D.C. Capital Region Is A Major High-Tech Hub
Virginia Has the Highest Concentration of Tech Workers in the Country; D.C. Is 4th; Maryland 5th
Virginia Ranks 3rd in Growth of High-Tech Jobs; Maryland Ranks 14th

Cyberstates finds that the D.C. Capital region (which combines the District of Columbia, Maryland, and Virginia) is a growing hub for high-tech companies to locate operations. Virginia has earned the distinction of having the highest concentration of tech workers in the country in 2006, the most current state data available. Virginia added 9,800 tech industry jobs, Maryland added 3,200, and the District of Columbia added 600. Though a metropolitan breakdown of the location of these jobs is not available in Cyberstates 2008, anecdotal evidence shows that much of the growth in Virginia and Maryland is clustered in the suburbs of Washington, DC.

This recent job growth has made the entire region a hub for high-tech activity and a generator of high paying jobs. In terms of tech concentration, Virginia has the highest number of tech workers as a percentage of the overall private sector workforce – 9.0 percent. The District of Columbia has the 4th highest concentration of tech workers – 8.0 percent. And Maryland has the 5th highest concentration – 7.9 percent.

The Cyberstates report shows that these jobs are especially well paid. Virginia’s average annual high-tech wage is $86,400 – 98 percent more than the state’s average private sector wage the 6th largest in the country. D.C.’s average high-tech wage is $85,700 – 31 percent more than the District’s average private sector wage. And Maryland’s average high-tech wage is $80,800 – 82 percent more than the state’s average private sector wage.

Venture capital investments in the D.C. capital region totaled $1.2 billion in 2007, up $91.1 million from 2006. This would make the combined region the 5th ranked cyberstate by this metric.

“The DC Capital region may not immediately come to mind when people think of high tech, but it should,” said Matthew Kazmierczak, Vice President of Research and Industry Analysis, AeA. "Proximity to the federal government, including its major research centers, combined with a highly educated workforce, has made the area a key location for innovation. If you were to combine DC, Maryland, and Virginia, you would have the 2nd largest cyberstate by tech employment, slightly ahead of Texas.”

“What is hard to understand is that so many policymakers in Washington do not see the tremendous value of a high-tech workforce and are not committed to policies that would help it grow,” continued Kazmierczak. “Congress and the President need to come together in this year’s budget to double funding for the major federal research agencies. They also need to invest in programs that attract more American kids into math, science, and engineering careers and to the teaching of those disciplines. All of these things appeared in the America Competes Act, which overwhelmingly passed through Congress and was signed by the President in 2007. But then the funding never followed. Finally, they need to allow high skilled foreign nationals to work for American tech companies. These people create the technology and innovation that support high ways and job growth.”

Nationally, Cyberstates 2008 shows that the high-tech industry added jobs for the third consecutive year. Tech industry employment totaled 5.9 million, after adding 91,400 jobs in
2007. This is on top of job gains of 139,000 in 2006 and 87,400 in 2005.

This 11th 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.

Two other major AeA cyber reports are forthcoming that analyze the U.S. high-tech industry: Cybercities 2008: An Overview of the High-Technology Industry in the Nation’s Top 60 Cities, and Trade in the Cyberstates 2008: A State-by-State Overview of High-Tech International Trade.

AeA members can purchase Cyberstates 2008 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 the Capital Region (combining the District of Columbia, Maryland, and Virginia)?

• 471,900 high-tech workers in 2006 (would be the 2nd largest cyberstate)
   
• 13,600 jobs gained between 2005 and 2006 (would be 3rd ranked after Texas, which added 13,700 jobs)
   
• As a percentage of the private sector workforce, Virginia has the highest concentration of tech workers in the country (9.1 percent); the District of Columbia has the 4th highest concentration (8.1 percent); and Maryland has the 5th highest concentration (8.0 percent)
   
• Average annual high-tech wages: Virginia’s is $86,400 – 6th ranked and 98 percent more than the state’s average private sector wage; the District of Columbia’s is $85,700 – 7th ranked and 31 percent more than the district’s average private sector wage; Maryland’s is $80,800 – 11th ranked and 82 percent more than the state’s average private sector wage
   
• A high-tech payroll of $39.8 billion in 2006, (would be the 2nd ranked cyberstate)
   
• 26,600 high-tech establishments in 2006, (would be the 2nd ranked cyberstate)
   
• Venture capital investments of $1.2 billion in 2007, up $91.1 million from 2006 (would be 5th ranked cyberstate)

Select Industry Sector Rankings for the States in the Washington, DC Capital Region:

• Virginia ranked 2nd in computer systems design and related services employment (119,100 jobs); Maryland ranked 6th (56,200 jobs); and D.C. ranked 22nd (16,200 jobs)
   
• Virginia ranked 4th in engineering services employment (51,500 jobs): Maryland ranked 7th (31,900 jobs)
   
• Virginia ranked 5th in Internet services employment (19,300 jobs)

Source: Cyberstates 2008

Data are for 2006 unless otherwise noted.

2006 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, 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 03/28/08.   
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