designated by the President of the Government of Castilla y Leã n in order to monitor initiatives, foster
Advanced software Engineering Advanced Production technology Agro-food biotechnology Source: ADE Figure 2. Clusters in the Industrial Plan of Castilla y Leã n
2006-2009 by a panel of experts supported by the European Commission2, whose mission was studying the causes of a growing gap in R&d efforts between Europe and the United
than 10 employees had compared computers with 71.6%at the national level. In the case of companies with more than 10 employees, these percentages increased to 98%.63.7
ratio of students per computer, this figure has been decreasing in Castilla y Leã n as well
with computers and devices and Internet access, high use of ecommerce, high percentage of digital natives;
mobile devices Public Government •Broad development of e-Government and availability of applications and resources
Programme 2 constitutes the core of science policy in the region, including measures promoting knowledge and technology generation with a clear international leadership
•†Computer  equipment  and  Internet  access  digital  natives
display a lower proï tability though, due to the imperfections inherent in invention market transactions and
-erlying the inventions often displays tacit components in addition to codiï ed components (Arora, 1996; Winter, 1987.
examining the software secu -rity industry, found thatmft raise the value of marketing capabilities in
choice of employing a cross-sectional dataset instead of a panel dataset is motivated by the concern for the reliability of yearly data
Indeed, forming a panel dataset would require the collection of yearly data on ï rms'invention commercialization
only a way to bypass the reliability problem that a panel approach would cause, but also a more appropriate approach from the stand
31.4%,Industrial and Commercial Machinery and Computer Equip -ment), SIC 34 (11.98%,Fabricated Metal Products, Except Machinery
%Industrial and commercial machinery and computer equipment 35 173 31.40 31.40 Fabricated metal products, except machinery and transportation equipment 34 66 11.98 43.38 2 10.00 10.00
Electronic and other electrical equipment and components, except computer equipment 36 43 7. 80 60.25
Building materials, hardware, garden supply, and mobile home dealers 52 2 0. 36 98.73 Mining and quarrying of nonmetallic minerals, except fuels 14 1 0. 18 98.91
However, we acknowledge that the panel data on technology commercialization strategies of small private ï rms
Econometric Analysis of Cross-section and Panel Data. The MIT Press, Cambridge, Massachussets Yadav, M. S.,Prabhu, J. C.,Chandy, R. K.,2007.
To download the matching Excelâ spreadsheet, just type the link into your Internet browser starting with the http://dx. doi. org prefix
and your PC is connected to the Internet, simply click on the link. You†ll find Statlinks appearing in more OECD books
Learning processes are at the core of entrepreneurship and SME innovation. Yet many emerging and potential business creators are lacking entrepreneurship skills such as in risk
technologies such as computer-numerically-controlled production tools have made it possible for small firms in many industries to produce small batches as efficiently as large
circuit, the personal computer. Incremental innovations are the opposite: small improvements on existing products and processes.
Autio, E. 2007) Global Entrepreneurship Monitor 2007 Global Report on High-Growth Entrepreneurship Babson College, Massachusetts
Entrepreneurship Outlook, OECD, Paris, pp. 127-142 Potter, J. ed.)(2008), Entrepreneurship and Higher education, OECD, Paris
components and materials, incorporated software, user-friendliness or other functional characteristics â Process innovation: The implementation of a new or significantly improved production or delivery meth
This includes significant changes in techniques, equipment and/or software â Marketing innovation: The implementation of a new marketing method involving significant changes
At each stage, the funding decision involves external panel evaluation, and only 10-20 businesses per year are expected to reach the third phase of financing
manufacturing sector and software industry, in buying innovative consulting services and know-how from so-called â€oeinnovation agentsâ€,
by creating networks between SME companies that possess core basic technologies with downstream normal industry, to link technological seeds with market needs.
os ts too hi gh Rig hts no t en for ce ab le Ins
a series of 30 core â€oeproducts†that will share a common brand Advisory and capability support for SMES continues to be offered through the Business Links service in
1. As%of panel respondents. 2. As%of innovating firms. 3. Index scale of 0-6 from least to most restrictive
high-technology development zones, university science parks, incubators and software parks across China. At the national level alone, by 2008 53 high-technology development zones, 62 university science
and 35 software parks had been developed through governmental support. In the period 1992-2005, the revenue, industrial value added
OECD elaboration based on ORBIS database available from Bureau Van dijk (Geoda software 1st range (0) 2nd range (891) 3rd range (516) 4th range (493) 5th range (488
OECD elaboration based on ORBIS database available from Bureau Van dijk (Geoda software High-High low-Low Low-High High-low
OECD elaboration based on ORBIS database available from Bureau Van dijk (Geoda software 1st range (0) 2nd range (790) 3rd range (400
OECD elaboration based on ORBIS database available from Bureau Van dijk (Geoda software High-High low-Low Low-High High-low
Based on these core messages, the following key policy recommendations are formulated Key policy recommendations â Design advice and training programmes for start-up entrepreneurs who have strong technological
zones, 62 university science parks, about 200 business incubators and 35 software parks (see China†s Country Note.
