What are the main features of information economy?

Information economy

The idea of a post-industrial world and economy was first addressed in the 1950s when scientists noticed that the non-agricultural, non-financial areas of advanced industrial societies were growing increasingly. The word "post-industrial" was generally used to define this economy, considering these areas as the foundation of a modern developing economy. The key aspects of this new system are yet to be explicitly described or recognized well, and the new economy has simply been identified in terms of the old economy it replaced.

The realm of information

Over the infinite decades of digital media, the Information economy expanded quickly, making it possible to create acute copies of text, pictures, audition, video and other information tools. The Information economy has eventually grown into the full-blown economy today, with the advent of the Internet and subsequently the World Wide Web.

Porat, which distinguishes between two economic domains: the realm of matter, resources and the realm of information, is the most frequently referenced concept of the "information economy." The latter is alluded to as the Information field and the former covers agriculture and manufacturing. The software business entails moving details "from pattern to system."

When Information-related employment tends to surmount jobs in other fields, an economy becomes an Information economy. This happened in 1967 when 53 per cent of U.S. staff was interested in 'information' jobs on the basis of Porat’s assessments of the different sectors.

The Information market is divided into the main and secondary Information sectors through Porat. The staffs from the ‘main Information market’ are almost exclusively involved in producing or maintaining information such as physicists, journalists, librarians, etc. The staffs in the “secondary Information market” are those that focus mostly on non-information products, but whose work requires secondary work. They are employees of non-information companies and industries which generate information for internal use in the manufacture of farm or industrial (i.e. no-information) products.

Porat includes the entire information resources generated by government and non-information firms for internal use in the secondary information sector excluding government-level operations, including government planning operation, organization, supervision, control, assessment and decision-making, which belong to primary information sectors such as educational and printing. The divisions of non-information private businesses and sectors engaging in software work or the creation of data that are not for selling or rent in the market but are intended only for the promotion of the output of non-information products like internal data handling and library services are often included in secondary information business.

As can be seen earlier, although the "post-industrial" markets have now been explicitly defined as an "informational economy," there is still controversy over which practices and products can be labeled in an Information market.

Characteristics of informational economy

· The Information industry is that field in which Information is characterized as the reduction of ambiguity and instability, which addresses the production, management, processing, delivery, dissemination and usage of information. The smallest piece of Information is the bit that resolves the ambiguity between two conclusions which are similarly probable. Information is a non-material object, a non-energy object, that is only simply found in a tangible medium (which is the case for a hard disc) which long as it is simply transmitted (as with a radio signal).

· The data contains software, databases, and audio, film, book material, designs, genetic details, human and biological memory and other things, which can be ultimately interpreted, preserved and communicated as pieces. This involves details. This may be referred to as Information items. Often they are categorized in the information quality division. Information commodities are commodities which are not just Information but which include the greatest part of the price of the products. The Information goods contain too many details. These often provide the IP, domain names, templates, specifications and other related things used in ICTs and facilities.

· The Information economy often involves the actual infrastructure and services used to generate and process information, but this infrastructure itself may have been developed outside of the information economy. The physical infrastructure includes computers, telecommunications equipment, routing equipment, networking equipment, audio and video equipment, printing press, studios and stations for radio / TV, libraries, film, DNA-sequencing facilities and the like. This can be called equipment and installations for information.

· Information is a non-material / non-energy thing, and matter / energy just has to be stored / communicated. If digital technology advances, we begin to build methods of storing / communicating Information with less matter and resources.

·  The statement before us uniquely describes the Information economy: a good which can take a significant quantity of energy or matter to create, but costs virtually no replication leads one to an economy which is completely different from physique items. Information goods can be generated virtually at no cost, which ensures that the shortage of this good can be basically stopped at no expense until it is generated. Thus, not only a traditional analysis of the economies of scarcity, but also the economies of excess could include a review of the Information economy.

· Information products today may be held by means of an IPR system, which involves such regulatory monopoly structures as patents and copyrights. In IPRs, the excess of the Information that is generated is prevented and IPR holders may effectively sustain the price of the Information that is decent. This is because of an artificial shortage of information.

· The monopolistic Information system may be considered an information economy focused on such monopoly structures as IPRs to recompense intellectual work. In future it would also seem that non-monopoly Information ecosystems would arise, where intellectual work is only compensated by non-monopoly policies, which enable the public to truly enjoy the prosperity of information resources as produced.

· Even if specific parts of this software system and facility which require proprietary or licensed content, software equipment and facilities shall be managed in the same conventional way as manufacturing machinery and property.

Conclusion

The monopolistic Information economies require no ownership transition, just a conditional privilege to use the products, equipment or facility for both the information resources and the information equipment and facilities. Therefore, these revenues are leased. Thus rent-seeking groups are suitable types for the Information economy, and include information productsInformation economy, resources or services. These reindeer groups may be referred to as cyberspace tenants or cyber lords.


References:

https://vecam.org/archives/article724.html

https://unctad.org/en/PublicationsLibrary/ier2017_en.pdf

https://dictionary.cambridge.org/dictionary/english/information-economy

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Nov 17, 2020

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