Total economic value includes increases in value to suppliers and value induced in the rest of the economy.ĭirect economic impact, on the other hand, refers to measures of the importance of sectors that are using GPS. Direct economic value is the increase in value in using sectors. Benefits are measured relative to what would have been expected if there were no GPS. The most notable of these are transportation, communications, power and financial services.Įconomic value is the addition to the value of the economy from the provision of a good or service, or the introduction of a technology. It is useful to view GPS’ role as being especially important in “enabling the enablers,” industries that particularly support the rest of the economy and are at the forefront of economic growth. Department of Homeland Security counts GPS as an enabling technology because of its crucial role in 14 of the 16 industries that are classified as part of the nation’s critical infrastructure. GPS is increasingly integrated with other technologies and systems that build on each other to achieve greater outcomes. The technological environment is one of rapid changes in information and materials technology and integration of technologies at levels ranging from systems on a chip to large-scale systems.
GPS benefit estimates will be “ballpark” no matter how sophisticated the methodology because of limits to the availability of information, but in many cases, knowing orders of magnitude is essential in choosing courses of action. Baseline estimates facilitate comparisons with future developments. In addition, economic values can contribute to planning for GPS modernization and analysis of budgets. Assessing the economic implications of actions such as preventing or disallowing interference, spectrum reallocation, developing supplementary or backup systems and/or toughening receivers can be informed by value estimates and the data used to derive them. The purpose is to inform the public, federal decision makers and critical infrastructure owners/operators on the importance of GPS and the need to protect it from disruption.
leadership in GNSS, commissioned a study to assign a quantitative value to the broad economic uses of GPS. The National Executive Committee for Space-Based Positioning, Navigation and Timing (PNT), which is responsible for maintaining U.S. GPS and other GNSS and enhancements raise productivity reduce and avoid costs save time enable improved and new production processes, products and markets increase health and well-being reduce injury and loss of life improve the environment and increase security. will continue to provide leadership, standards and innovation in technology and applications with positive domestic feedback. will increase with the availability of other GNSS systems, even though GPS will constitute a smaller share of global GNSS benefits. The unmistakable conclusion: GPS is everywhere.īenefits of GPS to the U.S. New GPS signals and other improvements in the system will further expand and enhance use. These benefits have grown rapidly with the integration of GPS with other technologies and its wider and deeper infusion into applications. The study is the first part of an effort that is expected to refine and extend this analysis.Ĭritical to many civilian applications and innovations, GPS brings great economic benefits. It demonstrates the widespread use and importance of GPS to the U.S., with estimated benefits in 2013 of about $56 billion, or 0.3% of GDP for a subset of applications. The study reported on at the meeting was requested by the National Executive Committee for Space-Based Positioning, Navigation and Timing. This article is based on a presentation to the National Space-Based Positioning, Navigation and Timing Advisory Board in June 2015. (Chart: GPS World, based on data from author)
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