Science, technology and innovation have become key factors
contributing to economic growth in both advanced and developing economies. In
the knowledge economy, information circulates at the international level
through trade in goods and services, direct investment and technology flows,
and the movement of people. Information and communication technologies (ICT)
have been at the heart of economic changes for more than a decade.
ICT sector plays an
important role, notably by contributing to rapid technological progress and
productivity growth. Firms use ICTs to organize transnational networks in
response to international competition and the increasing need for strategic
interaction. As a result, multinational firms are a primary vehicle of the overspreading
process of globalization.
New technologies and their implementation in productive
activities are changing the economic structure and contributing to productivity
increases in OECD economies. Economic competitiveness depends on productivity
level and in the knowledge economy; ICT sectors determine the productivity
level. As a result, we can say that the power of economic competitiveness of a
country depends on the productivity of its ICT sector.
There are two ways to improve the TFP of ICT and to improve
the power of competitiveness.
First of all, if the
selected countries solve their inefficiency problem by reallocation of
resources, they can improve their TFP of the ICT sector and as a result they
can be more competitive.
Secondly, the technological improvement in these countries
creates an expectation about increasing TFP of ICT sector for future. If there
will be a sustainable technological improvement by innovation, it will cause a
sustainable increase in the TFP of ICT sector and as a result it will cause a
sustainable increase in competitiveness.
