Information Economy: The concept ‘information economy’ emerged in the 1950’s (after World War 2) to reflect the

Question

global transition from agricultural revolution to industrial revolution and the information revolution. The shift in global
economy from the production of physical goods (as exemplified by the industrial revolution) and towards the production of
information goods and services (as exemplified by the application of knowledge, information, symbols, technology.
Briefly explain the above term and paraphrase it with specific examples

Answer 1

The term "information economy" originated in the 1950s, following World War II, to describe a significant transformation in the global economy. This transition marked a movement away from traditional agricultural practices and the industrial revolution, which focused on manufacturing physical goods, towards an economy that increasingly prioritizes the production and exchange of information-centric products and services.

In an information economy, the value lies in knowledge, data, technology, and communication, rather than just tangible items. For instance, software development, online services, and digital media become more central to economic activities than industries like farming or manufacturing.

To paraphrase, the information economy refers to a shift that began in the mid-20th century, where economies evolved from primarily producing agricultural and industrial goods to generating and utilizing information and knowledge-based products. Examples include the rise of tech companies like Google and Amazon, which offer digital services that rely on data and technology, as opposed to conventional businesses that primarily sell physical merchandise. The shift emphasizes innovation, collaboration, and the strategic use of information to create value in various sectors.