This blog post was cross-posted on the Bureau of Economic Analysis website.

The Bureau of Economic Analysis released, for the first time, preliminary statistics and an accompanying report exploring the size and growth of the digital economy. Goods and services that are primarily digital accounted for 6.5 percent of the U.S. economy, or $1.2 trillion, in 2016, after a decade of growing faster than the U.S. economy overall, BEA’s research shows.

From 2006 to 2016, the digital economy grew at an average annual rate of 5.6 percent, outpacing overall U.S. economic growth of 1.5 percent per year.
In 2016, the digital economy supported 5.9 million jobs, or 3.9 percent of total U.S. employment. Digital economy employees earned $114,275 in average annual compensation compared with $66,498 per worker for the total U.S. economy.

BEA includes in its definition of the digital economy three major types of goods and services:

• the digital-enabling infrastructure needed for an interconnected computer network to exist and operate
• the e-commerce transactions that take place using that system
• digital media, which is the content that digital economy users create and access.

As the Obama Administration continues to focus on expanding broadband access and adoption, NTIA released new data today that shows that some of the demographic groups that have historically lagged behind in using the Internet—such as senior citizens, minorities, and Americans with lower levels of educational attainment—are making big strides.

Particularly promising, Internet use increased significantly among children and older Americans between 2013 and 2015. Children between the ages of 3 and 14 became substantially more likely to go online, as Internet use among this group increased from 56 percent in 2013 to 66 percent in 2015, and Internet use among those aged 65 or older increased from 51 percent to 56 percent during the same period. In contrast, usage remained largely unchanged among those who were previously most likely to go online, with 83 percent of Americans between the ages of 25 and 44 reporting Internet use in both 2013 and 2015.

The latest data comes from the Computer and Internet Use Supplement to the Current Population Survey (CPS), which included nearly 53,000 households and was conducted for NTIA by the U.S. Census Bureau in July 2015. The large sample size provides a detailed picture of where, why and how Americans go online.

Access to broadband means economic growth, new employment opportunities, and improvements in education, health care, and public safety. NTIA's recognition of this central fact of the 21st century is why we have engaged in a range of efforts to increase Internet access, adoption, and digital literacy, from the Broadband Technology Opportunities Program funded by the Recovery Act to the creation of the first public, searchable nationwide map of broadband availability.

As a continuation of those efforts, NTIA's BroadbandUSA program is partnering with national organizations representing millions of Americans in more than a thousand localities across the country to develop the Community Connectivity Initiative (Initiative). The Initiative will empower communities across the country by giving them tools to support and accelerate local broadband planning efforts. NTIA, in close collaboration with its partners, will create a comprehensive online assessment tool to help community leaders identify critical broadband needs and connect them with expertise and resources. The tool will provide a framework of benchmarks and indicators on access, adoption, policy, and use for communities.

Over the past five years through our national broadband grant program, NTIA has seen first-hand the economic and societal impact that broadband has on communities across the country. At the Broadband Communities conference in Austin, Texas this week, NTIA’s BroadbandUSA team will share our plans to leverage that expertise by providing communities with technical assistance and field-tested ideas.  I will be speaking along with my NTIA colleagues Doug Kinkoph and Anne Neville. 

An important component of our on-going work with communities is to build on the lessons learned from an independent evaluation of the Broadband Technology Opportunities Program (BTOP) to make sound decisions going forward.  In 2010 NTIA hired ASR Analytics, LLC to conduct a comprehensive study on the societal and economic impacts of the program.  In advance of the Broadband Communities conference, NTIA is today releasing the final case studies from the evaluation.  The principal author of the study, Dr. Stephen Rhody, will present and discuss the findings. 

The reports released today are the final ASR case studies focusing on 12 of the 109 Comprehensive Community Infrastructure (CCI) projects NTIA funded through BTOP to build middle-mile networks in 45 states and U.S. territories. These grantees deployed more than 113,000 miles of fiber across the country. In the process, they connected or upgraded 25,300 community anchor institutions and signed more than 860 interconnection agreements with local service providers.