computers and office machinery (30; electronics-communications (32 scientific instruments (33. KISA comprises: post and telecommunications (64;
computer and related activities (72; research and development (73 3. An overview on the ORBIS database is given in Annex 3. A1
Christensen, C. 1993), â€oethe Rigid Disk drive Industry: A History of Commercial and Technological Turbulenceâ€, Business History Review, Winter, No. 67, pp. 531-588
OECD (2005), SME and Entrepreneurship Outlook, OECD, Paris OECD (2007a), Competitive Regional Clusters: National Policy Approaches, OECD, Paris
open panel dataset †tend respectively to anticipate and to postdate the real birth of a
its core economic activities Besides location bias, other characteristics of commercial databases can indirectly alter the consistency of territorial data calculated from this sort of source
Learning processes are at the core of entrepreneurship and SME development. They are essential for the formation of a new business, its survival and growth as well as for the
Box 4. 1. Core characteristics of entrepreneurs Knowledge. An entrepreneur is able to identify and extract knowledge that is relevant.
development and a vertical specialisation in one or more fields related to core competitive advantage. One of the definitional difficulties is that these skills are relevant not just to
Teachers are pressed hard to deliver on their core programmes †the basis for recruitment and promotion †and those not working on core activities can find it
difficult to justify strong investments in what may be seen by their hierarchies and peers as side projects, whatever the expressed interest of the students
â are skilled in generic processes and activities such as core skills â appreciate the relevance of what they are learning
management skills for integrating e-commerce into the core business. They may also include legal advice to a firm/organisation on the design of new business structures to support
catalysts here, providing an appropriate policy context and support for the resources infrastructure and institutional framework to establish
KISA) in Software Innovationâ€, International Journal of Services Technology and Management, IJSTM Special Issue, Vol. 7, No. 2, pp. 109-173
Activities (KISA) in Innovation of the Software Industry in Australia, University of Western Sydney Sydney
OECD (2003), OECD Employment Outlook, OECD, Paris OECD (2005), SME and Entrepreneurship Outlook, OECD, Paris
OECD (2006), The Role of Knowledge Intensive Activities (KISA) in Innovation, OECD, Paris OECD (2008), Enhancing the Role of SMES in Global Value Chains, OECD, Paris
Monitor (GEM) UK project to estimate the percentage of social entrepreneurs in UK society using population survey data.
7 in this particular case the core mission is to provide health services, but in conjunction with preventing illness through a
Health-related problems are at the core of the initiative of pharmaceutical scientist Victoria G. Hale, founder of the Institute For one World Health (Box 5. 4). There the concern is to
open source software) or civil society (fair trade)( Mulgan et al. 2007). ) It can also start in
The ammado donations widget is one of the platform†s latest features. The cutting-edge micro-donations software is a compact, vibrant space, the same size as an iphone screen
and can sit on any website, blog or social network profile that can accept embeddable HTML.
it displays various degrees of innovation and change; it is constrained by the external environment (p. 10
Harding, R. 2006), Social Entrepreneurship Monitor: United kingdom 2006, Foundation for Entrepreneurial Management, London Business school, full paper available at www. london. edu/assets/documents
and this requires the display of innovativeness, proactiveness and risk management behaviour. This behaviour is constrained by the desire to achieve the social mission
including aerospace, pharmaceuticals, computers and office machinery, electronics -communications, and scientific instruments Incremental innovation An improvement on existing products or processes that is achieved through internal
computer and related activities; research and development Learning failure A type of systemic failure occurring when firms in an innovation system have not
Box 4. 1. Core characteristics of entrepreneurs How are acquired entrepreneurship skills Universities and higher education institutions Box 4. 2. Entrepreneurship support in universities:
"Dimensã es e Espaã§os da Inovaã§Ã£o Socialâ€, written by the Portuguese professors from Lisbon University-Isabel Andrã and
Playroom, Visual Arts Room and Workshop, Computer Rooms, Dental care Office Cafeteria, Kitchen and Pantry, in addition to a Multipurpose Sports Court within its facilities
1. Andrã I, Abreu A. Dimensã es e espaã§os da inovaã§Ã£o social. Finisterra:
and even European core countries such as France and Italy have high rates of inactivity 10.4 and 10.6%respectively;
fixmystreet. com). The digital Open source movement is a driving force behind socially innovative cooperative co-production processes.
