UK could create 700,000 new jobs through IT investment

'UK Digital Road to Recovery' report recommends a targeted £15 billion to jump start UK economy

A study by academics at the London School of Economics (LSE) has concluded that the UK could create 700,000 jobs by making an investment of £15bn in next-generation IT infrastructure.

The UK’s Digital Road to Recover, written in partnership with thinktank the Information Technology and Innovation Fund (ITIF), suggests that investment in broadband networks, intelligent transport systems and a smart power grid would improve general quality of life as well as the environment, for example by reducing both traffic congestion and household energy bills.

The report’s authors believe support for innovation and green technology in last week’s Budget was a welcome development but that the government should go further.

"In this severe economic climate, the right investment in ICT infrastructure would have a significant effect in creating jobs now and in stimulating productivity and innovation for the future," said Jonathan Liebenau, LSE reader in technology management.

“Nations that invest in ICT to transform fields like transportation and energy reap substantial long-term economic and social benefits. This report shows that these investments also have a short-term impact by producing the jobs and economic growth the UK needs to get out of the current recession,” added Robert Atkinson, ITIF president.

The report based its job creation estimates on a model where £15bn funding is split equally across broadband networks, intelligent transport systems and a smart power grid.

Government should secure the neccessary investment through a mixture of direct spending, tax incentives and regulatory changes, advises the report.