Since assuming her post last June, Commerce Department Secretary Penny Pritzker has been meeting with tech startups and app companies across the country. Her agency is paying more attention to this vibrant marketplace than ever before.
That makes a lot of sense. Consider that the mobile economy is growing faster than any technology innovation that preceded it. We have adopted smartphone and tablets at a faster rate than electricity, the automobile, or even the internet.
And the emergence of apps has been nothing short of revolutionary. Not long ago, independent software companies were constrained by marketing costs and distribution. This made most companies reliant upon work supporting big companies and large enterprise products.
Since the first App Store opened in 2006, we’ve seen a remarkable transformation in the software industry. Independent developers and new entrants have shifted their focus to the mobile marketplace where they can bring an idea to market in weeks. This has led to an enormous growth in entrepreneurism and small business growth in the tech industry.
In short, software developers have been following the money. Apps have grown into a $68 billion industry in just over five years. It’s expected to top $140 billion by 2016.
Secretary Pritzker has also been following the money. Traveling across the country, she has demonstrated a keen interest in the growth of the mobile marketplace. She has solicited comments from emerging companies about the challenges we face and is taking a number of steps to help.
To start, the Secretary is implementing reforms in the patent system. To prevent overly broad patents from being used as a weapon against startups and small businesses, particular emphasis is being placed on providing technical assistance and training for examiners in technology fields. Preventing bad patents from being awarded in the first place is the best way for small companies to avoid spurious litigation.
Secretary Pritzker also recognizes that broadband infrastructure — the lifeblood of the app economy — needs resources to grow. Ensuring that communities across the country have access to broadband — and that spectrum is accessible to businesses in the mobile economy — is critical for the continued success of the app marketplace.
The agency has also undertaken efforts to make government data more accessible. It has freed up 20 terabytes of weather data collected daily by the National Oceanic and Atmospheric Administration for use by developers. The Commerce Department has also launched Census Explorer, a program to make census data accessible to app makers.
The Secretary likes to point out that our country has the highest concentration of technology workers in the world. Combined with knowledge intensive industries this represents 40 percent of our GDP.
Secretary Pritzker recognizes that the market leaders of tomorrow will come from innovators getting started today. Under her leadership, the Department of Commerce is committing resources to help those companies compete and grow. New entrants’ continued success in this marketplace will help expand the U.S. mobile economy, benefiting both businesses and consumers.