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By Paul J.J. Welfens

This publication makes a speciality of the function of data and conversation applied sciences for monetary integration, networking and progress. Technological and regulatory dynamics are highlighted with appreciate to european international locations and the united states.

The research bargains with the most problems with rational laws in open economies. Schumpeterian advancements and dynamic potency profits are an important for Europe within the context of telecommunications festival and community modernisation – attaining the targets of the Lisbon time table calls for sufficient incentives for funding and strong capital marketplace customers. financial growth within the electronic wisdom society could be characterized by way of huge, immense structural swap and the expansion of electronic companies. New coverage conclusions at either the nationwide and overseas degrees – together with welfare research – are presented.

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838 -25 058 Telefonica Spain 27 306 42 864 145 730 173 554 .. 569 1 693 4 531 SBC USA 51 374 41 183 220 000 162 700 .. 7 800 3 819 TI/Olivetti Italy 27 516 36 277 107 171 82 397 247 168 3 231 5 380 BT UK 28 356 33 860 132 000 102 100 552 467 2 111 3 309 17 220 27 901 64 900 59 900 .. 1 964 -401 389 540 539 860 1 580 684 1 500 331 5 257 4 901 38 974 20 065 Sprint/Nextel USA Total Note : Preliminary 2005 data are based on financial year reported in 2005 or most recent four quarters. Source: OECD Information Technology Outlook (2006) The top 10 software firms are all from the US except for SAP and Softbank which are German and Japanese, respectively.

63 percentage points in the second period. ICT can stimulate long term growth if the growth rate of total factor productivity growth is raised or if the output elasticity of capital is increasing over time. From a theoretical perspective the link between ICT dynamics and economic growth is rather straightforward: Innovations and productivity growth are crucial. In the framework of growth accounting one should find a major impact in total factor productivity growth, part of which could reflect technological progress embodied in cumulated ICT investment.

Two important studies can be found in this context: • BAILEY/LAWRENCE (2005) have shown that the US software sector internationally outsourced some 100,000 jobs in the period from 2000 to 2003. However, the overall number of software personnel in the US increased in that period. Mostly, rather simple programming jobs were outsourced, often to Asian countries. This suggests that the international outsourcing of standardized services will allow advanced countries with a relative abundance of skilled workers to specialize increasingly in advanced services.

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