Information industry
Encyclopedia
The information industry or information industries are industries
that are information
intensive in one way or the other. It is considered one of the most important economic sectors for a variety of reasons.
There are many different kinds of information industries, and many different ways to classify them. Although there is no standard or distinctively better way of organizing those different views, the following section offers a review of what the term "information industry" might entail, and why. Alternative conceptualizations are that of knowledge
industry and information-related occupation. The term "information industry" is mostly identified with computer programming
, system design, telecommunications, and others.
products such as television
programs and movies, published books and periodicals would constitute probably among the most accepted part of what information goods can be. Some information is provided not as a tangible commodity but as a service. Consulting is among the least controversial of this kind. However, even for this category, disagreements can occur due to the vagueness of the term "information." For some, information is knowledge about a subject, something one can use to improve the performance of other activities—it does not include arts and entertainments. For others, information is something that is mentally processed and consumed, either to improve other activities (such as production) or for personal enjoyment; it would include artists and architects. For yet others, information may include anything that has to do with sensation, and therefore information industries may include even such things as restaurant, amusement parks, and prostitution to the extent that food, park ride, and sexual intercourse have to do with senses. In spite of the definitional problems, industries producing information goods and services are called information industries.
Second, there are information processing
services. Some services, such as legal services, banking, insurance
, computer programming
, data processing
, testing, and market research, require intensive and intellectual processing of information. Although those services do not necessarily provide information, they often offer expertise in making decisions on behalf of clients. These kinds of service industries can be regarded as an information-intensive part of various industries that is externalized and specialized.
Third, there are industries that are vital to the dissemination of the information goods mentioned above. For example, telephone
, broadcasting
and book retail industries do not produce much information, but their core business is to disseminate information others produced. These industries handle predominantly information and can be distinguished from wholesale or retail industries in general. It is just a coincidence, one can argue, that some of those industries are separately existing from the more obvious information-producing industries. For example, in the United States, as well as some other countries, broadcasting stations produce very limited amount of programs they broadcast. But this is not the only possible form of division of labor. If legal, economic, cultural, and historical circumstances were different, the broadcasters would have been the producers of their own programs. Therefore, in order to capture the information related activities of the economy, it might be a good idea to include this type of industry. These industries show how much of an economy is about information, as opposed to materials. It is useful to differentiate production of valuable information from processing that information in a sophisticated way, from the movement of information.
Fourth, there are manufacturers of information-processing devices that require research and sophisticated decision-making. These products are vital to information-processing activities of above mentioned industries. The products include computers of various levels and many other microelectronic devices, as well as software programs. Printing and copying machines, measurement and recording devices of various kinds, electronic or otherwise, are also in this category. The role of these tools are to automate certain information-processing activities. The use of some of these tools may be very simple (as in the case of some printing), and the processing done by the tools may be very simple (as in copying and some calculations) rather than intellectual and sophisticated. In other words, the specialization of these industries in an economy is neither production of information nor sophisticated decision-making. Instead, this segment serves as an infrastructure for those activities, making production of information and decision-making services will be a lot less efficient. In addition, these industries tend to be "high-tech" or research intensive - trying to find more efficient ways to boost efficiency of information production and sophisticated decision-making. For example, the function of a standard calculator is quite simple and it is easy to how to use it. However, manufacturing a well-functioning standard calculator takes a lot of processes, far more than the task of calculation performed by the users.
Fifth, there are very research-intensive
industries that do not serve as infrastructure to information-production or sophisticated decision-making. Pharmaceutical, food-processing, some apparel design, and some other "high-tech" industries belong to this type. These products are not exclusively for information production or sophisticated decision-making, although many are helpful. Some services, such as medical examination are in this category as well. One can say these industries involve a great deal of sophisticated decision-making, although that part is combined with manufacturing or "non-informational" activities.
Finally, there are industries that are not research intensive, but serve as infrastructure
for information production and sophisticated decision-making. Manufacturing of office furniture would be a good example, although it sometimes involves research in ergonomics and development of new materials.
As stated above, this list of candidates for information industries is not a definitive way of organizing differences that researchers may pay attention to when they define the term. Among the difficulties is, for example, the position of advertising industry.
