Global Corporate Xpansion

U.S. HIGH-TECH R&D EXPENDITURES

• High-tech R&D expenditures rose six percent, to $74.9 billion in 2005, the most recent year for which data are available. This accounted for 37 percent of the $204 billion in industrial R&D expenditures.

• The leading sector was semiconductors and other electronic components, which spent $18.6 billion on research and development in 2005.

• R&D expenditures increased in all but two sectors of the tech industry in 2005. Computer systems design and related services experienced the largest increase, jumping by 17 percent in 2005.

CYBERSTATES EMPLOYMENT

• California was the nation’s leading cyberstate with 940,700 technology workers in 2006, more than twice as many tech workers as second ranked Texas and more than three times as many as third ranked New York. State level employment data are from 2006, the most recent available.

• Florida and Virginia ranked fourth and fifth, with 282,100 and 270,800 high-tech employees in 2006.

• The largest net gain in tech employment between 2005 and 2006 was in California, which added some

21,400 jobs.

• The next largest net gains in tech employment between 2005 and 2006 occurred in Texas and Virginia, adding 13,700 and 9,800 jobs, respectively. Rounding out the top five in tech employment gains were New Jersey (+ 8,500) and New Mexico (+ 6,700). This is the third straight year of job growth for Virginia and the second straight year for the other four cyberstates.

• Forty-eight cyberstates added tech jobs between 2005 and 2006. The remaining four cyberstates all lost technology industry jobs.

• Puerto Rico had the greatest loss of tech industry jobs on a percentage basis, dropping by 3. 5 percent between 2005 and 2006.

• For the second consecutive year, Virginia was the top ranked cyberstate by concentration of high-tech workers, with 91 high-tech workers per 1,000 private sector workers in 2006. In 2005, Virginia surpassed Colorado, which had ranked first for many years. Massachusetts ranked second in 2006, with 87 high-tech workers per 1,000

U.S. HIGH-TECH EMPLOYMENT, 2006 VS. 2007

Category
Electronics Manufacturing
Communications Services
Software Services
Engineering and Tech
Services
Total high-tech
Employment

2006

1,320,100

1,355,400

1,518,300

1,572,500

5,766,300

Data are rounded.

2007 employment data are preliminary.

Source: U.S. Bureau of Labor Statistics

private sector workers. Colorado was third, with 83 tech workers per 1,000 private sector workers.

CYBERSTATES WAGES

• California led the nation with the highest paid high-tech industry workers, earning an average wage of $101,200 in 2006.

• Massachusetts ranked second by high-tech wages at $94,800 in 2006, followed by New Jersey at $89,400. Washington and Colorado rounded out the top five rankings by high-tech wages.

• Average annual wages in Rhode Island’s high-tech industry increased the most nationwide between 2005 and 2006, jumping by $4,700, adjusted for inflation to 2006 dollars. Rhode Island also had the highest increase in tech wages in the past five years, increasing by $10,200, in 2006 dollars.

• The technology industry’s highly skilled, highly educated workers are well compensated throughout the states. Tech workers in California, Washington, Idaho and Oregon all had high-tech average wages of more than twice their states’ average private sector wage in 2006. And in every state, tech workers earned significantly more than the average private sector worker with differentials ranging from 31 to 112 percent higher.