Production of ICT goods and services outside the ICT sector

While the WPIIS has focused on the production activity of businesses that comprise the ICT sector, it is acknowledged that they are not the only entities in the economy to produce ICT goods and services. The latter may be produced by other sectors, for instance general government, and by businesses outside the ICT sector. Their output may be ICT products produced for sale or for own use.

Additionally, ICT products that primarily originate from the ICT sector may be produced by organisations in other industries for sale or own use. In particular, “own account” software, that is software development work done by entities for their own use, may be significant for some businesses outside the ICT sector and for general government organisations. Attempts are underway in a number of countries to measure the investment in “own account” software. More information on this subject can be found in Chapter 5.

The impacts of the ICT sector

The ICT sector may have considerable impacts on economic performance, as it is characterised by very high rates of technological progress, output and productivity growth. These characteristics imply a considerable contribution of the sector to economy-wide performance.

The impacts of the sector can be examined in several ways - directly, through its contribution to output, employment or productivity growth, or indirectly, for example as a source of technological change affecting other parts of the economy.

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