First, information industries is a rapidly growing part of economy. The demand for information goods and services from consumers is increasing. In case of consumers, media including music and motion picture, personal computers, video game-related industries, are among the information industries. In case of businesses, information industries include computer programming, system design, so-called FIRE (finance, insurance, and real estate) industries, telecommunications, and others. When demand for these industries are growing nationally or internationally, that creates an opportunity for an urban, regional, or national economy to grow rapidly by specializing on these sectors.
Second, information industries are considered to boost innovation and productivity of other industries. An economy with a strong information industry might be a more competitive one than others, other factors being equal.
Third, some believe that the effect of the changing economic structure (or composition of industries within an economy) is related to the broader social change. As information becomes the central part of our economic activities we evolve into an "information society
", with an increased role of mass media, digital technologies, and other mediated information in our daily life, leisure activities, social life, work, politics, education, art, and many other aspects of society.
Industry
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
that are information
Information
Information in its most restricted technical sense is a message or collection of messages that consists of an ordered sequence of symbols, or it is the meaning that can be interpreted from such a message or collection of messages. Information can be recorded or transmitted. It can be recorded as...
intensive in one way or the other. It is considered one of the most important economic sectors for a variety of reasons.
There are many different kinds of information industries, and many different ways to classify them. Although there is no standard or distinctively better way of organizing those different views, the following section offers a review of what the term "information industry" might entail, and why. Alternative conceptualizations are that of knowledge
Knowledge
Knowledge is a familiarity with someone or something unknown, which can include information, facts, descriptions, or skills acquired through experience or education. It can refer to the theoretical or practical understanding of a subject...
industry and information-related occupation. The term "information industry" is mostly identified with computer programming
Computer programming
Computer programming is the process of designing, writing, testing, debugging, and maintaining the source code of computer programs. This source code is written in one or more programming languages. The purpose of programming is to create a program that performs specific operations or exhibits a...
, system design, telecommunications, and others.
Types
First, there are companies which produce and sell information in the form of goods or services. MediaMass media
Mass media refers collectively to all media technologies which are intended to reach a large audience via mass communication. Broadcast media transmit their information electronically and comprise of television, film and radio, movies, CDs, DVDs and some other gadgets like cameras or video consoles...
products such as television
Television
Television is a telecommunication medium for transmitting and receiving moving images that can be monochrome or colored, with accompanying sound...
programs and movies, published books and periodicals would constitute probably among the most accepted part of what information goods can be. Some information is provided not as a tangible commodity but as a service. Consulting is among the least controversial of this kind. However, even for this category, disagreements can occur due to the vagueness of the term "information." For some, information is knowledge about a subject, something one can use to improve the performance of other activities—it does not include arts and entertainments. For others, information is something that is mentally processed and consumed, either to improve other activities (such as production) or for personal enjoyment; it would include artists and architects. For yet others, information may include anything that has to do with sensation, and therefore information industries may include even such things as restaurant, amusement parks, and prostitution to the extent that food, park ride, and sexual intercourse have to do with senses. In spite of the definitional problems, industries producing information goods and services are called information industries.
Second, there are information processing
Information processing
Information processing is the change of information in any manner detectable by an observer. As such, it is a process which describes everything which happens in the universe, from the falling of a rock to the printing of a text file from a digital computer system...
services. Some services, such as legal services, banking, insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
, computer programming
Computer programming
Computer programming is the process of designing, writing, testing, debugging, and maintaining the source code of computer programs. This source code is written in one or more programming languages. The purpose of programming is to create a program that performs specific operations or exhibits a...
, data processing
Data processing
Computer data processing is any process that a computer program does to enter data and summarise, analyse or otherwise convert data into usable information. The process may be automated and run on a computer. It involves recording, analysing, sorting, summarising, calculating, disseminating and...
, testing, and market research, require intensive and intellectual processing of information. Although those services do not necessarily provide information, they often offer expertise in making decisions on behalf of clients. These kinds of service industries can be regarded as an information-intensive part of various industries that is externalized and specialized.
Third, there are industries that are vital to the dissemination of the information goods mentioned above. For example, telephone
Telephone
The telephone , colloquially referred to as a phone, is a telecommunications device that transmits and receives sounds, usually the human voice. Telephones are a point-to-point communication system whose most basic function is to allow two people separated by large distances to talk to each other...
