A new report outlines the economic impact of the Internet sector on U.S. cities and identifies opportunities for cities to boost its internet economy.
The internet sector contributes 3.3 percent of total jobs, on average, in urban areas, according to the study, done by the National League of Cities (NLC) and the Internet Association (IA). Further, cities with stronger internet economies are more likely to have lower unemployment and poverty levels.
“Every single community in America benefits from the internet, and its importance to Americans in all cities will only continue to grow,” Michael Beckerman, president and CEO of the Internet Association, said. “Smart policymaking at all levels of government — especially from cities — is essential to ensure the internet economy continues to grow and succeed in the 21st century.”
To boost their internet economy, cities are incorporating technologies into city infrastructure that increase efficiency and equitability. Also, they are also investing in public-private partnerships to draw on the technical expertise of the private sector to find solutions that help their citizens. The report outlines these and other best practices.
“City leaders know just how critical advances in technology are to the future of our cities,” Clarence Anthony, CEO and executive director of the National League of Cities, said. “The internet is the foundation of these advances and this report shows the measurable impact that it has on local businesses, job opportunities and daily life in cities.”
The report found that the New York, Chicago, and Los Angeles metro areas have the three largest internet sectors in the United States. It also cited four smaller cities — Columbus, Ohio; Kansas City, Missouri; Phoenix, Arizona; and Pittsburgh, Pennsylvania – that were aggressively building out their internet infrastructure.
“We have seen an incredible rise in the permeation of technology in cities over the past decade,” Brooks Rainwater, senior executive and director of the Center for City Solutions at NLC, said. “We are thrilled to release this important research together with the Internet Association. It serves as a marker for where we are today, and offers insights on where cities will go next.”
The average city has 600 internet businesses and 9,000 internet sector jobs.
“Our research offers a roadmap for city leaders to spark new innovation and jobs in the fastest-growing sector in the company,” Internet Association Chief Economist Christopher Hooton said. “These case studies across the country show that cities can leverage the internet economy to promote economic inclusion and build well-rounded labor markets.”