The internet is responsible for 21% of the economic growth, new study reveals

June 13th, 2011 by admin Leave a reply »

According to a new study by the McKinsey Global Institute, the internet is responsible for 21% of the economic growth, accounting for 3.4% of the GDP of the analyzed countries . The Internet Matters report also finds that small and medium businesses have increased productivity by 10% since they started using the internet and that those using Web technologies grow and export twice as much as the others which don’t use them.

The study, which was released to coincide with the first eG8 conference held between 24 and 25 of May in Paris, finds that internet use is growing everywhere and in every sector of society. This growing, the study states, is still in its infancy. In more developed countries, like the UK and Sweden, the internet accounts for 6% of the GDP but in most countries it is still under 4% which shows that internet use still has much to grow.

Internet Matters also correlates internet with job creation. The report says that 2.6 jobs are created for every one that is destroyed by the internet. An analysis of the French economy has shown that the internet has created 1.2 million jobs over the last 15 years while is has destroyed 500,000.

The internet as a major factor in increasing productivity

According to the report, for which were surveyed more than 4,800 SMEs, those that use the internet in their business practices grow and export twice as much as those with a small or none internet use. The study also shows that SMEs with an heavy use of Web technologies also created twice the number of jobs than their counterparts.

But the number of the companies with a high use of Web technologies still accounts for only 27% of all the companies studied, meaning that only 27% of the 4,800 SMEs are taking advantage of the benefits and the growth the internet gives to its users. According to the study, 42% of the companies reported a low Web-intensity and 31% reported medium Web-intensity.

Curiously the report also finds that the countries with a higher percentage of companies with a high web-intensity implemented practices are also those to which the internet contributes a greater portion of the GDP.

Online tools to increase productivity

This means that most companies aren’t still taking advantage of all the internet has to offer and of the Web tools and productivity enhancing technological solutions available in the market. Tools like the RHUB 4 in 1 Webconferencing software have been proved to improve productivity in companies in every sector of the market while, at the same time, it cuts down costs.

Webconferencing tools increase productivity by improving communication between and among the several departments, increasing work flow, collaboration without any employee having to leave his work place. These tools also allow employees to access their work place from home and allow them to attend seminars without leaving their workplace, reducing costs and time spent on dislocations.

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