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Trends of Convergence and Divergence in the Information Economy: Lessons for Developing Countries

Over the last decade, uneven developments and growth in information, communication and technology (ICT) infrastructure, human capital and innovation in the developed and developing countries have led to uneven competitive position across these economies. In this paper, we examine the trends pertaining to the above‐mentioned indicators for selected developed and developing countries. Results from the empirical analysis showed countries that have invested heavily into ICT infrastructure, human capital and innovation tend to have higher productivity levels. The empirical evidence also showed that the gap between the developed and developing countries have increased over the seven years from 1995 to 2001. This study also examined the type of policies pertaining to the above‐mentioned factors in the more developed and highly competitive economies. Results from this empirical analysis will serve as lessons for developing countries to catch‐up with the more evolved economies.