Washington’s Tech Industry Adds 4,500 Jobs
Venture Capital Investments in Washington Up 24 Percent in 2006

Lynnwood, WA (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.

Washington’s high-tech industry added 4,500 jobs for a total of 156,500 in 2005, the most current state data available. Also encouraging is that in 2006, venture capital investments in Washington rose by 24 percent, to just over $1 billion, the 5th highest in the country.

Washington’s largest and fastest growing sector remains software publishers, which grew by 2,100 net jobs in 2005 for a total of 41,100 jobs. Washington ranks 2nd in the country in this sector, behind only California. Other sectors that experienced significant growth in 2005 included Internet services (+1000 jobs), engineering services (+900 jobs), and computer systems design and related services (+900 jobs).

"Washington’s tech industry remains vibrant and growing,” says David Anastasi, President & CEO of Captaris. "Many people are aware that our software industry is one of the Evergreen State’s greatest strengths, but they may not realize how fast it continues to grow. And they may not realize that several other service sectors are growing or that a broad set of investors continue to find Washington an attractive place to invest their capital.”

“Washington still faces a number of challenges going forward. We are not graduating enough scientists and engineers to maintain this growth,” says Jeff Severs, CEO of SprayCool in Spokane. “Go to the websites of Washington’s technology companies – large and small – and you’ll find thousands of positions going unfilled because companies cannot hire enough qualified graduates from our universities and they cannot recruit talented foreign nationals due to visa restrictions. This does not bode well for the state’s economic future."

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 Washington?

• 156,500 high-tech workers (14th ranked cyberstate)
   

• 4,500 jobs added between 2004 and 2005
   

• High-tech firms employed 69 of every 1,000 private sector workers in 2005, ranked 10th nationwide
   

• High-tech workers earned an average wage of $83,700 (4th ranked), or 108 percent more than Washington's average private sector wage
   

• A high-tech payroll of $13.1 billion in 2005, ranked 10th nationwide
   

• 6,800 high-tech establishments in 2005, ranked 17th nationwide
   

• Venture capital investments of $1.0 billion in 2006, up 24 percent from $814 million in 2005
   

• R&D expenditures of $10.9 billion in 2004, ranked 10th nationwide

Washington's National Industry Sector Rankings:

• 2nd in software publishers employment with 41,100 jobs
   

• 8th in electromedical equipment manufacturing employment with 3,500 jobs
   

• 12th in R&D and testing labs employment with 19,400 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 04/24/07.               
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