Science and Technology in the Economy

Net High-Technology Business Formations as Share of All Business Establishments: 2004

  • 1st quartile
    (0.45%–0.21%)
  • 2nd quartile
    (0.20%–0.14%)
  • 3rd quartile
    (0.13%–0.08%)
  • 4th quartile
    (0.06%– −0.21%)

Quartiles

Net high-technology business formations as share of all business establishments: 2004
 
1st quartile
(0.45%–0.21%)
2nd quartile
(0.20%–0.14%)
3rd quartile
(0.13%–0.08%)
4th quartile
(0.06% to -0.21%)
 
Arizona Arkansas Alaska Alabama
Colorado Hawaii California Connecticut
District of Columbia Illinois Idaho Delaware
Florida Indiana Kentucky Iowa
Georgia Maine Massachusetts Louisiana
Kansas New York Minnesota Michigan
Maryland Oregon Missouri Mississippi
Montana Pennsylvania Nebraska New Jersey
Nevada South Carolina New Hampshire North Dakota
North Carolina Vermont New Mexico South Dakota
Rhode Island Washington Ohio Tennessee
Utah Wisconsin Oklahoma West Virginia
Virginia Wyoming Texas  
 
SOURCE: Census Bureau, 1989–2004 Business Information Tracking Series, special tabulations. See Data Table.

Findings

  • In 2004, 11,598 net new businesses in high-technology industries were formed in the United States. From a base of approximately 7 million total business establishments, 84,155 new business establishments were formed in high-technology industries and 72,557 ceased operation in those same industries.
  • Net business formations cannot be used to directly link the number of high-technology business establishments in 2003 and 2004. In addition to the births and deaths that occurred during 2004, the total number of 2004 high-technology establishments also includes business establishments that were reclassified during 2004. There were 12,387 establishments that were in operation in both 2003 and 2004 and were classified in a high-technology NAICS code in 2003 but not in 2004. Similarly, there were 14,014 establishments that were in operation in both 2003 and 2004 that were not classified with a high-technology NAICS code in 2003 but acquired one in 2004.
  • Four states had net losses of business establishments in high-technology industries in 2004.
  • Utah and Virginia showed the highest rates of net high-technology business formations in 2004. However, the largest numbers of net new businesses were formed in Florida and California.

Description

The business base of a state is constantly changing as new businesses form and others cease to function. The term net business formations refers to the difference between the number of businesses that are formed and the number that cease operations during any particular year. This difference can be small or can vary considerably from year to year.

The ratio of the number of net business formations that occur in high-technology industries to the number of business establishments in a state indicates the changing role of high-technology industries in a state's economy. High positive values indicate an increasingly prominent role for these industries.

The data on business establishments in high-technology industries for 2003 and 2004 were based on their classification according to the 2002 edition of the North American Industry Classification System (NAICS). A list of the 46 industries (by 4-digit NAICS code) that are defined as high-technology can be found in the Technical Note at the end of this chapter. Data for earlier years are not directly comparable. Company births and deaths are determined from Employer Identification Numbers in the Census Bureau records; thus, changes in company name, ownership, or address are not counted as business formations or business deaths.

Data Table

Table 8-42
Net high-technology business formations as share of all business establishments, by state: 2004
 
State Net high-technology business formations All business
establishments
High-technology
formations/business establishments (%)
 
United States 11,598 7,366,978 0.16
Alabama 63 100,521 0.06
Alaska 22 19,309 0.11
Arizona 357 125,330 0.28
Arkansas 123 65,127 0.19
California 1,099 838,615 0.13
Colorado 490 146,937 0.33
Connecticut -47 92,710 -0.05
Delaware -52 25,344 -0.21
District of Columbia 66 19,503 0.34
Florida 1,743 483,693 0.36
Georgia 642 214,200 0.30
Hawaii 51 31,538 0.16
Idaho 54 41,205 0.13
Illinois 452 315,093 0.14
Indiana 208 149,050 0.14
Iowa 12 81,334 0.01
Kansas 160 75,600 0.21
Kentucky 116 91,598 0.13
Louisiana -38 102,866 -0.04
Maine 81 41,131 0.20
Maryland 475 135,699 0.35
Massachusetts 156 175,426 0.09
Michigan 44 237,392 0.02
Minnesota 185 148,276 0.12
Mississippi 7 60,364 0.01
Missouri 195 153,584 0.13
Montana 108 34,570 0.31
Nebraska 64 50,803 0.13
Nevada 169 55,713 0.30
New Hampshire 30 38,707 0.08
New Jersey -80 240,013 -0.03
New Mexico 37 44,071 0.08
New York 702 509,873 0.14
North Carolina 514 212,457 0.24
North Dakota -1 20,763 0.00
Ohio 204 271,078 0.08
Oklahoma 75 87,180 0.09
Oregon 156 104,966 0.15
Pennsylvania 474 300,832 0.16
Rhode Island 67 29,900 0.22
South Carolina 175 100,947 0.17
South Dakota 16 24,693 0.06
Tennessee 39 131,355 0.03
Texas 401 489,782 0.08
Utah 283 62,644 0.45
Vermont 42 22,072 0.19
Virginia 845 188,533 0.45
Washington 346 170,848 0.20
West Virginia 16 40,732 0.04
Wisconsin 215 143,739 0.15
Wyoming 37 19,262 0.19
       
Puerto Rico NA NA NA
 

NA = not available

SOURCE: Census Bureau, 1989–2004 Business Information Tracking Series, special tabulations.

