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Chapter 8. State Indicators

Science and Technology in the Economy

High-technology establishments as a percentage of all business establishments



Findings

  • The number of establishments in high-technology industries rose from about 590,000 in 2003 to more than 646,000 in 2008, an increase of 56,000 or 9%.
  • The percentage of U.S. establishments in high-technology industries went from 8.17% to 8.52% of the total business establishments during the 2003–08 period, and most states showed an upward trend in the percentage of their establishments in high-technology industries.
  • Between 2003 and 2008, the largest growth in the number of establishments in high-technology industries occurred in California and Florida, which added 8,700 and 6,200 establishments, respectively.
  • The state distribution of this indicator is similar to that of three other indicators: bachelor's degree holders, S&E doctoral degree holders, and S&E occupations, all expressed as a share of the workforce.
  • EPSCoR states have a lower average value on this indicator than non-EPSCoR states.


Description

This indicator represents the portion of a state's business establishments that are classified as being part of high-technology industries. High-technology industries are defined as those in which the proportion of employees in technology-oriented occupations is at least twice the average proportion for all industries. High-technology occupations include scientific, engineering, and technician occupations that employ workers who generally possess in-depth knowledge of the theories and principles of science, engineering, and mathematics at a postsecondary level.

States often consider such industries desirable, in part because they tend to compensate workers better than other industries do. This indicator does not take into account establishment size. Each establishment with an employer identification number is counted without regard to the number of its employees.

The data pertaining to establishments for the years 2003 and later are based on their classification according to the 2002 edition of the North American Industry Classification System (NAICS). See table 8-A in the "Introduction" for a list of the 46 industries (by 4-digit NAICS code) that are defined as high technology. Data for years prior to 2003 are not directly comparable.

Data Table

Table 8-52
High-technology establishments as a percentage of all business establishments, by state: 2003, 2006, and 2008
 
  High-technology establishments   All business establishments   High-technology/business establishments (%)
State 2003 2006 2008   2003 2006 2008   2003 2006 2008
 
EPSCoR states 83,464 88,790 91,126   1,202,246 1,255,900 1,261,851   6.94 7.07 7.22
Non-EPSCoR states 504,364 541,875 551,958   6,001,637 6,308,168 6,304,793   8.40 8.59 8.75
Average EPSCoR state value na na na   na na na   7.08 7.17 7.31
Average non-EPSCoR state value na na na   na na na   8.23 8.40 8.57
 
