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.

Keywords: Internet, economy, innovation