Technological Change andInformation TechnologiesSadafBashir,MScTechnischeUniversiteitTUeEindhovenUniversity of TechnologyWhere innovation starts
Technological Change and Information Technologies Sadaf Bashir, MSc
StructureThe macro-economic view:IcT as General PurposeTechnologiesThemicro-economicviewonIcTandproductivitySummaryTechnischeUniversiteitTUEindhovenJUniversityofTechnology30-9-2013PAGE1
Structure • The macro-economic view: ICT as General Purpose Technologies • The micro-economic view on ICT and productivity • Summary 30-9-2013 PAGE 1
CentralquestionsWhyproductivitygrowthisimportant?HowITcontributestowardseconomicgrowth?HowITcontributestowardsbusinessperformance?WhatisITproductivityparadox?TechnischeUniversiteitTUEindhoveneUniversity of Technology30-9-2013PAGE2
Central questions • Why productivity growth is important? • How IT contributes towards economic growth? • How IT contributes towards business performance? • What is IT productivity paradox? 30-9-2013 PAGE 2
ProductivityGrowthInthelong run,our living standards depend uponproductivity growth.Ingrowthdependsturn,productivityupon“"innovation"(Brynjolfsson,2010)Innovation isregarded as “Engine of EconomicGrowth"(Schumpeter,1934)Technische UniversiteitTUEindhoveneUniversity of TechnologyPAGE330-9-2013
Productivity Growth • In the long run, our living standards depend upon productivity growth • In turn, productivity growth depends upon “innovation” (Brynjolfsson, 2010) • Innovation is regarded as “Engine of Economic Growth” (Schumpeter, 1934) 30-9-2013 PAGE 3
IcTandEconomicGrowth:theMacro-economicpictureTechnische UniversiteitTUEindhoveneUniversityofTechnology30-9-2013PAGE4
ICT and Economic Growth: the Macro-economic picture 30-9-2013 PAGE 4