The speed of technological innovation since World War II is significantly increasing following the commercial exploitation of the Internet. Since the mid 90’s fiber optics capacity (infrastructure for transmission of information including voice and data) has incremented more than one hundred times because of a new technology, dense wave division multiplexing, and Internet traffic has risen over 1.000 times. The remarkable improvements in information technology offer great examples of the critical relevance of the knowledge in the growth and development of competitive advantages
The dramatic advances in information technology (IT) provide sharp reductions of the time for generating and applying technological innovations into new products and generate a sharp increase in competitive pressures and strategic uncertainties. Competitiveness is no longer a macroeconomic phenomena based on static comparative advantages and industrial infrastructure.
Source: Copenhagen Business School