Science and Engineering Indicators 2008

Excel.Source Data
  • 1st quartile
    (0.45%–0.21%)
  • 2nd quartile
    (0.20%–0.14%)
  • 3rd quartile
    (0.13%–0.08%)
  • 4th quartile
    (0.06%– −0.21%)

Quartiles

Net high-technology business formations as share of all business establishments: 2004
 
1st quartile
(0.45%–0.21%)
2nd quartile
(0.20%–0.14%)
3rd quartile
(0.13%–0.08%)
4th quartile
(0.06% to -0.21%)
 
Arizona Arkansas Alaska Alabama
Colorado Hawaii California Connecticut
District of Columbia Illinois Idaho Delaware
Florida Indiana Kentucky Iowa
Georgia Maine Massachusetts Louisiana
Kansas New York Minnesota Michigan
Maryland Oregon Missouri Mississippi
Montana Pennsylvania Nebraska New Jersey
Nevada South Carolina New Hampshire North Dakota
North Carolina Vermont New Mexico South Dakota
Rhode Island Washington Ohio Tennessee
Utah Wisconsin Oklahoma West Virginia
Virginia Wyoming Texas  
 
SOURCE: Census Bureau, 1989–2004 Business Information Tracking Series, special tabulations. See Data Table.

Findings

  • In 2004, 11,598 net new businesses in high-technology industries were formed in the United States. From a base of approximately 7 million total business establishments, 84,155 new business establishments were formed in high-technology industries and 72,557 ceased operation in those same industries.
  • Net business formations cannot be used to directly link the number of high-technology business establishments in 2003 and 2004. In addition to the births and deaths that occurred during 2004, the total number of 2004 high-technology establishments also includes business establishments that were reclassified during 2004. There were 12,387 establishments that were in operation in both 2003 and 2004 and were classified in a high-technology NAICS code in 2003 but not in 2004. Similarly, there were 14,014 establishments that were in operation in both 2003 and 2004 that were not classified with a high-technology NAICS code in 2003 but acquired one in 2004.
  • Four states had net losses of business establishments in high-technology industries in 2004.
  • Utah and Virginia showed the highest rates of net high-technology business formations in 2004. However, the largest numbers of net new businesses were formed in Florida and California.

Description

The business base of a state is constantly changing as new businesses form and others cease to function. The term net business formations refers to the difference between the number of businesses that are formed and the number that cease operations during any particular year. This difference can be small or can vary considerably from year to year.

The ratio of the number of net business formations that occur in high-technology industries to the number of business establishments in a state indicates the changing role of high-technology industries in a state's economy. High positive values indicate an increasingly prominent role for these industries.

The data on business establishments in high-technology industries for 2003 and 2004 were based on their classification according to the 2002 edition of the North American Industry Classification System (NAICS). A list of the 46 industries (by 4-digit NAICS code) that are defined as high-technology can be found in the Technical Note at the end of this chapter. Data for earlier years are not directly comparable. Company births and deaths are determined from Employer Identification Numbers in the Census Bureau records; thus, changes in company name, ownership, or address are not counted as business formations or business deaths.

Data Table

Table 8-42
Net high-technology business formations as share of all business establishments, by state: 2004
 
State Net high-technology business formations All business
establishments
High-technology
formations/business establishments (%)
 
United States 11,598 7,366,978 0.16
Alabama 63 100,521 0.06
Alaska 22 19,309 0.11
Arizona 357 125,330 0.28
Arkansas 123 65,127 0.19
California 1,099 838,615 0.13
Colorado 490 146,937 0.33
Connecticut -47 92,710 -0.05
Delaware -52 25,344 -0.21
District of Columbia 66 19,503 0.34
Florida 1,743 483,693 0.36
Georgia 642 214,200 0.30
Hawaii 51 31,538 0.16
Idaho 54 41,205 0.13
Illinois 452 315,093 0.14
Indiana 208 149,050 0.14
Iowa 12 81,334 0.01
Kansas 160 75,600 0.21
Kentucky 116 91,598 0.13
Louisiana -38 102,866 -0.04
Maine 81 41,131 0.20
Maryland 475 135,699 0.35
Massachusetts 156 175,426 0.09
Michigan 44 237,392 0.02
Minnesota 185 148,276 0.12
Mississippi 7 60,364 0.01
Missouri 195 153,584 0.13
Montana 108 34,570 0.31
Nebraska 64 50,803 0.13
Nevada 169 55,713 0.30
New Hampshire 30 38,707 0.08
New Jersey -80 240,013 -0.03
New Mexico 37 44,071 0.08
New York 702 509,873 0.14
North Carolina 514 212,457 0.24
North Dakota -1 20,763 0.00
Ohio 204 271,078 0.08
Oklahoma 75 87,180 0.09
Oregon 156 104,966 0.15
Pennsylvania 474 300,832 0.16
Rhode Island 67 29,900 0.22
South Carolina 175 100,947 0.17
South Dakota 16 24,693 0.06
Tennessee 39 131,355 0.03
Texas 401 489,782 0.08
Utah 283 62,644 0.45
Vermont 42 22,072 0.19
Virginia 845 188,533 0.45
Washington 346 170,848 0.20
West Virginia 16 40,732 0.04
Wisconsin 215 143,739 0.15
Wyoming 37 19,262 0.19
       
Puerto Rico NA NA NA
 

NA = not available

SOURCE: Census Bureau, 1989–2004 Business Information Tracking Series, special tabulations.

Science and Engineering Indicators 2008

Excel.Source Data
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