This paper examines specifically the impact of economic transition on the production and use of ICT in Hungary. Firstly, it examines the implications of economic transition for Hungary’s ICT producing industry. Second, it explores patterns of ICT diffusion and use. While economic transition has led to increasing globalization and the consequent integration of Hungary into the European and the global economy, the impact of such transition for ICT production and use has been more problematic. A call is made for a renewed role for policies to integrate ICT and economic development strategies with a view to creating an information society for all citizens.