The Role of Digital Technologies: Insights from the U.S. Digital Economy

Industrialization is a crucial process to produce goods and services on a global scale. The emergence of the Fourth Industrial Revolution has introduced an array of digital technologies that have transformed our living by improving productivity and efficiency. Digital technologies are increasingly integrating and interconnecting our world through Information and Communication Technologies (ICT), encompassing many innovations such as the Internet of Services (IOS), Internet of Everything (IOE), Internet of People (IOP), Cyber-Physical Systems (CPS), Cloud Computing, Additive Manufacturing (also known as 3D Printing), Blockchain, and Artificial Intelligence (AI). Such digital technologies (as mentioned above) are driving a wide array of economic activities, including e-commerce, banking, logistics, transportation, manufacturing, and many other technology-driven innovations in the production of goods and services. The resulting digital economy stems from the dynamic interplay of billions of daily interactions and transactions among people, businesses, devices, and processes empowered through data. Understanding the growth of the digital economy offers valuable insights into the role and patterns of digital technologies in shaping a nation’s economic activities. This paper examines time series data from a sample of U.S.-based companies specializing in digital technology-related products and services to analyze the contribution and growth patterns of the digital economy within the broader context of the U.S. economy. These findings would provide actionable insights for researchers and professionals studying the factors influencing the economic health and development of nation-states.