativity,allowingforthecreationofnewideastomeetrapidlychangingmarketdemands.Third,theIntelligentEconomyalsofeaturesagreaterintegrationoftechnologies,leadingtothecreationofnewserviceofferingsandenhancedproductionprocesses(suchasflexiblemanufacturing)thatdeliversgreatereconomiesofscopeandreducesproductionriskssuchasovercapacityissues.

Tobesure,theIntelligentEconomyreliesontechnologiesthatcouldalreadybeavailableintheDigitalEconomy.Hence,whileitisnotpossibletocompletelydelineatethetwoconcepts,thisstudyproposesthreekeytraitsthataredifferentbetweenthetwo.Thesedifferencesareenabledbytechnicalandcostbreakthroughsintechnologies(hence,greaterad