IEEE Technology and Society Magazine - March 2023 - 41

Figure 4. Cost per human genome.
Table 1. Value creation that is mostly not
registered in GDP even though it should be.
Table 2. Innovation's value creation not covered
by GDP.
personal data about online activities which can be
used to generate revenues, for example, as Google
has done for online advertisements.
A series of empirical studies confirm that value
creation beyond what is covered by the definition
of GDP appears to be significant and rising due to
the vast expansion of free digital content and digital
household production (for example, [8]).
A further, and separate, value creation beyond
what is registered in GDP occurs in externalities and
March 2023
regulations that affect these. For example, economists
have always been aware of the fact that production
that harms the environment involves a cost that
is not registered in GDP. Some remedial measures
may be counted. If consumers, for example, choose
more expensive cars that emit less, this choice will
show up in national accounts in the same way as if
they had chosen a better sound system. But if governments
implement regulations that force a factory
to emit less at a higher cost, the consequence will
instead be lower GDP.
Similarly, other regulations intended to reduce
risks, such as lockdowns during a pandemic, lower
41

IEEE Technology and Society Magazine - March 2023

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