The Effects of Information And Communication Technology In Hungarian Economic Sectors

As the author could not find a reassuring mathematical and statistical method in the literature for studying the effect of information communication technology on enterprises, the author suggested a new research and analysis method that he also used to study the Hungarian economic sectors. After a brief introduction to the theoretical background of the Information Age, the author examines the question of what factors have an effect on their net income is essential for enterprises. First, the potential indicators related to economic sectors were studied, then the author compared those indicators to the net income of the surveyed enterprises. The data resulting from the comparison showed that the growing penetration of electronic marketplaces contributed to the change of the net income of enterprises in various economic sectors. Among all the potential indicators, only the indicator of electronic marketplaces has a direct influence on the net income of enterprises. It was practical to determine two clusters based on the potential indicators

A Comprehensive Survey on the Economic Effects of Information and Communication Technology in Hungary

As the author could not find a reassuring mathematical and statistical method for studying the effect of the information communication technology on businesses in the literature, the author proposed a new research and analysis method that he also used to study the Hungarian economic sectors. The question of what factors have an effect on their net income is essential for enterprises. First, the author studied the potential indicators related to economic sectors, then the indicators were compared to the net income of the surveyed enterprises. The data resulting from the comparison showed that the growing penetration of electronic marketplaces contributed to the change of the net income of enterprises in various economic sectors to the extent of 37%. Among all the potential indicators, only the indicator of electronic marketplaces has a direct influence on the net income of enterprises. It was practical to determine two clusters based on the potential indicators. With the help of the compound indicator and the financial data of the studied economic sectors, the author made an attempt to find a connection between the development level of ICT and the profitability. Profitability and productivity are influenced by a lot of other factors as well. As it seemed to be impossible to measure and show the effect of those other factors, the results are not full but informative. The highest increment of specific Gross Value Added was produced by the fields of Manufacturing, Electricity, gas and water supply, Transport, storage and communication and Financial intermediation. With the exception of Electricity, gas and water supply, all economic sectors belong to the group of underdeveloped branches (below 50 percent). High (but not reaching the developed status) compound indicators were shown by Mining and quarrying and Wholesale and retail trade and repair work, as they produced an increment of Gross Value Added below the average, these economic sectors can be found in the lower right part of the coordinate system. Construction, Health and social work and Hotels and restaurants can be seen laggards, so they got into the lower left part of the coordinate system. Agriculture, hunting and forestry can also be classified as a laggard economic sector, but as the effect of the compound indicator on the increment of Gross Value Added was less significant, it can be found in the upper left part of the coordinate system. Drawing a trend line on the points, it is clear that the line shows a positive gradient, that is, the higher the usage of ICT devices, the higher improvement can be detected in the specific Gross Value Added

Industrial policy for the medium to long-term

This report reviews the market failure and systems failure rationales for industrial policy and assesses the evidence on part experience of industrial policy in the UK. In the light of this, it reviews options for reshaping the design and delivery of industrial policy towards UK manufacturing. These options are intended to encourage a medium- to long-term perspective across government departments and to integrate science, innovation and industrial policy

Collaborative knowledge management - A construction case study

Due to the new threats and challenges faced by the construction industry today, construction companies must seek new solutions in order to remain ahead of the competition. Knowledge has been identified to be a significant organisational resource, which if used effectively can provide competitive advantage. A lot of emphasis is being put on how to identify, capture and share knowledge in today's organisations. It has been argued over the years that due to the fragmented nature of the construction industry and ad-hoc nature of the construction projects, capture and reuse of valuable knowledge gathered during a construction project pose a challenge. As a result critical mistakes are repeated on projects and construction professionals have to kee

Unraveling the Shift to the Entrepreneurial Economy

A major shift in the organization of developed economies has been taking place: away from what has been characterized as the managed economy towards the entrepreneurial economy, or what Kirchhoff (1994) has called dynamic capitalism. In particular, the empirical evidence provides consistent support that (1) the role of entrepreneurship has significantly increased, and (2) a positive relationship exists between entrepreneurial activity and economic performance. However, the factors underlying this observed shift have not been identified in a systematic manner. The purpose of this paper is to suggest some of the factors leading to this shift and implications for public policy. In particular, we find that technological change is a fundamental catalyst underlying the shift from the managed to the entrepreneurial economy. However, it was not just technological change but rather involved a multitude of factors, ranging from the demise of the communist system, increased globalization, new competition for multinational firms and higher levels of prosperity. Recognition of the causes of the shift from the managed to the entrepreneurial economy implies a shift in public policy directions. Rather than to focus of directly and exclusively on promoting new firms and small firms, it may be that the current approach to entrepreneurship policy is misguided. The priority should not be on entrepreneurship policy but rather a more pervasive and encompassing approach, policy consistent with an entrepreneurial economy.

