The Network Society - University of Massachusetts Amherst

340 The Network Society
4. Increased pressures on the welfare state
Population aging leads to problems in financing the welfare state,
both because of an increase in direct expenses and a rising dependency
ratio. At the same time, greater global tax competition and the new
global division of labour put increased pressures on the welfare state.
The welfare state can be maintained in the future only if its productivity
is improved through innovations. The future of the welfare state is
a creative welfare state.
5. The second phase of the information society:
from technological to social development
The first phase of the information society focused on the development
of technology, such as network connections. In the second
phase, which has now begun, technological development will continue;
however, the focus will shift to larger social matters and the
main focus will be on changing the ways in which we work.
6. The rise of cultural industries
The information economy is expanding particularly in the field of
culture, including music, TV, film, computer games, literature, design
and learning materials. This process is affected by technological convergence,
i.e. the digitalisation of content and the coupling of information
technology, communication technology and media.
8. The rise of bio-industries
The next phase of the information society will see the rise of bioindustries.
Genetic engineering will become another key technology
besides IT. Medicine, biotechnology and welfare technology are other
examples of emerging fields. The importance of these sectors is
increased by population ageing (for example, gerontechnology, i.e.
technology that makes life easier for the elderly).
Regional concentration
For the first time in history, the world’s urbanisation rate has
exceeded 50%. Large concentrations of expertise account for an
increasing proportion of innovations and economy, as being at