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Dear Colleagues,

UNCTAD has just released a Special Issue of its Investment Policy Monitor 
on the promotion of investment in the digital economy, on the occasion of 
the UNCTAD E-Commerce Week 2017.

The digital economy ? the application of internet-based digital 
technologies to the production and trade of goods and services ? is 
becoming an ever more important part of the global economy. In many 
countries, this is reflected in digital development strategies and 
investment promotion priorities.

For the World Investment Report 2017 on Investment and the Digital 
Economy, UNCTAD examined to what extent digital development strategies 
address financing needs. It also conducted a survey of investment 
promotion agencies (IPAs) on investment promotion and the digital economy.

This Special Issue of the Investment Policy Monitor presents the findings 
of these two studies. Key findings include:

·       The development of the digital economy is a key objective for 
almost all countries. Many countries and economies have adopted digital 
development strategies. An UNCTAD survey of the investment dimension in 
more than 100 digital development strategies shows that almost all such 
strategies acknowledge the need for investment.
·       However, hardly any strategy contains a specific 'investment 
chapter'; most strategies discuss investment needs only at a general 
level. Less than 25 per cent contain details on investment requirements 
for infrastructure, and less than 5 per cent on investment needs beyond 
infrastructure, including for the development of digital industries.
·       Policy measures to promote investment proposed in digital 
development strategies tend to focus on improving the enabling (sectoral) 
regulatory framework. Other measures include incentives and general 
facilitation, digital standards, and clusters and incubators for digital 
business development.
·       Less than half of digital development strategies consider foreign 
investment as a source of finance. Investment promotion agencies mostly do 
not feature in the plans.
·       Responses to a separate UNCTAD global survey of IPAs confirm that 
they are generally not involved in the formulation of digital strategies. 
Nevertheless, for most IPAs, the promotion of investment in digital 
infrastructure, digital firms, and the development of linkages in the 
digital sector, are priority objectives.
·       However, while incentives and facilitation measures are frequently 
proposed in digital development strategies, only a minority of IPAs 
confirms the availability of investment promotion instruments for the 
digital economy.
·       The results of the two surveys suggest that policy coordination, 
between investment authorities on the one hand and ministries and public 
institutions charged with digital development on the other, could be 
improved.
Considering the pressing need to increase investment in digital 
infrastructure and businesses, policymakers in charge of investment, on 
the one hand, and digital development, on the other, should work 
synergistically. The forthcoming World Investment Report 2017, on 
Investment and the Digital Economy, will provide policy recommendations on 
how to strengthen the investment dimension in digital development 
strategies.

For more details on these and other findings I invite you to download the 
Special Issue of the Investment Policy Monitor here. 

Kind regards,

James Zhan
Director, Investment and Enterprise
Lead, World Investment Report
United Nations Conference on Trade and Development
unctad.org/wir 
investmentpolicyhub.unctad.org

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