Networked Economy Video
Understanding the Networked Economy is our research paper on the transition of advanced economies into a new form of information based networked model where we provide insight, analysis, and recommendations to help researchers and organizations better understand and respond to current major structural changes in the economy driven by information technology and globalization. During the past decades, we have begun in very significant ways the transition from an industrial economy to an information networked economy. With current developments we are moving in a very concrete way into the Information and Knowledge Age, an idea that has to date been mostly an academic and theoretical concept is rapidly becoming a reality and this transformation is reshaping all areas of society, economy, and technology infrastructure. In an information economy surplus value is no longer derived primarily from the production and consumption of physical goods – as it was in the mass society – but instead in the production and exchange of information. Thus this process of change takes us from an industrial economy that was characterized by centralized hierarchical and formal organizations optimized for the processing of physical resources and defined by the constraints of those physical limitations, to a form of information economy whose primary structures can be identified as open networks that are optimized for processing information and knowledge, which are no longer defined so much by physical constraints but are defined instead by the inherent limitations of information and knowledge.