Monday, August 23, 2010

Informatization in economic systems

Industrialization propelled transformation of the economic system from agricultural age to modernized economies, and so informatization ushered the industrial age into an information-rich economy. Unlike the agricultural and industrial ages where economics refers to optimization of scarce resources, the information age deals with maximization of abundant resources. Alexander Flor (2008) wrote that informatization gives rise to information-based economies and societies wherein information naturally becomes a dominant commodity or resource. The accumulation and efficient use of knowledge has played a central role in the transformation of the economy (Linden 2004).

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