Continued from page 1
The U.S. IT industry matured considerably as it moved through
1990s. More and more workers acquired new skills in computer and communication technologies and heavy investment in IT led to a period of economic growth and acceleration of labor productivity. Labor productivity in manufacturing had
highest growth with 4% per year between 1990 and 2003 followed by non-financial corporations with 2.8%. Productivity in business rose by 2.4% each year during
same period.
Information Technology Industry Growth Beyond 2000
The second half of
20th century was characterized by
dynamic growth of computers. The 21st century will see technologies merge and computing take on a different scenario at all levels and particular also in
home. Today,
U.S. economy and national security are fully dependent on information technology and at
core of
information infrastructure is
Internet
By
end of
20th century there were more than 100 fixed telephone lines per 100 inhabitants in
United States. Mobile phone penetration was nearing 60% and Internet penetration 70%. As we moved into
21st century third generation networks brought new applications for mobile phone users and
number of mobile phones fostered by
increase in sales of smart phones will surpass that of fixed lines phones before long.
Close two-thirds of
Nation is now online. Use of broadband is rapidly expanding and according to U.S. Department of Commerce projections business-to-business e-commerce may exceed 500 billion in 2005. In 2003, of
high-speed lines offered by providers 64% were from Cable TV operations, 32% from telephone companies, and
remaining 4% were from various other providers such as DSL and telephone company high-speed services.
The digital home concept - devices in
home sharing digital media across a home network - has been around for some time. Interoperability of devices connected to
home network has still to be improved to allow seamless operation and access before application of this concept will take off. Recent projections, however, show home networking growing steadily at an average annual rate of more than 25% between 2005 and 2010 and smart devices and smart networks will connect everything and everyone in
near future. The U.S. Information Technology Industry Page 3
Miniaturization and
need to increase computing power have been driving
IT industry since its infancy, making
technology affordable for almost everyone. This drive to innovate is ongoing and will give us a new generations of microprocessors, which are ten-times faster as today's, and memory chips with 40 times
storage capacity, grid computing and high productivity computing (network embedded and cognitive computing systems), photonics, nanotechnologies, optoelectronics, and new chip designs and fabrication methods.
Molecular electronics (nanotechnology) is expected to solve some of
problems and information overload we are facing today in computing and telecommunications and in fields such as medicine and energy. Application of this technology has recently been seen in flat-panel displays and is projected to be utilized by sensors, optical components, laser, memory and other logic devices in
next 5 to 10 years.
Research & development promoting innovation is sponsored by
United States Government and
IT industry. The networking and information technology research and development budget request for 2005 for all U.S. Government agencies was $2,147 million. Total information technology industry R&D is an estimated $29,100 million.
To order
comprehensive U.S. IT Industry Statistics Report: Call 001-202-626-574 or contact amccormick@itic.org. For a detailed report contents description log on to http://www.itic.org/statistics.

Helga F. Sayadian is Vice President, Industry Statistics Programs of Information Technology Industry Council (Formerly CBEMA) in Washington, DC. The Information Technology Industry Council (ITI) is a Washington-based trade association representing the leading U.S. providers of information technology (IT) products and services. www.itic.org