Link[1] The great transformer: The impact of Internet on economic growth and prosperity
Author: James Manyika, Charles Roxburgh - McKinsey Global Institute
Cited by: David Price 3:16 PM 30 October 2011 GMT
Citerank: (15) 121535Economic growth and developmentHow can the benefits of a secure cyberspace for international economic growth and development be realised?8FFB597, 121826Enhanced productivity959C6EF, 121889Cultivate technological innovationAn environment that encourages innovation and entrepreneurship—including access to start-up capital, protection of intellectual property rights, support for R&D and , and world-class research universities and government-funded team–is vital to capturing Internet-related growth.109FDEF6, 121890Accessible, globally linked networksA solid internet infrastructure is a prerequisite for growth; creating the platforms upon which users and organizations experience the Internet and upon which entrepreneurs and businesses innovate.109FDEF6, 121905Two billion people are connected to the internet now109FDEF6, 121906Almost $8 trillion exchange hands each year through e-commerce109FDEF6, 121907Internet accounts for 3.4% of GDP in large and developed economiesInternet accounts for, on average, 3.4 percent of GDP across the large economies that make up 70 percent of global GDP.109FDEF6, 12190921% of mature economies GDP growth over past 5 years due to internetThe Internet accounted for 21 percent of the GDP growth in mature economies over the past 5 years.1198CE71, 121910Rising living standards linked to maturity of the Internet ecosystemThere is a clear connection between the maturity of the Internet ecosystem and rising living standards.1198CE71, 121911Transformed the value chain in almost all sectorsThe Internet has enabled fundamental business transformations that span the entire value chain in virtually all sectors and types of companies—not just online ones.959C6EF, 121912Internet creates more jobs than it eliminates959C6EF, 121913In France the Internet has created 2.4 jobs for every one eliminated Detailed analysis of the French economy showed that while the Internet is reported to have destroyed 500,000 jobs over the past 15 years, it created 1.2 million new ones, a net addition of 2.4 jobs for every one destroyed.1198CE71, 121914McKinsey’s global SME survey found 2.6 jobs created for each one lostMcKinsey’s global SME survey found that the Internet had created 2.6 jobs for every one destroyed.1198CE71, 121930Online prices are on average 10% lower than offline pricesPreliminary research shows online prices are, on average, 10% lower than their offline counterparts as a result of the price transparency that search tools offer. The economic surplus captured by consumers from web services alone ranges from $18 a month per user in Germany to $28 in the UK.1198CE71, 121935Foster competitionCountries that make their markets more open and competitive achieve greater productivity. Such competition ensures that the most innovative and productive companies create more attractive products and services for users and gain market share at the expense of the less productive.109FDEF6 URL:
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| Excerpt / Summary If Internet consumption and expenditures were a sector, its weight in GDP would be bigger than the energy or agriculture industry. (See Exhibit 2.) The Internet’s total contribution to global GDP is bigger than the GDP of Spain or Canada, and it is growing faster than the GDP of Brazil. |