Incorporating the framework of the Cobb-Douglas production function, GDII 2026 specifies a simplified production function for the intelligent economy as follows:
Moving beyond a mere exogenous efficiency parameter, T explicitly models digital and intelligent infrastructure to define the usable service capacity delivered by networking, compute, and storage under energy constraints. GDII 2026 decomposes T into networking (N), compute (C), and storage (S). Rather than a simple linear aggregation, these three types of services are combined using a Constant Elasticity of Substitution (CES) function with low substitutability:
D goes beyond data volume accumulation to unlock value, capturing the effective data value jointly determined by data scale, quality, and velocity. GDII 2026 decomposes D into three dimensions: It uses a CES function to aggregate private data (DP, t) and public/government data (DG, t), defining the complementary structure of these two data sources. It employs data quality (Qₜ) as a multiplicative scale factor, reflecting the surge in value density as a result of long-term accumulation, standardized governance, and scenario-specific immersion. It uses velocity (vₜ), which is the ratio of accessed data volume to effective data volume, to capture the efficiency of converting data from a static asset into a dynamic factor of production:
Unlocking the value of data depends not on how much data is owned, but on "how much is usable, how well it is used, and how fast it moves".
L moves labor beyond quantitative aggregation to human-machine collaboration, capturing the complementary aggregation of high-skilled talent and universal labor moderated by structural talent matching. GDII 2026 decomposes L into two types of labor: high-skilled talent (Hₜ) which encompasses AI-related professionals, and universal labor (Uₜ) which represents the general workforce. The two are aggregated using a CES function with low substitutability:
In the era of the intelligent economy, the talent structure needs to be coordinated with digital and intelligent infrastructure and high-quality data, and the talent ecosystem must focus on cultivating interdisciplinary talent and developing human-machine collaboration models.
