Minneapolis, MN, June 26, 2002—Minnesota’s high-technology industry lost 2,900 jobs last year, with tech employment reaching 136,400, according to Cyberstates 2002: A State-by-State Overview of the High-Technology Industry, a new analytical report released today by national association AeA and the Minnesota High Tech Association (MHTA).

Cyberstates 2002 also documented a 49 percent drop in venture capital investment in Minnesota, from $1.1 billion to $542 million between 2000 and 2001. "This corroborates what we’ve known anecdotally about the venture market for technology in Minnesota last year," said MHTA president Kate Rubin, who noted that most of the $542 million was invested in the first half of 2001.

Rubin also noted that the AeA analysis is based on a conservative view of the industry and does not include newer technology areas such as nanotechnology or the emerging life sciences. "These are future growth areas for the technology industry, and Minnesota is well-positioned to capitalize on them over the next decade," she said.

Electronics exports from Minnesota increased slightly in 2001, growing by 1.3 percent to $4.4 billion, compared with a national decline of 15 percent. Minnesota’s high-tech exports represented 42 percent of total exports from the state in 2001. "Minnesota companies are actively cultivating new markets for their products, which is a healthy sign of a sustainable technology economy," Rubin said.

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 Minnesota?

• 136,437 high-tech workers (14^th ranked cyberstate)

• 27,500 jobs added between 1995 and 2001, ranked 17^th nationwide

• Lost 2,900 tech jobs in 2001, compared with tech job growth of 2,700 in 2000

• High-tech firms employ 60 of every 1,000 private sector workers, ranked 10^th nationwide

• High-tech workers earned an average wage of $59,900 (21^st ranked), or 69% more than the average private sector wage in 2000

• A high-tech payroll of $8.3 billion in 2000, ranked 14^th nationwide

• 6,400 high-tech establishments in 2000, ranked 13^th nationwide

• High-tech exports totaled $4.4 billion, ranked 8^th nationwide

• High-tech exports represented 42% of Minnesota’s exports

• An increase of $58 million in high-tech exports between 2000 and 2001

• Venture capital investments of $542 million, ranked 15^th nationwide

• Venture capital investments declined by 49% between 2000 and 2001, dropping by $517 million

• R&D expenditures of $3.9 billion in 1999, ranked 18^th nationwide

• Home computer penetration reached 65%, ranked 7^th nationwide

• Home Internet access totaled 56%, ranked 9^th nationwide

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