Digital disruption: what do governments need to do?

The disruptive potential of digital technologies has become a hot topic in recent years. There are calls for governments to add or remove regulations, invest in digital start-ups, and protect the jobs of workers threatened by new ways of doing business. This research paper reviews and interprets expert opinion on disruption in order to inform governments about the policy tasks posed by digital technologies.

The paper focuses on the role of government in the face of potentially disruptive technological change. Governments establish the legal and regulatory systems that govern the operation of the economy. They provide key inputs into the economy by educating the labour force and providing public infrastructure and services. They also negotiate (through democratic processes) and maintain (through social expenditure and justice) an underpinning social compact with the community. Disruptive technologies have implications for each of these roles.

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