Some social scientists believe the internet and other digital technologies have led to a 'dematerialization' of production. to what does this refer?

The economy has shifted away from industrial production and many of our most important goods and services are transferred, created, and exchanged via online networks.

The existence of internet itself actually threatened the existence of retail stores. For example, Thousands of bookstores all over the world since Amazon started selling books online.

Dematerialization of production refers to the way that modern technology has provided an increase of production of non-material consumer goods and services. While industrial production has increased, it has done so digitally through electronic and internet transactions and goods, rather than with material goods.