McKinsey Global Institute: 'Internet Accounts 21% of GDP Growth'

This week at the e-G8 Forum in Paris, McKinsey Global Institute unveiled a new research report showing "how the web in its entirety contributes to global growth, productivity, and employment." The researchers at McKinsey looked at the Internet economies of the G-8 nations as well as Brazil, China, India, South Korea, and Sweden.The report also […]

This week at the e-G8 Forum in Paris, McKinsey Global Institute unveiled a new research report showing "how the web in its entirety contributes to global growth, productivity, and employment." The researchers at McKinsey looked at the Internet economies of the G-8 nations as well as Brazil, China, India, South Korea, and Sweden.

The report also mentioned some government funded programs around the world that were designed to encourage Internet usage among individuals and businesses. For example, the South Korean government launched the "Ten-Million-People Internet Education" program to reach demographic groups, like the elderly and farmers, who're not typically associated with Web activity.

Here're a few of the most interesting findings:

  • "The Internet accounts for 21% of GDP growth in the last 5 years in mature countries"
  • "Most of the economic value created by the Internet falls outside of the technology sector, with 75% of the benefits captured by companies in more traditional industries."
  • "Small and medium businesses heavily using web technologies grow and export 2x as much as others"
  • "Infrastructure investment is essential" -- it's an "irreplaceable prerequisite" for countries that want to maximize the economic benefits of the web

You can find the full report here.