IT Central to U.S. Economic Growth
Information technology is responsible for nearly all of pickup in economic growth over the last decade, adding $2 trillion annual to the economy, according to a new report.
By CleanLink Editorial Staff
Information technology is responsible for nearly all of pickup in economic growth over the last decade, adding $2 trillion annual to the economy, according to a new report.
The
report, “Digital Prosperity: Understanding the Economic Benefits of the Information Technology Revolution,” was recently released by the Information Technology & Innovation Foundation (ITIF).
The report found that the economic transformation resulting from IT was occurring at adoption rates exceeding even the most optimistic forecasts of the late 1990s. The integration of IT into virtually all aspects of the economy and society is creating a digitally enabled economy that is responsible for generating the lion's share of economic growth and prosperity, here and abroad, including in developing nations, according to the report.
The report also found that while productivity impacts from IT are among the highest in the U.S., most other nations have benefited from the IT revolution as well, including Australia, Canada, Finland, France, Germany, Korea, Japan, the Netherlands, and Switzerland. IT expenditures rose twice as fast in developing nations from 1993 to 2001 compared to the Organization for Economic Co-operation and Development (OECD) average.
In addition, while the emerging digital economy has produced enormous benefits, there is still significant potential growth to be derived from leveraging IT, the report says.
The report recommends that policymakers actively encourage digital innovation and transformation of economic sectors by supporting research in emerging IT areas, use tax code to spur IT investment and encourage universal digital literacy and digital technology adoption.
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