lnnovation of lT & by IT

Since the 1990s， the development of information technology （IT） and its fast diffusion have greatly transformed the economy， as described by Alfred D． Chandler Jr．， a business historian， that “the transformation from the lndustrial into the lnformation Age in the last decades of the 20th century．” lnnovation “of IT” itself has made remarkable progress． But what is more important is innovation “by IT．” Joseph Schumpeter， one of the great economists in the 20th century， called innovation “Durchsetzung neuer Kombinationen” （imp/ementation of new combinations）． What Schumpeter meant is not only technical innovation in the engineering sector in a narrow sense but a wide range of concepts such as production of new goods， introduction of innovative production methods， exploitatjon of new markets， acquisition of new supply sources， and establishment of new organizations． IT is the very core technology that precisely makes these possjble．