Broomfield, Colo., June 26, 2002—Despite the perception that Colorado’s high-technology industry hit rock-bottom in 2001, tech employment remained essentially unchanged at 183,600 jobs—a net loss of only 86 jobs compared to 2000. However, while the tech job loss news isn’t as dramatic as commonly believed, there was still a significant reduction in new hiring from the previous year when technology employment in Colorado grew by 17,000 jobs, according to Cyberstates 2002: A State-by-State Overview of the High-Technology Industry, a new analytical report released today by AeA, the nation’s largest high-tech trade association.

Cyberstates 2002 also shows that electronics exports from Colorado declined in 2001, falling from $4.1 billion to $3.6 billion, a drop of 12 percent. Despite this drop, Colorado’s high-tech exports represented 59 percent of total exports from the state in 2001.

Venture capital investments in Colorado plummeted by 70 percent between 2000 and 2001, dropping from $5.1 billion to $1.5 billion.

"AeA’s Cyberstates report shows that the technology slowdown has had an effect on Colorado's economy in 2001. These problems have occurred particularly because the communications services sector is such an important industry segment for Colorado. When communications experiences a slowdown, so does Colorado," said Luanne Williams, executive director, AeA Mountain States Council. "The technology industry is still a very important component of the Colorado economy, with the highest concentration of technology workers in the country."

According to Tom Edman, AeA Mountain States Council Chairperson and President & CEO of Applied Films, Longmont, Colorado, "Two important statistics in this years report highlight the importance of the technology sector to Colorado’s economy. High tech exports represent 50 percent of all Colorado exports, and we continue to have the highest concentration of tech workers in the country–up to 98 of every 1000 private sector workers."

Nationally, Cyberstates 2002 shows that high-tech industry employment grew slightly in 2001, reaching 5.6 million, compared to 5.5 million in 2000. This one percent increase illustrates the effect of the technology slowdown in 2001, compared to nine percent growth in 2000.

Cyberstates 2002 is the sixth edition of AeA’s Cyberstates reports. The study includes nine chapters detailing national and state trends in employment, wages, and exports. Venture capital investments, research and development (R&D) expenditures, and computer and Internet home use are also examined. The report includes state rankings for each indicator. Cyberstates 2002 is based on the most current U.S. government data available.

What Does High Tech Mean for Colorado?

• 183,559 high-tech workers (10^th ranked cyberstate)

• 69,000 jobs added between 1995 and 2001, ranked 5^th nationwide

• Lost 86 tech jobs between 2000 and 2001

• High-tech firms employ 98 of every 1,000 private sector workers, ranked 1^st nationwide

• High-tech workers earned an average wage of $75,000 (6^th ranked), or 100% more than the average private sector wage in 2000

• A high-tech payroll of $13.8 billion in 2000, ranked 9^th nationwide

• 7,500 high-tech establishments in 2000, ranked 11^th nationwide

• High-tech exports totaled $3.6 billion, ranked 13^th nationwide

• High-tech exports represented 59% of Colorado’s exports

• A decline of $477 million in high-tech exports between 2000 and 2001

• Venture capital investments of $1.5 billion, ranked 5^th nationwide

• Venture capital investments declined by 70% between 2000 and 2001, dropping by $3.6 billion

• R&D expenditures of $4.2 billion in 1999, ranked 17^th nationwide

• Home computer penetration reached 65%, ranked 6^th nationwide

• Home Internet access totaled 59%, ranked 4^th nationwide

Colorado’s National Industry Segment Rankings:

• 5^th in photonics manufacturing employment with 3,000 jobs

• 6^th in software services employment with 46,600 jobs

• 7^th in communications services employment with 55,900 jobs

Source: Cyberstates 2002
Data are for 2001 unless otherwise noted.
2000 data are the most current for wages, payroll, establishments, and industry segment jobs.

Published by the AeA, Advancing the Business of Technology (www.AeAnet.org)