The Technology And Internet Sectors Are Leading Innovators And Job Creators, Creating More Opportunities For All
Be it in the form of wages, jobs, investment, or entrepreneurship, today’s leading technology services have opened the floodgates of economic opportunity in the United States. They invest heavily in research, people, and ideas spurring economic growth that has touched every corner of the country.
FactSet Data Shows Tech Companies Spend More On R&D Than Any Other Companies In The U.S. “Led by Amazon, Alphabet, Intel, Microsoft and Apple, tech companies spent more on research and development than any other companies in the S&P 500 that reported such data, according to FactSet data from the most recent fiscal year.” (Rani Molla, “Tech Companies Spend More On R&D Than Any Other Companies In The U.S.,” Recode, 9/1/17)
Today’s Leading Tech Companies Have Created More Jobs Than Leading Companies Of The Past. “Tech giants such as Google, Apple, Facebook and Microsoft are adding jobs as fast or faster than the great job-producing companies of the past, like GM, AT&T, Walmart, IBM, GE, US Steel, and Bethlehem Steel. Consider this: Twenty years after its 1892 founding, General Electric had 41,000 employees. Google beat that mark in 2012, only 8 years after its 2004 initial public offering.” (Michael Mandel, “A Historical Perspective On Tech Job Growth,” Progressive Policy Institute, 1/10/17)
Internet-Fueled Jobs Growth Benefited The Entire United States, Notes Harvard Business School Professor John Deighton. “There was internet-related employment in every congressional district of the U.S. The dispersion of the workforce was broad, with 116 congressional districts accounting for half of the employment, and 320 accounting for the other half. California’s Silicon Valley accounts for only four percent of jobs directly attributed to the ad-supported internet ecosystem.” (John Deighton, “Economic Value of the Advertising-Supported Internet Ecosystem,” Interactive Advertising Bureau, 1/2017)
A Brookings Institution Analysis Of The 100 Largest Metropolitan Areas In The U.S. Found, Hiring In Research- And Technology-Intensive Advanced Industries “Contributed To Rising Median Incomes In Metro Areas That Specialize In Those Sectors, Such As Tulsa, Dayton, Grand Rapids, Provo, Austin, And Houston.” “Median wages rose in a little more than half of large metropolitan areas thanks to dramatic growth from 2014 to 2015. Hiring in highly paid research- and technology-intensive advanced industries like information, professional services, manufacturing, and energy contributed to rising median incomes in metro areas that specialize in those sectors, such as Tulsa, Dayton, Grand Rapids, Provo, Austin, and Houston.” (Richard Shearer, Alec Friedhoff, Isha Shah, And Alan Berube, “Metro Monitor: An Index Of Inclusive Economic Growth In The 100 Largest U.S. Metropolitan Areas,” Brookings Institution, 3/17)
Among SMEs Surveyed By The McKinsey Global Institute, SMEs That Took Advantage Of The Internet Created More Than Twice The Number Of Jobs As Those That Did Not. “This is a reflection of small and medium-sized enterprises (SMEs) receiving a performance boost from the Internet. As part of our research, we surveyed more than 4,800 SMEs in the countries we studied. We found that those with a strong Web presence grew more than twice as quickly as those that had minimal or no presence, an outcome that holds across sectors. In addition, SMEs that took advantage of the Internet reported the share of total revenues that they earned from exports was more than twice as large as that reported by others. They also created more than twice the number of jobs as others.” (Matthieu Pélissié Du Rausas, James Manyika, Eric Hazan, Jacques Bughin, Michael Chui, And Rémi Said, “Internet Matters: The Net’s Sweeping Impact On Growth, Jobs, And Prosperity,” McKinsey Global Institute, 5/11)
According To Brookings Institution Senior Fellow Ian Hathaway, High-Tech Start-Ups Are Particularly Dynamic, And High-Tech Firms Account For A Large Share Of America’s Fastest Growing Businesses. “A decline in high-tech dynamism might be particularly problematic for future growth. Aside from the direct impact on productivity this sector has on technology-adopting segments of the economy, the high-tech sector itself plays an outsized role in income, employment, and productivity growth overall. Of the job-creating young firms, high-tech start-ups are particularly dynamic–growing at twice the rate of a typical young business, and high-tech firms account for an outsized share of America’s fastest growing businesses.” (Ian Hathaway, “With Fewer New Firms, the High-Tech Sector is Losing its Dynamism,” Harvard Business School, 2/12/14)
Technology Companies Are Drivers Of America’s Economic Growth And Competitiveness, According To New Study By The Information And Innovation Foundation. “Technology-based start-ups have long been an important driver of America’s economic growth and competitiveness. But while these firms provide outsized contributions to employment, innovation, exports, and productivity growth, many policymakers focus more broadly on helping all business start-ups without regard to type.” (John Wu And Robert Atkinson, “How Technology-Based Start-Ups Support U.S. Economy Growth,” Information Technology And Innovation Foundation, 11/2017)