The Information Society: Implications for Economic Institutions and Market Theory

An ever-more-popular theme in the social sciences, as well as in the general literature over the past decade, has been that technologically advanced economies are in the process of moving beyond industrial capitalism to information-based economies that will bring profound changes in the form and structure of the economic system.2 Rapid advances in computer and telecommunication technologies are making it possible to generate information that was heretofore unattainable, transmit it instantaneously around the globe, and — in a rapidly growing number of instances — sell it in information markets. Some authors claim that the United States already devotes the majority of its economic resources to information-related activities.3 The computer, telecommunication, and information content industries are among the most rapidly growing global industries, and are expected to remain so for the next decade. Many national governments are counting on these industries to provide the primary stimulus to their future growth.