New Technologies and Economic Development

In recent times, considerable empirical studies have been undertaken to understand the precise ways in which new technologies, particularly information and communications technologies (ICTs),1 have contributed to the process of knowledge accumulation and more importantly, how this has promoted economic performance.2 These studies have been carried out at different levels of aggregation, namely establishments and plants, firms, industries or sectors and countries. Strikingly but not surprisingly, most of the studies were carried out within sectors and firms in industrialized economies. Although the review (Seigel et al., 1997; Lichtenberg, 1995) shows a skewed distribution in the trend of studies, there have been efforts within developing countries themselves, by scholars working on developing countries as well as by the United Nations, to understand the role of ICTs in the economic development of countries (UNCTAD, 2001, 2002, 2004; Lal, 2002, 2001; Oyelaran-Oyeyinka and Adeya, 2004; Oyelaran-Oyeyinka and Lal, 2004). There are studies that examine the specific impact of ICT policies and in fact suggest that good ICT policies help develop e-business (Bridges.org, 2001; Dekleva, 2000; Wolcott et al., 2001; Mbarika and Byrd, 2003; UNECA, 1999). However, there are gaps in two respects, that this book addresses.