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Technology Alliance Announces Results of Latest Study of the Economic Impact of Technology-based Industries in Washington State
Technology - based industries account for the largest share of state employment of any major sector; state ranks 3rd nationally in concentration of technology-based industries
SEATTLE, December 1, 2004 - The Technology Alliance (TA), a statewide consortium of leaders from business, research institutions, and high-tech trade associations dedicated to Washington's long-term economic success, today announced key findings of a new study, The Economic Impact of Technology-based Industries in Washington State, at the 2004 Northwest Innovation Summit co-produced by the TA and TechNet. The study, performed by William B. Beyers and Stephen J. Hyde of the University of Washington, was commissioned by the TA to analyze trends in technology-related employment in the state and assess the size and strength of Washington's technology sector relative to other states.
The study found that technology-based industries accounted for the largest share of employment, labor income and business activity of any major sector in the Washington state economy in 2003. Technology-based industries, defined as those having at least 10% of their employment engaged in R&D occupations, directly and indirectly accounted for 45% of total state employment. The total number of jobs in Washington directly or indirectly attributable to technology-based industries exceeded 1.1 million last year. At over $91,000, the average income for those employed in technology-based industries was 93% above the state average.
"Our study of Washington's technology-based industries shows this sector is increasingly important to our state's overall economic health," noted Tom Alberg, chair of the TA board and managing director at Madrona Venture Group. "The growth of technology-based employment has significantly outpaced that of the state economy as a whole, and these jobs are found in every county of the state. The data should serve to demonstrate to business leaders, policymakers and citizens the extent to which our state's economic future depends upon the continued growth of technology-based industries here in Washington."
The study measured the growing importance of Washington's technology-based industries to the state economy over the past three decades. Between 1974 and 2003, direct, private sector employment in technology-based industries increased 213%, compared to 92% growth of total statewide employment growth during the same period. Technology-based employment as a share of total state employment has grown from 6.7% to 11.8% over the last thirty years.
The study found that technology-based industries employ people across the entire state. Over half of the roughly 313,000 jobs in technology-based industries in Washington are located in King County, the largest concentration of technology-related employment in the state. However, more than 11,000 people are employed by this sector in each of five other counties - Snohomish, Pierce, Clark, Benton and Spokane. A number of other counties across the state have smaller concentrations of technology-related employment, including Whatcom, Kitsap, Thurston, Yakima and Whitman counties. Washington ranks 3rd in the nation in concentration of technology-based industries in the state as a whole.
The TA periodically assesses employment trends and other indicators of the strength of Washington's technology sector. Previous economic impact studies were produced in 1996, 1998, and 2001. The full 2004 study will be made available online at www.technology-alliance.com. This study was made possible by the generous support of Raven Foundation and CH2M Hill.