INNOVATION School of Political and Social Science : University of Phayao

The Effect of the Digital Economy: The Growth of Public Expenditure on Education and Cyber Threats

In this digital economy era, technological progress plays an important role in the production process of goods and services that are extremely effective, and the effect of the digital economy also makes human's lifestyles more convenient. However, driving the digital-economic society to achieve the goals, which is based on the assumption of the Endogenous Growth Theory, the government needs to allocate public expenditures for promoting investments both the infrastructure and the development of human capital, especially educational subsidies for skill development, and research and development, continuously, sufficiently, and systematically. For this reason, the development of the digital economy and the growth of public expenditure on education tend to be in the positive correlation; that is to say, the more the government focuses on driving the digital economy, the more the government will increasingly allocate education spending as the basis for preparing human capital, research, and innovation. Furthermore, allocating this expenditure increased will also contribute the educational benefits and the country's economic growth as well. Nevertheless, developing the country towards a full digital economy may face cyber threats that are troublesome to escape, because all types of cyber threats have damaged the digital economy. Consequently, organizations involved in cyber security, both public and private sectors, should hastily prepare personnel skills and set a system and procedure to prevent whole cyber threats, continuously and promptly.