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Digital Prosperity: Understanding the Economic Benefits of the Information Technology Revolution

78 Pages Posted: 3 Aug 2007  

Robert D. Atkinson

Information Technology and Innovation Foundation

Andrew S. McKay

Information Technology and Innovation Foundation

Date Written: March 2007

Abstract

There have been surprisingly few attempts to catalogue what is known about the economic impact of information and communications technology (IT). In a new report, ITIF does just that, examining the impact of IT in five key areas: 1) productivity; 2) employment; 3) more efficient markets; 4) higher quality goods and services; and 5) innovation and new products and services. The report finds that 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, both here and abroad, including in developing nations. Importantly, the "IT engine" does not appear likely to run out of gas anytime soon and should power robust growth for at least the next decade, provided that policy makers take the right steps.

Toward that end the report lays out five key public policy principles for driving digital prosperity: 1) give the digital economy its due; 2) actively encourage digital innovation and transformation of economic sectors; 3) use the tax code to spur IT investment; 4) encourage universal digital literacy and adoption; and 5) do no harm.

Keywords: information technology, productivity

Suggested Citation

Atkinson, Robert D. and McKay, Andrew S., Digital Prosperity: Understanding the Economic Benefits of the Information Technology Revolution (March 2007). Available at SSRN: https://ssrn.com/abstract=1004516 or http://dx.doi.org/10.2139/ssrn.1004516

Robert D. Atkinson (Contact Author)

Information Technology and Innovation Foundation ( email )

1101 K Street N.W.
Suite 610
Washington, DC 20005
United States

Andrew S. McKay

Information Technology and Innovation Foundation ( email )

1101 K Street N.W.
Suite 610
Washington, DC 20005
United States

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