Republic of the Philippines

Leyte Normal University

College of Arts and Science

A Critical Analysis on Information Economy

7:30 - 9:00 am MTh
Semester 1

Submitted by:
Gerrel Lloyd M. Distrajo
BSSW AS1-2

Submitted to:
Dr. Leoncio Olobia
Instructor
In this modern world we live in, technology had made our living way more easier
than before. As brought by the increasing advancement by these technologies in our
current era, information is much more easy and accessible, through the help of
smartphones, computer, laptops, smartwatch, and such technologies, information
can be both receive and send information in just one click. As defined by Britannica
dictionary ‘information is knowledge that you get about someone or something’ so
basically, information are those things that gives you knowledge and a much clearer
picture of what does that truly mean. In this juncture, let us define the term economy,
as what I’ve learned throughout the subject, it’s basically a evidence or statement on
how wealthy a region or country is. So as we can see, these two words have
different meaning but when we put it together, it forms another word in which it also
gives another meaning. Information economy refers to an economic system that is
largely driven by the creation, production, and distribution of information and
knowledge. As defined by the statement above, information economy comprises an
economic system in which it is made possible with the help of production and
sharing of information and knowledge and also with the involvement of human
interaction in such a way that all these processes and system cannot exist on its own
without the guidance and manifestation of humans involvement. Information
economy is a crucial part of a region or a country, why is that so? It’s because in an
economy, many people are organized and works harmoniously to function and
become the catalyst in achieving a better economy for a region or country,
information also plays a vital role in an economy or economic system it’s because,
they are the first line of source when it comes to spreading and sharing about these
things that comprises the economy. In this type of economy, information is seen as a
valuable resource and plays a central role in the production of goods and services.
The rise of the information economy can be attributed to advancements in
technology, particularly the internet and digital technologies, which have made it
easier to access, store, and share information. This has led to the emergence of new
industries and business models, such as e-commerce, digital marketing, and data
analytics. The information economy has also transformed the way we work and live,
with increasing reliance on digital communication, remote work, and online learning.
As we can see , information economy has a created a big impact on our society
today, in simple means, it had alleviated our way of living nowadays. In just a click of
a button, information can be shared, despite the geographical and other sociological
aspects, information can be shared in just a few minutes. Information economy has
led our business industries and other rising platform, together with the help of
technological innovations and advancements, into greater heights, what do we
mean by that. Meaning, information economy had given our industries a
transformation or a makeover with the help of technology that is present nowadays,
now what are these so called ‘makeover’ that we are trying to elaborate, this are
platforms like digital markets, e-commerce company, and such. It had also affected
our perspective about information, in our time today, we can access, decimate, and
store our information using digital equipment like, laptops, computers, cellphone and
such. If we will reflect back to the traditional ways, information is stored and can be
only accessed through libraries, newspaper, magazine, etc. But in our era right now,
considering the technology, we can already access and store these information that
we need without going to the libraries and other places where we can see these
sources, we can clearly tell to ourselves that it really did paved the way in achieving
a much more convenient road in achieving these information.
The Information economy is of particular importance in today’s connected world for
many compelling reasons. First, it acts as a catalyst for economic growth and
innovation. Information technology has boosted entire industries, from software
development to digital marketing, creating millions of jobs and promoting startup
culture. Second, the information economy improves efficiency and productivity
across all sectors. It optimizes processes, reduces costs and accelerates decision-
making, thereby enhancing overall economic productivity. Additionally, the global
nature of the information economy drives globalization. Businesses can access
international markets and cooperate globally, thereby promoting economic
globalization through increased trade and investment. This global interdependence
paves the way for prosperity. Additionally, the information economy has a direct
impact on individuals, improving their quality of life by providing access to education,
healthcare, and entertainment, as well as enabling employment. Remote work and
telemedicine. Additionally, the rapid exchange of information and ideas in this
economy drives innovation, contributing to progress in a variety of fields, from
healthcare to renewable energy. Data-driven decision-making is another important
aspect: it helps optimize services, address social challenges and guide policy
development. It is worth noting that the information economy allows individuals to
become entrepreneurs with low barriers to entry, thereby promoting diversity and
competition in the business landscape. Environmental sustainability also benefits
from the information economy as it enables the optimization of resources and the
deployment of smart systems, the economy has proven its resilience, especially
during the COVID-19 pandemic, by allowing rapid adaptation to unforeseen
challenges thanks to technical tools digital and work remotely. In short, the
information economy is the foundation of contemporary society, paving the way for
