Is Tech Investment the Answer to Euro Economic Woe? …According to a study sponsored by AT&T and featured in the FT today, it most certainly is.
The study suggests that if Europe was to follow the US model of investment in technology and telecommunications, it would dramatically improve productivity with the potential to increase collective GDP by an extra 5 per cent above forecasts by 2020.
Apparently, from a position of near parity in 1991, Europe’s investment in ICT has dropped to around two-thirds of the level in the US and is reflected in the fact that the US’s productivity growth has averaged double that of Europe’s since 2000.
Considering the intricate web of debt that the EU has created, it seems like a bit of Obama-style ICT stimulus could reap some rich rewards. For Spain and Italy, this might even translate into 7 per cent GDP growth , or €100bn and €140bn respectively, which wouldn’t wipe the debt but it would certainly be a step in the right direction.
This post was first published by Martin Jones on March Communications’ blog, PR Nonsense, and may be viewed here.