Wednesday, June 10, 2009
Measuring the impact of the Internet on the economy
With news of bankruptcies and bailouts dominating the headlines recently, it's easy to lose sight of one of the bright spots in our economy: the Internet. In an incredibly short amount of time the Internet has emerged as a key driver of economic growth, creating millions of American jobs that generate hundreds of billions of dollars in economic activity.
This afternoon a new study commissioned by the Interactive Advertising Bureau put some real numbers on this very point. According to Harvard Business School professors John Deighton and John Quelch, the Internet is responsible for 3.1 million American jobs and $300 billion in economic activity spread throughout the United States. As Professors Deighton and Quelch put it, the web "has created unprecedented opportunities for growth among small businesses and individual entrepreneurs."
As the report makes clear, it's difficult to overstate the social and economic benefits of the Internet on the United States. Unlike any other platform in history, it has empowered entrepreneurs to start new businesses and connect with customers around the world, and has provided users with access to unprecedented amounts of information.
We think it's important for policymakers to understand the social and economic benefits of the Internet. That's why I was happy to see IAB also announce this afternoon the launch of the Long Tail Alliance, a group of small independent online businesses working to educate policymakers about the benefits of online advertising and to advocate against burdensome restrictions that would damage the Internet economy. In conjunction with the release of the new study, a group of Long Tail Alliance members representing 25 Congressional districts and 13 states took a maiden voyage to Washington to tell Congress their story. Check out some of what they have to say at "I Am the Long Tail."
As the Internet economy continues to grow, we hope Members of Congress turn to groups like the Long Tail Alliance, the Google Small Business Network, and others to better understand the tremendous economic and social benefits of the web and its impact on small businesses and entrepreneurs across the country.