The Growth of the Network Economy

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        In a simple way, network economy can be defined as the new way of economy which allows fundamental aspect of economy becomes integrated into one single concept.  In traditional concept of economy, place and time were the major boundaries for economic activities to expand.  Local sellers have difficulties to sell their product outside their region and consumers have limited choices of products to buy.  People activities in economic term begin as gatherer then develop into agricultural societies.  As the industry revolution changes the face of the world in early past decade, the world societies transform into industrial era.  Although the industrialization changes the face of economy system, it cannot fully tackle the problems of speed and span of products and information that can reach to customers globally.  These difficulties now can be coped because of rapid growth of information system and technologies.  The globally using of television, mobile phone and internet promote the new era of economy.  Based on the knowledge and connection and through the computer network have promoted the new type of economy – the network economy.

        Information and Communication Technology (ICT) is the basic element of applying the network economy.  The reformation and development in ICT have change many countries to become new forces of economy in the world.  China, South Korea, and India are examples of the country that successful using ICT as major element to increase their economic growth.  The ICT changes dramatically the way of economic activities. Places and times are no longer become barrier for economic activities.  The on-line shopping, using computers in manufactures and applying information technologies in banking transaction bring convenience way for people in new economic activities.  

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Several factors as foundation of the network economy are connectivity, innovation, participation and efficiency.  Many years before, because of geographical place and no certain connection tools have make difficulties for people to reach other people in other societies.  The invention of mobile phones, facsimiles, internet and the rapid development of computer technologies have remove the barriers.  The world now is connected and companies easier to maintain their business.  The connectivity promotes business not only for local area but also for entire global area.  

The rapid development in ICT also promotes the new innovation of economic activities way. For example, ...

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