Informational revolution
Encyclopedia
The term information revolution (sometimes called also the "informational revolution") describes current economic
Economy
An economy consists of the economic system of a country or other area; the labor, capital and land resources; and the manufacturing, trade, distribution, and consumption of goods and services of that area...

, social and technological trends beyond the Industrial Revolution.

Many competing terms have been proposed that focus on different aspects of this societal development.
The British polymath
Polymath
A polymath is a person whose expertise spans a significant number of different subject areas. In less formal terms, a polymath may simply be someone who is very knowledgeable...

 crystallographer
Crystallographer
Crystallographer could refer to someone who practices:*X-ray crystallography*Crystallography...

 J. D. Bernal
J. D. Bernal
John Desmond Bernal FRS was one of Britain’s best known and most controversial scientists, called "Sage" by his friends, and known for pioneering X-ray crystallography in molecular biology.-Origin and education:His family was Irish, of mixed Italian and Spanish/Portuguese Sephardic Jewish origin...

 (1939) introduced the term "scientific and technical revolution" in his book The Social Function of Science in order to describe the new role that science and technology are coming to play within society. He asserted that science is becoming a "productive force", using the Marxist
Marxism
Marxism is an economic and sociopolitical worldview and method of socioeconomic inquiry that centers upon a materialist interpretation of history, a dialectical view of social change, and an analysis and critique of the development of capitalism. Marxism was pioneered in the early to mid 19th...

 Theory of Productive Forces
Theory of Productive Forces
The Theory of Productive Forces is a widely-used concept in communism and Marxism placing primary emphasis on technical advances and strong productive forces in a nominally socialist economy before real communism, or even real socialism, can have a hope of being achieved.The most influential...

. After some controversy, the term was taken up by authors and institutions of the then-Soviet Bloc. Their aim was to show that socialism
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...

 was a safe home for the scientific and technical ("technological" for some authors) revolution, referred to by the acronym STR. The book Civilization at the Crossroads, edited by the Czech philosopher
Philosophy
Philosophy is the study of general and fundamental problems, such as those connected with existence, knowledge, values, reason, mind, and language. Philosophy is distinguished from other ways of addressing such problems by its critical, generally systematic approach and its reliance on rational...

 Radovan Richta
Radovan Richta
Radovan Richta was a Czech philosopher who coined the term technological evolution; a theory about how societies diminish physical labour by increasing mental labour. Richta was born in Prague....

 (1969), became a standard reference for this topic.

Daniel Bell
Daniel Bell
Daniel Bell was an American sociologist, writer, editor, and professor emeritus at Harvard University, best known for his seminal contributions to the study of post-industrialism...

 (1980) challenged this theory and advocated Post Industrial Society, which would lead to a service economy
Service economy
Service economy can refer to one or both of two recent economic developments. One is the increased importance of the service sector in industrialized economies. Services account for a higher percentage of US GDP than 20 years ago...

 rather than socialism
Socialism
Socialism is an economic system characterized by social ownership of the means of production and cooperative management of the economy; or a political philosophy advocating such a system. "Social ownership" may refer to any one of, or a combination of, the following: cooperative enterprises,...

. Many other authors presented their views, including Zbigniew Brzezinski
Zbigniew Brzezinski
Zbigniew Kazimierz Brzezinski is a Polish American political scientist, geostrategist, and statesman who served as United States National Security Advisor to President Jimmy Carter from 1977 to 1981....

 (1976) with his "Technetronic Society".

Information in social and economic activities

The main feature of the information revolution is the growing economic, social and technological role of information
Information
Information in its most restricted technical sense is a message or collection of messages that consists of an ordered sequence of symbols, or it is the meaning that can be interpreted from such a message or collection of messages. Information can be recorded or transmitted. It can be recorded as...

. Information-related activities did not come up with the Information Revolution. They existed, in one form or the other, in all human societies, and eventually developed into institutions, such as the Platonic Academy
Platonic Academy
The Academy was founded by Plato in ca. 387 BC in Athens. Aristotle studied there for twenty years before founding his own school, the Lyceum. The Academy persisted throughout the Hellenistic period as a skeptical school, until coming to an end after the death of Philo of Larissa in 83 BC...

, Aristotle
Aristotle
Aristotle was a Greek philosopher and polymath, a student of Plato and teacher of Alexander the Great. His writings cover many subjects, including physics, metaphysics, poetry, theater, music, logic, rhetoric, linguistics, politics, government, ethics, biology, and zoology...

