By Mark Purdy and Ladan Davarzani
To capture the benefits of Internet-connected machines, national leaders must nurture the conditions that are needed to translate technological change into economic growth.
Call it the multi-trillion-dollar question: can the Industrial Internet of Things (IIoT) jumpstart the lacklustre global economy, which is still struggling seven years after the onset of the Great Recession?
Many government leaders hope the answer is yes. For example, Prime Minister David Cameron wants the UK to lead this ‘new industrial revolution’ and has directed nearly US$125 million to IIoT research. In China, the government has designated the Internet of Things an‘emerging strategic industry’ and plans to invest some US$800 million in the IIIoT by 2015. These and several other governments are looking to the IIoT as a means to stimulate national competitiveness and economic growth.
And with good reason: the IIoT—a vast network of Internet-enabled devices that interact with each other and with their human operators—has the potential to help overcome structural barriers to faster growth. The IIoT could contribute US$14.2 trillion to world output by 2030, according to Accenture’s analysis.