The UK government can create and retain 700,000 jobs if
it invests £15bn on IT to improve the broadband, utility and
transport infrastructures.
It would also improve the quality of everyone's lives, according
to a study published by the London School of Economics and
Political Science (LSE) and the Information Technology and
Innovation Fund (ITIF).
The report comes at a time when the government is eager to
stimulate the economy and minimise unemployment.
"
Rising unemployment in the UK threatens the welfare of hundreds
of thousands of individuals, and exacerbates the current economic
crisis," said the report.
Governments can stimulate economic activity and recruitment in
all sectors through increasing the amount of money it spends on
public projects. These projects, traditionally infrastructure
improvements, create jobs, which pay wages. These wages are spent
on products and services, which create other jobs and so on.
The LSE and ITIF report,
UK's
Digital Road to Recovery, revealed that increasing investment
in IT infrastructures will pay back more than traditional
infrastructure projects such as road building.
"Spurring investment in the UK's infrastructure is an effective,
immediate strategy to compensate for the downturn. However, while
investments to improve the country's traditional physical
infrastructure, such as roads, bridges and sewer systems, are
necessary and important, investments in certain parts of the UK's
information and communication technology (ICT) resources, or
digital infrastructures, will have a greater positive impact on
jobs, while at the same time laying the groundwork for sustained
productivity and innovation," said the report.
The report outlines how a total of £15bn investment in broadband
networks, intelligent transport systems and smart power grids would
create and retain 700,000 jobs.
The report said if the government spent £5bn on getting
broadband to unconnected areas, increasing network performance and
encouraging household take-up, it would support about 280,000 jobs.
Some 76,000 jobs for technicians and back office staff would be
created in the telecommunications industry to support the new
infrastructure. A further 134,500 jobs would be created indirectly
when the 76,000 new workers spent their earnings at restaurants and
retail stores for example. The remaining 69,500 would be created by
what the report describes as the "network effect" of broadband.
This network effect is the process by which the existence of
broadband spurs other industries such as computer equipment
manufacturing.
A £5bn investment in
intelligent transport systems would create a total of 188,000
jobs, the report said. The creation of intelligent transport
systems requires integrating information and communications
technology with the transport infrastructure vehicles and users.
The sharing of information would allow people to use transport
networks more efficiently, with increased safety and less impact on
the environment.
Another £5bn spent on developing a
smart power
grid would create 235,000 jobs. Smart power grids use two-way
communication, sensors and advanced ICT. Utilities could use
real-time data from the power grid to understand supply and demand
requirements better, spot failed or failing equipment, and better
manage their resources. IT used in smart grids includes the
adoption of ubiquitous automation systems, sensors and monitoring
devices, data collection systems and communications systems.