Mozilla, Open-office, Wikipedia, Linux (to name only a few), were developed collaboratively by Open source Community programmers and volunteers.
Open Data movements and innovative/transparent forms of governance go hand in hand (http://data gov. uk) with these new forms of coproduction.
72%of social enterprises reported a negative trading outlook; 24%of all anticipated redundancies will fall within the most disadvantaged communities compared with 9%in
-siveness or a global outlook, and also due to there being developed few channels for spreading skills, knowledge and experience.
World Economic Outlook October 2012; Coping with High Debt and Sluggish Growth www. imf. org Jalonen, H. 2011. â€oethe Uncertainty of Innovation:
users and computer programs. Therefore, a social network based digital city is more flexible (Ishida, 2002b), has
people and computer programs. Because the process of establishing and maintaining a strong social network is time
standard Intel Pentium 4 CPU 1. 70 GHZ Machines with 512 MB RAM, WINDOWS XP professional OS
Sample of User Management Screen †User Profile It is important to track social network evolution for every user at all times (Hanneman, 2001) as social interaction
and verified by a panel of experts include human, financial, physical equipment and space), and intangible/intellectual resources and are offered as part of the content services to
database, software, copyright materials or literature. The equipment entity manages equipment information like the type of equipment resource, restrictions, beginning
In all the resource screens, the administrator can search for resources on a combination of different search criterions-City state, Zip code, Privacy level, Innovation
Human Resource Screen Contact User Other functions provided to the administrator include maintenance functions like addition,
helpful tips when a user moves mouse over a field, as shown in Figure 12
It is in the plan to utilize software agents to read and analyze contents of more
the software agent could 12 Social network Digital City Management Journal of International Technology and Information management
reporting screens A user friendly graphical representation offers several advantages including providing a much richer picture and can
all the reporting screens. Figure 15 presents availability of human resources and intangible resource for every region.
a ticket status form is designed to displays status of a request for service (a ticket) managed by case managers,
future enhancements, software agents can be developed and used to survey the threads of messages (in I3†s email
Computers and Society, September 13-19 Caves, R, . & Walshok, M. 1999). â€oeadopting Innovations in Information technology, †Cities, 16 (1), 3-12
Computer-Mediated Communication, 3 (1), http://www. ascusc. org/jcmc/vol3/issue1/garton. html GÃ tzl,
and Europe, †Proceeding of International Association of Computer Information systems Pacific 2005 Conference, Taipei, Taiwan, May 19-21
Software Intelligent Agents. Dr Lea has published in numerous journals including International Journal of Production Research, International Journal of Production Economics, Industrial
the fields of data/text mining, business process simulation, software agent applications, and demand forecasting especially in a supply-chain environment
product vendors (hardware and asset providers; and managed service providers (overseeing management/operation Smart technology is also at the hear t of the emerging concept of Industry
increased the outlook for production across a wide variety of industries from railroads, shipping, local economies, and farming.
and other search engines to self-diagnose and arm themselves with the best available healthcare information online in order to exercise a more self-deterministic voice in therapy path
order to address society†s core challenges arising from the mega trends The last few years have seen the term Social Innovation being used
As social issues are the core component of innovation it requires the creation of new relationships in
company and society is the core component of successful Social Innovation, with various other strategic factors that contribute to its
to the company and society is their core ethos The companies'overall vision should be dynamic,
Mobile devices and social media have been an important driving force for example in the Healthcare industry, par ticularly around the power patient
rapidly changing core needs of both individual citizens and whole societies wherever they may be found:
Cuir sã os na sã olta †Cuir fã¡s faoin Eacnamaã ocht Plant the SEEDS †Grow the Economy
The region is placed well in the areas of Health, Life sciences & Medical Devices, Financial & Internationally Traded Services, Tourism, Culture & the Arts, Agribusiness, Food Production & Technology, Engineering, Mobile Technologies, Software
A regional plan aimed at getting businesses online by matching local businesses with local web designers to develop sophisticated online business presences that move beyond a static website to ones that are interactive with potential customers,
Mobile Technologies, Software Development and Digital Media Bio Technology and the Green Economy 2. Profile of the Southeast †Strengths and Weaknesses
At Waterford Institute of technology (WIT), the Telecommunications, Software and Systems Group is recognised an internationally centre of excellence for ICT research & innovation
Significant developments such as the awarding of an SFI Strategic Research Cluster to WIT/Telecommunications Software and Systems Group (TSSG)( the first of the ITS to establish such a cluster) represent a key step in enhancing one aspect of research
The Telecommunications Software & Systems Development Group (TSSG) at WIT is recognised an internationally centre of excellence for ICT research and innovation.
