Benefits of the Information Technology
Revolution

By Robert D. Atkinson and Andrew S. McKay
March 13, 2007

Executive Summary
In the new global economy information and
communications technology (IT) is the major driver, not
just of improved quality of life, but also of economic
growth. Moreover, there are strong indications that IT
foreseeable future. Yet, most policy-makers do not
adequately appreciate this fundamental reality. In fact,
after the post-2000 economic dip many concluded
incorrectly that the IT economy was smoke and mirrors.

The reality is that while the benefits of new technologies
are often exaggerated at first, they often turn out to
exceed initial expectations in the moderate-to-long term.
This is exactly what has happened with the digital
revolution. The digital economy is more than fulfilling its
original promise, with digital adoption rates exceeding
even the most optimistic forecasts of the late 1990s. The
integration of IT into virtually all aspects of the economy
and society is creating a digitally-enabled economy that is
responsible for generating the lion’s share of economic
growth and prosperity.  
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