's Peripatetic school in the Lyceum
Lyceum
The lyceum is a category of educational institution defined within the education system of many countries, mainly in Europe. The definition varies between countries; usually it is a type of secondary school.-History:...

, the Musaeum
Musaeum
The Musaeum or Mouseion at Alexandria , which included the famous Library of Alexandria, was an institution founded, according to Johannes Tzetzes, by Ptolemy I Soter or, perhaps more likely, by Ptolemy II Philadelphus at Hellenistic Alexandria in Egypt. The Mouseion remained supported by the...

 and the Library of Alexandria
Library of Alexandria
The Royal Library of Alexandria, or Ancient Library of Alexandria, in Alexandria, Egypt, was the largest and most significant great library of the ancient world. It flourished under the patronage of the Ptolemaic dynasty and functioned as a major center of scholarship from its construction in the...

, or the schools of Babylonian astronomy. The Agricultural Revolution
Agricultural revolution
Agricultural Revolution or Agrarian Revolution may refer to:*The Neolithic Revolution , the initial transition from hunting and gathering to settled agriculture in prehistory...

 and the Industrial Revolution
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...

 came up when new informational inputs were produced by individual innovators, or by scientific and technical institutions. During the Information Revolution all these activities are experiencing continuous growth, while other information-oriented activities are emerging.

Information is the central theme of several new sciences, which emerged in the 1940s, including Shannon's (1949) Information Theory
Information theory
Information theory is a branch of applied mathematics and electrical engineering involving the quantification of information. Information theory was developed by Claude E. Shannon to find fundamental limits on signal processing operations such as compressing data and on reliably storing and...

and Wiener
Norbert Wiener
Norbert Wiener was an American mathematician.A famous child prodigy, Wiener later became an early researcher in stochastic and noise processes, contributing work relevant to electronic engineering, electronic communication, and control systems.Wiener is regarded as the originator of cybernetics, a...

's (1948) Cybernetics
Cybernetics
Cybernetics is the interdisciplinary study of the structure of regulatory systems. Cybernetics is closely related to information theory, control theory and systems theory, at least in its first-order form...

. Wiener (1948, p. 155) stated also: "information is information not matter or energy". This aphorism suggests that information should be considered along with matter
Matter
Matter is a general term for the substance of which all physical objects consist. Typically, matter includes atoms and other particles which have mass. A common way of defining matter is as anything that has mass and occupies volume...

 and energy
Energy
In physics, energy is an indirectly observed quantity. It is often understood as the ability a physical system has to do work on other physical systems...

 as the third constituent part of the Universe; information is carried by matter or by energy.

We can distinguish between information
Information
Information in its most restricted technical sense is a message or collection of messages that consists of an ordered sequence of symbols, or it is the meaning that can be interpreted from such a message or collection of messages. Information can be recorded or transmitted. It can be recorded as...

, data
Data
The term data refers to qualitative or quantitative attributes of a variable or set of variables. Data are typically the results of measurements and can be the basis of graphs, images, or observations of a set of variables. Data are often viewed as the lowest level of abstraction from which...

, knowledge
Knowledge
Knowledge is a familiarity with someone or something unknown, which can include information, facts, descriptions, or skills acquired through experience or education. It can refer to the theoretical or practical understanding of a subject...

, and wisdom
Wisdom
Wisdom is a deep understanding and realization of people, things, events or situations, resulting in the ability to apply perceptions, judgements and actions in keeping with this understanding. It often requires control of one's emotional reactions so that universal principles, reason and...

. Data
Data
The term data refers to qualitative or quantitative attributes of a variable or set of variables. Data are typically the results of measurements and can be the basis of graphs, images, or observations of a set of variables. Data are often viewed as the lowest level of abstraction from which...

 comes through research and collection. Information
Information
Information in its most restricted technical sense is a message or collection of messages that consists of an ordered sequence of symbols, or it is the meaning that can be interpreted from such a message or collection of messages. Information can be recorded or transmitted. It can be recorded as...

 is organized data. Knowledge
Knowledge
Knowledge is a familiarity with someone or something unknown, which can include information, facts, descriptions, or skills acquired through experience or education. It can refer to the theoretical or practical understanding of a subject...

 is built upon information. Wisdom
Wisdom
Wisdom is a deep understanding and realization of people, things, events or situations, resulting in the ability to apply perceptions, judgements and actions in keeping with this understanding. It often requires control of one's emotional reactions so that universal principles, reason and...

 is knowing what to do with the knowledge--knowing how to synthesize the knowledge and make it useful to humankind.

