The geography of the information economy

Abstract

The growth of the information economy is defined in relation to four key processes : 1. Information is becoming the key strategic resource on which the effective production and delivery of goods and services in all sectors of the economy is increasingly dependent. 2. The convergence of computers and telecommunications which is transforming the means of information exchange within and between organisations. 3. Information and communication technologies (ICTs) are facilitating the growth of the tradeable information sector. 4. Use of ICTs is maximising benefits to enterprises of global trade and local markets. From a geographical perspective, it is clear that ICTs, such as computer networks, which link work places within and between organisations can have a profound influence on what activities are located where, on how territories are administered or market areas served, and on how links are maintained between customers and suppliers in different areas. Based on the analysis of data on the changing distribution of information occupations and industries, the spread of computer networking within organisations, case studies of public and private sector organisations, analysis of internal change within British Telecom and an examination of the regional dynamics of the audiovisual industry, a number of significant conclusions are beginning to emerge. First, far from eliminating the importance of geography, the so-called "space-transcending" ICTs. when taken together with other factors, are supporting a more uneven pattern of regional development within the UK. Information occupations and industries have grown more dramatically in London and the South East in the past ten years, reflecting the capital's international as well as its national role. This growth has been underpinned by the rapid diffusion of computer networks ; these networks have their hubs in London, which serves to reinforce its dominant position in the national and urban systems. Second, there is only limited evidence so far of ICTs contributing to more flexible ways of organising the production of goods and the delivery of services in the way that could benefit smaller enterprises and indigenous development in declining regions. Computer networks are still primarily for intra-organisational transactions and as a means of reasserting control over organisational processes ; very few small firms are using ICTs to create competitive advantage, reconfigure their corporate geography, and change the way in which they manage territory. Clearly, ICTs have the potential for radically changing the face of Britain rather than simply reinforcing the old order. Third, the intersection between sectoral and geographical considerations in relation to the development of the UK information economy is poorly articulated in the regulation of the information industries or in public policy more generally. At the national level, the implications of the privatisation of British Telecom in relation to its capacity to respond to the changing geography of demand, appears not to have been understood by the regulators, and whilst the role of broadcasting in regional development is acknowledged, the mechanisms are only dimly understood by policy makers. At the local level, there is little evidence of, but an urgent need for, coherent planning for the information economy which integrates training, infrastructure provision, technology demand stimulation measures etc. not only as a means of achieving more balanced regional development, but in order to ensure that the UK reaps the benefits of becoming a network-based economy.