Introduction to Digital Economy

The digital economy represents a fundamental transformation in how economic value is created, distributed, and consumed through digital technologies and infrastructure. It encompasses all economic output produced by digital-based channels, platforms, and ecosystems—from semiconductor manufacturing and cloud computing infrastructure to digital services, e-commerce platforms, and artificial intelligence applications.

Unlike traditional economies based primarily on physical goods and face-to-face transactions, the digital economy is characterized by network effects, platform-mediated markets, data-driven decision making, and unprecedented economies of scale. As Rong (2022) articulates through the IBCDE Framework, the digital economy operates across five interconnected dimensions: digital Infrastructure, Business-to-Business platforms, Consumer-facing two-sided platforms, Data ecosystems, and diverse Economic contexts.

Understanding the digital economy requires examining not just its virtual manifestations but also its material foundations—from the semiconductor supply chains and data centers that underpin cloud computing to the submarine cables and 5G networks that enable global connectivity. This course explores both the theoretical frameworks for analyzing digital economic transformation and the physical infrastructure that makes it possible.

Core Concepts & Dimensions