Abstract
In light of the significant consequence of the trap of dramatic advancement of information and communication technology (ICT) in the global economy, both nations and firms that have been compelling their productivity decline. This resulted in great stagnation of ICT advanced economies and therefore its structural sources were analyzed. Based on an empirical analysis tracing, the trend in marginal productivity of ICT and its subsequent prices among the top ICT leaders in the world over the last two decades correlating with the effects of ICT, two faces of ICT advancement were identified. On one side, advancement of ICT contributes to its prices increase by new functionality development, its dramatic advancement particularly centered by internet results in the decline of its prices through freebies, easy copying, and standardization. It was demonstrated that the success of ICT leaders could largely be attributed to the way in which the two faces of ICT advancement were managed by maximizing the positive face of ICT advancement. This is done by means of the effective utilization of external resources in innovation while minimizing the negative face by outsourcing price decreasing factors. All of the aforementioned points can be invaluable lessons for global sustainability in both ICT advanced and growing economies in the midst of the advancement of ICT. The significance of innovation-consumption co-emergence for harnessing the vigor of counterparts is discussed.
Highlights
While a dramatic advancement of information and communication technology (ICT) provides strong anticipation in significant economic growth, contrary to such anticipation, economic growth engine, in ICT advanced economies has disappeared resulting in great stagnation (Cowen, 2011)
In light of the significant consequence of the trap of the dramatic advancement of ICT in global economy both nations and firms that have been compelling their productivity decline resulting in the great stagnation in ICT advanced economies and its structural sources were analyzed
In light of the significant consequence of the trap of the dramatic advancement of information and communication technology (ICT) in global economy both nations and firms that have been compelling their productivity decline resulting in the great stagnation in ICT advanced economies, its structural sources were analyzed
Summary
While a dramatic advancement of information and communication technology (ICT) provides strong anticipation in significant economic growth, contrary to such anticipation, economic growth engine, in ICT advanced economies has disappeared (except for Singapore) resulting in great stagnation (Cowen, 2011). The third industrial revolution brings with it a new era of distributed capitalism in which millions of existing and new businesses and homeowners become energy players (Rifkin, 2011) Such a dramatic advancement of the internet and subsequent third industrial revolution inevitably emerged as new paradox of the advancement of ICT. Brynjolfsson, who first reacted to Solow’s production paradox in 1993 (Brynjolfsson, 1993) asked the question: “Could technology be destroying jobs?” (Brynjolfsson and McAfee, 2011) They expanded further to explore whether advancing ICT might be an important contributor to the current unemployment disaster. In light of the significant consequence of the trap of the dramatic advancement of ICT in global economy both nations and firms that have been compelling their productivity decline resulting in the great stagnation in ICT advanced economies and its structural sources were analyzed. A brief summary of the noteworthy findings, policy implications supportive to resilient business and direction for future works are provided
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