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SOFTWARE,GROWTH, AND THE FUTURE OF THE U.S. ECONOMY

Significant and sustained increases in semiconductor productivity, predicted by Moore’s Law, has ushered a revolution in communications, computing, and information management.1 This technological revolution is linked to a distinct rise in the mid 1990s of the long-term growth trajectory of the United States.2 Indeed, U.S. productivity growth has accelerated in recent years, despite a series of negative economic shocks. Analysis by Dale Jorgenson, Mun Ho, and Kevin Stiroh of the sources of this growth over the 1996 to 2003 period suggests that the production and use of information technology account for a large share of the gains | MEASURING AND SUSTAINING THE NEW ECONOMY SOFTWARE GROWTH AND THE FUTURE OF THE U.S. ECONOMY Report of a Symposium NATIONAL RESEARCH COUNCIL OF mi NAnONAl ACADEMIES MEASURING AND SUSTAINING THE NEW ECONOMY SOFTWARE GROWTH AND THE FUTURE OF tHe U.S. ECONOMY Report of a Symposium Dale W. Jorgenson and Charles W. Wessner Editors Committee on Software Growth and the Future of the U.S. Economy Committee on Measuring and Sustaining the New Economy Board on Science Technology and Economic Policy Policy and Global Affairs NATIONAL RESEARCH COUNCIL OF THE NATIONAL ACADEMIES THE NATIONAL ACADEMIES PRESS Washington D.C. www.nap.edu THE NATIONAL ACADEMIES PRESS 500 Fifth Street N.W. Washington DC 20001 NOTICE The project that is the subject of this report was approved by the Governing Board of the National Research Council whose members are drawn from the councils of the National Academy of Sciences the National Academy of Engineering and the Institute of Medicine. The members of the committee responsible for the report were chosen for their special competences and with regard for appropriate balance. This study was supported by Contract Grant No. CMRC-50SBNB9C1080 between the National Academy of Sciences and the U.S. Department of Commerce Contract Grant No. NASW-99037 Task Order 103 between the National Academy of Sciences and the National Aeronautics and Space Administration Contract Grant No. CMRC-SB134105C0038 between the National Academy of Sciences and the U.S. Department of Commerce OFED-13416 between the National Academy of Sciences and Sandia National Laboratories Contract Grant No. N00014-00-G-0230 DO 23 between the National Academy of Sciences and the Department of the Navy Contract Grant No. NSF-EIA-0119063 between the National Academy of Sciences and the National Science Foundation and Contract Grant No. DOE-DE-FG02-01ER30315 between the National Academy of Sciences and the U.S. Department of Energy. Additional support was provided by Intel Corporation. Any .