Global Corporate Xpansion

Cyberstates 2008 is one of three cyber reports AeA will be publishing in 2008. Similar to last year, AeA has removed the trade data from Cyberstates and will be releasing this information in a separate report entitled, Trade in the Cyberstates 2008. Furthermore, for the first time since 2000, AeA will be examining the tech industry for 60 metropolitan areas nationally in its forthcoming report, Cybercities 2008 {Editor: Released in June.}

AeA will also continue to issue its ongoing Competitiveness Series, which consists of concise reports on the most timely and relevant issues to the high-tech industry and to U.S. competitiveness in a global economy, such as eHealth, RFID and the R&D tax credit.

These publications are essential to understanding the economic impact of America’s high-tech industry. For more information on AeA reports, visit www.aeanet.org/research or call 408-987-4200.

occupations; specifically, unemployment for electrical engineers hit a low of 1.0 percent, which is considered full employment.

U.S. HIGH-TECH EMPLOYMENT

• U.S. high-tech industry employment totaled 5.86 million in 2007, up by 91,400 from 5.77 million in 2006.

• The high-tech industry comprised 5. 1 percent of the U.S. private sector workforce in 2007, up slightly from 2006.

• Software services and engineering and tech services industries added jobs in 2007, while high-tech manufacturing and communications services industries lost jobs.

• At the sectoral level, seven of the nine technology manufacturing sectors lost jobs in 2007. The two manufacturing sectors that added jobs were defense electronics and electromedical equipment.

• The largest decline by sector in technology manufacturing employment between 2006 and 2007 was in semiconductors (- 12,500 jobs).

• Communications services continued to lose jobs, declining by 7,200 jobs, or 0.5 percent, between 2006 and 2007.

• The software services sector and engineering and tech services sector added jobs between 2006 and 2007 — 82,600 and 45,800 respectively — both for the fourth consecutive year.

• Unemployment rates remained low across many tech

U.S. HIGH-TECH WAGES

• U.S. high-technology industry workers were paid an average wage of $79,500 in 2006, the most recent wage data available for the tech industry.

• High-tech wages were 87 percent higher on average
than private sector wages — $79,500 compared to $42,400.

• Software services employees earned higher average wages than their counterparts in tech manufacturing — $87,800 compared to $82,500.

• At the sectoral level, the best paid high-technology industry workers in 2006 were employees in the computer and peripheral equipment manufacturing industry, earning an average wage of $114,500.

• Wages in the software publishers industry ranked second at $106,800, followed by semiconductor manufacturing at $102,300 in 2006.

U.S. HIGH-TECH PAYROLL

• The U.S. high-tech payroll was $458 billion in 2006, accounting for nearly 10 percent of the total private sector payroll in the United States.

• The high-tech services payroll totaled $349 billion in 2006, compared with $109 billion for high-tech manufacturing.

U.S. HIGH-TECH ESTABLISHMENTS

• High-tech establishments totaled 345,500 in 2006 in the United States, 326,300 of which were in high-tech services.

TOP 10 CYBERSTATES BY EMPLOYMENT, 2005-2006

Rank
1. California
2. Texas
3. New York
4. Florida
5. Virginia
6. Massachusetts
7. Pennsylvania
8. Illinois
9. New Jersey
10. Michigan

2005

919,300

445,800

300,000

276,400

261,000

237,500

203,800

205,700

197,200

177,600

2006

940,700

459,500

301,500

282,100

270,800

242,700

210,200

209,300

205,700

176,100

Data are rounded.

2006 state employment data are the most recent available.

Source: U.S. Bureau of Labor Statistics

U.S. HIGH-TECH VENTURE
CAPITAL INVESTMENTS

• High-tech venture capital investments in the United States totaled $16.9 billion in 2007, up six percent from

$16.0 billion in 2006. Technology venture capital investments
accounted for 58 percent of
all venture capital dollars —
$16.9 billion out of total
investments of $29.4 billion.

• Five out of eight technology sectors saw an increase in venture capital investments between 2006 and 2007.

• The leading high-tech industry sectors for venture capital investments in 2007 were software services at $5.3 billion and medical devices and equipment at $3.9 billion.