and Culture, Agribusiness, Food Production and Technology, Engineering, Mobile Technologies, Software Development and Digital Media,
while not enjoying the same degree of connectivity as the core network, are still an integral part of the pan-European transportation network
For inclusion in the core network, ports must enjoy significant volumes of freight and/or passenger traffic, have a high level of international connectivity
and by 2030, be connected to the core European rail and road network Between them, these two ports handled 8%of total tonnage through Irish ports in 2011,
PC ownership in the Southeast (70.0%)is below the national average (of 72.7%),especially in South Tipperary (65.7%).
if the proper focus is placed on exploiting Ireland†s comparative advantage as a food producer, processor and exporter
In particular WIT through the Telecommunications, Software and Systems Group and the Arclabs Innovation Centre embodies the institutes stated research philosophy of driving regional economic development through their global reputation for research and innovation
Equally IT Carlow has developed a strong network of support for industry and entrepreneurs through the ongoing development of their five core areas of research, Envirocore, Designcore, Geocore, Gamecore and Secturitycore
computer software products and services Also in this sector are the traditional media stalwarts such as photography, print covering newspapers and magazines, radio, TV and book publishing and retail,
Core proposals A Creative Industries Strategy 1) The development of a Creative Industries Strategy to assess the wider creative and cultural sector in the Southeast,
Linking farmers and the food sector to the creative skills of web designers, digital marketing and branding will be a key factor in adding value for both individual farmers
In the Southeast this process could be enhanced by matching local businesses with local web designers and internet companies who could deliver the necessary services for business to develop sophisticated online business presences that move beyond a static website to ones that are interactive with potential customers,
while in Carlow there are degrees in Computer games Development, Software Development, Computer systems Management and Communications, Media & Public relations.
•A regional plan aimed at getting businesses online by matching local businesses with local web designers to develop sophisticated online business presences that move beyond a static website to ones that are interactive
Dr. Willie Donnelly, Head of Research and Director of Telecommunications Software & Systems Development Group (TSSG
Information and Communications technology (ICT)--Hardware 4 Information and Communications technology (ICT)--Software 0 Medical Technologies 7
Pharmaceuticals 10 Transportation 0 TOTAL 52 Source: http://www. idaireland. com/search-companies. xml Table 20.
Software development and customer support United states Unit 42, IDA Industrial park Cork Road Waterford Unum Ireland Limited
Software Development Operation United states Unit 11, Merchant House Shamrock Plaza, Tullow Street Carlow Ind. Automation and Control
---Hardware Information and Communications technology (ICT High Purity Valves Japan Unit 609 Waterford Industrial Estate Waterford
---Hardware Power Devices & DL/DL Converters Germany Whitemill Industrial Estate Wexford Eltex Manufacturing Limited
---Hardware Information and Communications technology (ICT Measuring & Control Devices Sweden Railway Road Templemore Co Tipperary
---Hardware Voltage Testers & Power supplies Germany Whitemill Industrial Estate Wexford Medical Technologies 7 companies in the Southeast.
Software 200 Coca cola Beverages 100 5. 2 Indigenous Businesses in the Southeast The Southeast has a cluster of notable companies including Glanbia,
Ireland†s largest dairy processor employing 4, 500 people globally across 19 countries; Cartoon Saloon animation studio which was nominated for an academy award and Eirgen Pharma,
Annual Construction industry Review 2009 and Outlook 2010†2012, October 2010. Accessed at http://www. dkm
Annual Construction industry Review 2009 and Outlook 2010†2012, October 2010. Accessed at: http://www. dkm. ie/uploads/pdf/reports/2010%2010%20ciro%20final%20report. pdf
Telecommunications, Software systems Group à darã¡s à darã¡s na Gaeltachta VEC's Vocational Educational Committee's
-A core objective of Government policy thinking is balanced †regional developmentâ€. The NSS represents the Government†s roadmap for achieving
Hewlett packard, Microsoft, Accenture and Samsung The pledges also come from universities academies and local governments as well
deliver short †hands on†courses in core computer science for pupils aged 14-15 will run until 2015 and so far half of the
Another pledge comes from Microsoft Europe which aims to increase the number of their high quality apprenticeships and
Institutional Affairs at Microsoft, told Euractiv that in January the company committed to a further two pledges focused
Institutional Affairs at Microsoft, said that the growing integration of ICT across various sectors, the lack of skilled professionals is of
computer engineers. The ICT sector currently lacks people with the right skills to accomplish a number of functions
from developing software applications and security systems, to providing lower -end support services such as systems and network administration and user support, â€
a computer programme degree can lead to jobs making music videos, computer games or developing medical technology
However, many ICT-related educations are not providing the ICT sector workers that suit the industry needs, making
Computer algorithms are better at diagnosing severe cancer than humans, Kenneth Cukier told Euractiv, and big data can predict
It†s a demonstrable fact that a computer algorithm is better at diagnosing severe cancer than a human.
