Embracing an Innovation Stimulus Package

Abstract:     
Over the past several years, Google has partnered with a number of thought leaders to evaluate and quantify the Internet’s impact on the broader macro-economy. Our work has demonstrated that the Internet has a truly phenomenal impact on economic activity and opportunity, contributing to 21% of GDP growth across the G-20 from 2005-2010. However, since 2008 the global economy has fallen into a state of malaise. GDP growth is slowing worldwide and employment is stagnating as we enter a period some are calling “muddling through.” There is widespread recognition that neither a fiscal stimulus nor a prolonged period of austerity will truly remedy the situation. We believe there remain untapped opportunities to innovate across a range of critical macroeconomic activities by applying core characteristics of the Internet, which has been a source of such astounding innovation in the past decade. What we propose here will not be a panacea for our current economic ills, but by embracing the Innovation Stimulus Agenda we outline, we believe policymakers can move the economic needle in meaningful, positive and sustainable ways.

Number of Pages in PDF File: 24

Keywords: Internet, economy, innovation

working papers series