Digital Footprint Dutch Economy Reaches €338 Billion

In our research on the Dutch digital economy we concluded that the total value-add generated by the digital workforce amounted to €182 billion in 2016. This means that our gross digital domestic product (GDDP) already contributes 28% of our total GDP.

© The METISfiles, 2017

However, this is just the direct impact of the digital technology usage on our economy. Next to the direct digital effect there is an indirect and an induced effect on the Dutch economy. In this study we define these impact as follows:

  • Direct impact. This is the sum of Digital Value Add generated by all Dutch organizations and equals Dutch GDDP
  • Indirect Impact. This is the extra Digital Value Add (DVA) generated by sectors that provide goods and services for sectors using and creating information technology. This is often referred to as the upstream effect.
  • Induced Impact. This is the extra DVA that is generated by the extra household spending stemming from the direct plus indirect impact of ICT.

These elements together can be regarded as the total footprint of ICT on the Dutch economy. Using Leontiev’s input-output model the total impact can be calculated. In our study we reviewed and totaled the digital footprint for 76 sectors of the Dutch economy.

© The METISfiles, 2017

What can be concluded is that the indirect plus induced impact of ICT on our economy is roughly the same size as the direct effect. In other words, the total digital footprint is about twice the size of the direct impact of ICT. Moreover, the digital footprint of ICT in terms of GDP contribution is € 338 billion, or 38% of all value add generated in 2016. As for jobs: in total ICT impacts some 3.1 million jobs, or 41% of Dutch labor force. Within 5 years from now we expect the Dutch Digital Economy to be responsible for over 50% of our economy.

For more details on the footprint of the Dutch Digital Economy, check the website of Nederland ICT. The report can be downloaded here.

Upcoming: Forecasting the Dutch Digital economy

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About Marcel Warmerdam