five has no computer experience Age disparities were detected also with high school pupils having sometimes better
exercise softwares while 70%of teachers are asking for training to improve their digital skills.
entertainment, gaming. software, etc. it is increasingly being propagated to all industries whether healthcare, energy, retail, or financial services.
Global core, governance, business units, services and linkages 5 No No Timmers (1998) Product/service/information flow
core technology investments and bottom line 4 No Some Hamel (2001) Core strategy, strategic resources value network and customer
interface 4 No No Petrovic et al. 2001) Value model, resource model production model, customer relations model, revenue
success factors, channels, core competencies, customer segments, and IT infrastructure 8 No No Applegate (2001) Concept, capabilities and value 3 No No
1. The Computer Revolution, the"Productivity Paradox"and the Economists Over the past forty years, computers have evolved from a specialized and limited role in the information
processing and communication processes of modern organizations to become a general purpose tool that can be
computers"were surrounded large machines by peripheral equipment and tended by specialized technical staff working in specially constructed and air conditioned centers,
desktops and work areas of secretaries, factory workers and shipping clerks, often side by side with the telecommunication equipment linking organizations to their suppliers and customers.
In the process, computers and networks of computers have become an integral part of the research and design operations of most
enterprises and, increasingly, an essential tool supporting control and decision-making at both middle and top
In the latter half of this forty year revolution, microprocessors allowed computers to escape from their â€oeboxes, †embedding information processing in a growing array of artifacts as diverse as greeting cards
It was at that point, in the midst of the â€oepersonal computer revolution, †that mounting concerns about the
"You can see the computer age everywhere but in the productivity statistics.""1 Almost overnight this contrasting juxtaposition achieved the status of being treated as the leading
as a consequence, the emergence of modern computer, telecommunication and satellite technologies have changed fundamentally the structure of the American economy. â€
the rise of computer capital, and OCAM (office, computing and accounting machinery) capital more generally
arguing that the imputed gross earnings on hardware and software stocks amount to such a small fraction of GDP that the rapid growth of real computer assets per se can hardly be expected to be
making a very significant contribution to the real GDP growth rate. 6 But, however valid an observation that
Ch. 4, Table 4-2. The 1987-1993 growth rates of inputs of computer hardware and software
computers and related information equipment and software--due in part to misplaced technological enthusiasm and also to exaggeration of the relative scale of those capital expenditures, or
regard to the computer revolution's potential economic impact, I should make it clear from the outset that
disappointments with the impact of computers upon the more readily measurable forms of task-productivity.
argument here is that the historical course of the development of the personal computer as a general-purpose
and computer productivity paradox are first and foremost consequences of a mismeasurement problem must produce a consistent account of the timing and
questions we should briefly review their bearing on the puzzle of the slowdown and the computer productivity
The increasing proliferation of new goods and its connection with the application of computers, electronic
computer models, which currently number over 400, or computer software titles, the count of which is in the
neighborhood of a quarter of a million), the multiplication of the number of models available for consumers to
Of course, some progress has been made in resolving the computer productivity paradox by virtue of the introduction of so-called â€oehedonic†price indexes for the output of the computer and electronic business
equipment industries themselves. These indexes reflect the spectacularly rapid decline in the price-performance ratios of such forms of capital.
