Fact of The Week: Investment in IT Grows While Other Capital Shrinks

Fact: While business investment in all forms of capital increased by only 13 percent between 2001 and 2011, investment in IT capital increased by 66 percent. Source:   Looking for Jobs? Look to IT in 2012 and Beyond, analysis of BEA statics, ITIF, 2012. Commentary: As we look to the future we can expect more IT job growth. The U.S. economy is growing ever more dependent on IT for innovation, productivity growth, and quality of life improvements. While business investment in all forms of capital increased by only 13 percent between 2001 and 2011, investment in IT capital increased by 66 percent, over five times faster. And, in contrast to Nick Carr's pessimistic prognosis, IT innovation has continued at a rapid pace, powered by significant price declines and rapid performance improvements. While IT's potential is encouraging, for it to be realized, policymakers must step up investments in transportation, health care, utilities and other sectors.