economic growth, technological innovation, globalization, improved quality of life
and more. Its continued growth and development is poised to profoundly shape the
future. Information economy has created a big impact on our society today, we can
see that mostly in our scenario today, information is widespread and helped us
figure out things with ease and convenience. I do believe that information economy
has a positive disposition or outcome in our community, why do I say so? It’s because
in overall terms or in a generalize approach, we can see that the community benefits
the services, production, and distribution of resources in a much better and easier
way, information can be access by just a click of a button, information has helped
the economy in developing it’s potential. According to (Jorgenson and Stiroh 1999;
Vu 2011; Lee et al. 2012; Grimes et al. 2012; Pradhan et al. 2015) ICT diffusion has
substantially improved the efficiency of resources allocation, enormously reduced
production costs, and promoted much greater demand and investment in all
economic sectors. The Information Economy has also opened up new educational
opportunities. Online learning platforms and resources have made education more
accessible to people around the world, leveling the playing field for those who may
not have had access to traditional educational institutions. Information Economy has
revolutionized communication. It’s easier than ever for people to connect with each
other, regardless of geographical distances. This has strengthened relationships,
facilitated collaboration, and enabled the rapid exchange of ideas, which can spark
innovation. One of the key benefits of the Information Economy is its potential to
create new opportunities for individuals and businesses. The easy access to
information and technology has made it possible for small entrepreneurs to start and
grow their businesses, reaching a global audience. This democratization of
entrepreneurship has led to job creation and economic growth in many regions. The
Information economy, where we use information and data, has really improved all of
our lives. It is like a magic wand that allows us to find answers to our questions very
quickly, chat with friends about anything and do our work more easily. Just think
how you can google something and get an answer in seconds! Plus, thanks to things
like Facebook and WhatsApp, you can keep in touch with people no matter where
they are. Even work has become easier with jobs you can do at home on your
computer. And guess what? There are tons of great new jobs in tech and networking
that pay well and are fun. So it’s like a great tool that makes life more convenient
and opens up great job opportunities. Overall, the knowledge economy is like a
superhero that makes life great by making things easier and more exciting. The
information economy, which consists of the use of information and data, has
brought many good things to our lives. This made it easy to quickly find information,
keep in touch with people from different parts of the world and make our work more
efficient. Think how we can now search the Internet to answer questions, chat with
friends on social networks or even work remotely from home. This means less time
searching or commuting and more time for family, hobbies and relaxation. In
addition, the information economy has created many new job opportunities in the
technology and digital industries, which can be well-paid and exciting. Simply put, it
is like a powerful tool that helps us live more comfortably and opens new doors for
work and leisure. Overall, the information economy has had a positive impact on our
lives, making things easier and more convenient. Therefore, we can conclude that
information economy has truly alleviated our lives on a daily basis, it has made our
life even more easier, communication became more accessible despite the distance
and other factors, it has helped our industries in performing even more competitive.
The information economy also enables companies to access information faster and
more efficiently, which improves their decision-making ability and stays ahead of
the competition. In the information economy, data is the driving force in everything
from product development to customer service. The information economy is a term
that refers to a modern economy where information has become an important factor
of production, and companies rely heavily on information technology to store and
use information. Information is the lifeblood of any organization and having the right
information at the right time is essential to making informed decisions. In the
information economy, information is seen as a valuable resource, and organizations
must be able to use the information available to them in the best possible way. The
ability to effectively use and manage information is a prerequisite for the
competitiveness of any organization. The study of the information economy is of
prime importance in our digital age. It serves as a compass to navigate the complex
web of technology, data and innovation that shapes our world. Understanding these
economics gives people better career prospects and helps companies stay
competitive thanks to technological advances. In addition, it informs policymakers on
how to design effective regulations that balance economic growth with privacy and
ethical principles. The global impact of the information economy on business,
geopolitics and society underscores its importance, making it essential for all who
wish to thrive in our community and interconnects us.
References.

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Porat, M. U. (2019). The Information Economy: Definition and Measurement. Ed.gov;

Superintendent of Documents, U.S. Government Printing Office, Washington, D.C. 20402 (Stock
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Dedrick, J., Gurbaxani, V., & Kraemer, K. L. (2003). Information technology and economic
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Bogoviz, A. V., Ragulina, Y. V., Ткаченко, Т. В., Агапова, Т., & Saykinov, V. E. (2018). The Role and
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