What is the Information Economy?

Short definition:

The Information Economy is a term used to describe the economic and social value created through the ability to rapidly exchange information at any time, anywhere to any one.

The slightly longer definition:

Information economy was the term adopted by the Australian Government in 1997 to describe the transformation of economic and social activities by information and communications technologies (ICTs).  An information economy is one in which information, knowledge and education are major inputs to business and social activity.  It is not a separate “new economy” – rather, it is an economy in which the rapid development and diffusion of ICT-based innovation is transforming all sectors and aspects of society.

Put more simply, information economy is based on the exchange of knowledge, information and services rather than physical goods and services.

Prospering in the information economy requires changes in business practices.  Significantly, geographical location has become less important than access to information, investment, markets, and skills.  With modern communications technologies, these are now accessible from just about anywhere in the world.

Similarly, with a website, it is possible to make widely dispersed potential clients aware of your products or services and to export extensively broadly.

Another significant factor for policy makers is to ensure that as many citizens as possible have access to modern communications technologies and the skills, awareness and confidence to take advantage of them. 

Other terms used with similar meanings

• include information society
• knowledge economy 
• knowledge society.