American tech companies continue to propel the nation’s economy forward. Not only has technological innovation become an integral part of the way we live, it is also important to our nation’s economic success. Businesses large and small, startups, emerging industries and the ones that keep our nation safe, and even the schools that educate our best and brightest, all build their success on American tech. Tech companies and the digital economy are providing consumers with more choices than ever before, and fostering competition and economic investment in the United States.
Boosting the American Economy
According to the U.S. Department of Commerce, the digital economy contributed $2.4 trillion, or 10.3% of U.S. GDP, to the U.S. economy in 2021. Today, the tech sector is the second-largest and one of the fastest-growing industries powering the U.S. economy, with American tech companies growing their GDP contributions by 9.8% in 2021, greatly outpacing growth in the overall economy, which increased by 5.9%.
Creating American Jobs
A thriving economy goes hand in hand with a strong labor force and the tech industry is a key contributor, directly employing more than 5.5 million U.S. workers who received over $1.1 trillion in wages in 2020, and supporting another ten million jobs indirectly. In total, American tech companies are responsible for nearly one-fifth of all private sector jobs in the U.S.
Supporting Small Businesses
Those large-scale benefits to the U.S. economy driven by American tech companies can be felt on main streets across the country. Today, the tech industry is a key driver of the success of small businesses, with 93% of small business owners using technology developed by successful tech companies. Together, those small businesses employ nearly 100 million Americans and contribute $17.7 million to the U.S. economy.
Providing Choices and Products Consumers Love
The value American tech holds for our nation’s economic health cannot be overstated. We are at the height of consumer choice thanks to the digital economy, with American tech companies providing services and products people use frequently and find make their lives easier.. Recent polling demonstrates the majority of Americans have a favorable view of some of the United States’ most successful companies, and the tech industry boasts many of the most trusted brands in the country. Their products have helped reduce digital prices by 15% since 2014, meaning consumers can keep their costs down, and Americans consistently say that they prefer to use their services for everyday tasks like online shopping, finding information, or connecting with friends and family.
Sharpening America’s Competitive Edge
American tech companies are the most creative and innovative in the world, accounting for 75% of our country’s total research and development spending, and they provide hundreds of millions to startups working to develop the latest cutting-edge technologies. Those investments have allowed our country to tackle pressing issues, both at home and abroad.
Maintaining a strong tech industry and creating the environment for innovation to flourish are national priorities, and key to America’s continued economic growth.