A new IAB study by Harvard Business School Professor Dr. John Deighton finds:

Internet powers U.S. job growth:

— In 2020, “[m]ore than 17 million jobs in the U.S. were generated by the commercial internet, 7 million more than four years ago.”

— “272 [congressional districts] have at least 10,000 internet-dependent jobs.”

— “More internet jobs, 38 percent, were created by small firms and self-employed individuals than by the largest internet companies, which generated 34 percent.”

Internet powers U.S. GDP growth:

— In 2020, the internet economy “contributed $2.45 trillion to the United States’ $21.18 trillion GDP.”

— “[T]he internet economy’s contribution to the U.S. GDP has grown 22 percent per year since 2016, in a national economy that grows between two to three percent per year.”

The internet has made business formation more democratic—benefiting small firms and individuals, explains John Deighton, Professor Emeritus at Harvard Business School. “Over the eight years since our last two studies, the internet has made business formation a much more democratic process[.] Not only large firms, but also large numbers of small firms and individuals, now have the platforms and tools to find customers, engage with them, and transact. And founders don’t need to bring large amounts of capital to the table. Investors have shown great willingness to supply the capital, confident that advertising, sale of subscriptions and licenses, and freemium options will get them an attractive return on their investment.”

Regulators “must understand” that the internet economy powers economic growth and that proposed regulations could stop or slow it, says IAB CEO David Cohen. “Not only are the barriers to entry lower, but the power of interactive advertising allows businesses to connect with consumers faster and more efficiently than ever before. It’s now possible for a business located anywhere in the U.S. to reach a global market.  As regulators continue to examine online and digital data policies, they must understand how the internet powers economic growth and how proposed regulations could slow or even stop that growth.”

View the full report here.