UMD Study Finds Facebook
Applications Create
More Than 182,000 New U.S. Jobs Worth $12.19B+
Download White Paper PDF
College Park, Md. – September 19, 2011 – While the U.S. jobs
picture may be bleak, the proliferation of Facebook and mobile technology
applications has spawned an entirely new industry – dubbed the “App Economy” —
that has added at least 182,000 new jobs and contributed more than $12.19
billion in wages and benefits to the U.S. economy this year, according to new
research from the University of Maryland’s Robert H. Smith School of Business.
Using more aggressive estimates, the Facebook App Economy created a total of
235,644 jobs, adding a value of $15.71 billion to the economy.
Professors at the Smith School’s Center for Digital
Innovation, Technology, and Strategy have for the first time been able to
quantify that Facebook’s App Economy has created more than 53,000 new jobs in
software companies who make applications for the Facebook Platform. Apps include
everything from productivity tools to popular games like “Farmville” that users
interact with on Facebook.
Il-Horn Hann and Siva Viswanathan, co-directors of the center and associate
professors of information systems, measured the number of people employed to
build, develop and consult on Facebook applications. Hann and Viswanathan used
data on apps provided by Facebook.
The App Economy has also led to job creation at businesses that supply app
developers, and in sectors that reap the benefits of increased household
spending by app developers and suppliers from new app economy jobs. Hann and
Viswanathan conducted an economic impact analysis to estimate that between
129,000 to more than 182,000 people are employed in jobs supported by the app
economy.
The researchers calculated the sum of wages and benefits earned by those
employed in and supported by the app economy to total between $12.19 billion to
$15.71 billion.
“Our findings confirm that social media platforms have created a thriving new
industry,” said Hann. “As Facebook and other platforms grow, we will continue to
see job growth and the ripple effects of these advances in the U.S. economy.”
The results of the study are published in a new white paper,
available online.
About the Center for Digital Innovation,
Technology and Strategy
The Center for Digital Innovation, Technology, and Strategy brings together
distinguished Smith School faculty and their colleagues from the University of
Maryland with special areas of expertise to conduct cutting-edge research. From
consumer research and psychology to high-tech systems design and analysis, the
faculty offers a diverse, multifaceted perspective on the challenges and rewards
of digitization.
About the Robert H. Smith School of Business
The Robert H. Smith School of Business is an internationally recognized leader
in management education and research. One of 12 colleges and schools at the
University of Maryland, College Park, the Smith School offers undergraduate,
full-time and part-time MBA, executive MBA, MS in business, PhD and executive
education programs, as well as outreach services to the corporate community. The
school offers its degree, custom and certification programs in learning
locations in North America and Asia.
