Alan Davidson, Director of Digital EconomyMay 2016 The DigitalEconomy: Key to Prosperity and Competitiveness The Internet and digital economy are a critical part of the future success of the broaderAmerican economy. They are a source of growth; an enabler of global trade; and a keyelement of U.S. competitiveness. •The Internet- and ICT-related sectors already account for over five percent ofU.S. GDP, and that number does not capture their true potential. •Experts estimate that digitization has the potential to boost annual U.S. GDP upto $2.2 trillion by 2025.•The U.S. exported ~$400 billion in digitally-deliverable services in 2014 – morethan half of U.S. services exports and more than one-sixth of all U.S. goods andservices exports. But we cannot take success for granted. Grand Policy Challenges & Opportunities 1.Global free exchange of information– A free and open global Internet, with minimalbarriers to the flow of data and services across borders, is the lynchpin of the digitaleconomy’s success. 2.Trust and security online– The digital economy will only thrive if businesses andconsumers can trust that their security and privacy will be protected. 3.Access and skills– American businesses and consumers need fast infrastructure, andthe skills to thrive in a digitized global economy. 4.Innovation and emerging technologies– Commerce can play a role in supportinginnovation, including smart intellectual property rules. Opportunities exist to supportnew technologies and identify long-term policy issues early in the development lifecycle. Digital Economy Policy Agenda and Activities 2016 EU-U.S. Privacy Shield–Successfully conclude negotiations and garner EU approval.Cybersecurity– Support Presidential Commission, expand use of NIST Framework.Government access– Engage on ECPA reform, encryption, int’l data sharing rules.Privacy–Complete NTIA’s multistakeholder processes on drones, cybersecurity.Copyright–PublishNTIA/PTO white paper on copyright in the digital age. Digital Economy: Structural Initiatives In addition to the policy priorities above, Commerce is seeking to build its digitaleconomy capacities and structures with several initiatives including: 1.21stCentury Export Assistance– leadership on digital economy issues within theForeign Commercial Service and other elements of the International TradeAdministration, including the new “digital attaché” pilot program. 2.Digital Economy Board of Advisors– our high-level FACA-based board to advise theSecretary and the Department on critical business and technology dynamics in thedigital economy. 3.Support for Emerging Technologies– a program to coordinate work withinCommerce on promising new technologies and business sectors, promoting growthopportunities and identifying policy challenges. Initial efforts on autonomousvehicles, UAS, and the “Internet of Things.”