The irruption of the on-demand economy has impacts on various markets, as well as on public transport, tourism and the outsourcing of services such as translation or accounting. The region has been taken by surprise in this area and policy responses have tended to be erratic and driven by circumstantial pressures. Involving SMEs actively in the creation and operation of applications in the on-demand economy would increase their chances of thriving. This panel will examine alternatives for absorbing this new reality into the economy and enhancing its effects on business productivity and consumer well-being, and will identify policy measures to help SMEs move in this direction.

Digital technologies have transformed the world on the basis of disruptive innovations that affect the entire economy, reconfiguring value chains in sectors such as manufacturing, transport, health, entertainment, banking and finance, and in the public sector. This encourages innovations and interrelations among existing and new firms, giving rise to ecosystems of digital platforms for products and services and innovative business models. These ecosystems are quickly becoming the benchmark of the digital economy, driven by consumer demand for products and services with real-time, intuitive solutions integrated across industries. This transformation requires upgrading infrastructure, human capital and the business environment to promote investment, innovation, and entrepreneurship. Developing the digital ecosystem calls for a climate of healthy competition and collaboration among all stakeholders.