California's Tech Industry Slowly Rebounding
California's High-Tech Exports Increase by $6.7 Billion in 2004

Santa Clara, CA, April 26, 2005 – California's high-tech industry seems to be slowly improving.  While high-tech employment fell by 67,800 in 2003, this is significantly fewer than the 134,400 jobs lost in 2002.  State employment data for 2003 are the most recent available.  Yet, 2004 export and venture capital investments data show that the technology industry is improving in California, according to Cyberstates 2005:  A State-by-State Overview of the High-Technology Industry, a new analytical report released today by AeA.

In fact, high-tech exports from California increased by $6.7 billion in 2004 to $48.3 billion from $41.5 billion in 2003.  This represented a 16 percent increase for California compared to a 12 percent increase for the nation as a whole.  This is especially important because 44 percent of all exports from California were concentrated in the high-tech industry.

"Venture capital investments in California are up by over $1 billion in 2004, a strong sign that things are turning positive for California,” said Matthew Kazmierczak, Director of Research for AeA.  "Venture capital jumped from $8.2 billion in 2003 to $9.3 billion in 2004.  When you examine this increase in VC funding and the fact that California still leads in employment in nearly every high-tech sector, it is obvious that California remains an attractive location for technology companies to innovate."

Although California lost jobs in 2003, the average annual wage for employees in the technology industry increased from $80,800 in 2002 to $84,400 in 2003, adjusted for inflation.  These workers were well compensated for their knowledge and skills, earning twice as much as the average private sector worker in California.

Nationally, Cyberstates 2005 shows that the high-tech industry is slowly turning the corner.  High-tech employment was down by only 25,000 jobs out of 5.6 million workers in 2004.  U.S. high-tech exports were up by 12 percent for a total of $191 billion in 2004.  And, technology related venture capital investments were up for the first time in four years.

This eighth annual edition of Cyberstates provides a comprehensive review of the high-tech industry nationally and state-by-state by high-tech employment, wages, payroll, establishments, and trade.  Cyberstates also offers data on venture capital investments and R&D expenditures.

AeA members can purchase the report for $95; non-members for $190.  Visit www.aeanet.org to download the report, or call 800.284.4232 or 408.987.4200.

What Does High Tech Mean for California?

·      915,500 high-tech workers (1^st ranked cyberstate)

·      67,800 jobs lost between 2002 and 2003

·      High-tech firms employed 74 of every 1,000 private sector workers in 2003, ranked 7^th nationwide

·      High-tech workers earned an average wage of $84,400 (2^nd ranked), or 102% more than California's average private sector wage

·      A high-tech payroll of $77 billion in 2003, ranked 1^st nationwide

·      43,600 high-tech establishments in 2003, ranked 1^st nationwide

·      High-tech exports totaled $48 billion in 2004 (1^st ranked), up by $6.7 billion

·      High-tech exports represented 44% of California’s exports

·      Venture capital investments of $9.3 billion in 2004, up by $1.1 billion from 2003

·      R&D expenditures of $51 billion in 2002, ranked 1^st nationwide

California’s National Industry Segment Rankings:

·      California leads the nation in 15 of 16 high-tech industry segments

·      1st in computer systems design and related services employment with 166,000 jobs

·      1st in telecommunications services employment with 121,100 jobs

·      1st in R&D and testing labs employment with 106,900 jobs

·      1st in engineering services employment with 92,500 jobs

Source:  Cyberstates 2005

Data are for 2003 unless otherwise noted.

2003 data are the most current for state employment, wages, payroll, establishments, and industry segment jobs.

Published by AeA, Advancing the Business of Technology

NOTE TO EDITORS: Press releases focusing on U.S. high-tech trade as well as on specific states are available on AeA’s website.

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About AeA
AeA, founded in 1943, is a nationwide non-profit trade association that represents all segments of the technology industry and is dedicated solely to helping our members’ top line and bottom line. We do this in partnership with our small, medium, and large member companies by lobbying governments at the state, federal, and international levels, providing access to capital and business opportunities, and offering select business services and networking programs.  For more information, please visit http://www.aeanet.org.

This page was last updated on 04/26/05.