Defining the Digital Sector

A Digital Technology business is a business whose primary purpose is to both create AND sell digital technology products, services or solutions.

Measurement of the digital economy is still maturing across OECD countries. Given this, there is no commonly agreed definition of the “tech sector”. MBIE and NZTech agreed to adopt the above definition of the Digital Technologies sector.

Digital Technologies is part of a broader grouping of industries that includes telecommunications and certain manufactured products. For data purposes in the DITP, the sector is defined as a collection of statistical sub-sectors: data processing service, computer system design and software publishing. Statistics NZ is working on a definition of the sector and the development of appropriate measures for assessing performance of the DITP overtime.

This DITP is focusing on the vertical measurement, the sector itself – and not the application of digital technologies across the economy.

The Digital Technologies sector is significant. Based on statistical data, its annual value add is over $6 billion, while the government expects to spend more than $7 billion on ICT and digital services over the next five years.