Information Technology and Economic Development in Developing Countries

Abstract

Within last decades, there were very high level of increase of information technology production. This production successfully speeds up technological changes in only developed countries. Such a situation results use of existing knowledge as input in production of new knowledge in monopoly of developed countries. Developing countries are, however, still struggling with their own socio-politic and/or socio-economic problems. This process create a bigger technological gap between developed and developing countries. One of the reasons for that is lack of physical and human capital in developing countries. This is common problem in the world and necessary precautions should be taken in timely manner. This study discusses the problematic issues of information technology creation in both developed and developing countries and suggest some solutions.