Let’s start by saying that the term high-tech , an abbreviation of high-technology. Indicates the most advanced technology , i.e. a product, or a technique, or a process that has no superior in technological terms. A bit like when we wait for the release of the new iphone 6 , or the new smartphone and we forget about . The previous one given the new functions that the latest product has!
As far as the hi-tech sectors are concerned, we make specific reference to the network industries . By network we mean a set of individuals interconnected with each other. By network industries, in English network industries, we mean those industries that make up the so-called network goods .
These network assets are characterized by a series of characteristics :
- complementarity : to be useful, a good or service must be Brazil Mobile Number List used simultaneously with other goods. Our computer is only useful if used with the monitor and vice versa: we are talking about complementary objects;
- compatibility : but to be complementary the goods must necessarily be compatible. In order to be used, the software must be compatible with the user’s operating system;
SEE ARTICLE: ” What you need to know about Networked Information Technology: Italy is in 58th place
- existence of standards : to solve these first two problems, network industries must have . Standards to follow in the production of these goods. Let’s think about the construction of a USB that has a different output from the one foreseen by the computer! These standards can be supplied either independently by the industries, therefore by . The market, or by regulatory bodies, therefore by the institutions;
- high travel costs for the consumer who switches from one good to Cryp Email List another (called switching costs ): they can be represented by contracts that bind users to use a specific good or service for a certain time, or by the costs and times of learning to use a new good, or even by the costs and times of searching for alternatives. The lock-in phenomenon occurs as a direct consequence of the switching costs :the consumer who has chosen a particular good tends to preserve in choosing that good, he is therefore strongly encouraged not to move on to other goods that he may not yet be able to use. In this way the producer acquires considerable market power which allows him to set higher prices without the fear of losing his share of customers.
- significant economies of scale both for producers , as the industries of these sectors have increasing returns to scale.
Are you ready to exploit them and enjoy them? you’re already doing it!