McKinsey: The $33 Trillion Technology Payoff

Steve Lohr:

The “next big thing” lists are a well-worn staple of technology analysts and consultants, typically delivered just before the calendar turns to a new year.

A new report from the McKinsey Global Institute, the research arm of the consulting firm, delivers a twist on the art form, and the difference is more than the timing. The 154-page report not only selects a dozen “disruptive” technologies from a candidate list of 100, but also measures their economic impact.

By 2025, the 12 technologies — led by the mobile Internet, the automation of knowledge work, and the Internet of Things — have the potential to deliver economic value of up to $33 trillion a year worldwide, according to the McKinsey researchers.

That would be a sweeping and disruptive effect indeed, since economists project that by 2025 global economic output will be about $100 trillion.

The McKinsey report does include the estimated value of the social benefits of using a more efficient technology, like time saved. Such benefits — known as “consumer surplus” — are not included in conventional measures of economic output. (An example would be the value of time saved by quickly finding answers to questions by using a search engine. Google economists estimate that saving at up to $65 billion annually.)