A recent report by the Information Technology and Innovation Foundation, headed up by Robert Atkinson, indicates that the technology investments in the proposed stimulus plan could create close to one million jobs. This report provides a powerful political and economic argument that any available options for technology investment beyond the $37 billion already included should be exhausted as part of the stimulus.

The report suggests that $30 billion to computerize health records, expand wireless broadband to rural areas, and create a new smart electric grid--the existing technology investments in the stimulus--would yield 900,000 jobs. The New York Times wrote about this report on Monday, accurately noting:

"Beyond creating jobs, advocates say, government investment in these technology fields holds the promise of laying a lasting foundation for more business innovation and efficiency, while helping to create new digital industries."

The financial crisis showed the risks of an economy based on speculative investments and resting upon a house of cards of "endless" cheap credit and rising home values. It is becoming increasingly apparent that that kind of economy fails to provide a foundation for real sustained prosperity, and America must instead find a new growth strategy. As the Times reports, these technology investments are exactly the types of investments crucial to creating a new era of American prosperity.

The article continues:

"The technology industry is not typically viewed as a prolific job producer. Much of its manufacturing is highly automated. But bringing technology to services fields like health care, telecommunications and energy can be labor intensive and thus generate jobs."

This quote only captures half of the benefit of technology investments. In addition to directly creating jobs in technology sectors, investments in innovation and the deployment of new technology can be an effective driver of increased productivity, which in turn can drive down the costs for goods and services and provide a real engine of economic growth. The "second-order" impacts of technology investments therefore also bring new jobs and economic vitality across many sectors.

Perhaps the most noteworthy conclusion of the study is this:

"The job-generation estimate by the Information Technology and Innovation Foundation translates into more than 30,000 jobs created for each $1 billion of government investment -- roughly similar to projections for public works spending."

This statistic shows how technology innovation and deployment can be just as effective at creating jobs in the short term as the traditional public works projects found in a stimulus package. Put another way: building the new information superhighway and modernizing the aging electrical grid is just as effective at creating jobs as rebuilding our real superhighways and fixing aging bridges. In addition, these technology investments can have similar and sometimes more potent societal benefits, as well as a huge affect on long term economic growth--especially in an increasingly technology-based global economy.

All this points not just to the need to maximize the investments in technology included in the stimulus, but also the need for sustained public investments in the long term federal budget. Investing in technology is a boon for the American economy as it yields new jobs, broad societal dividends, and provides a solid foundation for continued economic growth.