Thursday, May 16, 2013

The New Digital Divide



Innovation and new technologies seem to be what is really driving the world economy. Intellectual property and technology patents are hot commodities that certain manufacturers will pay premium prices for. They invest in these new technologies in order to provide us with the newest, fastest tool that will improve our lives by making everything easier (ex. communication, document sharing, up-to-date information for stock prices). The Digital Divide is the gap between the countries that can afford this ICT (Information and communications technology) and those who can’t. The countries that can afford to invest in ICT have a substantially accelerated economic and social growth than those who can’t. This means that there are regions that can’t afford to invest in ICT and are falling behind at a rapid pace.

The article from The Japan Times, “New digital divide threatens economic growth”, is an opinion piece bringing statistics from the World Economic Forum’s Global Information Technology Report 2013 and simple reasoning together in one short article. Mr. Bilbao-Osorio talks about how certain countries have 90% of households with a computer and Internet connection. This leads those developed countries to having over 100 ICT patents per million populations in these countries. Why? Because quality ICT infrastructure and a highly skilled workforce allows for the opportunity to play with ICT developments and make improvements upon them.  He finishes the article by stating that there is no linear correlation between a highly skilled workforce/quality ICT and positive social/economic growths. There is, however, a minimum investment threshold in ICT and skill development that any country should have in order to achieve positive economic and social growth. He states, “…once this threshold is achieved, the return on such investment in ICT skills and infrastructure becomes disproportionately higher as the economy transitions to higher value-added activities” (Bilbao-Osorio, 2013).

I agree with the content of this article. I do believe there are many countries and regions that have fallen behind in the Digital Divide. They lack the resources to invest in a strong ICT infrastructure. They are crawling the economic incline that more developed countries are sprinting up. It would be detrimental for these lacking countries to just invest incredible amounts of money into a strong ICT infrastructure because it won’t automatically reap economic growth. They need to invest the minimum requirement in ICT and that will slowly create a skillful labor force and technological improvements. As the technologies available to them grow at a steady pace, so will a skilled labor force.  Then new developments can be made. The country can then begin to be part of the global marketplace. “Innovations often come about when a skillful labor force gets to experiment with the latest technologies and new materials” (Bilbao-Osorio, 2013).



Reference:

Bilbao-Osorio, B. (2013, 5 13). New digital divide threatens economic growth.
Retrieved 5 14, 2013, from The Japan Times: http://www.japantimes.co.jp/opinion/2013/05/13/commentary/