Thus, the â€oehedonic†correction of computer and related equipment prices has done wonders as a boost to the growth rate of output and multifactor productivity in the producing industry;
token, the hedonic deflation of investment expenditures on computer equipment contributes to raising the measured growth of the computer capital services,
which are used intensively as inputs in a number of sectors including banking, financial services and wholesale trade within the service sector.
computer-capital intensity, and therefore in overall tangible capital-intensity, supports the growth rate of labor
The first involves the surprising appearance of â€oeexcess rates of return on computer capital. †These
industry producing computer equipment. See, e g.,, Wykoff (1995) for an evaluation of other dimensions of the distortions
computer investments, and the weaker (time series) effects gauged in terms of task productivity, might indicate simply that very high gross private rates of return are associated with such capital expenditures.
the price-performance ratio of new computer equipment has been falling, these seemingly â€oeexcess†private returns would be called for to equalize net private rates of return on various assets held by the company
value of company tangibles and the market valuation of computer-intensive firms for concluding that the
23 Brynolfsson and Yang (1997, revised 1999) report that computer usage is associated with very high calculated values of
having stimulated the creation of new software assets within the learning organizations, has been marked by a relative rise in the production of intangible assets that have gone unrecorded
The problem of non-market production of intangibles in the form of computer software was relatively
4. Troubles with Computers: Effects of General Purpose Machines on Task-Productivity Laying the whole burden of explanation on the notion that existing concepts and methods are inadequate
in accounting for the effects of the computer revolution is, however, not satisfactory. Even if a large share of
that there are real problems in delivering on the productivity promises of the computer revolution 4. 1 Component performance and system performance
A common focus of attention in the computer revolution is the rapidity with which the performance of
For software designers, Moore's law promises that new computational resources will continue to grow
even if the user adopts the new technology, the learning time in mastering new software, the
required for the more complex software to be executed will offset part or all of the gains from increasing
It is recognized now widely that the costs of personal computer ownership to the business organization may be tenfold the size of the acquisition costs of the computer itself. 24 Many of these costs are unrelated to the
24 Some of these costs are recorded directly while others are part of the learning investments being made by firms in formal
performance of microprocessor components and for many applications, the use of personal computers is therefore relatively unaffected by microprocessor performance improvements.
standpoint, the relatively constant unit costs imposed by personal computer ownership have been further compounded by the costs of the continuing spread of the technology throughout the organization.
however, it is apparent to most sophisticated users of computers that the extension of these capabilities also creates a vast new array of problems that must be solved to achieve desired
troubleshooting, file server support and standards for archiving and backup of electronic copies of documents all
computer-assisted task may fill the time previously allotted for its completion. Surely, this is not the average
computer technology that has characterized the personal computer revolution, provided by David and Steinmueller (1999 Section 7 15
4. 2 The general purpose computing trajectory, from mainframes to the PC revolution The widespread diffusion of the stored program digital computer is intimately related to the
popularization of the personal computer as a"general purpose"technology for information processing, and the incremental transformation of this"information appliance"into the dominant technology of information
The historical process by which this was achieved in the case of the personal computer has had major implications,
not only for the success of personal computer technology and the hardware and software industries based upon it,
For the personal computer, as for its parent the mainframe, and its cousin the minicomputer, much
adaptation and specialization has been required to apply a general purpose information processing machine to particular purposes or tasks.
computer. It is something of an historical irony that the core elements of the adaptation problems attending this
GPT's diffusion into widespread business application may be seen to derive from the historical selection of a
trajectory of innovation that emphasized the"general purpose"character of the paradigmatic hardware and software components
The origins of the personal computer required the invention of the microprocessor which was a technical
solution to the problem of creating a more"general purpose"integrated circuit to serve a specific purpose, a
computers to allow their use for specialized control and computation applications supported the birth of the
minicomputer industry. These two developments provided the key trajectories for the birth of the personal
computer. As microprocessors became cheaper and more sophisticated and applications for dedicated information processing continued to expand,
a variety of task-specific computers came into existence One of the largest markets for such task specific computers created during the 1970's was that for
dedicated word-processing systems, which appeared as an incremental step in office automation, aimed at the task of producing documents repetitive in content
dedicated word processors were displaced rapidly by personal computers during the mid-1980's, as the latter were perceived to be more"flexible
"and more likely to be"upgrade-able"as new generations of software were offered by sources other than the computer vendors. 27 The dedicated word processor's demise was mirrored by
development in numerous markets where dedicated"task-specific"data processing systems had begun to develop. Digital Equipment Corporation, the leading minicomputer manufacturer retreated from its vertical
marketing strategy of offering computer systems specifically designed for newspapers, manufacturing enterprises, and service companies; it specialized instead in hardware production,
leaving the software market to independent software vendors. 28 This process, which had begun in the late 1970's as an effort to focus corporate
strategy, greatly accelerated during the 1980's with the advent of the large-scale personal computer platforms
27 Outside sourcing of applications software represented a significant departure from the proprietary software strategy that
the suppliers of dedicated word-processing systems had sought to implement during the 1970's, and which left them unable
to meet the rapidly rising demands for new, specialized applications software. Moreover, personal computers could use
many of the same peripherals, such as printers: because the widespread adoption of the new technology raised the demand
for compatible printers, the dedicated word processors found themselves unprotected by any persisting special advantages in
printing technology 28similar decisions were made by all of the U s. computer manufacturers. See the discussion in Steinmueller (1996
16 united under the IBM PC standard or utilizing that of Apple†s Macintosh. The"general purpose"software
produced for these two platforms not only discouraged task-specific software, it also created a new collection of
tasks and outputs specifically driven by the new capabilities such as"desk top publishing"(typeset quality
documents),"presentation graphics"(graphic artist quality illustrations for speeches and reports), and"advanced word processing"(the incorporation of graphics and tables into reports.
