WASHINGTON – The next generation of high-growth firms – the “gazelles” that reshape our economy and create millions of American jobs – are the companies that best leverage technology to start-up, grow and more effectively compete in the global marketplace, according to a new economic report released today by the Technology CEO Council (TCC).
The report, “High Impact: How IT is Empowering the Next Generation of Entrepreneurs,” cites new research finding a meaningful job-creation disparity between IT-intensive services companies and the non-IT-intensive. According to the new analysis, conducted by Catherine L. Mann of Brandeis University, service firms that were “intensive users of IT” grew jobs at a rate of 5.1 percent from 2001-2009 while overall employment shrank by 0.5 percent.
Research by the McKinsey Global Institute similarly found that among small-and-medium-sized businesses, IT tools and platforms enabled creation of 2.6 jobs for every one that they displaced, with the Internet accounting for 21 percent of the GDP growth in mature economies over the last five years, across all sectors.
The TCC “High Impact” report found that IT is making it easier for entrepreneurs to start, develop and expand their businesses by providing tools that are both more powerful and more affordable than before, such as on-demand supercomputing, high-capacity data storage and ubiquitous high-speed broadband connectivity. The CEOs’ report concludes that “alone, each of these breakthroughs is powerful. Together, they are transformational.”
“Creating a high-impact, fast-growth company in any industry requires four key elements: talent, markets, capital and technology,” said Michael S. Dell, Chairman of the Tech CEO Council and Chairman & CEO of Dell Inc. “Ultimately, the nations that nurture the next generation of high-impact entrepreneurs will be those who attract and retain the best talent, open their markets most freely, make risk capital accessible and ensure their businesses have access to the best technology.”
The report concludes with recommendations for policy makers looking to nurture the next generation of high-growth job-creators and global competitors. This report can be found and downloaded at www.techceocouncil.org.
About the Technology CEO Council
The Technology CEO Council is the information technology industry’s leading public policy advocacy organization comprised exclusively of chief executive officers from America’s top technology companies. The CEOs visit Washington together to meet with lawmakers on the most critical policy issues affecting the nation’s high-tech leadership and global competitiveness.
As some of the nation’s most well-known brands and globally-engaged enterprises, Technology CEO Council companies generate $300 billion in annual revenues and employ over 800,000 workers. Founded in 1989, its current members include Mr. Dell; Greg Brown, Chairman and CEO, Motorola Solutions, Inc.; Ursula M. Burns, Chairman and CEO, Xerox Corporation; D. Mark Durcan, CEO and Director, Micron Technology, Inc.; Dr. Paul E. Jacobs, Chairman and CEO, Qualcomm Incorporated; Paul S. Otellini, President and CEO, Intel Corporation; Virginia M. Rometty, President and CEO, IBM Corporation; Michael R. Splinter, Chairman and CEO, Applied Materials, Inc.; and, Joseph Tucci, Chairman, President and CEO, EMC Corporation.