The U.S. economy is undergoing a radical transformation driven by the market-creating power of the internet. Never have the barriers to entry for individuals and small businesses been lower, the potential for market growth been higher and the risk of market-stifling regulations been greater.
This week, the Interactive Advertising Bureau released a thorough analysis of the market-enabling power of the internet. The findings are remarkable. The study, conducted by Dr. John Deighton, Harold M. Brierley Professor of Business Administration Emeritus at Harvard Business School, shows that over the past four years, the internet economy has grown seven times faster than the U.S. economy, accounting for 12 percent of the U.S. gross domestic product. That translates into more than 17 million jobs, 38 percent of which were created by small businesses and self-employed individuals. We estimate that, out of this last group, 1.3 million jobs could not exist without the internet.