Author(s)
Robert D. Atkinson and Andrew S. McKay
Source
Special Report, The Information Technology & Innovation Foundation, April 2007
Summary
This paper shows how information technology (IT) helps economic growth and consumers worldwide.
Policy Relevance
Growth in IT drives other growth. Policy makers should make IT innovation central to their economic policy.
Main Points
- Information technology (IT) includes goods like computers and communications networks, used by many people and businesses. The price and quality of IT has improved over time.
- Because IT is used throughout the economy, better IT has increased productivity, employment, the efficiency of markets, and the quality of goods and services, and innovation generally.
- IT growth generates most other growth. This will continue as core IT devices (memory, processing, storage, sensors, displays, and communication) get better and cheaper.
- Policymakers should
- Recognize that IT drives growth.
- Encourage innovation through tax, procurement, research support, and other policies.
- Use the tax code to spur investment.
- Encourage universal digital literacy and technology use.
- Design regulations and law so they do not hinder growth.
