Minnesota’s Tech Industry Adds 2,700 Jobs
Venture Capital Investments in Minnesota Rise 45 Percent in 2006

Minneapolis, MN (April 24, 2007) – AeA, the nation’s largest technology trade association with 2,500 member companies representing all segments of the high-tech industry, and the Minnesota High Tech Association (MHTA) 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.

Minnesota's high-tech industry saw a net gain of 2,700 jobs – a two percent rise – in 2005, the most current state data available. Minnesota remained the 17th largest cyberstate employing 128,000 tech workers with a total payroll of $8.8 billion in 2005.

Minnesota was 5th in the nation in high tech manufacturing employment with strong job growth in areas like electronic components manufacturing (+600 jobs), electromedical equipment manufacturing (+600 jobs), and semiconductor manufacturing (+100 jobs). Minnesota also realized employment gains in computer systems design and related services (+1,000 jobs), and engineering services (+500 jobs).

“In addition to net job creation, the numbers indicate that we are moving in the right direction with $6 billion in R&D expenditures and a significant increase in venture capital investment,” said Kate Rubin, President of MHTA. “We are an increasingly attractive destination for innovation and can promote this trend by investing in the education and development of our future workforce.”

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 Minnesota?

• 128,000 high-tech workers (17th ranked cyberstate)
   

• 2,700 jobs added between 2004 and 2005
   

• High-tech firms employed 56 of every 1,000 private sector workers in 2005, ranked 15th nationwide
   

• High-tech workers earned an average wage of $68,600 (21st ranked), or 67 percent more than Minnesota's average private sector wage
   

• A high-tech payroll of $8.8 billion in 2005, ranked 17th nationwide
   

• 7,100 high-tech establishments in 2005, ranked 16th nationwide
   

• Venture capital investments of $322 million in 2006, up 45 percent from $221 million in 2005
   

• R&D expenditures of $6.0 billion in 2004, ranked 15th nationwide

Minnesota’s National Industry Sector Rankings:

• 2nd in electromedical equipment manufacturing employment with 12,100 jobs
   

• 5th in computer and peripheral equipment manufacturing employment with 14,500 jobs
   

• 7th in electronic component manufacturing employment with 9,200 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.   

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