THE ECONOMICS OF A TECHNOLOGY-BASED SERVICE SECTOR - January 1998 - A Planning Report

Sep 14, 2026

Uploaded by Mali

A planning report analyzing the economics of technology-based services, prepared for the National Institute of Standards and Technology. It reviews how technology is embedded in service industries, maps key technology areas and the supporting infrastructure, and evaluates barriers to development and adoption. The report outlines private-sector and public-policy responses and proposes improvements to policy analysis. It also applies a market-failure framework and presents statistical analysis of service-sector economic performance and technology-related investment decisions.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages209

Reading Time8 h 47 min

AccessFree to download

EXECUTIVE SUMMARY

Introduction

Technology in the Service Sector

The Technology Landscape

The Technology Infrastructure

Barriers to Technology Development and Use

Key Service Sector Technologies

The Private Sector Response to Technology Barriers

The Public Policy Response: Over-Arching Issues

The Public Policy Response: Engaging the Service Sector

Improving Policy Analysis: Lesson Learned

1. INTRODUCTION

Purpose

2. SOURCES AND USES OF TECHNOLOGY IN THE SERVICE SECTOR

Alternative Sources of Technology

Focusing On Information Technology (IT)

Technology Flows into Service Industries

3. THE CONCEPT OF MARKET FAILURE AND ITS APPLICATION

Introduction and Overview

4. STATISTICAL ANALYSIS OF ECONOMIC PERFORMANCE AND MARKET FAILURE IN THE SERVICE SECTOR

Investments in Information Technology: Analysis in Brief

U.S Department of Commerce Technology Administration THE ECONOMICS OF A TECHNOLOGY-BASED SERVICE SECTOR January 1998 A Planning Report for: NATIONAL INSTITUTE OF STANDARDS AND TECHNOLGY Program Office Strategic Planning and Economic Analysis Group Prepared by: David P. Leech Albert N. Link John T. Scott Leon S. Reed Approved by: John F. Starns James J. Lindenfelser TASC, Inc. 1101 Wilson Boulevard Suite 1500 Arlington, Virginia 22209 Acknowledgments The study effort reported here benefited greatly from the participation of Daniel Berg (Rensselaer Polytechnic Institute), Eric Brynjolfsson (Massachusetts Institute of Technology), Lorin Hitt (University of Pennsylvania), Lori Perine (National Institute of Standards and Technology), John Perko (CHI Research, Inc.), and Gregory Tassey (National Institute of Standards and Technology) . TABLE OF CONTENTS Page EXECUTIVE SUMMARY............................................................................................. ES-1 ES.1 Introduction ............................................................................................... ES-1 ES.2 Technology in the Service Sector ............................................................... ES-2 ES.3 The Technology Landscape ........................................................................ ES-4 ES.3.1 Retail Banking ............................................................................... ES-5 ES.3.2 Home Entertainment ...................................................................... ES-6 ES.3.3 Health Care ................................................................................... ES-7 ES.4 The Technology Infrastructure ................................................................... ES-8 ES.5 Barriers to Technology Development and Use ............................................ ES-10 ES.6 Key Service Sector Technologies ............................................................... ES-12 ES.7 The Private Sector Response to Technology Barriers ................................. ES-16 ES.8 The Public Policy Response: Over-Arching Issues ...................................... ES-16 ES.9 The Public Policy Response: Engaging the Service Sector .......................... ES-18 ES.10 Improving Policy Analysis: Lesson Learned................................................ ES-20 1. INTRODUCTION ............................................................................................... 1 1.1 Purpose...................................................................................................... 1 1.2 The Service Sector is the Largest, Fastest Growing Sector of the U.S. Economy............................................................................................ 2 1.3 The Role of Technology in the Service Sector ............................................ 4 1.4 The Technology Infrastructure ................................................................... 6 1.5 The Technology Infrastructure of the Service Sector .................................. 10 1.6 The Outline of the Report........................................................................... 13 2. SOURCES AND USES OF TECHNOLOGY IN THE SERVICE SECTOR ... 15 2.1 Alternative Sources of Technology............................................................. 15 2.2 Focusing On Information Technology (IT) ................................................. 15 2.2.1 Existing Literature .......................................................................... 15 2.2.2 Other Systematic and Quantitative Data.......................................... 17 2.3 Technology Flows into Service Industries................................................... 19 2.3.1 An Estimate of“Imported” Information Technology ....................... 19 2.3.2 Making Information Technology Work ........................................... 21 2.4 The Strategic Intent o

FAQs

What is the purpose of the report?

The report presents a planning analysis focused on the economics of technology-based services and how technology affects the service sector, including infrastructure, barriers, and policy implications.

Which service sector areas are examined in the technology landscape?

The executive summary highlights examples such as retail banking, home entertainment, and health care as part of the broader technology landscape.

How does the report evaluate barriers and responses to technology adoption?

It discusses barriers to technology development and use, then reviews the private-sector response and public-policy response, including over-arching issues and engagement with the service sector.

Sep 14, 2026

Uploaded by Mali