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This Digital Economy (DE) Network Plus will deliver a vibrant community that will position the UK as the internationally leading research hub for Digitally Enhanced Advanced Services. Rather than focus on the product or service that is delivered DEAS focuses on how the product or service is used. This is a major change in how firms earn money and is being enabled by transformative digital technologies that allows for example, payment per use or availability or outcome. The impact of these changes is in firm productivity. The traditional focus of productivity (outputs/inputs) is on internal efficiency. However, digital technologies can also transform the value of the output (payment for use, availability or outcome). Haldane (Chief Economist of the Bank of England) in his recent report on productivity puzzle (essentially stagnant growth since the financial crash) argues that despite the advent of the digital age and their adoption by some leading companies there is a very long tail of poorly productive firms across all sectors. He calls for the development of, for example, online tools that will speed the process of technological diffusion to the long tail. The development of the underpinning digital technologies for the purposes of developing DEAS is the key research challenge adopted by this Network+.
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