1. Development of information technology Development of informational products and services Mass production of information-related goods Decreased cost and price reductions Purchasing information-related goods Construction of user systems Advancement of technology for using information-related goods Figure 1. Information-Related Goods--Development, Production, and Use Increase in productivity Increase in income and profits Economic growth Increase in the production and use of information Cost saving of production in noninformation industries

2. Figure 2. Input-Output Model Primary sectors Secondary sectors Tertiary sectors (Industrial sectors) (Intermediate products) (Final demand) Consumption Investment Exports (Factor inputs) Labor Capital Imports (Exogenous sectors: household, government, capital accounts, and the rest of the world)

3. Figure 3. Input-Output Model (Production of Information, Information Services, Primary sectors (Industrial sectors) Consumption Investment Exports Labor Capital Imports (Exogenous sectors) Information-Related Goods) Secondary sectors Information-related good sectors Other sectors Information-related service sectors Information sectors Noninformation service sectors Tertiary sectors (Including final demand for information, information services, and information-related goods)

4. (Industrial sectors) Consumption Investment Exports Labor Capital Imports (Exogenous sectors) Figure 4. Input-Output Model According to Information- and Noninformation-Sectors Classification (Production of Information Within Firms Are Included) Noninformation sectors (including production of infomation within firms) (Primary information) Information-related good sectors (including production of information within firms) Information-related service sectors and information sectors (including production of information within firms) (including production of information within households) (Primary information)

5. Figure 5. Division of the Unit Price of a Passenger Car Unite price of a car Parts and materials Costs of LSI Others Assembly and other services Costs of using Others Design and tests Costs of using CAD/CAM for designing Costs of testing and simulations Others Management, marketing, and sales Costs of Costs of using VAN services Others in moter robots using PC into Information and Other Components Others

6. Figure 6. Information Components in the Price of a Passenger Car Traced Backward The price of a passenger car The cost of using robots The price of robots The price of softwares for robots The cost of using a workstation for writing robot softwares The price of workstations The price of LSI in workstations The price of facilities for LSI production The cost of using facilities for LSI production

7. Figure 7. Input-Output Model with 2-Sectoral Classification: Information Sector (Industrial sectors) (Exogenous sectors) and Noninformation Sector (Information Components Exhibited) H: Information Components Z: Other Components Noninformation sector (Sector Z) Information sector (Sector H) Consumption (H Component) (Z Component) Investment (H Component) (Z Component) Labor Capital Research and development (Z) Labor Capital Research and development (Z) H Z H Z H Z H Z

8. Figure 8. Decomposition of the Growth of the Japanese Economy into Information and Noninformation Components Fig-8.ch1 19751976197719781979198019811982198319841985 0 1 2 3 4 5 6 Year Growth rate (% per year) GN P Labor(H)Labor(Z)Capital(H)Capital(Z)