Data and information are easily transferable; knowledge built by a person is not certain that it can be transferred to another. Following this, the notion of a "knowledge society" cannot be defined cogently. A wisdom society would have to be a futuristic
Futurism
Futurism was an artistic and social movement that originated in Italy in the early 20th century.Futurism or futurist may refer to:* Afrofuturism, an African-American and African diaspora subculture* Cubo-Futurism* Ego-Futurism...

 society in which all human beings were educated to the highest level.

Information is then further considered as an economic activity, since firms and institutions are involved in its production, collection, exchange, distribution, circulation, processing, transmission, and control. Labor is also divided into physical labor (use of muscle power) and informational labor (use of intellectual power). A new economic sector is thereby identified, the Information Sector, which amalgamates information-related labor activities.

The theory of information revolution

The term information revolution may relate to, or contrast with, such widely used terms as Industrial Revolution
Industrial Revolution
The Industrial Revolution was a period from the 18th to the 19th century where major changes in agriculture, manufacturing, mining, transportation, and technology had a profound effect on the social, economic and cultural conditions of the times...

 and Agricultural Revolution
Agricultural revolution
Agricultural Revolution or Agrarian Revolution may refer to:*The Neolithic Revolution , the initial transition from hunting and gathering to settled agriculture in prehistory...

. Note, however, that you may prefer mentalist to materialist paradigm. The following fundamental aspects of the theory of information revolution can be given (Veneris 1984, 1990):
  1. The object of economic activities can be conceptualized according to the fundamental distinction between matter
    Matter
    Matter is a general term for the substance of which all physical objects consist. Typically, matter includes atoms and other particles which have mass. A common way of defining matter is as anything that has mass and occupies volume...

    , energy
    Energy
    In physics, energy is an indirectly observed quantity. It is often understood as the ability a physical system has to do work on other physical systems...

    , and information
    Information
    Information in its most restricted technical sense is a message or collection of messages that consists of an ordered sequence of symbols, or it is the meaning that can be interpreted from such a message or collection of messages. Information can be recorded or transmitted. It can be recorded as...

    . These apply both to the object of each economic activity, as well as within each economic activity or enterprise. For instance, an industry may process matter (e.g. iron) using energy and information (production and process technologies, management, etc.).
  2. Information is a factor of production (along with capital
    Capital (economics)
    In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...

    , labor, land (economics)
    Land (economics)
    In economics, land comprises all naturally occurring resources whose supply is inherently fixed. Examples are any and all particular geographical locations, mineral deposits, and even geostationary orbit locations and portions of the electromagnetic spectrum. Natural resources are fundamental to...

    ), as well as a product
    Product (business)
    In general, the product is defined as a "thing produced by labor or effort" or the "result of an act or a process", and stems from the verb produce, from the Latin prōdūce ' lead or bring forth'. Since 1575, the word "product" has referred to anything produced...

     sold in the market
    Market
    A market is one of many varieties of systems, institutions, procedures, social relations and infrastructures whereby parties engage in exchange. While parties may exchange goods and services by barter, most markets rely on sellers offering their goods or services in exchange for money from buyers...

    , that is, a commodity
    Commodity
    In economics, a commodity is the generic term for any marketable item produced to satisfy wants or needs. Economic commodities comprise goods and services....

    . As such, it acquires use value
    Use value
    Use value or value in use is the utility of consuming a good; the want-satisfying power of a good or service in classical political economy. In Marx's critique of political economy, any labor-product has a value and a use-value, and if it is traded as a commodity in markets, it additionally has an...

     and exchange value
    Exchange value
    In political economy and especially Marxian economics, exchange value refers to one of four major attributes of a commodity, i.e., an item or service produced for, and sold on the market...

    , and therefore a price
    Price
    -Definition:In ordinary usage, price is the quantity of payment or compensation given by one party to another in return for goods or services.In modern economies, prices are generally expressed in units of some form of currency...

    .
  3. All products have use value
    Use value
    Use value or value in use is the utility of consuming a good; the want-satisfying power of a good or service in classical political economy. In Marx's critique of political economy, any labor-product has a value and a use-value, and if it is traded as a commodity in markets, it additionally has an...

    , exchange value
    Exchange value
    In political economy and especially Marxian economics, exchange value refers to one of four major attributes of a commodity, i.e., an item or service produced for, and sold on the market...

    , and informational value. The latter can be measured by the information content of the product, in terms of innovation, design, etc.
  4. Industries develop information-generating activities, the so-called Research and Development
    Research and development
    The phrase research and development , according to the Organization for Economic Co-operation and Development, refers to "creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of...

