Pre‐readingmaterials for May 9, 2016 roundtable on unmet dataneeds Jessica R. Nicholson and Giulia McHenry Draft of May 11, 2016: This draft is preliminary and is subject to revision. Anyerrors are theauthors’. The Internet has transformed how many Americans live, work, and play. It has connected peoplearound the world in new ways through data flowing seamlessly across borders. Businesses rely oncross‐borderdata flows to access global markets and information; interact with customers across theglobe; find new suppliers; and communicate with their overseas affiliates. Citizensrely on cross‐border data flows to access a global wealth of information; communicate with family, friends andcolleagues overseas; and gain access to foreign consumer and financial markets. A number of researchers have already begun using existing statistics and datasets (see sections 1 and2 of this document) to provide evidence on the importance of digital data flows (see section 3 of thisdocument). These studies are numerous and varied, focusing on both macroeconomic andmicroeconomic effects, domestically and internationally. However, there areno consistent definitionsof what comprises the digital economy or cross‐border data flows, nor is theredata that is specificallyintended to capture these concepts. Consequently, it is difficult to determine theaccuracy of thestudies or to compare estimates across them. Therefore, although we know that cross‐border data flows are impacting how businesses operate andpeopleinteract, there is only limited data available to quantify the economic effect of these flows.Policymakers, industry representatives, and researchers need improved and consistent measurementofthe size of the digital economy and the economic importance of the free flow of cross‐border datatomake more informed policy and business decisions. The information presented here and during the May 9 roundtable is the culmination of a nearly sixmonth effort, initiated by the U.S. Department of Commerce (Commerce), to gather information ontheunmet data needs related to measuring the economic importance of cross‐border data flows andthefree flow of information. To date, we have met with numerous researchers and otherstakeholders (seesection 4 of this document) and have conducted an extensive literature review.While this effort hasfocused specifically on the importance of measuring the economic impact ofcross‐border data flows,much of the information presented here is relevant to understanding theeffect of the digitaleconomy as a whole. Table of Contents Section 1: Examples of Relevant Statistics............................................................ 3Section 2: Relevant Datasets................................................................................. 8Section 3: References and Other Literature........................................................ 13Section 4: Contributors....................................................................................... 20 Section 1: Examples of Relevant Statistics The statistics presented here represent a sample of the types of information that is currently available toinform the discussion on the economic effect of cross-border data flows. This list is not intended to becomprehensive, nor is it necessarily an endorsement of the methodologies used. We have identifiedfour categories of statistics: domestic macro-economy, domestic micro-economy, foreign economies,and bits and bytes. Domestic Macro-Economy In 2014, the United States exported $399.7 billion and imported $240.8 billion in digitally‐deliverable services, resulting in a trade surplus for digitally‐deliverable services of $158.9billion. These exports accounted for 56 percent of total U.S. services exports and 50 percent oftotal U.S. services imports. Digitally‐deliverable services include: charges for the use ofintellectual property; other business services; financial services; telecommunications, computer,and information services; and insurance services. (Noonan, 2015) Digitally deliverable services1are also delivered through affiliates of U.S. companies located inEurope and affiliates of European companies in the U.S. In 2011, the supply of digitally deliver-able services through U.S. affiliates in Europe was worth $312 billion and Europe supplied $215billion worth of digitally deliverable services through U.S. affiliates. (Meltzer, 2014) Removing foreign barriers to digital trade in digitally intensive industries would likely result in anestimated $16.7 billion to $41.4 billion increase (a 0.1 percent to 0.3 percent increase) in U.S.GDP. U.S. real wages would likely be 0.7 percent to 1.4 percent higher, and the effect on U.S.total employment would range from no change to an increase of 0.4 million FTEs. (USITC, 2014) Revoking the Safe Harbor Framework2that had previously enabled data flows between the EUand United States could have reduced U.S. services exports to the EU by 0.2 percent to 0.5percent. Small and