The document discusses the impact of the internet on innovation and economic growth, particularly noting that in 2010, up to 13% of the US business sector's value was attributed to internet activities totaling USD 1.2 trillion. It highlights the benefits of an open internet, including enhanced innovation and lower prices, while contrasting this with the negative impacts of internet taxes on usage and innovation. Additionally, it emphasizes the importance of local content and infrastructure for promoting internet connectivity and development.

1. The Internet: Spurring innovation
and economic growth
INET Qatar 2012
Taylor REYNOLDS
The views expressed in this presentation are those of the author and
do not necessarily reflect the opinions of the OECD or its Membership.

4. Size of the US Internet economy
Up to 13% of the
United States’
business sector value
added could be
attributed to Internet-
related activities in
2010.
USD 1.2 trillion
(QAR 4.2 trillion)

5. Why an open Internet?

6. Closed mobile system
Applications
Dictionary
Digital clock
Recorder
Calculator
Clock
World clock
Calendar
Phonebook
Converter
Fixed dialing number
Expense manager
Feature phones Notes
Alarm clock

7. Open systems → Innovation
iOS 740,000
Android 700,000

8. Comparative advantage

9. Internet taxes

10. The result of Internet taxes
Elastic demand Inelastic demand
Firms/Consumers Firms/Consumers
• Prices: Increase • Prices: Increase
• Usage: Falls • Usage: Falls
Governments Governments
• Revenue: May Fall • Revenue: Increases
Innovation: Falls significantly Innovation: Falls significantly

11. Social impact:
The Internet & local content

12. Policy goals
More Internet
connectivity is
good
Internet
infrastructure
More local Lower prices
content is good are good
Network
Local content
prices

13. Results: Internet and local content
INTERNET DEVELOPMENT LOCAL CONTENT
A. Broadband penetration Wikipedia entries
B. Autonomous systems
C. International bandwidth
INTERNET DEVELOPMENT LOCAL CONTENT
Autonomous systems Web pages per ccTLD
per capita
INTERNET DEVELOPMENT LOCAL CONTENT
Routed IPv4 addresses per Blogs per country, per
capita capita

14. Results: Internet and access prices
INTERNET DEVELOPMENT PRICE
International bandwidth capacity Fixed broadband monthly
(International) price
(Domestic)
INTERNET DEVELOPMENT
Autonomous systems per 10 000
inhabitants PRICE
(Domestic)
IP transit price
INTERNET DEVELOPMENT (International)
Broadband penetration rates
(Domestic)

15. Shokran

16. Pace of innovation
2011 2012
iOS 500,000
Android 350,000
iOS 740,000
Android 700,000