Traditional and New ICT Spending and Its Impact on Economy

Abstract

This paper presents the research of the new technologies’ impact on information and communication technology (ICT) spending and economy. We found that new technologies drive demand for ICT on general, while individual ICT segments’ shares changed significantly due to development of the field and due to different stages of maturity process (diffusion) of individual ICT segments. New technologies also have impact on the longer-lasting growth of spending for traditional ICTs, as new technologies cannot be used and exploited without being connected to (and supported by) traditional ICTs. Moreover, considering traditional and total ICT spending, productivity of workers follows the same trend and consequently ICT spending has immediate impact on labor productivity, but this is not detected in relation to new ICTs’ spending. Gross domestic product growth also stimulates only traditional and total ICT spending, having strong positive impact on increased ICT spending in the same year.