All of these changes improved the "look and feel"of information communication, its quality and style, the capability for an individual to express
ideas, and the quantity of such communications. But singly and severally they made very little progress in
The disappearance of task-based computing in favor of general purpose personal computers and general purpose (or multipurpose) packaged software was completed
thus largely during the 1980's. 29 The early evolution of the personal computer can therefore be seen as cutting across the path of development of an entire
family of technically-feasible information processing systems focused on the improvement of"task-productivity "in applications ranging from word processing to manufacturing operations control.
operations of their less expensive (and less intelligent) cousins, the"intelligent"display terminals By 1990, then, the personal computer revolution while seizing control of the future of information
processing had left carnage in its wake, as many such movements tend to do. The revolutionaries had kept their
promise that the PC would match the computing performance of the mainframes of yesteryear. What was not
spread of partially networked personal computers supported the development of new database and data entry tasks, new analytical and reporting tasks,
The local activities within the organization that were identified as candidates for personal computer applications often could
embedded in mainframe computers and the growing proliferation of personal computers. The primary bridge between these application environments was the widespread use of the IBM 3270, the DEC VT-100 and other standards for"intelligent
"data display terminals, the basis for interactive data display and entry to mainframe and minicomputer systems.
From their introduction, personal computers had software enabling the emulation of these terminals, providing further justification for
their adoption 30 For an historical account of a potential alternative path of user-driven technological development, one that entailed the
which general purpose personal computers came to be furnished with"general purpose"personal computer software. It may be accepted that general purpose
hardware and software in combination did"empower"users to think of"insanely great"new applications--to
use the rhetoric of Steve jobs, one of Apple computer's cofounders. On the other hand, however, the disruptive effects of relentless innovation are inimical to the stabilization of routine and the improvement of
efficiency of routine performance which that brings. Moreover, at best only a very small number among the
innovative software programs turn out to address the sort of mundane tasks that are sufficiently common to permit them to make a difference to the performance of a large number of users.
complementary of these dual"general purpose enginesâ€--personal computer hardware and packaged software --has the side-effect of foreclosing the apparent need for more specialized task-oriented software development. 31
Worse still, by the mid-1990's, the competition among packaged software vendors for extending the
generality of their offerings became a syndrome with its own name:""creeping featurism"or"featuritis."
light of these developments in 1995, Nathan Myrvhold of Microsoft suggested that software is a gas that
After all, if we hadn't brought your processor to its knees, why else would you get
community that continuous technological progress and upgrading of computers, with which they are centrally engaged, is ultimately for the benefit of the user.
establishing increasingly powerful platforms for new generations of software, whereas among users, these developments may be welcomed by some
â€oethe computer. †Recent work in the spirit of the new growth theory has sought to generalize on the idea (formulated by
32 As quoted in W. Wayt Gibbs, â€oetaking Computers to Taskâ€, Scientific American, July, 1997
By drawing an explicit analogy between â€oethe dynamo and the computer, †David (1991 sought to use the U s. historical experience to give a measure of concreteness to the general observation that an
5. 1 Diffusion, dynamos and computers Although central generating stations for electric lighting systems were introduced first by Edison in
Recent estimates of the growth of computer stocks and the flow of services therefrom are consistent with
when computers had evolved not yet so far beyond their limited role in information processing machinery, computer equipment and the larger category of office, accounting
and computing machinery OCAM) were providing only 0. 56 percent and 1. 5 percent, respectively, of the total flow of real services from
ratio of computer equipment services to all producers†durable equipment services in the U s Does the parallel carry over also,
experienced during the 1979-1997 phase of"the computer revolution";"it took 25 years for the electrified percent
the same quantitative change has been accomplished for the computer within with a span of only 18 years.
