The Internet has extraordinary power to shrink the world -- to allow people separated by thousands of miles to more easily interact, learn from one another, and trade goods and services. These interactions are possible because of the incredible amounts of data that flows seamlessly across borders.
We know these data flows are happening and we know they are having an increasingly significant effect on the economy. However, solid statistical foundations for measuring the economic impact of cross-border data flows do not currently exist. What’s needed is the sound methodology and standard nomenclature that other economic data enjoy, so that policymakers can make informed decisions and businesses can choose strategies that will help them grow.
Late last year, the Commerce Department’s Digital Economy Leadership Team initiated a six-month effort to better understand data gaps related to measuring the economic value of the free flow of information across borders. This effort included meetings with over 30 stakeholder groups from the private and public sectors, a literature review, and a roundtable discussion convened on May 9, 2016, to discuss measurement gaps.