<p>This study primarily investigates the empirical association between internet use and economic growth (EG) across income levels. The secondary objective of this study is to evaluate contextual factors and suggest policy measures to maximise ICT’s positive impact, making a valuable contribution to the continuing scholarly conversation on the knowledge economy. We uses a panel of 78 countries and employs a fixed effects (FE) estimator to account for time-invariant effects within the model. Further, pooled regression and random effects models are estimated for group-wise countries. We uses the Hausman test to support the selection of the FE estimator. We further verify the results through robustness checks using alternate measures of ICT adoption and validate the findings. Our findings reveal that in lower-middle-income countries, internet usage shows a potentially favourable effect on EG, albeit statistically insignificant. While a negative association emerges in upper-middle-income and high-income countries. This challenges conventional wisdom and highlights income-dependent effects of internet use to economic growth. Robustness checks confirm these trends across income levels. We contribute to the evolving discourse on the knowledge economy by disaggregating the effects of ICT across income groups and identifying differential outcomes shaped by institutional readiness and technological maturity. By incorporating multiple ICT proxies and linking them to development stages, we advance understanding of how digital-technology diffusion influences economic transformation. Therefore, we identify the importance of considering contextual disparities and income levels in policymaking. We suggest that policymakers should tailor technology adoption strategies to income levels and infrastructure development. Also, investments in electricity access and infrastructure may enhance ICTs’ favourable effect on EG, particularly in lower-middle-income countries.</p>