Pennsylvania's Tech Industry Adds 3,500 Jobs
Venture Capital Investments in Pennsylvania Rise 64 Percent in 2006

Clark, NJ (April 24, 2007) – AeA, the nation’s largest technology trade association with 2,500 member companies representing all segments of the high-tech industry, today released its 10th anniversary Cyberstates report detailing national and state trends in high-tech employment, wages, and other key economic factors. The report, Cyberstates 2007: A Complete State-by-State Overview of the High-Technology Industry, covers all 50 states, the District of Columbia, and Puerto Rico.

Pennsylvania's high-tech industry experienced a net gain of 3,500 jobs – two percent of the state’s tech industry workforce – in 2005, the most recent year state data are available. Pennsylvania remained the 8th largest cyberstate employing 203,800 tech workers with a total payroll of $14.2 billion.

Pennsylvania’s fastest growth in 2005 came in the services sectors. R&D and testing labs saw remarkable growth, adding 3,700 jobs, a 12 percent rise over 2004. Following this were computer systems design and related services which added 2,300 jobs, and engineering services which added 1,000 jobs.

"Pennsylvania’s tech industry is adding jobs once again after several years of decline,” said Thomas Shields, Senior Vice President and Chief Financial Officer, ANADIGICS, Inc. and Chair of the New Jersey-Pennsylvania Council of AeA. "The Keystone State’s high-tech services sectors are doing particularly well. The job growth in 2005 makes up for a nearly equal job decline in 2004. But with venture capital investments rising by 65 percent, we are hopeful that in the years to come we will forge ahead and create thousands of high paying jobs in cutting edge technology sectors.”

“To ensure this job growth happens,” continued Shields. “We need to remain focused on the math and science education of our children and the skills of our workforce. And we need to encourage the federal government to expand investment in long-term basic research. These investments go not directly to companies, but to our research universities like Carnegie Mellon and Penn State. They then develop the science that leads to innovations and spawns new companies that generate those jobs."

Nationally, Cyberstates 2007 shows that the high-tech industry is picking up. High-tech employment was up by 146,600 out of 5.8 million workers in 2006, the second year in a row that the U.S. tech industry has added jobs.

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 International Trade.

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

What Does High Tech Mean for Pennsylvania?

• 203,765 high-tech workers (8th ranked cyberstate)
   

• 3,488 jobs added between 2004 and 2005
   

• High-tech firms employed 42 of every 1,000 private sector workers in 2005, ranked 28th nationwide
   

• High-tech workers earned an average wage of $69,582 (20th ranked), or 77 percent more than Pennsylvania's average private sector wage
   

• A high-tech payroll of $14.2 billion in 2005, ranked 9th nationwide
   

• 12,069 high-tech establishments in 2005, ranked 9th nationwide
   

• Venture capital investments of $777.8 million in 2006, up 64 percent from $474.1 million in 2005
   

• R&D expenditures of $10.9 billion in 2004, ranked 16th nationwide

Pennsylvania’s National Industry Sector Rankings:

• 3rd in consumer electronics manufacturing employment with 2,356 jobs
   

• 5th in electronic component manufacturing employment with 10,560 jobs
   

• 6th in engineering services employment with 33,074 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 04/23/07.               
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