Digital technologies are a key enabler of a modern, knowledge driven economy. Electronic business - and in particular electronic commerce - is radically changing the nature of individual businesses, of markets and of entire economies.

That is why, in our White Paper Our Competitive Future: Building the Knowledge Driven Economy, the Government has set out an ambitious goal: to create in the UK the best environment in the world for electronic trading by 2002. If we are to achieve this, we need to start by benchmarking ourselves against the best - painting an honest and realistic picture of where we are, and of where we need to go. That is why I am publishing this report alongside the White Paper. The report has three purposes.

First, to set out why the Government believes that success in the digital economy - and, in particular, winning a leading share of the world's rapidly growing e-commerce markets - will be critical to the competitiveness of UK business in the next century.

Second, to establish a baseline for the UK's current position in the digital economy, using both hard benchmarking data and the views of senior business executives.

Third, to set out how the Government, in partnership with business, proposes to address the challenges and opportunities identified through this analysis.

I do not pretend that the new policies and actions summarised in this report, and set out in more detail in the White Paper, will in themselves be sufficient to meet the ambitious goal we have set ourselves. They are but the first step - and the report therefore invites views on what further action is needed. I hope that all those who care about putting the future firmly on Britain's side will contribute to the debate.

The Rt Hon Peter Mandelson MP,
Secretary of State for Trade and Industry