quality of the computer stock; whereas the electrification diffusion index simply compares horsepower rating of
growth of the ratio of computer equipment services to all producers'durable equipment services in the U s. turns
computer capital formation to make a substantial contribution to raising output growth in the economy point to the rapid
comparison of alternative estimates of net and gross basis computer service"contributions to growth "35 If we extrapolate from the (slowed) rate at
electrification of industry as to render illegitimate any attempt to gain insights into the dynamics of the computer
computer equipment has been plummeting so far exceeds the rate of fall in the real unit costs of electric energy
computer services for 1987-1993 to have been-7. 9 percent per annum, and compares that to-7. 0 percent per
electricity and quality adjusted computer services hardly warrants dismissing the relevance of seeking some insights into the dynamics of the transition to new general purpose technology by looking back at the dynamo
computer services--and, by implication, the comparison just reported--may be misleading. He contends that the hedonic price indexes for computers that come bundled with software actually would have fallen faster than
the (unbundled) price-performance ratios that have been used as deflators for investment in computer hardware If so, Sichel†s (1997) price indexes of quality adjusted â€oecomputer services†(from hardware and software) would
seriously underestimate the relevant rate of decline. But, Triplett†s argument seems to suppose that operationally
relevant â€oecomputer speed†is indexed appropriately by CPU-speed, whereas many industry observers have pointed out that the bundled PC operating system has grown so large that more processing power does not
translate into more â€oeeffective operating powerâ€. In other words, one should be thinking about the movements in
Furthermore, in the same vein it may be noticed that the slower rate of fall in computer services prices as
estimated by Sichel (1997) are more in accord with the observation that applications software packages also have
that CPU speed may be too heavily weighted by the hedonic indexes for hardware, inasmuch as the utility of (net) computer power
37 Fortuitously, these dates bound the period in which the possibility of a universal electrical supply system emerged in the
U s as a practical reality, based upon polyphase AC generators, AC motors, rotary converters, electric (DC) trams, and the
optimally exploit the capacity available on the new and faster hardware Finally, a deeper, and equally deserved comment may be offered regarding the casual dismissals of the
regime transition hypothesis on the grounds that the analogy between computer and dynamo is flawed by the
putative) discrepancy between the rate at which prices associated with electricity and computer services. Such
computer and dynamo, once again While there still seems to be considerable heuristic value in the historical analogy that has been drawn
between"the computer and the dynamo,"a cautious, even skeptical attitude is warranted in regard to the predictions for the future that some commentators have tried to extract from the existence of the points of close
it perhaps was still too soon to be disappointed that the computer revolution had failed to unleash a sustained
whatsoever about the future temporal pace of the computer's diffusion Least of all does it tell us that the detailed shape of the diffusion path that lies ahead will mirror the
likely to displace the use of personal computers in the production and distribution of information that must be
purpose computer was invented originally. What they do promise are greater and more systematic efforts to
mass-produced personal computer was neither appropriate nor robust. These more"task specialized"devices have become sufficiently ubiquitous to provide the infrastructure for task-oriented data acquisition and display
systems, in which up to date and precise overviews of the material flows through manufacturing and service
Secondly, the capabilities of advanced personal computers as â€oenetwork servers†have become sufficiently well developed that it is possible for companies to eliminate the chasm between the personal
computer and mainframe environment by developing the intermediate solution of client-server data processing systems. This development is still very much in progress
and resource sharing during the personal computer era. In this new networked environment, the re-configuration of work organization becomes a central issue;
virtually all personal computers can be configured similarly, facilitating not only intra-company network but also inter-company networking
The"general purpose"trajectory followed by the spectacular development of personal computer technology has reduced greatly the price-performance ratio of the hardware,
without effecting commensurate savings in the resource costs of carrying out many specific, computerized tasks. Some part of the limited
as personal computers were added to existing mainframe capacity rather than substituted for it, and, indeed, were utilized under by being allocated the role of intelligent terminals
them to be linked through sophisticated networks to other such appliances, mainframe computers and distributed databases, thereby creating complex and interactive intelligent systems.
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Jorgenson, Dale and Kevin Stiroh,"Computers and Growth,"Economics of Innovation and New Technology 3: 295
Lichtenberg, Frank R.,â€oethe Output Contributions of Computer Equipment and Personnel: A Firm-Level Analysis, â€
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and Information Appliances are the Solution, Cambridge, MA: MIT Press, 1998 27 Oliner, Stephen D,
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Sichel, Daniel E.,The Computer Revolution: An Economic Perspective, WASHINGTON DC: The Brookings Institution Press, 1997:
What Do Computers Do to Productivity? â€, Prepared for the meetings of the American Economic Association, January, Chicago, Illinois, 1998
Wykoff, Andrew W.,â€oethe Impact of Computer Prices on International Comparisons of Labour Productivity, â€
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