Texas’s Tech Industry Adds 10,300 Jobs
Venture Capital Investments in Texas up $304 Million, or 28 Percent in 2006

Dallas, TX (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 Texas.

Texas’s high-tech industry added 10,300 jobs for an industry total of 445,800 in 2005, the most current state data available. This represents the first rise in tech jobs since 2000. Texas remains the 2nd largest cyberstate by tech employment, behind California and ahead of New York. The high-tech industry paid out $33.6 billion in payroll in 2005.

The largest gains took place in several of the technology services sectors. The fastest growth was in engineering services (+6,500), computer design and related services (+4,300 jobs), and R&D and testing labs (+1,900 jobs).

"Texas’s high-tech industry is back on track after several years of job losses following the bursting of the tech bubble in 2001,” said Sue Dark, Chairman of the AeA Texas Council. "Present indicators are encouraging. Employment is growing and is dispersed across a variety of sectors. The average tech industry wage in the Lone Star State pays 84 percent more than the average private sector wage. And venture capital investments rose by 28 percent in 2006.”

“If we want to see continued job growth in the years to come we have to address the number one issue confronting the tech industry in Texas: access to a qualified workforce,” continued Dark. “Our technology companies both large and small face no greater challenge than their inability to recruit workers with the skills and education needed to help expand operations and spur future innovation. They cannot recruit enough science and engineering graduates from our state universities, and they face ridiculous bureaucracy in trying to bring highly skilled and educated foreign nationals into the country. Unless we resolve these problems, future job growth is not assured."

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 Texas?

• 445,800 high-tech workers (2nd ranked cyberstate)
   

• 10,300 jobs added between 2004 and 2005
   

• High-tech firms employed 56 of every 1,000 private sector workers in 2005, ranked 16th nationwide
   

• High-tech workers earned an average wage of $75,400 (12th ranked), or 84 percent more than Texas's average private sector wage
   

• A high-tech payroll of $33.6 billion in 2005, ranked 2nd nationwide
   

• 22,500 high-tech establishments in 2005, ranked 2nd nationwide
   

• Venture capital investments of $1.4 billion in 2006, up 28 percent from $1.1 billion in 2005
   

• R&D expenditures of $14.4 billion in 2004, ranked 5th nationwide

Texas’s National Industry Sector Rankings:

• 1st in computer training employment with 1,800 jobs
   

• 2nd in engineering services with 81,400 jobs
   

• 2nd in computer and peripheral equipment manufacturing employment with 21,700 jobs
   

• 2nd in semiconductor manufacturing employment with 35,100 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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