D.C. Capital Region Is A Growing High-Tech Hub
Virginia Has the Highest Concentration of Tech Workers in the Country; D.C. Is 4th; Maryland 6th; Virginia Ranks 4th in Growth of High-Tech Jobs; Maryland Ranks 6th

Washington, DC (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.

Cyberstates finds that the D.C. Capital region (which combines the District of Columbia, Maryland, and Virginia) is becoming 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 2005, the most current state data available. Virginia added 7,700 tech industry jobs, Maryland added 4,500, and the District of Columbia added 1,100. Though a metropolitan breakdown of the location of these jobs is not available in Cyberstates 2007, anecdotal evidence shows that much of the growth in Virginia and Maryland is clustered in the suburbs of Washington, DC.

This recent growth in tech jobs has made the entire region a hub for high-tech activity and a generator of high paying jobs. In terms of tech concentration, Virginia surpassed Colorado to become the state with the highest number of tech workers as a percentage of the overall private sector workforce – 8.9 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 $83,600 – 99 percent more than the state’s average private sector wage the 5th largest in the country. D.C.’s average high-tech wage is $80,100 – 30 percent more than the district’s average private sector wage. And Maryland’s average high-tech wage is $77,000 – 80 percent more than the state’s average private sector wage.

“When people think of high tech in the United States, the DC Capital region may not immediately come to mind,” said William T. Archey, President and CEO, AeA. "But while it may not offer the size and scope of a Silicon Valley, the nation’s capital is a growing strategic location for innovation. If you were to combine DC, Maryland, and Virginia, you would have the 2nd largest cyberstate in terms of tech employment, slightly ahead of Texas.”

“And in terms of technology workers, the region is highly concentrated,” continued Archey. “Tech companies here have access to a highly skilled and educated workforce and are willing to compensate those workers well for their talents. And clearly, the growth of high tech in the Washington metro area is very much a function of the proximity to the federal government and all the sales and R&D opportunities that this provides.”

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 the Capital Region (combining the District of Columbia, Maryland, and Virginia)?

• 458,200 high-tech workers (would be the 2nd largest cyberstate)
   
• 13,300 jobs gained between 2004 and 2005 (would be 2nd ranked after California, which added 14,400 jobs
   
• As a percentage of the private sector workforce, Virginia has the highest concentration of tech workers in the country (8.9 percent); the District of Columbia has the 4th highest concentration (8.0 percent); and Maryland has the 5th highest concentration (7.9 percent)
   
• Average annual high-tech wages: Virginia’s is $83,600 – 5th ranked and 99 percent more than the state’s average private sector wage; the District of Columbia’s is $80,100 – 8th ranked and 30 percent more than the district’s average private sector wage; Maryland’s is $77,000 – 9th ranked and 80 percent more than the state’s average private sector wage
   
• A high-tech payroll of $37.1 billion in 2005, (would be the 2nd ranked cyberstate)
   
• 25,400 high-tech establishments in 2005, (would be the 2nd ranked cyberstate)
   
• Venture capital investments of $1.1 billion in 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 (108,800 jobs); Maryland ranked 6th (54,000 jobs); and D.C. ranked 21st (15,600 jobs)
   
• Virginia ranked 4th in engineering services employment (50,800 jobs): Maryland ranked 7th (30,700 jobs)
   
• Virginia ranked 5th in Internet services employment (20,100 jobs)
   
• Maryland ranked 5th in measuring and control instruments manufacturing employment (10,800 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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