Minnesota’s Tech Industry Adds 600 Jobs
Venture Capital Investments in Minnesota Rise Sharply for Second Straight Year

Minneapolis, MN (April 2, 2008) – AeA, the nation’s largest technology trade association representing all segments of the high-tech industry, and the Minnesota High Tech Association (MHTA) today released its 11th annual Cyberstates report detailing national and state trends in high-tech employment, wages, and other key economic factors. The report, Cyberstates 2008: 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 added 600 net jobs in 2006, the most current state data available. Minnesota remained the 17th largest cyberstate, employing 128,500 tech workers with a total payroll of $9.2 billion in 2006. These jobs are well compensated at an average of $71,600 – 69 percent more than the state’s average private sector wage.

Tech industry job growth in Minnesota was led by computer systems design and related services (+1,100 jobs), electromedical equipment manufacturing (+600 jobs), and engineering services (+400 jobs). Minnesota saw its largest losses in telecommunications services (-800 jobs) and semiconductor manufacturing (-700 jobs).

Venture capital investments in Minnesota rose 33 percent for a total of $427 million in 2007, up from $320 million in 2006. Minnesota ranks 15th nationwide by this metric.

“The story for Minnesota’s tech industry is good, but not great,” said Wendell Maddox, CEO of ION Corporation and chair of the MHTA board of directors. We added tech jobs in 2006, but the growth was not nearly as fast as in 2005 when we added 2,700 jobs. Nonetheless, we are seeing vibrant growth in some of Minnesota’s strongest and most innovative tech sectors. This report makes clear that technology industries are an important part of our state’s economy.”

MHTA is leading efforts to promote the growth, sustainability and global competitiveness of Minnesota’s technology-based economy through advocacy, collaboration and education. “Examining issues brought forward in this report, such as job creation, venture capital and public policies, will be fully explored at MHTA’s Spring Conference on Global Innovation on April 24” stated Kate Rubin, president of MHTA. 

We have world class research institutions and a highly educated workforce. Our political, academic, and business leaders need to be constantly vigilant that we maintain high math and science standards in Minnesota’s schools to prepare our kids for twenty-first century technology careers.” 

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 Minnesota?

• 128,500 high-tech workers in 2006 (17th ranked cyberstate)
   

• 600 jobs added between 2005 and 2006
   

• High-tech firms employed 56 of every 1,000 private sector workers in 2006, ranked 15th nationwide
   

• High-tech workers earned an average wage of $71,600 (22nd ranked), or 69 percent more than Minnesota's average private sector wage
   

• A high-tech payroll of $9.2 billion in 2006, ranked 17th nationwide
   

• 7,000 high-tech establishments in 2006, ranked 17th nationwide
   

• Venture capital investments of $427 million in 2007, up 33 percent from $320 million in 2006, ranked 15th nationwide
   

• 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 12,600 jobs
   

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

• 7th in electronic component manufacturing employment with 9,400 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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