Abstract
This chapter reviews some of the descriptive evidence on the preparedness of workers to utilize Information and Communication Technologies (ICT) in the workplace. It examines how new innovations in ICTs may influence the way in which workers acquire skills. The chapter presents alternative strategies policy makers may wish to consider as they reform educational and training institutions to meet the challenges associated with ICTs. Most industrialized economies allow for immediate and full tax deductibility of training expenses incurred by firms. But firms' financial statements provide little or no indication of the value of these knowledge investments for the bottom line of the company. Innovation in information and communication technologies could in principal be a powerful tool in helping workers acquire the skills to keep up with changes in technology. For small firms the development of distance learning may go some way to lowering the marginal costs of training workers much lower.