Lake Oswego, OR, November 19, 2003—Oregon exported $4.8 billion worth of high-tech goods in 2002, compared to $4 billion in 2001, a jump of 18 percent, according to Cyberstates 2003: A State-by-State Overview of the High-Technology Industry, a new analytical report released today by AeA. The state slipped to 20^th place in 2002 by high-tech employment from 19^th in 2001.

Between 2001 and 2002, Oregon’s tech industry lost 10,800 jobs. Cyberstates 2003 shows that Oregon’s tech industry dropped by 11 percent, with employment falling from 98,000 in 2001 to 88,000 in 2002. The state’s electronics manufacturing sector lost 6,000 jobs and software had 3,000 fewer jobs in 2002 than in 2001.

"This report demonstrates how critical it is for Oregon to focus on creating an environment that promotes jobs and growth, especially in some of the local communities that view job loss as an urban myth," said Matt Chapman, president, Centrisoft Corporation and chairman, AeA Oregon Council. "Technology is critical to Oregon's present and to our future, and we need to be aggressive in creating a business climate that supports existing companies and attracts new ones, with economic policies and leadership that understands how essential this industry truly is for Oregon. To that end, AeA will continue our focus on tax reform, streamlining governmental approval processes, and supporting a strong educational system at all levels."

At the same time, venture capital investments in Oregon dropped by 13 percent, from $207 million in 2001 to $180 million in 2002.

"Oregon is committed to growing technology companies," said Jack Isselmann, Deputy Director, Oregon Economic and Community Development Department. "Despite recent hardships, our state's largest industry remains poised to regain its status as a leading job creator. Oregon is committed to fostering growth in the technology sector by investing in higher education, worker training and securing access to investment capital."

Nationally, Cyberstates 2003 shows that high-tech employment fell by 540,000 jobs, dropping to 6 million in 2002. However, using preliminary data, we estimate that the tech industry will lose 234,000 jobs in 2003.

For the first time, Cyberstates 2003 is based on the newly implemented North American Industry Classification System (NAICS). This more current and comprehensive system allows us to capture several sectors, which we could not with the previous system. These include fiber optic cable manufacturers, semiconductor machinery manufacturers, and web search portals. Consequently, the data presented in this report are not comparable in any way to previous editions of Cyberstates.

Cyberstates 2003 is the seventh edition of AeA’s Cyberstates reports. The study includes seven chapters detailing national and state trends in employment, wages, and exports. Venture capital investments and research and development (R&D) expenditures are also examined. The report includes state rankings for each indicator. Cyberstates 2003 is based on the most current U.S. government data available.

What Does High Tech Mean for Oregon?

• 10,800 jobs lost between 2001 and 2002

• High-tech firms employ 66 of every 1,000 private sector workers in 2002, ranked 12^th nationwide

• High-tech workers earned an average wage of $64,160 (14^th ranked), or 96% more than the average private sector wage

• 4,144 high-tech establishments in 2001, ranked 23^rd nationwide

• High-tech exports totaled $4.8 billion in 2002, ranked 8^th nationwide, up from $4.0 billion in 2001

• Venture capital investments of $180 million, down 13% from $207 million in 2001

• R&D expenditures of $2.1 billion in 2000, ranked 25^th nationwide

Oregon’s National Industry Segment Rankings:

• 9^th in software publishers employment with 7,800 jobs

• 16^th in electronic components manufacturing with 6,000 jobs

Source: Cyberstates 2003
Data are for 2002 unless otherwise noted.
2001 data are the most current for wages, payroll, establishments, and industry segment jobs.