Increasing broadband Internet usage in California could spur job growth in Orange County, according to a new study.
The county could see the addition of 186,478 jobs and $15 million in payroll gains in the next 10 years as more people get hooked up to the Internet via speedy broadband connections, according to a survey from the Sacramento Regional Research Institute.
“There is a clear connection between investing in broadband technology and job growth,” said Kristin Van Gaasbeck, assistant professor of economics at California State University, Sacramento.
AT & T; Inc. sponsored the survey from the research institute, a venture of the Sacramento Area Commerce and Trade Organization and Cal State Sacramento.
OC ranked third on the list of regions that are set to see the most job growth, behind Los Angeles and the Inland Empire, the study showed.
The greater Los Angeles area could see 455,753 new jobs and $33 million in payroll gains in the next 10 years.
No. 2 Inland Empire is expected to see 196,613 jobs and $11 million in payroll gains.
The Inland Empire surpassed OC in the ranking because it started out with fewer broadband users, creating more room for jobs as the growing cities continue to add offices and housing.
Payroll gains in more affluent OC were about $4 million more.
“The Inland Empire has faster population growth than Orange County, so the employment gains are more dramatic,” Van Gaasbeck said. “But the jobs that will be created in OC are relatively higher paying.”
Unlike other surveys that look at the availability of telecommunication lines that make broadband accessible, this survey looked at the economic outcomes of broadband use, said Ryan Sharp, director of the institute.
For purposes of the study, broadband was defined as a cable or digital subscriber line connection to the Internet.
The study used models based on the historical figures to project into the future. They showed a correlation between broadband use and the increase in jobs and payroll dollars in California.
“When a businesses capital investment in computers and broadband becomes more productive, that allows workers to be more productive,” Van Gaasbeck said. “When businesses produce more at lower costs, they can get higher profits and expand. That, in turn, leads to more jobs.”
The survey showed that the percentage of Californians using a broadband connection has tripled since 2001 to 54%.
It also found that broadband use generated roughly 198,000 jobs and added $12 billion to payrolls state- wide between 2002 and 2005.
OC businesses and residents were early adopters of broadband, the study showed.
Six years ago, OC came in right behind the Bay area and ahead of all other counties in California in the same study. In 2006, it was nearly tied with the San Jose area, the heart of Silicon Valley.
Broadband use is particularly important to businesses in Southern California because it allows people who face long commute times to work from home or have “virtual” offices, according to the study.
Technology businesses such as defense contractors, medical device makers and telecommunications companies,including many that call OC home,are “positively impacted” by broadband, Van Gaasbeck said.
“Because those are sectors that rely heavily on the Internet to share information, we could see bigger gains there,” she said.
