Written with the aim of understanding better the economic, political, and social implications of globalization, the first (and necessarily most abstract) volume of Castells’ trilogy proposes we are in a network society. Here capital and information have collapsed into one another and become the same thing, spurring a transformation from modern capitalism into informational capitalism. In contradistinction to modern capitalism, informational capitalism’s production is knowledge-based productivity, wherein the mounting interdependence of economies and companies reflects the need for international and inter-corporate collaboration in order to stay competitive in the same global market.
The rise of the informational economy “is characterized by the development of a new organizational logic which is related to the current progress of technological change, but not dependent on it” (152). Indeed, corporations did not embrace information technology to advance their standing in the market but to copewith the meteoric changes and increase overall productivity. Labor’s role in this transition to the informational society underscores the shift from the industrial economy, as well as the fact that there is no one model of the informational society. Castells hypothesizes: “as the process of globalization progresses, organizational forms evolve from multi-national entities to [increasingly decentralized] international networks” (192).