Georgia Risks Losing Edge as a Cyberstate
Venture Capital Investments Rise by 44 Percent as Total Tech Jobs Decline

Alpharetta, GA (April 24, 2007) – AeA, the nation’s largest technology trade association with 2,500 member companies representing all segments of the high-tech industry, released today its 10th anniversary Cyberstates report detailing national and state trends in high-tech employment, wages, and other key economic factors. Cyberstates 2007: A Complete State-by-State Overview of the High-Technology Industry is a 148-page report and is available for downloading.

Georgia was the only state in the Southeast that lost technology company jobs last year. In contrast, two neighboring states had the top five job gains nationally with North Carolina adding over 7,500 jobs and Florida gaining over 10,500. Nationally, Georgia was one of the top four states relative to the most job losses.

Cyberstates 2007 shows that the nation’s high tech industry is picking up. The U.S. high tech industry saw a net job gain of 146,600 out of 5.8 million workers, the second year in a row that the U.S. tech industry has added jobs since the bursting of the tech bubble in 2001. In contrast, Georgia has lost tech jobs during the same period. Although Georgia remained the 11th largest cyberstate, many states behind Georgia are rapidly closing the gap.

Georgia employs 162,500 workers with a total payroll of $11.7 billion in 2005. Georgia's high-tech industry experienced a net loss of 900 jobs – half of one percent of the total tech workforce. The largest job losses were in telecommunications services (-2,400 jobs) and Internet services (-1,600 jobs). Fortunately, other services sectors added jobs: computer systems design and related services added 1,500 net jobs and engineering services added 1,100 net jobs; and the high-tech manufacturing sector showed a slight gain of 100 net jobs in 2005.

There is reason to be optimistic about the future. Venture capital investments in Georgia rose by 44 percent in 2006 and the number of high-tech establishments grew by 252, or 2.2 percent.

"Tech industry job losses in Georgia were the smallest they have been since the challenging days of 2001,” said Sandra Hofmann, Chair of the AeA’s Southeast Council. "And it is encouraging that many tech sectors – in both manufacturing and services – are growing. Add to this the fact that venture capital investments and the number of new companies rose, and Georgia is poised for future growth, but we must take action to achieve that growth.”

“Georgia’s ranking in the top cyberstates’ for high-tech employment is positive,” added Hofmann. “But if Georgia is to compete for tech companies and workers against Southeastern and other states, then the state must enhance its commitment to competitiveness. This requires graduating more scientists and engineers from our world-class universities like Georgia Tech (and keeping graduates in state and in the U.S.), improving the math and science curricula in our schools to ensure that more of our kids are prepared to enter those fields of study when they get to college, attracting more venture capital, providing meaningful research and development incentives, and helping start up companies be successful."

“Part of AeA’s mission nationally is to apply our experience with policymakers and legislatures on behalf of our thousands of member technology companies,” added Mike Levin, Executive Director of the AeA’s Southeast Council. “To help the state of Georgia remain competitive for technology jobs, AeA is providing tech companies with more access to capital, exciting students about studying science and math, providing world-class executive education opportunities, offering discounted business services including health insurance, and addressing quality of life issues by sponsoring and lobbying for the new telework tax credit for businesses in the state.”

Cyberstates 2007 shows that the national high-tech industry is picking up. This 10th edition of Cyberstates provides a comprehensive review of the high-tech industry nationally and state-by-state in terms of high-tech employment, wages, payroll, and establishments. Cyberstates also offers data on venture capital investments and R&D expenditures.

A national and state-by-state analysis of the technology industry and international trade will appear in a forthcoming AeA report entitled Trade in the Cyberstates 2007: A State-by-State Overview of High-Tech Trade in the United States.

Cyberstates 2007 can be purchased for $125 for AeA members and $250 for non-members. Visit www.aeanet.org/cyberstates to download the report, or call 408.987.4200.

What Does High Tech Mean for Georgia?

• 162,500 high-tech workers (11th ranked cyberstate)
   

• 900 jobs lost between 2004 and 2005
   

• High-tech firms employed 49 of every 1,000 private sector workers in 2005, ranked 19th nationwide
   

• High-tech workers earned an average wage of $71,900 (17th ranked), or 82 percent more than Georgia's average private sector wage
   

• A high-tech payroll of $11.7 billion in 2005, ranked 14th nationwide
   

• 11,800 high-tech establishments in 2005, ranked 10th nationwide
   

• Venture capital investments of $353 million in 2006, up 44 percent from $245 million in 2005
   

• R&D expenditures of $4.1 billion in 2004, ranked 20th nationwide

Georgia’s National Industry Sector Rankings:

• 5th in telecommunications services employment with 47,100 jobs

• 6th in software publishers employment with 10,800 jobs

• 6th in Internet services employment with 17,500 jobs

Source: Cyberstates 2007

Data are for 2005 unless otherwise noted.

2005 state data are the most current available for employment, wages, payroll, establishments, and industry sector jobs.

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

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About AeA

AeA, the nation’s largest technology trade association with 2,500 member companies representing all segments of the high-tech industry, 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 04/24/07.                
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