The Impact of the Internet on Productivity.
Long-term growth is driven by new ideas. In the new age compared to the past, productivity has increased due to Information Technology and the Internet as compared to industrialization. Productivity measures the efficiency of work such as the output of goods and services per hour worked. Changes in a society that increases innovation and adaptation, increase economic growth. A factor, which affects economic growth, is the number of previous ideas; new ideas build on old ideas thus the more old ideas the more new ideas are developed. We have had one innovation after the other. The telegraph marketed the first time we could eliminate distance. Electricity" s most important impact was its use in the factory. The Internet is an improvement on efficiency of business communications with the progress of IT and the introduction of e-commerce and on-line shopping resulting in an increase in productivity.
IT encompasses all forms of technology used to create, store, exchange, and use information in its various forms (business data, voice conversations, still images, motion pictures, multimedia presentations, and other forms, including those not yet conceived). It is a convenient term for including both telephony and computer technology in the same word. It is the technology that is driving what has often been called "the information revolution" or what business gurus like to call, the " the network society." There has been substantial evidence that IT increases productivity. The new e-economy has been driven by the high demand of improving technologies in the using industries. Industries that invested in IT have had a significant increase in their productivity level, which was an average of four percentage points. These industries are: retail trade, wholesale trade, securities, telecommunications, semi-conductors and computer manufacturing, which represent 30% of the economy.
