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Overview
Definition, economic roles and properties
Definition of Information
Information is that property of data that represents and measures effects of processing of them.
Processing includes data transfer, selection, structuring, reduction, conceptualization. In that definition, data is taken as equivalent to physical recorded symbols, exemplified by printed characters; by binary characters in magnetic, punched or optical form; by spoken words; by images. Whatever the physical form may be, it becomes a recorded symbol when it is interpreted as representing something.
S y m b o lic
Information is a result of environmental scan to ensure that there is knowledge of external reality in decisionmaking.
Information can serve as a substitute for physical entities.
Information may be an educational objective in itself, since among things to be learned are the tools for access to and use of information.
Information is the substance of cultural enrichment, entertainment, and amusement.
Information can be a capital resource, especially for companies that produce information products and
services.
Most information products and services lie somewhere between pure private goods and pure public goods, and the same information may alternate as a public and private good at different stages of information processing and distribution.
Given that mixture of public and private good, private rights must be balanced with the rights to use the information. Copyright is one means of doing so, and the copyright clause of the Constitution of the United States embodies this balance: The Congress shall have the powerto promote the progress of science and the useful arts by securing for limited times to authors and inventors the exclusive rights to their respective writings and discoveries progress implying use and rights implying protection.
Economic Policies
General Economic Policies Encourage entrepreneurship Shift from low technology to high technology Shift from production of physical goods to information goods Develop the Information Economy Encourage effective use of information in business Provide incentives for information industries Develop information skills Management of Information Enterprises Establish technical information skills Develop information support staff skills
Of special importance is the steady year by year increase, for the past decade, in expenditures for Business Services, reflecting growing use of information in the economy.
Revenues for the information industries in the United States in 1990 and 1998 (percentages of gross national product and billions of dollars)
I N F O R M A T I O N I N D U S T R I E S U .S .D a tafo r1 9 9 0 U .S .D a tafo r 1 9 9 8
4 .9 % 3 .4 % 1 4 .0 % 2 2 .3 %
$ 2 7 4B 1 9 0B 7 8 3B 1 ,1 4 7B
7 .1 % 7 .6 % 1 7 .7 % 3 2 .4 %
$ 6 2 9B 6 6 5B 1 ,5 4 5B 2 ,8 3 9B
1 0 0 .0 % $ 5 ,6 0 0B
1 0 0 .0 % $ 8 ,7 5 0B
Revenues for the Production & Distribution Industries in the United States in 1990 and 1998 (percentages of gross national product and billions of dollars)
PRO DUCTIO N& DISTRIBUTIO N Book Publishing Journal Publishing Entertainm ent Form al Education University Research & Developm ent Business Services TO TAL U.S. Data for 1990 U.S. Data for 1998
Information must be created, by generation and processing of data; these are authoring functions. It must be assessed for publishability; these are editorial functions.
It must be processed for the generation of a master; these are composition functions.
Products and/or services will be produced.
P r o c e sse s P h y sic a l S y m b o lic P h y sic a l P r o d u c tio n M a r k e tin g D istr ib u tio n S y m b o lic C o m p o sitio n C r e a tio n E d ito r ia l
E n titie s
Printed and film, Magnetic tapes (VHS-VCR) and optical disks (CDROM and DVD) Electronic.
For the first two, distribution is by a combination of wholesale distributors, retail outlets, and libraries. For electronic, by television (broadcast, cable, and satellite) and the Internet.
Capital Investments
For distributors and retail outlets, capital investments are primarily in physical plant, though there will be some in inventory. Those for libraries are in physical buildings and equipment, but most significantly in their collections and associated technical processing.
Delivery Costs
Delivery costs for distributors, retail outlets, and libraries are largely for staff. (For all retail establishments in 1997, capital expenditures represented about 20% of total costs and staff, 80%.) For the Internet, capital investments are in hardware and software for processing and communication. Delivery costs are for staff and communication access charges.
SOURCES OF DIGITAL LIBRARIES Digital files used in production of current print publications Retrospective conversion to digital form from prior print or microform publications Digital files with no parallel in prior print or microform publications
1 2 3 4 5
T Y P EO FS E R V I C E L o c a lS e r v ic e ,R e s id e n tia l L o c a lS e r v ic e ,B u s in e s s L o n g -D is ta n c e N e tw o r kA c c e s s C e llu la rP h o n e O th e rI n c o m eS o u r c e s T o ta l
U S E R S 1 0 1 M 4 6 M
A V E R A G EC O S T T O T A L P E RU S E R $ 1 9 .5 4 /m o n th $ 1 9 .7 3 B $ 4 1 .7 7 /m o n th $ 1 9 .2 1 B $ 8 1 .6 7 B $ 3 4 .9 6 B $ 2 1 .0 4 B $ 3 2 .3 5 B $ 2 0 8 .9 6 B
140.0 120.0 100.0 80.0 60.0 40.0 20.0 0.0 Jan 98 Jul 98 Jan 99 Jul 99 Jan 00 Jul 00 Jan 01 Jul 01 Jan 02
Y e a r H o m eo rW o r k H o m eO n ly W o r kO n ly A c c e ss 1 9 9 7 4 6 .3 M 2 5 .5 M 2 2 .9 M 1 9 9 8 6 2 .3 M 3 7 .0 M 2 9 .0 M 1 9 9 9 8 3 .7 M 5 3 .7 M 3 8 .9 M 2 0 0 0 1 1 2 .9 M 7 7 .6 M 5 0 .5 M A c c e ss in 1 9 9 7 2 8 .1 M 1 9 .8 M 1 3 .9 M la st 3 0D a y s 1 9 9 8 4 3 .6 M 2 7 .6 M 2 0 .4 M 1 9 9 9 6 4 .1 M 4 4 .9 M 3 1 .1 M 2 0 0 0 8 6 .3 M 6 5 .5 M 4 0 .4 M
T o ta l 9 4 .7 M 1 2 9 .1 M 1 7 6 .3 M 2 4 1 .0 M 6 1 .8 M 9 1 .6 M 1 4 0 .1 M 1 9 2 .2 M
300.0 250.0 200.0 150.0 100.0 50.0 0.0 1997 1998 Years Total Number of Users Users w ith Access from Work Users in 30 Days from Work Users w ith Access from Home Users in 30 Days from Home 1999 2000
Millions of Users
T h er o y a l t i e sr e p r e s e n tt h ep a y m e n t st ot h ed a t a b a s e p r o d u c e r st oc o v e rt h e i rc a p i t a li n v e s t m e n ta n dc o s t si n s t o r a g ea n dd e l i v e r y .T h eo t h e rc o s t s ,i n c l u d in gt h a tf o rt h e i n t e r m e d i a r y ,a r ef o rd e l i v e r y .
THE END