Introduction

Abstract

The information and communication technologies (ICT) development that allowed Internet-based communication is often referred to as the fourth technological revolution. Just like steam and electricity, the diffusion of those ‘general-purpose technologies’ in all sectors of activity modifies not only the products, but also the organization of production and the way of life. Nevertheless, their ‘added value is based on the manipulation and diffusion of ideas’, which attribute radically different characteristics and properties. ICT and the Internet can be thought of in the context of network economy as they are characterized by constant fixed costs and small/negligible marginal costs; the wide use of these technologies impacts on markets’ structure. Varian (2000) analyzed the relation between technology and market structure and concluded that the value creation process must be reconsidered. Indeed, the diffusion of ICT and network technologies changes the sharing of profits along the value chain, redesigns the physical firm’s borders, as well as the way firms compete in the market. Brynjolfsson and Hitt (2000) give examples of those transformations and show how technical and organizational changes made possible by ICT cause vertical integration and/or redefinition of capabilities within companies. Many of these aspects are considered using the quantitative approaches collected in this volume.