     (R&D) functions.
  5. Enterprises, and society at large, develop the information control and processing functions, in the form of management structures; these are also called "white-collar workers", "bureaucracy
    Bureaucracy
    A bureaucracy is an organization of non-elected officials of a governmental or organization who implement the rules, laws, and functions of their institution, and are occasionally characterized by officialism and red tape.-Weberian bureaucracy:...

    ", "managerial functions", etc.
  6. Labor can be classified according to the object of labor, into information labor and non-information labor.
  7. Information activities constitute a large, new economic sector, the information sector along with the traditional primary sector, secondary sector, and tertiary sector, according to the three-sector hypothesis
    Three-sector hypothesis
    The three-sector hypothesis is an economic hypothesis which divides economies into three sectors of activity: extraction of raw materials , manufacturing , and services...

    . These should be restated because they are based on the ambiguous definitions made by Colin Clark
    Colin Clark
    Colin Grant Clark was a British and Australian economist and statistician who worked in both the United Kingdom and Australia. He pioneered the use of the gross national product as the basis for studying national economies.-Biography:Colin Clark was born in London in 1905 and was educated at the...

     (1940), who included in the tertiary sector all activities that have not been included in the primary (agriculture, forestry, etc.) and secondary (manufacturing) sectors. The quaternary sector and the quinary sector of the economy
    Quinary sector of the economy
    The quinary sector of the economy is defined by some to encompass health, culture, and research.The main categories of industry today include the primary, secondary and tertiary sectors. The quinary sector could be seen as a further division of the tertiary sector, which is a part of the economy...

     attempt to classify these new activities, but their definitions are not based on a clear conceptual scheme, although the latter is considered by some as equivalent with the information sector. http://geography.about.com/od/urbaneconomicgeography/a/sectorseconomy.htm
  8. From a strategic point of view, sectors can be defined as information sector, means of production
    Means of production
    Means of production refers to physical, non-human inputs used in production—the factories, machines, and tools used to produce wealth — along with both infrastructural capital and natural capital. This includes the classical factors of production minus financial capital and minus human capital...

    , means of consumption, thus extending the classical Ricardo
    Ricardo
    Ricardo is the Portuguese and Spanish cognate of the name Richard. Therefore the name means "Brave Ruler".-People with the first name Ricardo:*Ricardo Arona, Brazilian mixed martial artist*Ricardo de Araújo Pereira, Portuguese comedian...

    -Marx model of the Capitalist mode of production
    Capitalist mode of production
    In Marx's critique of political economy, the capitalist mode of production is the production system of capitalist societies, which began in Europe in the 16th century, grew rapidly in Western Europe from the end of the 18th century, and later extended to most of the world...

     (see Influences on Karl Marx
    Influences on Karl Marx
    Influences on Karl Marx are commonly referred to as deriving from three sources: German idealist philosophy, French socialism, and English & Scottish political economy. Although this "three sources" model is an oversimplification, it still has some measure of truth.-Immanuel Kant:Immanuel Kant is...

    ). Marx stressed in many occasions the role of the "intellectual element" in production, but failed to find a place for it into his model.
  9. Innovations are the result of the production of new information, as new products, new methods of production
    Methods of Production
    Production methods fall into three main categories; however, all production methods can be assisted with CAM and CAD equipment .-Job Production and Prototype Production:...

    , patents, etc. Diffusion of innovations
    Diffusion of innovations
    Diffusion of Innovations is a theory that seeks to explain how, why, and at what rate new ideas and technology spread through cultures. Everett Rogers, a professor of rural sociology, popularized the theory in his 1962 book Diffusion of Innovations...

     manifests saturation effects (related term: market saturation
    Market saturation
    In economics, "market saturation" is a term used to describe a situation in which a product has become diffused within a market; the actual level of saturation can depend on consumer purchasing power; as well as competition, prices, and technology....

    ), following certain cyclical patterns and creating "economic waves", also referred to as "business cycles". There are various types of waves, such as Kondratiev wave
    Kondratiev wave
    Kondratiev waves are described as sinusoidal-like cycles in the modern capitalist world economy...

     ( 54 years), Kuznets swing
    Kuznets swing
    Kuznets swing is a claimed medium-range economic wave with a period of 15–25 years found in 1930 by Simon Kuznets. Kuznets connected these waves with demographic processes, in particular with immigrant inflows/outflows and the changes in construction intensity that they caused, that is why he...

