1. Assessing the growth opportunities of the internet warrants more detailed analysis of the mechanisms for itto affect growth. 2. Against this background - it is instructive to draw insights from the economics of the internet as well as from the past industrial revolutions . 3. The internet reduces transaction costs - allowing firms to enter new markets - enhance their efficiency - and exploit economies of scale - leading to innovation. 4. Digital technologies accounted for a higher share of aggregate growth in high-income countries - pointing to greater digital use. 5. It does this by reducing information frictions - search costs - and the costs to communicate.