A Country-by-Country e-Friction Analysis

A Country-by-Country e-Friction Analysis

          
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A Country-by-Country e-Friction Analysis

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    In This Article
    • Many factors hinder online interaction and exchange, thereby constraining economic activity.
    • The BCG e-Friction Index rates countries on the basis of 55 indicators of e-friction.
    • Each country can assess its rankings across the different types of friction.
     

    January 2014
    Greasing the Wheels of the Internet Economy
    The BCG e-Friction Index quantifies the factors inhibiting growth in the Internet economy, allowing policymakers, businesses, and other stakeholders to “grease the wheels” by addressing the sources of friction.

    Digitally driven economic growth continues to be one of the few bright spots in a sluggish global economy. But multiple factors can inhibit consumers, businesses, and others from fully participating in the Internet economy. Countries with low “e-friction”—the factors that inhibit Internet access and use—have larger digital economies than countries with more or stronger constraints on digital activity.

    The BCG e-Friction Index ranks 65 countries according to four types of e-friction: infrastructure-related frictions that limit basic access, industry and individual frictions that affect the ability of companies and consumers to engage in online transactions, and information frictions that involve availability of, and access to, online content. High e-friction countries are in danger of missing out on a high-impact propellant of growth and job creation. Those that address their sources of e-friction have the potential to add significant value to their economies.

    The BCG e-Friction Index can help each country gain an understanding of how it compares with neighbors and competitors. It can thus determine where its efforts to eliminate sources of friction are best aimed.

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