, broadcasting
Broadcasting
Broadcasting is the distribution of audio and video content to a dispersed audience via any audio visual medium. Receiving parties may include the general public or a relatively large subset of thereof...
and book retail industries do not produce much information, but their core business is to disseminate information others produced. These industries handle predominantly information and can be distinguished from wholesale or retail industries in general. It is just a coincidence, one can argue, that some of those industries are separately existing from the more obvious information-producing industries. For example, in the United States, as well as some other countries, broadcasting stations produce very limited amount of programs they broadcast. But this is not the only possible form of division of labor. If legal, economic, cultural, and historical circumstances were different, the broadcasters would have been the producers of their own programs. Therefore, in order to capture the information related activities of the economy, it might be a good idea to include this type of industry. These industries show how much of an economy is about information, as opposed to materials. It is useful to differentiate production of valuable information from processing that information in a sophisticated way, from the movement of information.
Fourth, there are manufacturers of information-processing devices that require research and sophisticated decision-making. These products are vital to information-processing activities of above mentioned industries. The products include computers of various levels and many other microelectronic devices, as well as software programs. Printing and copying machines, measurement and recording devices of various kinds, electronic or otherwise, are also in this category. The role of these tools are to automate certain information-processing activities. The use of some of these tools may be very simple (as in the case of some printing), and the processing done by the tools may be very simple (as in copying and some calculations) rather than intellectual and sophisticated. In other words, the specialization of these industries in an economy is neither production of information nor sophisticated decision-making. Instead, this segment serves as an infrastructure for those activities, making production of information and decision-making services will be a lot less efficient. In addition, these industries tend to be "high-tech" or research intensive - trying to find more efficient ways to boost efficiency of information production and sophisticated decision-making. For example, the function of a standard calculator is quite simple and it is easy to how to use it. However, manufacturing a well-functioning standard calculator takes a lot of processes, far more than the task of calculation performed by the users.
Fifth, there are very research-intensive
Research
Research can be defined as the scientific search for knowledge, or as any systematic investigation, to establish novel facts, solve new or existing problems, prove new ideas, or develop new theories, usually using a scientific method...
industries that do not serve as infrastructure to information-production or sophisticated decision-making. Pharmaceutical, food-processing, some apparel design, and some other "high-tech" industries belong to this type. These products are not exclusively for information production or sophisticated decision-making, although many are helpful. Some services, such as medical examination are in this category as well. One can say these industries involve a great deal of sophisticated decision-making, although that part is combined with manufacturing or "non-informational" activities.
Finally, there are industries that are not research intensive, but serve as infrastructure
Infrastructure
Infrastructure is basic physical and organizational structures needed for the operation of a society or enterprise, or the services and facilities necessary for an economy to function...
for information production and sophisticated decision-making. Manufacturing of office furniture would be a good example, although it sometimes involves research in ergonomics and development of new materials.
As stated above, this list of candidates for information industries is not a definitive way of organizing differences that researchers may pay attention to when they define the term. Among the difficulties is, for example, the position of advertising industry.
Importance
Information industries are considered important for several reasons. Even among the experts who think information industries are important, disagreements may exist regarding which reason to accept and which to reject.First, information industries is a rapidly growing part of economy. The demand for information goods and services from consumers is increasing. In case of consumers, media including music and motion picture, personal computers, video game-related industries, are among the information industries. In case of businesses, information industries include computer programming, system design, so-called FIRE (finance, insurance, and real estate) industries, telecommunications, and others. When demand for these industries are growing nationally or internationally, that creates an opportunity for an urban, regional, or national economy to grow rapidly by specializing on these sectors.
Second, information industries are considered to boost innovation and productivity of other industries. An economy with a strong information industry might be a more competitive one than others, other factors being equal.
Third, some believe that the effect of the changing economic structure (or composition of industries within an economy) is related to the broader social change. As information becomes the central part of our economic activities we evolve into an "information society
Information society
The aim of the information society is to gain competitive advantage internationally through using IT in a creative and productive way. An information society is a society in which the creation, distribution, diffusion, use, integration and manipulation of information is a significant economic,...
", with an increased role of mass media, digital technologies, and other mediated information in our daily life, leisure activities, social life, work, politics, education, art, and many other aspects of society.
See also
- Software and Information Industry AssociationSoftware and Information Industry AssociationThe Software & Information Industry Association is a United States based software trade association. The organization lobbies United States policy makers as well as conducting surveys and research and many conferences and webcasts....