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New Report from TSKB Economic Research: "The Key to Transformation: Digitalization and Green Technologies"
22 Dec 2021TSKB Economic Research added a new report to the "TSKB Outlook" publication series. The study titled "The Key to Transformation: Digitalization and Green Technologies", which examines the transformation that digital technologies will create in economic activities in the post-Covid-19 pandemic period and the role they will play in the transition to a green economy, offers a detailed analysis and also reveals the extent of digital access inequality and solution suggestions.
TSKB Economic Research sheds light on the future in its report on how digitalization and green economy will transform economic activities in the post-Covid-19 pandemic period. The study, which examines the predictions for the new era, supports these predictions with striking analyzes about the present and the future. Some of the highlights from the "Key to Transformation: Digitalization and Green Technologies" report written by Cem Avcıoğlu are as follows:
Frontier technologies can create a competitive advantage in favor of developing countries
The digital economy continues its evolution by collecting, analyzing and using digital data accumulated in almost every aspect of life. Combining these competencies with a variety of other disciplines, new digital technologies (frontier technologies) offer a window of opportunity for developing countries. The application of these technologies, which are expected to reach a total market size of 3.2 trillion dollars by 2025 and cover areas such as the internet of things, artificial intelligence and robotics, to existing business lines has the potential to create a competitive advantage in favor of developing countries in the near future through the discovery of new products and services. On the other hand, cyber attacks, which have increased in number and become sophisticated today, threaten the integrity and confidentiality of data and have a quality that can disrupt the adaptation and operations of individuals, businesses and states to the digital age.
Information and communication technologies education will play a vital role for developing countries
In the report, which states that the new era necessitates a different development policy, it is stated that the number of industrial robots used in factories reached a new peak in 2021. The use of industrial robots is still limited to a few sectors such as automotive and electronics. In many sectors such as textile and clothing, human labor is still technically and economically ahead of the automation option. In the next decade, while advanced robots will become relatively cheaper, the capabilities and efficiency of these robots are expected to increase significantly. This may lead multinational companies that move various parts of their production processes to developing countries, considering low labor costs, to return to developed countries with the widespread use of automation. In addition, digital technologies such as artificial intelligence and automation also present opportunities for developing countries. These technologies, which replace manual labor, are expected to create new employment areas where people have a relative advantage. The construction of an education system that takes into account new production conditions and increases skills, especially in the field of information and communication technologies, will play a vital role in developing countries' fight against the middle-income trap.
The digital divide stands out as an important area of struggle
The concept of "digital divide", which expresses the inequality between those who can benefit from the advantages of the digital age and those who do not have access to them, is considered the most important agenda item of the digitalization issue in the study. The report emphasizes that Turkey has the largest regional digital divide among OECD countries, and states that inequality is also observed between genders. Accordingly, there are differences exceeding 3 times between the best and worst regions in Turkey in the rates of individuals who do not use the internet or do not have a computer. There is a difference of approximately 16 percentage points between working-age men and women in the rate of computer use, which is an important indicator in terms of digital skills. In the light of this data, it is emphasized that fully achieving the economic, social and environmental benefits of digitalization depends on the spread of skills throughout society.
Digital transformation should be accompanied by energy transformation
The other focus of the study is the role that green technologies, which can be defined as technologies that reduce or reverse the negative environmental effects of human activities, can play in the climate fight. While the report reminds that cities, which are the centers of economic activity all over the world, have a significant share in energy consumption and greenhouse gas emissions, the contribution that smart city solutions based on technologies such as 5G and the Internet of Things can make to climate action in many areas such as transportation, water supply, waste and heating is discussed. While it is stated in the study that the demand for data centers, digital services and cloud computing services is predicted to increase in the near future, it is underlined that digital transformation should be accompanied by energy transformation. Although technologies that require large amounts of data, such as the Internet of Things and cloud computing, add efficiency to all layers of the value chain, they also have their own energy needs. This means that the installation of these technologies must be carried out together with renewable energy production and energy efficiency studies. In addition, progress in digital technologies directly serves some of the sustainable development goals (SDGs) included in the United Nations' 2030 agenda.
The entire “Key to Transformation: Digitalization and Green Technologies” report can be accessed at link.
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