The diffusion of information technology: experience of by Nagy Hanna, Ken Guy, Erik Arnold

By Nagy Hanna, Ken Guy, Erik Arnold

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Programs should be packaged to provide integrated services to differentiated users. Stable program delivery channels are important. Levels of technology and user sophistication should also guide the choice of delivery institutions: universities, private consultants, trade associations, public industrial extension, etc. The study suggests broad directions for adapting these lessons to the conditions of developing countries. National strategies should address incentives, institutions and capabilities.

ISSN: 0259-210X Nagy Hanna is principal operations officer in the World Bank's West Bank and Gaza Resident Mission. K. Library of Congress Cataloging-in-Publication Data Hanna, Nagy. The diffusion of information technology : experience of industrial countries and lessons for developing countries / Nagy Hanna, Ken Guy, Erik Arnold. p. cm. (World Bank discussion papers ; 281) Includes bibliographical references. ISBN 0-8213-3216-3 1. Information technology. 2. Information technology Developing countries.

Page xii Capabilities to generate and manage technologies used in production (and product differentiation) are primarily developed by firms. The IT revolution is driving the need for investment in these capabilities. This is a management responsibility. But market failures and externalities affect the diffusion of new technologies. Governments have responded with policies and programs to ensure socially efficient IT diffusion, particularly to small and medium enterprises (SMEs). There is growing evidence that such programs, when appropriately designed, have significant impact on SME use and benefits from IT.

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