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Wired economy – Technology drives economy, study finds.

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Information technology is driving the American economy, a new report says.

The Commerce Department report says technology industries account for one-third of economic growth in the U.S. over the last five years, even though their share of economic output is just 8 percent, The New York Times reported June 6.

In addition, falling prices for computers and other electronic equipment have cut inflation by half a percent per year. Computer prices have dropped 26 percent a year for the last five years.

The industry is also rapidly creating high-income jobs. The average salary for high-tech jobs is $58,000 a year, 85 percent higher than the average for the private sector as a whole.

On the heels of the report, 11 high-tech executives will meet with Congressional leaders in Washington to discuss the future of the industry.

Executives include Microsoft chair Bill Gates, Intel chair Andrew Grove, and Novell chair Eric Schmidt.

The visit is an annual event sponsored by the Business Software Alliance.

For full text of the article, go to the New York Times.

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