Economic Effects of Digitalisation in Austria

Digital technologies have the potential to fundamentally transform the economic system. With people typically being either enthusiastic or afraid of the new technologies, they tend to overestimate its effects in the short run and underestimate them in the long run (Amara's Law). One major consequence of digitalisation is that its lower transaction cost for information and communication increases the effective radius of businesses and intensifies competition. Accordingly "digital intelligence" as a determining factor of competitiveness is gaining in influence. Economies basically pursue the same goals with similar strategic priorities and policy measures. The difference is in their respective efficiency, effectivity and speed of implementation.