This discussion paper summarizes the key issues and questions that crop up in debates about digital literacy, and sets out our initial thinking on the need for digital knowledge and skills, what digital literacy comprises, and a framework for understanding digital skills. To inform this discussion paper, BII+E conducted an in-depth literature review and jurisdictional scan. We also spoke to policymakers, program delivery experts, and industry experts across the country about the importance of digital skills, trends in education and training, and the challenges associated with equipping the present and future workforce with the skills to participate in an increasingly digital economy. This discussion paper will be used to test our definition of digital literacy and our framework for understanding digital skills from across sectors. It will also inform consultations with experts on the next steps in our research agenda. In future phases of work, we will more closely examine data related to digital skills supply and demand across Canadian occupations and industries; map current digital literacy-focused programs and policies in Canada; and develop actionable recommendations to address existing barriers and take hold of opportunities to equitably develop digital literacy in Canada.