Texas Continues to Rank Among the Nation's Best in High-Tech Industry
State sees Growth in Research and Development, Ranks 3^rd in Venture Capital Investments

Dallas, TX (April 18, 2006) – Throughout the past year, Texas has worked to support its growing technology industry, as evidenced by the passage of House Bill 1765, which creates the Texas Emerging Technology Fund to expedite development of new technologies, and with the funding of the Texas Enterprise Fund and Texas Emerging Technology Fund at $300 million for the biennium.  Texas’ legislative efforts are lending support as we continue to build the state’s high-tech industry.  In its analytical report, Cyberstates 2006: A State-by-State Overview of the High-Technology Industry, AeA reports Texas is ranked second in the country, employing 435,400 Texans in jobs across the state.  

The state also ranks third in the United States in venture capital investments and continues to be among the top exporters in the country, ranking second behind only California.  

"Tech is slowly turning the corner from the nationwide technology downturn," said Sue Dark, CEO of DeepNines Technology and Chairman of the AeA Texas Council.  "As the nation's second largest technology state, Texas attracted $1.1 billion in venture capital investments and exported $34 billion in tech products in 2005.  The Lone Star State is a prime center for the business of technology."

Texas also remained atop with growth in two prominent industry sectors, engineering services and computer systems and design & related services.  High-tech employees in Texas garnered an 85 percent wage premium in comparison with average private sector jobs in Texas, earning more than $72,000 annually and ranking 13th nationwide.

Nationally, Cyberstates 2006 shows that the high-tech industry is edging forward.  High-tech employment was up by 61,100 out of 5.6 million workers in 2005, the first increase in tech jobs in four years.  U.S. high-tech exports also were up by 4 percent for a total of $199 billion in 2005.

The ninth 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/cyberstates to download the report, or call 408.987.4200.  

What Does High Tech Mean for Texas?

• 435,400 high-tech workers (2^nd ranked cyberstate)
   

• High-tech firms employed 57 of every 1,000 private sector workers in 2004, ranked 14^th nationwide
   

• High-tech workers earned an average wage of $72,300 (12^th ranked), or 85 percent more than Texas' average private sector wage (13th ranked)
   

• A high-tech payroll of $31.5 billion in 2004, ranked 2^nd nationwide
   

• 22,000 high-tech establishments in 2004, ranked 2^tnd nationwide
   

• High-tech exports totaled $34.0 billion in 2005, ranked 2^nd nationwide
   

• High-tech exports represented 26 percent of Texas’ exports
   

• Venture capital investments of $1.1 billion in 2005
   

• R&D expenditures of $14.8 billion in 2003, ranked 4^th nationwide

Texas’ National Industry Sector Rankings:

• 2^nd in telecommunications services employment with 95,300 jobs
   

• 2^nd in semiconductor manufacturing employment with 35,700 jobs
   

• 2^nd in computer and peripheral equipment manufacturing employment with 21,700 jobs

Source: Cyberstates 2006

Data are for 2004 unless otherwise noted.

2004 data are the most current for state employment, wages, payroll, establishments, and industry segment jobs.

Data throughout this press release are rounded.

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

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About AeA

AeA, founded in 1943, is a nationwide 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 www.aeanet.org.               

This page was last updated on 04/19/06.                 
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