Minister's Foreword

The digital economy is essential to Australia's productivity, global competitive standing and improved social wellbeing.

Already, the digital economy offers exciting opportunities for all Australians. It allows us to stay in touch with family and friends easily no matter where they live by sending emails, sharing online photos or, increasingly, starting up a web-cam.

Many Australians are rapidly adopting technology and taking up the new opportunities to connect, collaborate and transact more effectively. Many businesses are incorporating the digital tools necessary to make their business more productive and efficient, and reach new audiences.

The digital economy can also drive Australia's national productivity, create jobs and support new business opportunities.

Increasingly, we are witnessing how 'smart technology' can help us change our behaviours and manage our infrastructure in ways that can benefit our environment. It can make our use of scarce natural resources like water more efficient and reduce our energy demands.

The digital economy is about the activities that networked technology makes possible. It is the demonstration of how the whole is greater than the sum of its parts.

This final report—Australia's Digital Economy: Future Directions—outlines the areas of focus for government, industry and the community to maximise the benefits of the digital economy for all Australians.

Internet and broadband are increasingly commonplace in our day to day lives and the Rudd Government is moving rapidly to improve accessibility and service with the National Broadband Network. However, the digital economy will not necessarily happen organically in all parts of our economy and society. Already, international data indicates that Australian households and business may be lagging in fully utilising the digital economy. And it remains important that we ensure that all groups within our community enjoy the same opportunities to engage online.

This paper explains how government, industry and the community can work together to improve Australia's international standing. It provides the rationale for government taking strategic and enabling action now to ensure all parts of Australia benefit fully from the digital economy. It outlines those issues on which we must direct our attention today and in the near future to ensure that we are able to fully engage in the 21st century.

The Australian Government announced its commitment to build the National Broadband Network because it recognises the importance of world-class, high-speed broadband for Australia's future economic growth and social wellbeing. We recognised the need for Government action to position Australia as a global digital leader.

The Government has also announced several other key initiatives that will drive Australia's digital future including the Digital Education Revolution, the Digital Regions Initiative and the National Energy Efficiency Initiative. This paper connects the dots between these initiatives and explains why they are important for Australia's future economic growth and social wellbeing.

This paper includes powerful case studies of Australians who have engaged successfully with the digital economy and reaped its rewards.

The case studies provide an insight into the diverse range of industries that can benefit from the digital economy – health, education, water, transport and banking. They show how new business models can develop such as last-minute accommodation booking services and how emerging forms of news gathering can arise such as citizen journalism.

The case studies show how digital products that appeal to multi-national corporations and digital content that appeals to global audiences can be developed right here in Australia. As Lars Rasmussen, co-founder of Google Maps, a tool that was developed here in Australia and the focus of one case study, says:

"The Web means that it doesn't matter where you are…you can live here in Australia and build products for the world thanks to the internet."

I invite us all to feel inspired by the case studies and excited by the possibilities the digital economy offers us all. Government, industry and our community must now work together to harness these opportunities. I welcome your participation as a partner in this rewarding challenge.

Stephen Conroy

Minister for Broadband, Communications and the Digital Economy

Next page: Executive Summary