The same module, regardless of the source of its development, can be used in different ways in different types of learning programs. This represents a new economic principle of increasing returns which, as will be discussed later in this paper, some argue underpins the new information economy. For this vision to become a reality, of course, what is needed is agreement on the interoperability standards- a challenge that has significant implications for the future of education and development. The new digital economy in education is redefining the relationship between supply and demand for learning. Will, or should, educational institutions begin to position themselves in the new marketplace in such a way that they can focus on their core competencies, whether that be in content areas or process techniques, while using electronic networks to access services which they themselves do not provide directly.
Partnership is another hallmark of the digital economy.
These are questions that are also of concern to the ADB Institute. The new digital economy in education also poses several issues related to the human resource mix within higher and other forms of education. The Institute is interested in knowing more about the economics of distributed learning systems and the interplay between cost drivers and productivity levers. Development assistance in education, in recent years, has stressed institutional capacity building as one of its key initiatives and areas of support and intervention. This has been a worthwhile endeavor and one that has produced some positive results.