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WIRED
FOR INNOVATION
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Wired for Innovation
Wired for
Innovation
How Information
Technology Is
Reshaping
the Economy
Erik Brynjolfsson and
Adam Saunders
The MIT Press
Cambridge, Massachusetts
London, England
© 2010 Massachusetts Institute of Technology
All rights reserved. No part of this book may be reproduced in any
form by any electronic or mechanical means (including photocopying,
recording, or information storage and retrieval) without permission in
writing from the publisher.
For information about quantity discounts, email ******@mitpress
..
Set in Palatino. Printed and bound in the United States of America.
Library of Congress Cataloging-in-Publication Data
Brynjolfsson, Erik.
Wired for innovation : how information technology is reshaping the
economy / Erik Brynjolfsson and Adam Saunders.
p. cm.
Includes bibliographical references and index.
ISBN 978-0-262-01366-6 (hardcover : alk. paper)
1. Technological innovations—Economic aspects. I. Saunders, Adam.
II. Title.
2009
'33—dc22
2009013165
10 9 8 7 6 5 4 3 2 1
Contents
Acknowledgments vii
Introduction ix
1 Technology, Innovation, and Productivity
in the Information Age 1
2 Measuring the Information Economy 15
3 IT’s Contributions to Productivity and
Economic Growth 41
4 Business Practices That Enhance Productivity 61
anizational Capital 77
6 Incentives for Innovation in the Information
Economy 91
7 Consumer Surplus 109
8 Frontier Research Opportunities 117
vi Contents
Notes 129
Bibliography 135
Index 149
Acknowledgments
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