Collaborative Networks: Towards the Social Network

I have been invited by the Spanish Center of Judicial Documentation (Centro de Documentacion Judicial, CENDOJ) to impart a conference at the III Encuentro de Información y Documentación Judicial de la Red IberIUS [III Meeting about Judicial Information and Documentation of the IberIUS Network].

The idea was to give an overview of what the Network Society is and what are the concepts besides collective creation. Here come my slides (in Spanish):

Full reference and PDF downloadable here.

Economic Benefits of ICTs

As in a pendulum movement, the reflections about the impact of ICTs in the Economy have swung from enthusiasm to realism and back to optimism, being each of these states really subjective and implying a wide range of shades within.

After a first period of cyberoptimism, people that “wanted to see” and people that thought “waiting to see” was a bad strategy because “it will then be too late”, followed a timespan where scientists — mainly economists — stuck to strict evidence from reality, being their main conclusion that the more you spend/invest in ICTs the more they affect both the share and the growth of the GDP — an obvious conclusion to many, I’d dare say, as it’ll happen with sweets if you spent half your national budget in candy.

In the last years, due to more data available and more and better analyses, we have been seeing new findings that, at last, seem to bring more light to the issue of the impact of ICTs on the Economy. In the following table I present a summary of a good bunch of such positive impacts. One caveat is due: as it is clarified in most of the documents listed below, evidence is not always subject to generalization. While sometimes it actually is, some findings apply only to specific contexts such as countries, economies, moments of time, constellations of conditions and so forth. I nevertheless believe that these impacts are worth listing because some were predicted — or expected — ten years or more before they could be measured. On the other hand, some caveats about the applicability of these findings are mainly based on (non) availability of data. Last, but not least, because even if some results only apply, as we have said, to specific economic setups, some of these setups could be reproduced in other contexts — e.g. in developing countries — in order to try to provide the same results.

Economic Benefits of ICTs
Growth ICTs, in general, facilitate economic growth, having a positive impact in national GDP growth
Specifically, the greater the size of the ICT sector (products and services), the larger the positive impact of ICT on growth.
Enabling of larger markets coverage
Increase of reach of businesses
Reduction of economic downturns and dampens business cycles
Boost of economic output thanks to employment creation
Allowing of diversified growth strategies, especially due to changes in trade
Market Promote integration of isolated communities into the global economy
New information-based products, new business niches
Scaling-up of international competition thanks to more transparency and trade
Energizing of the market due to shortening of product life cycles and
Investment Growth in global investment
Positive impact on system development cost, risk and timescale effects
Reduction of information asymmetries, especially in banking and finance, thus improving market behavior due to more transparency
Positive confidence and risk assessment effects
Impact of ICT-related capital investments on overall capital deepening
Developmental gains from investing in ICT consumption
Developmental gains from investing in ICT production (even greater than for investment in ICT consumption)
High returns on investment in telecommunications equipment and, more generally, in the telecommunications sector
Efficiency Facilitation of cost-effective public and private services
Enabling of more efficient goods and services allocation
Cost savings, in general, for industry
Fostering of effective use of development resources: capital and natural resources
Improvement of inventory management, better flow control, better integration between sales and production and, therefore, enhancing management of production
Increased transport efficiency
Reduction of transaction and search costs and information asymmetries in product, services and factor markets
Improved performance in firms, increasing efficiency in combining capital and labor (multifactor productivity)
Reduction of site dependency of data processing
Enabling of higher quality products and services
Improvement of quality monitoring
Fostering of mass customization
Enabling of dis-intermediation
Creation of new intermediaries, new business niches
Better access to knowledge and information by enabling of rich information flow
Improved decision-making
Greater flexibility on the part of firms in catering to a diversified customer base
Network externality effects