The impact of ICT progress at the inter-industry structure: A comparative study of Japan, the U.S., and China using IO tables

Abstract

This study traced the progression of previous research focusing on the concepts of “informatization of industry” and “industrialization of information,” following which a comparative analysis of Japan, the U.S., and China was conducted through observation of data from Japanese and international input-output tables.

According to previous research, “industrialization of information” progressed alongside “informatization of industry” until the 1990s in Japan to influence economic development. However, since the 2000s, with the rise in globalization and import penetration in the information and communication technology (ICT) manufacturing industry, the relationship involving “informatization of industry” promoting “industrialization of information” has weakened. First, we found that import penetration has increased significantly in the information services industry and has been continuing to rise in the ICT manufacturing industry since the 2010s. Second, considering international input-output tables, as “informatization of industry” and “industrialization of information” continue to progress in the U.S. and China, “industrialization of information” has advanced to a greater extent therein; however, both concepts have almost leveled off in terms of advancement in Japan, with “industrialization of information” at a lower level. Third, as suppliers for Japan's ICT manufacturing industry are shifting to countries such as China and South Korea, we found a different tendency in the U.S., wherein domestic input still constitutes approximately 50% of the final demand.