Let me start with two observations that outline the possible financial dimensions of IT innovation. •  The first is the boom and bust in equity prices of tech companies. The market capitalisation of IT firms has fallen about 6 trillion US dollar since the spring of 2000.
The magnitude of losses demonstrates that the valuation of IT firms is not a quantité négligeable when it comes to assessments of how well financial markets have functioned in recent years. •  The second is the heavy borrowing of telecom firms, and the subsequent rapid deterioration of credit quality in the telecom sector.