ABSTRACT
In order to attract domestic and international investors, transition economies (TEs), i.e., economies in the transition from planned to market driven, must demonstrate their ability to convert investments into revenues in an efficient and effective manner. In this study, conducted in the context of 18 TEs, we investigate strategies for increasing the relative efficiency of the production of revenues from information and telecommunications technologies (ICTs). We use a five-step methodology incorporating cluster analysis (CA), data envelopment analysis (DEA), and neural networks (NNs) to determine the areas along the product life cycle (PLC) curve where increased investments in ICTs will likely have the most macroeconomic impact in a resource-efficient manner. We use the framework of neoclassical growth accounting to support our inquiry.
