Unveiling the global trade network of digital production technologies: a new product classification

Abstract

This research introduces a novel Digital Production Technology Classification (DPTC) based on the Harmonised Commodity Description and Coding System (HS2017) from the World Customs Organisation. The DPTC identifies 120 traded products linked to digital production technologies (DPTs), focusing on technologies that serve as building blocks of digitalised production. The objective is to provide a tool to assess countries’ positions in the digitalisation process. Using a step-by-step methodology and expert consultations on production technologies with digital potential, the DPTC distinguishes final products, parts, and instruments, capturing levels of technological complexity. We apply this classification to generate empirical evidence on the global production structure of DPTs by comparing trade networks in 2012 and 2019. The network analysis reveals shifts in global DPT trade structure, countries’ roles, and their centrality in production and trade. The classification provides a useful tool for researchers and policymakers to analyse DPT trade networks and inform industrial policy.