Using input-output impact models, SNG found that secondary investments driven by broadband can be ten times as high as the initial investment, while their contribution to GDP could be fi fteen times the ini-tial Strategic Networks Group (SNG) found a real and positive growth impact to investments in broadband. In addition to building basic infrastructure, broad-band investments offer large multiplier effects (Table 1). An economic multiplier means that a dol-lar’s amount - healthy multipliers to initial investment that still leave considerable margin for reduction, even during a major recession, when reduced con-sumer worth of initial government expenditure is “mul-tiplied” up by repeated rounds of income-spending, spending or “leakages” from open economies so the ultimate end impact of the investment is far greater than the initial dollar’s worth of government spending. in the form of imports may reduce multipliers from their usual levels. 32 Table 1: Impact of Investments in Broadband Infrastructure - for Canada and the UK Case study of investment in e-learning, telemedicine & Case study of investment in community broadband Impact of Investment in Broadband Infrastructure broadband infrastructure Initial Investment in broadband infrastructure by government USD 10 million USD 10 million Leveraged Investment (from other sources - private sector, municipal authorities, etc.) USD 116 million USD 101 million Total Investment USD 126 million USD 111 million Contribution to GDP from total investment USD 164 million USD 150 million Contribution to Total Employment* 2,100 jobs 4,800 jobs Contribution to Taxes* USD 61 million USD 32 million *Note – impact on employment & taxes varies by types of SNG (2003) for DTI, UK jobs & investment made. Government. SNG (2004) for Industry Canada. Source: Strategic Networks Group (SNG), at http://sngroup.centraldesktop.com/sngpublic#_ftn1 32