Other studies found similar results (Pohjola , 2001). as the largest PC market and led the world with over 400 million Internet users (Shih, Kraemer and Dedrick, forthcoming).Nonetheless, developing countries increased their investment in IT from 0.5% of GDP in 2000 to 1.0% from 1994 to 1997. For example, China had fewer than 10 million PCs in use in 1997 and barely 1 million Internet users. Similar rapid growth in places such as India, Latin America, Southeast Asia and Eastern Europe has transformed the landscape for IT use in developing countries.We had just received our first NSF grant to study policies for effective use of computers in governments in the U. Rob Kling, Jim Danziger, Bill Dutton, Alana Northrop, John King, Suzanne Iacono and Debora Dunkle were all colleagues in this work and one of our first tasks was to do a literature survey.
Their chief concern was that “the gap between the industrially advanced countries and those which are still developing is widening”.
Looking Forward This short article will review what we know about the foregoing issues: (1) the returns to IT investment (2) computer production vs. At the time that Social Issues in Computing was published, I had just become Director of the Public Policy Research Organization (which later morphed into the Center for Research on IT and Organizations or CRITO) at UC Irvine.
With the introduction of the PC, new opportunities arose for developing countries.
Domestic companies in such as India, Brazil and Mexico succeeded for a while in their own markets, but could not compete globally with the multinational brands or their own white box makers.
So, an important question is whether this level of investment and experience has now changed the results for developing countries.
A recent study, which analyzed new data on IT investment and productivity for 45 countries from 1994-2007, found that upper-middle income developing countries have achieved positive and significant productivity gains from IT investment in this more recent period as they have increased their IT capital stocks and gained experience with the use of IT (Shih, Kraemer and Dedrick, forthcoming).
Computer makers in England, Germany, France and Italy succeeded initially against the leader IBM because they were national champions, but there were unable to compete on the world market and were bought out, merged or disappeared.
Japanese companies succeeded longer in their protected market.
This global production system relies on IT to link it all together.