Shaping the Future of the Industry - Part 1
How Policy, Politics and Power Are Changing the ICT Market
In 1965, Gordon Moore predicted that the number of transistors on memory microchips would double every year, which he later revised to every two years. Amazingly, this prediction – Moore’s law – has proven true to the present, despite the ups and downs of the economy. What is also true is that, if one plots technological developments back to the early 1900s, the fundamental thesis of Moore’s law has clearly applied to the Information and Communications Technology (ICT) industry.
Competition within the industry has produced exponential industry growth, world-altering products and services, at faster and faster speeds, that could not be imagined even five years ago. What is so exciting about the ICT industry is the leading role it plays in technological innovation, and the significant effect it has on so many lives.
As a society, the United States has greatly benefited from the ICT industry. ICT companies accounted for 3.5 million jobs in 2009, and the average compensation for ICT workers is more than 80 percent higher than for the workforce overall. ICT firms contribute approximately $1 trillion to the U.S. GDP through both direct and indirect contributions — that’s a remarkable 7 percent of the U.S. economy.
While it is very difficult to predict the next ground-breaking ICT innovation, we do know from experience what it takes to enable the industry to succeed. The recipe for success includes advancing competitiveness through increased market access and trade, and shaping regulations and tax policy in a way that encourages investment. A continued light-touch approach to regulation, as well as certainty in the marketplace, will ensure continued investment in a technology-neutral manner.