Finance and economic growth - a review of theory and the available evidence.

The EU's structural reform agenda attaches a considerable weight to the establishment of efficiently working and integrated EU financial markets. While there is a firm consensus that a well-functioning financial sector is a precondition for the efficient allocation of resources and the exploitation of an economy's growth potential, the economic literature is less consensual on how and to what extent finance affects economic growth.  This paper reviews the economic theory and available evidence with particular focus on three questions:  how does financial development affect economic growth;  what are the features of a growth supportive financial structure;  how are financial structures related to structural change and technical progress? financial development, economic growth, financial structures, structural change,technical progress

Innovation and skill dynamics: a life - cycle approach

This paper focuses on the complementary institutional and organizational adjustments that facilitate the routinization of technological opportunities. To address this issue we propose a life-cycle approach that accounts for the emergence, development and transformation of the conduits for the transmission of new knowledge and skills. While it is widely held that knowledge tends to get more organized as by-product of innovation, the purposeful absorption of practical know-how into formal education is another crucial, and arguably less analysed, intermediate step to bridge the beginning of the life-cycle, when new skills are closely tied to some novel technology, to later phases when the emergence of new disciplines and the diffusion of those skills elicit complementary developments in the technology. The paper connects themes that are central to the tangled policy discourse on skills impact innovation, namely: the institutional adjustments required to favour the re-absorption of skill mismatches; the systematization of knowledge underpinning the creation of new academic disciplines; and implications for dynamics of productivity and of the wage structure.

An Empirical Study of the Development of Information and Communication Technology in Hungary

As I could not find a reliable mathematical and statistical method for studying the effect of information communication technology on businesses in the literature, I proposed a new research and analysis method that I also used to study the Hungarian economic sectors. An essential question for enterprises is what factors have an effect on their net income.. First, I studied the potential indicators related to economic sectors, then I compared those indicators to the net income of the enterprises surveyed. The data resulting from this comparison showed that the growing penetration of electronic marketpalces contributed to the change in the net income of enterprises in various Hungarian economic sectors to the extent of 37%. Among all the potential indicators, only the indicator of electronic marketplaces has a direct influence on the net income of enterprises. However, the effect of electronic presence is also significant as it has a huge effect on the potential indicator of electronic marketplaces. It was practical to determine two clusters based on the potential indicators. Eight economic sectors have been placed in the first, while five sectors have been placed in the second cluster. Only the money which is spent on professional training has a more significant effect on what cluster a sector belongs to

Taking services seriously: how policy can stimulate the 'hidden innovation' in the UK’s services economy

Policy could have an important role in stimulating innovation in services. However, policymakers have lacked robust evidence showing how these sectors innovate. Drawing on a survey of more than 16,000 firms, this research reveals the high levels of ‘hidden innovation’ in some services sectors, especially in how they develop new business models and exploit technology. But the research also reveals that innovation is confined to a minority of service firms, and that many lack the skilled personnel or intelligence on markets and technology that would enable them to become more innovative. Because of their dominance in the economy, improved performance by the UK’s services sectors is necessary if we are to significantly close the productivity gap between the UK and other leading nations. However, if we are to take innovation in services seriously, we must recognise that they innovate differently from advanced manufacturing. We need policies to support increased training and development, and the effective dissemination and exploitation of technology

The State of Information and Communication Technology in Hungary – A Comparative Analysis

A novel comparative research and analysis method is proposed and applied on the Hungarian economic sectors. The question of what factors have an effect on their net income is essential for enterprises. First, the potential indicators related to economic sectors were studied and then compared to the net income of the surveyed enterprises. The data resulting from the comparison showed that the growing penetration of electronic marketpalces contributed to the change of the net income of enterprises in various economic sectors to the extent of 37%. Among all the potential indicators, only the indicator of electronic marketplaces has a direct influence on the net income of enterprises. Two clusters based on the potential indicators were indicated