The Economic Benefits of Intelligent Technologies

Access Economics Pty Limited. 2009. The Economic Benefits of Intelligent Technologies. April.

"This report reviews the potential economic benefits that may flow from the adoption of smart technologies and systems in different parts of the economy...The amount of all forms of data that are regularly collected throughout the community rapidly expand on a daily basis. Intelligent systems have the capacity of using these data to improve decision-making and co-ordination throughout society, thereby lifting economic efficiency and living standards" (i).

"Overall, the adoption of smart technologies and systems in the five areas identified are conservatively estimated to result in:
• an increase in the net present value (NPV) of Gross Domestic Product...of between $35 billion to $80 billion over the first ten years, with precise estimates depending on how much spare capacity is in the economy;
• in the case where the economy is operating at full employment, an increase of labour productivity of around 0.5% as the deployment of the technologies becomes widespread; and
• in the case where the economy is operating at less than full employment the impact on jobs is more pronounced as the technologies become widespread. In 2014 alone this results in more than 70,000 jobs being added to the economy" (ii).

This report explores different areas in which smart technology can have profound effects, specifically electricity, transport, health, water and high-speed broadband (HSBB).

"The rollout of high speed broadband both enables the more effective implementation of smart technologies in other areas of the economy-including electricity, water, transport and health-as well as providing other direct and substantive benefits to individuals, businesses and the environment through the availability to deliver a range of commercial, government and information services more efficiently" (1).

The report reviews the literature on the topic, and then explores smart-technologies in an equilibrium model. Two scenarios are then explored: an economy at full employment and an economy with less than full employment.