Study: Global high-tech biz shows slight growth

The global high-tech industry grew less than 4 percent between 2000 and 2001, from $2.3 trillion to $2.4 trillion, according to a study of the world's information and communication technology spending.

The study, "Digital Planet 2002: The Global Information Economy," was released Feb. 28 by the World Information Technology and Services Alliance at the World Congress on Information Technology in Adelaide, Australia.

The study, based on research by International Data Corp. of Framingham, Mass., was made possible by sponsorship from Post Newsweek Tech Media, publisher of Washington Technology.

The study shows the United States, the world's largest spender on information and communication technology, increased its spending less than 1 percent last year. China grew the fastest, increasing its expenditures more than 15 percent from 2000 to 2001.

Internet and e-commerce remain a notable bright spot in the global economy, despite flattened spending on IT products and services reflected in most of the developed world, the study found. Worldwide Internet buyers numbered 142 million in 2001, up 40 percent from 2000.

Global combined business-to-business and business-to-consumer e-commerce reached $633 billion in 2001, up 79 percent from the previous year.

The study found the United States remains the leader in spending with $812.6 billion in 2001. Japan ($413.7 billion) and Germany ($154.6 billion) follow. While the United States continues to increase its spending, its overall percentage of global information and communications technology spending keeps declining as the rest of the world gets on the technology bandwagon.

"Even an economic downturn cannot stifle the value and convenience of electronic commerce to businesses and consumers," said WITSA President Harris Miller, who also is president of the Information Technology Association of America, Arlington, Va.

"Our digital planet is rapidly transforming as more people join the ranks of Internet users in homes and schools, and developing countries ignite their [information and communication technology] engines," Miller said. "China, Poland and other developing countries are already playing an increasing role in the global ICT [information and communication technology] marketplace, showing the upside opportunities for global ICT spending are still enormous."

The study is based on data gathered in the 55 largest ICT buying countries and regions, which represent 98 percent of worldwide ICT spending. It encompasses spending on computer hardware, software, IT services, telecommunications hardware and services, office equipment and internal IT spending, which includes company expenditures on IT employees and capital depreciation.

The World Information Technology and Services Alliance is a consortium of 41 IT industry associations from economies around the world. The WITSA Secretariat is hosted by ITAA.