Overview

Introduction

The general idea of Information Technology includes both the notion of industries primarily producing, processing, and distributing information, as well as the idea that every industry is using available information and information technology to recognize and make themselves more productive. An Information economy transforms information into a commodity that is produced and distributed by a number of growing industries. The Information sector groups the economy into three types of establishments: those engaged in producing and distributing information, those that provide the means to transmit or distribute these products as well as data or communications, and finally, those that process data.

The Information sector comprises establishments engaged in the following processes: producing and distributing information and cultural products, providing the means to transmit or distribute these products as well as data or communications, and processing data. The main components of this sector are the publishing industries, including software publishing, the motion picture and sound recording industries, the broadcasting and telecommunications industries, and the information services and data processing industries.

Unique Characteristics

There are unique characteristics of the Information Technology Industry that set it apart from traditional goods-producing and service-producing sectors. First, unlike traditional goods, an "information product", such as an on-line newspaper or television program, does not necessarily have tangible qualities, nor is it necessarily associated with a particular form. For example, a movie can be viewed at a theatre, on a television broadcast, through video-on-demand or rented at a local video store. The next characteristic that identifies the Information sector is that the delivery of the products does not require direct contact between the supplier and consumer, whereas, any sort of service- or commodity-producing sector does require some sort of direct contact during delivery. Furthermore, the value of Information products lies in their informational, educational, cultural, or entertainment content.

The intangible property aspect of information and cultural products makes the processes involved in their production and distribution very different from goods and services, in that they cannot be reproduced, altered, improved upon, or redistributed without the right or authorization to do so. Distributors of information and cultural products are able to add value to the products they distribute. For example, broadcasters add advertising not contained in the original product. This capacity means that unlike traditional distributors, they derive revenue not from sale of the distributed product to the final consumer, but from those who pay for the privilege of adding information to the original product. Similarly, a database publisher can acquire the rights to use existing information and add new value to it by providing search and software and organizing the information in a way that facilitates research and retrieval. These products often require a much higher price than the original documents.

Distribution Modes

The distribution modes for information commodities, through increasing technology, have the ability to severely alter or even eliminate conventional manufacturing and distributive practices. A national newspaper, for example, will be able to be printed locally and distributed, or the consumer may actually be able to print it up himself. Similarly, it is anticipated that retail channels may be obliterated completely, once on-line availability of products increases.

Many of the Information industries are engaged in producing products protected by copyright law, or in distributing them. Examples are traditional publishing industries, software and database publishing industries, broadcasting, telecommunications, as well as film and sound industries.

The Situation of North Carolina

North Carolina is highly involved in the Information Technology industry. With approximately 70,000 core IT jobs expected by the year 2006, the North Carolina community is shifting away from the manufacturing and agricultural occupations it was popular for during the early and middle twentieth century. For a better understanding of the information technology industry within North Carolina, along with an analysis of the concerns it has and will likely continue to face, review the sections provided to the left. Below is a historical timeline illustrating the universal development of the Information Technology Industry.

North Carolina harbors over 2,300 IT companies employing over 200,000 workers with a $7.5 billion payroll. The top five telecommunications centers in the world are headquartered in North Carolina. Approximately 15% of the nation's networking engineers reside here, and it is the largest state for banking resources. North Carolina poses as the headquarters for many of the world's largest IT facitlities, including IBM, Red Hat, SAS, Microsoft, Cisco, RF MicroDevices, and Flextronics. Over 200,000 workers are employed in over 4,000 firms, spanning across all counties of North Carolina. The community college network has 16,000 students enrolled in subjects such as engineering and computer science.

The Research Triangle Park

As the largest research park in the entire United States, the Research Triangle Park is flanked by three world-class research facilities (Duke University, NC State University, and University of North Carolina at Chapel Hill). Therefore, it is the home of more than 100 research and development organizations, employing more than 40,000 people.The Research Triangle region has been recognized as one of the world's top 46 tech hot spots.

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History of Information Technology