April 2005
New Economic Impact Study Reveals Importance of Technology-Based Industries to Washington State's Economy
The Technology Alliance recently completed the fourth in a series of studies of the economic impact of technology-based industries in Washington State. The study showed that these industries have become increasingly vital to our state's overall economic health, accounting for the largest share of employment, labor income and business activity of any major sector in the state economy in 2003.
Technology-based industries are defined as those having at least 10% of their employment engaged in research and development (R&D) occupations, a definition consistent with that used by the Washington State Employment Security Department and the U.S. Bureau of Labor Statistics. Among the industries with the highest percentages of their workforce engaged in R&D were software publishers, computer systems design and related services, scientific research and development services, internet publishing and broadcasting, and aerospace product and parts manufacturing.
These industries and others covered by the study directly employed over 313,000 people Washington in 2003. Factoring in multiplier effects, the study found that 1.19 million jobs in the state are attributable to technology-based industries, meaning this sector accounted for 45% of total state employment. The high wages paid by technology-based industries in Washington - the average annual salary is 93% above the state average - contribute to their far-reaching impact on the rest of the state economy.
The proportion of technology-based employment in manufacturing and services industries in Washington has undergone a significant shift since the TA's first economic impact study. That study, released in early 1997, found that manufacturing accounted for nearly 61% of technology-based employment in our state, with services accounting for slightly more than 39% based on data for 1995. Eight years later, the ratio is the reverse: our current study found that 64% of Washington's technology-based employment was in services industries and 36% in manufacturing in 2003.
The study confirmed that Washington is a center of technology-based employment and R&D activity. Washington ranked 3rd in the nation in concentration of technology-based industries, at 34% above the national average. We also ranked 3rd in concentration of technology-intensive industries, defined as those with greater than 30% of employment in R&D.
All of Washington's 39 counties have employment in technology-based industries. While over half of the technology-based jobs are located in King County - the largest concentration within the state - 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-based employment, including Whatcom, Kitsap, Thurston, Yakima and Whitman.
"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 Technology Alliance 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."
To read the full report, click here.
Preview: Technology Alliance 8th Annual State of Technology Luncheon
Each year, over 1,000 leaders from our state's high-tech industries, trade associations, research and academic institutions, business, and government gather to celebrate Washington's progress in growing a strong technology-based economy, making the State of Technology luncheon the premier event for Washington's technology community. The Technology Alliance has an exciting and informative program lined up for this year's luncheon, so don't wait to book your table or ticket to this popular event.
Technology Alliance Celebrates Passage of Life Sciences Discovery Fund and University Technology Transfer Legislation
The Technology Alliance has identified key policy priorities for Washington to be competitive and grow its technology-based economy. Working with leaders from business, academic institutions and the broader community, the TA works to build support for these policies for the benefit of the state and its citizens. In the 2005 state legislative session, the TA and its partners achieved two major victories on key policy initiatives that will support Washington research and commercialization.
Why Dr. Wick Haxton "Digs" the DUSEL: the Proposal to Build a Deep Underground Science & Engineering Laboratory in the Cascades
At the February Science & Technology Roundtable (STRT) breakfast, Dr. Wick Haxton, Professor of Physics at the University of Washington, explained the potential benefits of a proposal to build a Deep Underground Science & Engineering Laboratory (DUSEL) in Cashmere Mountain in the Cascades.
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