At a country level, digitalization is seen as a driver of economic growth and skilled jobs creation. While the term “digital economy” is not new, recent developments mean policy makers must now rethink their digitalization agendas. Firstly, digitalization has become a critical factor in maintaining economic competitiveness, as it permeates all economic sectors, disrupting traditional production and exchanges and creating new growth opportunities. Digitalization is no longer optional – those that don’t adopt it risk falling behind.

Foreign direct investment (FDI) is a catalyst for digital economy development. With competition increasing as countries announce various FDI-attractive policies, policy makers must think strategically, not tactically. Nations should actively direct investments into targeted digital services with a focused approach. Investment policies, incentives, and the investor pitch must resonate with the country’s unique strengths – human capital, business ecosystem, or technological capabilities.