Cyberstates 2001^TM

A State-By-State Overview of the High-Technology Industry

• Introduction

Cyberstates 2001: A State-by-State Overview of the High-Technology Industry is AeA's newest study in the cyber report series. These reports examine the economic importance of the nation’s high-tech industry globally, nationally, and locally. High-tech leaders, policy makers, and the press have found the cyber series useful in better understanding today’s high-tech industry.

Cyberstates 2001 consists of nine chapters detailing national and state trends in employment, wages, and exports. Venture capital investments, research and development expenditures, and computer and Internet home use are also examined. The report includes state rankings for each indicator. This report complements previous AeA cyber reports, including Cybernation 2.0: The U.S. High-Tech Industry and World Markets, and Cybercities: A City-by-City Overview of the High-Technology Industry.

In discussing our top public policy priorities with Congress, the Executive Branch, and State Legislatures,  AeA's Cyber publications provide important statistical information which brings credibilty to our issues. The ability to share state-by-state information on high-tech jobs, employment, and export levels demonstrates the importance of our industry to public policy officials.

• National Findings

The 160-page report Cyberstates 2001 found that technology industry employment reached 5.3 million last year. The report notes that the tech industry grew in 2000 at its slowest rate, 4.6 percent, since 1994-1995. Further, the report found that all states, except Puerto Rico and West Virginia, saw their high-tech industry employment grow between 1999 and 2000. 

Cyberstates 2001 also found that the national average high-tech wage of $64,900 rose from $58,976 in 1998 and was 95 percent greater than the nation’s average private sector wage of $33,200 in 1999, the latest data available. This compares with 67 percent in 1994. U.S. high-tech exports, meanwhile, reached $223 billion last year, a 92 percent increase from $116 billion in 1994. High-tech exports now represent 29 percent of all U.S. exports.

• High-Tech Manufacturing Employment Improved in 2000

Contrary to conventional wisdom, high-tech manufacturing employment rebounded by 18,000 jobs last year compared to a decline of 69,000 jobs between 1998 and 1999, according to the new report. The explosive rate of growth in software and computer-related services jobs diminished by half to 8 percent as compared to 15 percent in 1999. Nonetheless, this industry segment added 145,900 jobs.

Despite the slowdown, the report found that unemployment in many key high-tech professions remained extremely low. For example, unemployment for electrical engineers was 1.1 percent and 1.7 percent for computer programmers in 2000.

• State Findings - California, Texas, New York, Massachusetts, and Florida Leading Cyberstates 

Cyberstates 2001 found that all states, except Puerto Rico and West Virginia, saw their high-tech industry employment grow between 1999 and 2000. California added more than 100,000 tech jobs and Texas created 15,000 last year alone. Virginia and Colorado each added more than 10,000 tech jobs in 2000.

According to Cyberstates 2001, California remains the nation’s technology powerhouse, employing 973,600 workers in 2000. Texas ranked second in overall high-tech employment, with 440,700 workers. New York, Massachusetts and Florida were, respectively, next in the employment rankings. Some states grew much faster than others, thus improving their cyberstates’ rankings. For example, Massachusetts and Florida each climbed one notch to fourth and fifth, respectively. At the same time, Illinois’s slower rate of job growth caused it to drop from fourth to sixth in the rankings. Colorado boasts the highest concentration of technology workers in the nation, with 97 high-tech workers per 1,000 private sector workers, compared with 84 in 1998.

Washington, California, Massachusetts, Virginia, and New Jersey topped the list of cyberstates in high-tech wages. California, Texas, Massachusetts, Florida, and New York led the nation in high-tech exports in 2000. 

For further information, please review our press releases, and read about your state.

This page was last updated on 12/05/01.  
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