U.S. Commerce Secretary Penny Pritzker for the first time prioritized supporting the digital economy “as a great engine of economic growth in the 21st century,” in a Nov. 18th speech before business leaders gathered in central Ohio.
"[W]e must continue to build our digital infrastructure," Pritzker said at the department’s “Open for Business Agenda” event. "This is bringing more opportunity to hundreds of rural and underserved communities in every corner of America."
She added the Commerce Department had deployed more than 100,000 miles of broadband since 2009.
While Pritzker said the private sector can play a stronger role in infrastructure investment, she promoted innovation as a new priority for the Commerce Department. The federal government intends to increase R&D investment at the National Institute of Standards and Technology, and President Obama has asked to double R&D funding across government.
The event also put a spotlight on the importance of data to power the economy, help inform business decisions, enable start-ups and fuel new companies.
NTIA Releases Data Linking Presence of High Speed Internet to Job Growth
In a related development, Commerce’s National Telecommunications and Information Administration (NTIA) released a report concluding most businesses need high speed Internet service to remain competitive. The “Broadband Availability in the Workplace” Broadband Brief 3 found nearly all American jobs are located in areas with at least basic wireline or wireless Internet service – defined modestly as speeds that are 3 megabits per second (Mbps) down and 768 kilobits per second (Kbps) upload speed.
The number of jobs located in areas with fast broadband speeds of 50 Mbps increased from 56 percent to 75 percent between 2011 and 2012. The report released Nov. 21 also showed that 95 percent of information jobs (defined as those that create and distribute entertainment/software, process data, or transmit data and communications) are located in urban areas compared with about 90 percent of all jobs. And 83 percent of information sector jobs, which accounted for 2.3 percent of all jobs in 2010, were located in areas where broadband with download speeds of 50 Mbps or greater was available.
The message is clear. Employers are looking for access to fast Internet services in order to compete in this Information Age. With the NTIA data in hand, local officials now have data supporting the argument their communities need access to broadband to ensure their areas remain economically viable and attractive to modern businesses.
"This report underscores how important it is to deploy ubiquitous broadband in California," said Sunne Wright McPeak, president and CEO of the California Emerging Technology Fund. "Communities in rural areas and poor urban centers without access to reliable, affordable broadband are economically disadvantaged when it comes to creating jobs and building vibrant neighborhoods. The digital divide is just another manifestation of the economic divide and the opportunity divide."
