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Productive Digital Transformation Simulator (SimTDP)

The problem we address

Productive digitalization policies are often designed with partial information and without tools to anticipate their effects. Technology adoption is not linear: it depends on complex interactions between productive structure, human capabilities, digital infrastructure, and institutions. Without adequate models, it is difficult to prioritize investments, evaluate policies ex-ante, or understand sectoral impacts.

What do we do?

We developed the Productive Digital Transformation Simulator (SimTDP), an analytical tool that allows for simulating technology adoption scenarios and evaluating the impact of different public policies on productivity, employment, and inclusion.

How do we do it?

The SimTDP is based on complex systems theory and economic complexity methodologies, using information on digital adoption patterns and productive performance to identify the “revealed” digital capabilities of sectors. The model simulates technology diffusion by considering network effects, complementarities, and sectoral heterogeneity. It allows for comparing scenarios with and without public intervention, supporting the design of national strategies, the ex-ante evaluation of programs, and the prioritization of digital infrastructure investments.

Plataforma interactiva

Productive Digital Transformation
Simulator — SimTDP

An evidence-based tool for the analysis, experimentation, and co-creation of public policies for Latin America.

Open SimTDP

Productive Digital Transformation (PDT) Planning Process

SimTDP operates through an iterative cycle of three interconnected stages, guiding from diagnosis to impact evaluation of productive digitalization policies.

Proceso de Planificación Transformación Digital Productiva 1 Métricas 2 Indicadores 3 Simulación Simulación SimTDP (n años) Producción de Métricas e Indicadores Selección de Indicadores Clave Simulación de Escenarios Futuros
01
Production of Metrics and Indicators
Construction of Sectoral Space (RIC + added value) and Digital Space (118 IDED-CAF indicators), identifying "revealed" digital capabilities of sectors.
02
Selection of Key Indicators
Multidimensional filtering and prioritization using Sector-Indicator Heatmap. Generates a Policy Plan with fiscal costs and temporal distribution.
03
Future Scenario Simulation
Iterative projection using Input-Output Matrices (IOM). Evaluates production, employment, benefit appropriation, fiscal impact, and environmental footprint.

Digital Proximity Network

Digital Space Visualization: a network of interconnected productive sectors based on their revealed digital capabilities. Size indicates Digital Complexity; color indicates Digital Distance from the global average.

High complexity
Medium complexity
Low complexity
Low proximity
High proximity

Key Impact Indicators

Main outcome variables that SimTDP models when comparing scenarios with and without public intervention.

Sectoral Productivity
+12–18% projected
Change in total factor productivity due to digital technology adoption in target sectors.
Digital Employment
+8–14% labor demand
Variation in demand for skilled digital labor and sectoral redistribution of employment.
Digital Divide
−15–25% reduction
Reduction of sectoral Digital Distance from the global average of digital capabilities.
Fiscal Impact
+5–9% revenue
Effects on tax revenue derived from the expansion of digital activities and greater formalization.
Environmental Footprint
+6–10% energy consumption
Increase in energy consumption due to digitalization; mitigable through green policies integrated into the plan.
Benefit Appropriation
Local retention vs. outsourcing
Evaluation of whether productivity gains are retained locally or outsourced due to reliance on imported inputs.

The problem we address

Productive digitalization policies are often designed with partial information and without tools to anticipate their effects. Technology adoption is not linear: it depends on complex interactions between productive structure, human capabilities, digital infrastructure, and institutions. Without adequate models, it is difficult to prioritize investments, evaluate policies ex-ante, or understand sectoral impacts.

What do we do?

We developed the Productive Digital Transformation Simulator (SimTDP), an analytical tool that allows for simulating technology adoption scenarios and evaluating the impact of different public policies on productivity, employment, and inclusion.

How do we do it?

The SimTDP is based on complex systems theory and economic complexity methodologies, using information on digital adoption patterns and productive performance to identify the “revealed” digital capabilities of sectors. The model simulates technology diffusion by considering network effects, complementarities, and sectoral heterogeneity, and allows for comparing scenarios with and without public intervention, supporting the design of national strategies, the ex-ante evaluation of programs, and the prioritization of digital infrastructure investments.

Initiatives

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