     (18 years), Juglar cycle
    Juglar cycle
    Juglar cycle is a fixed investment cycle of 7 to 11 years identified in 1862 by Clement Juglar. Within the Juglar cycle one can observe oscillations of investments into fixed capital and not just changes in the level of employment of the fixed capital , as is observed with respect to Kitchin cycles...

     (9 years) and Kitchin
    Kitchin cycle
    Kitchin cycle is a short business cycle of about 40 months discovered in the 1920s by Joseph Kitchin.This cycle is believed to be accounted for by time lags in information movements affecting the decision making of commercial firms. Firms react to the improvement of commercial situation through the...

     (about 4 years, see also Joseph Schumpeter
    Joseph Schumpeter
    Joseph Alois Schumpeter was an Austrian-Hungarian-American economist and political scientist. He popularized the term "creative destruction" in economics.-Life:...

    ) distinguished by their nature, duration, and, thus, economic impact.
  10. Diffusion of innovations
    Diffusion of innovations
    Diffusion of Innovations is a theory that seeks to explain how, why, and at what rate new ideas and technology spread through cultures. Everett Rogers, a professor of rural sociology, popularized the theory in his 1962 book Diffusion of Innovations...

     causes structural-sectoral shifts in the economy, which can be smooth or can create crisis and renewal, a process which Joseph Schumpeter
    Joseph Schumpeter
    Joseph Alois Schumpeter was an Austrian-Hungarian-American economist and political scientist. He popularized the term "creative destruction" in economics.-Life:...

     called vividly "creative destruction
    Creative destruction
    Creative destruction is a term originally derived from Marxist economic theory which refers to the linked processes of the accumulation and annihilation of wealth under capitalism. These processes were first described in The Communist Manifesto and were expanded in Marx's Grundrisse and "Volume...

    ".


From a different perspective, Irving E. Fang (1997) identified six 'Information Revolutions': writing, printing, mass media, entertainment, the 'tool shed' (which we call 'home' now), and the Information Highway. In this work the term 'information revolution' is used in a narrow sense, to describe trends in communication media.

Measuring and modeling the Information Revolution

Porat (1976) measured the Information Sector in the US using the input-output analysis; OECD has included statistics on the Information Sector in the economic reports of its member countries.

Veneris (1984, 1990) explored the theoretical, economic and regional aspects of the Informational Revolution and developed a systems dynamics simulation
Simulation
Simulation is the imitation of some real thing available, state of affairs, or process. The act of simulating something generally entails representing certain key characteristics or behaviours of a selected physical or abstract system....

 computer model.

These works can be seen as following the path originated with the work of Fritz Machlup
Fritz Machlup
Fritz Machlup was an Austrian-American economist. He was notable for being one of the first economists to examine knowledge as an economic resource....

 who in his (1962) book "The Production and Distribution of Knowledge in the United States", claimed that the "knowledge industry represented 29% of the US gross national product", which he saw as evidence that the Information Age has begun. He defines knowledge as a commodity and attempts to measure the magnitude of the production and distribution of this commodity within a modern economy. Machlup divided information use into three classes: instrumental, intellectual, and pastime knowledge. He identified also five types of knowledge: practical knowledge; intellectual knowledge, that is, general culture and the satisfying of intellectual curiosity; pastime knowledge, that is, knowledge satisfying non-intellectual curiosity or the desire for light entertainment and emotional stimulation; spiritual or religious knowledge; unwanted knowledge, accidentally acquired and aimlessly retained.

More recent estimates have reached the following results:
  • the world’s technological capacity to receive information through one-way broadcast
    Broadcast
    Broadcast or Broadcasting may refer to:* Broadcasting, the transmission of audio and video signals* Broadcast, an individual television program or radio program* Broadcast , an English electronic music band...

     networks grew at a sustained compound annual growth rate of 7 % between 1986 and 2007;
  • the world's technological capacity to store information grew at a sustained compound annual growth rate of 25 % between 1986 and 2007;
  • the world's effective capacity to exchange information through two-way telecommunication
    Telecommunication
    Telecommunication is the transmission of information over significant distances to communicate. In earlier times, telecommunications involved the use of visual signals, such as beacons, smoke signals, semaphore telegraphs, signal flags, and optical heliographs, or audio messages via coded...

     networks grew at a sustained compound annual growth rate of 30 % during the same two decades;
  • the world's technological capacity to compute information with the help of humanly guided general-purpose computers grew at a sustained compound annual growth rate of 61 % during the same period .

See also

External links

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