Information Friction

To measure information-related friction, we looked at the volume of content available in the local language (using such proxies as on-line open-encyclopedia pages created in the local language and volume of local-language micromessaging), the commitment to Inter-net openness and press freedom, and obstacles to accessing certain types of content.

Our analysis found a significant correlation between low e-friction and high digital economic activity.

The Internet economy—as a percentage of GDP—of a country in the top quintile of the index tends to be more than twice as large, on average, as that of a country in the bottom quintile. Given that the digital economy is growing so quickly (often outpacing the offline economy), high e-friction countries are in danger of missing out on a high-impact propellant of growth and job creation. Lack of e-friction also facilitates higher Internet enablement, engagement, and expenditure as measured on the BCG e-Intensity Index— which assesses the overall intensity of Internet usage within a country.

Many proclaim the need to support the burgeoning Internet economy, but levels of concern around openness and e-friction—and prescriptions on how best to tackle the problems—vary sharply.

#1 Infrastructure and Education First

In economies throughout the world, in developed as well as developing countries, availability of affordable speedy online access— meaning the ability to get online and do things quickly and inexpensively—is still the number-one friction point. Countries that fail to address issues of access have little hope of furthering their Internet economies.

Policies that promote investment, especially in infrastructure, are essential. Many economies that rank high on both the BCG e-Friction Index and the BCG e-Intensity