When NTIA launched the National Broadband Map in 2011, American consumers and businesses had few places to turn to when trying to determine who offered broadband in their communities. The National Broadband Map has not only filled that void but has helped detail the evolution of broadband in the United States as providers upgrade or expand their networks to meet the growing demand for faster broadband.

For the last five years, each state, territory and the District of Columbia has collected the broadband availability data that powers the National Broadband Map with the help of grants funded by NTIA through the 2009 American Recovery and Reinvestment Act. Every six months, states have submitted to NTIA data compiled from information gathered from broadband providers, public and commercial data, consumers and local governments. Today, we are releasing updated broadband map data, current as of June 30, 2014.

This map displays availability of higher broadband speeds across demographic characteristics

While Native American Heritage Month is celebrated just once a year in November, the National Telecommunications and Information Administration (NTIA) has been serving America’s Tribal Nations effectively for many years through its grant programs. 

One such grant of $3.4 million was made in 2010 to the College of Menominee Nation (the College) through the Broadband Technology Opportunities Program (BTOP). This Public Computer Center (PCC) project included the construction of a new 10,000 square foot campus Technology Center and upgrades of broadband capacity to serve the more than 5,000 members of the Menominee Tribe, who live in one of Wisconsin’s more rural and economically disadvantaged areas. According to Ron Jurgens, Institutional Research Director for the college, the new facility continues to draw people from the reservation and neighboring counties to use the technology, pursue their educational goals, and take advantage of 100 megabit Internet service.  In fact, the center is so popular that the county board voted to relocate the public library on the college campus.  

The National Telecommunications and Information Administration (NTIA) last week hosted the second in a series of stakeholder workshops as we launch a new initiative to leverage the success of our Recovery Act broadband grant programs and support communities nationwide seeking to build their broadband capacity.

Over the past five years, NTIA’s Broadband Technology Opportunities Program and State Broadband Initiative have invested more than $4 billion in network infrastructure, public computer centers, digital inclusion projects and broadband mapping. These programs have taught us that closing the digital divide is a multi-pronged challenge that demands a comprehensive, holistic approach.

Addressing existing gaps requires not only network availability and robust bandwidth, but also affordable computer equipment and monthly service, effective training and useful applications. It also requires collaboration among many stakeholders, including local, state and federal officials, community leaders, industry executives, private foundations and broadband advocates.

Last week’s workshop, held in Minneapolis, brought together more than 100 stakeholders for a series of informative panel discussions, presentations and networking opportunities. Participants also met with NTIA staff, who will be providing guidance, technical assistance, funding leads and connections to help communities expand broadband access and adoption.

The agenda featured speakers from a number of successful broadband projects in the Upper Midwest, including projects funded by NTIA in Minnesota, Michigan, Wisconsin, Illinois and North Dakota.

Today, we are announcing the second in a series of workshops to share lessons we have learned from our broadband grants programs with communities nationwide seeking to build their broadband capacity.

“It’s been great seeing people come back and say, ‘I’ve been able to get a job,’ after we helped them with sprucing up their résumé and applying for jobs online.”  - PCC Staff Member, Las Vegas Urban League

“Without this computer lab, we would not be getting people the jobs that we’re getting them. It’s just a great thing.”  - Staff Member, Workforce West Virginia

Last week, President Obama signed the Workforce Innovation and Opportunity Act aimed at creating a more flexible and responsive system of workforce development to meet the needs of employers looking to fill 21^st century jobs. Ensuring U.S. workers are able to compete and succeed is a key priority at the U.S. Commerce Department. Secretary of Commerce Penny Pritzker served on a task force with Vice President Biden that recently released a report looking at solutions for making the nation’s workforce and training system more job-driven, integrated and effective.