The addition of Information as a sector in, "The Information Economy (1977)" was done by

Question

Prepp Team · Accepted Answer

Understanding The Information Economy (1977)

The question asks about the individual responsible for adding the concept of Information as a distinct economic sector within the influential work, "The Information Economy," published in 1977.

Identifying the Author of The Information Economy Report

The significant report titled "The Information Economy: Definition and Measurement," published in 1977 by the U.S. Department of Commerce, is primarily associated with the extensive work of Marc Uri Porat, commonly referred to as M.V. Porat.

Porat's comprehensive research built upon earlier foundational ideas, such as those by Fritz Machlup concerning the knowledge industry. His major contribution in the 1977 report was providing a detailed framework to define, categorize, and measure the economic activities related to information.

He successfully delineated the "information sector" as a substantial and crucial part of the economy, identifying both primary (firms whose outputs are information goods/services) and secondary (information work within non-information firms) components.

Analyzing the Given Options

E. Machlup: Ernst Machlup is a key figure in the economics of knowledge and information, known for his 1962 work "The Production and Distribution of Knowledge in the United States." While his work was pioneering for identifying the economic value of knowledge, the specific detailed analysis and definition of the 'Information' sector in the 1977 report is not attributed to him but to Porat, who expanded on Machlup's concepts.
M.V. Porat: As established, Marc Uri Porat authored the 1977 report "The Information Economy." His research defined and measured the information sector, solidifying its recognition within economic analysis.
R.M. Hayes: Robert M. Hayes is a distinguished scholar primarily known for his contributions to library and information science, not typically for authoring key economic reports defining sectors like "The Information Economy (1977)".
M.M. Parker: This name is not widely recognized in the context of major foundational works defining economic sectors related to information in the 1970s, specifically the 1977 "The Information Economy" report.

Conclusion on The Information Economy Sector Definition

Based on historical economic literature and the authorship of the seminal 1977 report, the addition and detailed economic definition of Information as a distinct sector were the work of M.V. Porat.

Revision Table: Noted Contributions to Information Economics

Figure	Key Contribution Area	Most Relevant Work/Impact
Ernst Machlup	Knowledge Industry Economics	Pioneering concept of knowledge as an economic entity; "The Production and Distribution of Knowledge..." (1962)
M.V. Porat	Information Economy Measurement	Detailed definition and measurement of the Information Sector; "The Information Economy" (1977 report)

Additional Information: Exploring the Information Economy Concept

The concept of the Information Economy describes an economic system where informational goods and services are the primary drivers of production, consumption, and employment. This model highlights the increasing importance of knowledge, data, and communication technologies.

M.V. Porat's 1977 report was groundbreaking because it moved beyond theoretical discussions to provide empirical data and a structural analysis of how large the information sector actually was within the U.S. economy at that time. His methodology for dividing economic activities into information-related and non-information-related categories became highly influential.

Understanding this economic shift is essential for studying trends in technology, labor markets, global trade, and intellectual property in the modern era.