Washington, DC, June 26, 2002—Virginia’s high-technology industry added a modest 4,300 new tech jobs last year, for a total of 228,900 jobs in 2001. This growth in tech employment moved Virginia up to sixth place nationwide by technology employment, according to Cyberstates 2002: A State-by-State Overview of the High-Technology Industry, a new analytical report released today by AeA. Nonetheless, the report found that Virginia high-technology employment growth slowed to 2 percent in 2001, down sharply from a 14 percent jump in 2000.

Cyberstates 2002 also examines 2000 electronics exports from each state. The study found that Virginia is the nation’s 20th ranked electronics exporter, with $2.2 billion in electronics exports in 2000. Virginia's tech exports increased four percent in 2001, compared with a national decline of 15 percent.

An important factor driving Virginia’s technology industry is venture capital. Virginia received $953 million in venture capital investments last year, the 9^th ranked state by this measure.

"Despite last year's slowdown, Virginia's tech industry continues to grow, albeit more slowly than in previous years," said Dr. David Karlgaard, president of PEC Solutions and Chairman of the AeA Potomac Council. "With the enormous federal information technology business here, Virginia has a large information services sector with numerous opportunities for additional job creation."

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.

• 228,882 high-tech workers (6^th ranked cyberstate)

• 4,300 jobs added between 2000 and 2001, compared to 27,200 in 2000

• High-tech firms employ 81 of every 1,000 private sector workers, ranked 4^th nationwide

• High-tech workers earned an average wage of $75,800 (ranked 4^th) in 2000, or 117% more than the average private sector wage.

• A high-tech payroll of $17 billion in 2000, ranked 5^th nationwide

• 9,100 high-tech establishments in 2000, ranked 7^th nationwide

• High-tech exports totaled $2.3 billion, ranked 16^th nationwide

• High-tech exports represented 19% of Virginia’s exports

• Venture capital investments of $953 million, ranked 9^th nationwide

• Venture capital investments declined 69% between 2000 and 2001, dropping by $2.1 billion

• R&D expenditures of $5.1 billion in 1999, ranked 13^th nationwide

• Home computer penetration reached 59%, ranked 18^th nationwide

• Home Internet access totaled 55% ranked 11^th nationwide

• 2^nd in software services employment with 82,000 jobs

• 4^th in data processing and information services employment with 29,100 jobs

• 8^th in communications services employment with 52,200 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.