Summary of Research Project Results under JSPS FY2002
"Research for the Future Program"

1.Research Institution The University of Tokyo
2.Research Area Integrated Fields
3.Research Field Electronic Social Systems
4.Term of Project FY 1998 - FY 2002
5.Project Number 98I00703
6.Title of Project Information Technology and the Market Economy

7.Project Leader
Name Institution,Department Title of Position
Masahiro, Fujiwara The University of Tokyo, Graduate School of Economics Professor

8.Core Members

Name Institution,Department Title of Position
Akimichi, Takemura The University of Tokyo, Graduate School of Information Science and Technology Professor
Kiyohiko, Nishimura The University of Tokyo, Graduate School of Economics Professor
Junjiro, Shintaku The University of Tokyo, Graduate School of Economics Associate Professor

9.Summary of Research Results

  The purpose of the research was (1) to study theoretically and empirically effects of the propagation of Information Technology (IT), and by doing so, (2) to predict possible changes of the economic systems in the 21st century, (3) to propose desirable policies and responses in legal systems, and (4) to evaluate required organizational forms and strategies. The main research outcomes are as follows.
  Contrary to the usual studies, we found IT may have negative effects unless complementarities with the economic/corporate systems are well exploited. Empirically, the propagation of IT capital during 90's was found to have negative effects on productivity growth in the manufacturing sector. We also found that differences of organizational abilities among firms increased because many firms introduced IT prematurely.
  In order to successfully introduce IT, organization and institutions must be properly amended. Corporate performance improves only if IT is combined well with product architectures, organizational abilities and transactional forms. Managerial willingness to make information public and proper understanding of new technology is found essential for the growth of B to B electric commerce. Designing a system that reduces transactional risks is important for B to C electric commerce.
  In order to make electronic government more effective, a reform of the government's business architecture based upon value analyses is found critical. As for future spectrum policy, either lease auction of the spectrum or free use of spectrum with the use of UWB (ultra wide band) technology is found desirable. We also constructed a detailed industry-wise database of IT capital and labor in Japan, which should clarify the effect of IT capital on aging of the population.
  In theory area, we developed new analytical concepts and approaches. For example, we redefined the concept of "commons" using excludability and rivalry (essentially as a pure public good), as the debate of whether or not to consider the spectrum as commons become intense. We also pointed out that, due to the propagation of IT, the post- industrial capitalism enhances the commoditization of information, using the logic which reverses the causality of technology to economy and defines the capitalism as the system to produce profits from difference of values. We predict that, in the world of the post-industrial capitalism, intellectual assets become more crucial than material assets and the importance of stockholders in the corporations will be reduced because the power of fund suppliers will diminish.

10.Key Words
(1)complementarity   (2)IT externality   (3)organizational capability
(4)electronic commerce   (5)digital goods   (6)institutional design of the electronic government
(7)value analysis   (8)spectrum auction   (9)radio wave as pure public goods