United States 590,417 633,727 646,195   7,223,240 7,585,035 7,587,695   8.17 8.35 8.52
Alabama 6,347 6,613 6,754   99,453 103,236 103,690   6.38 6.41 6.51
Alaska 1,345 1,494 1,489   19,037 19,838 19,870   7.07 7.53 7.49
Arizona 10,433 11,942 12,269   120,966 137,532 139,876   8.62 8.68 8.77
Arkansas 4,012 4,373 4,675   64,058 66,647 66,558   6.26 6.56 7.02
California 77,614 85,514 86,312   822,751 875,682 876,984   9.43 9.77 9.84
Colorado 15,532 17,259 18,047   143,398 154,254 156,426   10.83 11.19 11.54
Connecticut 7,827 7,810 7,736   91,207 93,232 92,428   8.58 8.38 8.37
Delaware 3,964 3,700 3,407   24,739 25,563 25,134   16.02 14.47 13.56
District of Columbia 2,589 3,062 3,111   19,357 20,967 21,051   13.38 14.60 14.78
Florida 38,118 43,678 44,285   458,823 516,185 506,466   8.31 8.46 8.74
Georgia 18,820 20,825 21,402   208,350 225,577 227,233   9.03 9.23 9.42
Hawaii 2,097 2,325 2,294   30,950 33,063 32,862   6.78 7.03 6.98
Idaho 2,515 2,912 3,083   39,582 45,599 46,133   6.35 6.39 6.68
Illinois 27,606 28,821 29,265   310,589 320,756 321,441   8.89 8.99 9.10
Indiana 9,626 10,158 10,132   147,073 151,024 149,891   6.55 6.73 6.76
Iowa 4,316 4,548 4,659   80,745 82,542 82,207   5.35 5.51 5.67
Kansas 5,716 6,035 6,004   74,637 76,261 75,958   7.66 7.91 7.90
Kentucky 5,453 5,769 5,893   90,358 92,700 92,471   6.03 6.22 6.37
Louisiana 7,218 7,439 7,670   101,933 101,647 103,877   7.08 7.32 7.38
Maine 2,466 2,612 2,642   40,519 41,941 41,683   6.09 6.23 6.34
Maryland 13,428 14,632 15,009   132,782 140,021 138,416   10.11 10.45 10.84
Massachusetts 17,183 17,107 17,434   177,910 174,997 173,933   9.66 9.78 10.02
Michigan 16,937 17,049 16,773   236,221 235,245 228,890   7.17 7.25 7.33
Minnesota 12,834 13,348 13,257   145,364 150,896 148,641   8.83 8.85 8.92
Mississippi 3,269 3,336 3,469   59,565 60,442 60,793   5.49 5.52 5.71
Missouri 9,562 10,130 10,178   149,753 154,177 152,165   6.39 6.57 6.69
Montana 2,108 2,415 2,564   33,616 36,550 37,228   6.27 6.61 6.89
Nebraska 2,797 3,072 3,269   50,213 51,822 52,064   5.57 5.93 6.28
Nevada 5,387 5,975 6,024   53,080 61,061 61,721   10.15 9.79 9.76
New Hampshire 3,511 3,554 3,603   38,119 39,273 38,812   9.21 9.05 9.28
New Jersey 24,286 24,534 24,307   237,097 242,649 238,080   10.24 10.11 10.21
New Mexico 3,322 3,553 3,635   43,386 45,814 46,091   7.66 7.76 7.89
New York 35,926 37,346 38,308   500,559 514,992 517,873   7.18 7.25 7.40
North Carolina 14,869 16,908 17,582   207,500 221,898 224,757   7.17 7.62 7.82
North Dakota 964 1,035 1,117   20,371 21,286 21,514   4.73 4.86 5.19
Ohio 19,875 20,347 20,127   269,202 269,398 263,353   7.38 7.55 7.64
Oklahoma 6,859 7,301 7,536   85,633 89,440 91,186   8.01 8.16 8.26
Oregon 7,500 8,083 8,525   102,462 110,317 111,266   7.32 7.33 7.66
Pennsylvania 22,266 23,486 23,930   297,040 303,507 302,568   7.50 7.74 7.91
Rhode Island 1,976 2,059 2,076   29,172 30,322 29,713   6.77 6.79 6.99
South Carolina 5,869 6,551 6,978   98,735 105,060 106,501   5.94 6.24 6.55
South Dakota 1,206 1,266 1,397   24,314 25,419 25,624   4.96 4.98 5.45
Tennessee 8,196 8,772 8,882   129,458 134,776 136,321   6.33 6.51 6.52
Texas 45,062 47,520 49,419   481,804 508,092 521,383   9.35 9.35 9.48
Utah 5,474 6,531 6,913   60,011 68,612 71,301   9.12 9.52 9.70
Vermont 1,453 1,535 1,548   21,747 22,261 22,067   6.68 6.90 7.01
Virginia 18,868 21,678 22,482   182,783 196,849 197,376   10.32 11.01 11.39
Washington 13,171 14,411 15,116   166,229 179,368 181,688   7.92 8.03 8.32
West Virginia 2,257 2,308 2,343   40,225 40,480 39,579   5.61 5.70 5.92
Wisconsin 9,035 9,438 9,609   141,560 145,590 143,830   6.38 6.48 6.68
Wyoming 1,353 1,558 1,656   18,804 20,175 20,722   7.20 7.72 7.99
                       
Puerto Rico NA NA NA   NA NA NA   NA NA NA
 

na = not applicable; NA = not available

EPSCoR = Experimental Program to Stimulate Competitive Research

NOTE: For explanation of EPSCoR and non-EPSCoR averages, see chapter introduction.

SOURCE: Census Bureau, special tabulations (2011) of 1989–2008 Business Information Tracking Series.

Science and Engineering Indicators 2012

Source Data

State Data Tool

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