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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 nearly 649,000 in 2010, an increase of 10%.
  • The percentage of U.S. establishments in high-technology industries went from 8.17% to 8.79% of the total business establishments during the 2003–10 period, and most states showed an upward trend in the percentage of their establishments in high-technology industries.
  • Between 2003 and 2010, the largest growth in the number of establishments in high-technology industries occurred in California and Florida, which added approximately 8,200 and 6,500 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 workers in S&E occupations, all expressed as a share of the workforce.
  • Experimental Program to Stimulate Competitive Research (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 includes all establishments with an employer identification number regardless of the number of people they employ.

The data pertaining to establishments for the years 2003 to 2008 are based on their classification according to the 2002 edition of the North American Industry Classification System (NAICS). The data for the years 2009 and 2010 are based on their classification according to the 2007 edition of the NAICS. See table 8-A in the chapter introduction for a list of the industries (by NAICS code) that are defined as high technology. Data for years prior to 2003 are not directly comparable.


Data Table

Table 8-53
High-technology establishments as a percentage of all business establishments, by state: 2003, 2007, and 2010
 
High-technology
establishments
All business establishments High-technology/all
business establishments (%)
State 2003 2007 2010 2003 2007 2010 2003 2007 2010
 
EPSCoR states 80,403 87,616 88,727 1,150,925 1,221,996 1,173,884 6.99 7.17 7.56
Non-EPSCoR states 504,364 556,553 553,299 6,001,637 6,392,070 6,135,209 8.40 8.71 9.02
Average EPSCoR state value na na na na na na 7.20 7.34 7.73
Average non-EPSCoR state value na na na na na na 8.23 8.52 8.86
 
United States 590,417 650,707 648,993 7,223,240 7,689,821 7,384,267 8.17 8.46 8.79
Alabama 6,347 6,783 6,786 99,453 105,388 99,097 6.38 6.44 6.85
Alaska 1,345 1,538 1,698 19,037 20,146 19,922 7.07 7.63 8.52
Arizona 10,433 12,540 11,875 120,966 142,649 131,661 8.62 8.79 9.02
Arkansas 4,012 4,550 4,852 64,058 67,513 65,069 6.26 6.74 7.46
California 77,614 87,815 85,787 822,751 889,726 848,238 9.43 9.87 10.11
Colorado 15,532 18,016 18,306 143,398 157,570 151,765 10.83 11.43 12.06
Connecticut 7,827 7,868 7,472 91,207 93,444 89,078 8.58 8.42 8.39
Delaware 3,964 3,573 3,256 24,739 25,476 24,263 16.02 14.02 13.42
District of Columbia 2,589 3,158 3,507 19,357 20,957 21,478 13.38 15.07 16.33
Florida 38,118 44,745 44,577 458,823 522,710 490,492 8.31 8.56 9.09
Georgia 18,820 21,586 21,413 208,350 231,418 216,787 9.03 9.33 9.88
Hawaii 2,097 2,305 2,309 30,950 33,321 31,904 6.78 6.92 7.24
Idaho 2,515 3,107 3,071 39,582 47,284 43,365 6.35 6.57 7.08
Illinois 27,606 29,222 28,886 310,589 324,628 313,654 8.89 9.00 9.21
Indiana 9,626 10,355 10,276 147,073 152,604 144,802 6.55 6.79 7.10
Iowa 4,316 4,679 4,745 80,745 83,008 80,637 5.35 5.64 5.88
Kansas 5,716 6,076 6,144 74,637 76,984 74,163 7.66 7.89 8.28
Kentucky 5,453 5,850 5,913 90,358 93,428 90,665 6.03 6.26 6.52
Louisiana 7,218 7,574 7,850 101,933 104,459 103,234 7.08 7.25 7.60
Maine 2,466 2,612 2,652 40,519 42,409 40,506 6.09 6.16 6.55
Maryland 13,428 15,151 15,589 132,782 141,076 134,417 10.11 10.74 11.60
Massachusetts 17,183 17,470 17,148 177,910 176,304 169,475 9.66 9.91 10.12
Michigan 16,937 17,321 16,555 236,221 234,971 218,752 7.17 7.37 7.57
Minnesota 12,834 13,590 13,014 145,364 151,304 145,247 8.83 8.98 8.96
Mississippi 3,269 3,405 3,496 59,565 61,727 59,196 5.49 5.52 5.91
Missouri 9,562 10,238 9,956 149,753 154,201 149,628 6.39 6.64 6.65
Montana 2,108 2,515 2,593 33,616 37,645 35,950 6.27 6.68 7.21
Nebraska 2,797 3,257 3,361 50,213 52,452 51,803 5.57 6.21 6.49
Nevada 5,387 6,087 6,031 53,080 62,706 59,113 10.15 9.71 10.20
New Hampshire 3,511 3,575 3,539 38,119 39,363 37,385 9.21 9.08 9.47
New Jersey 24,286 24,688 23,686 237,097 242,967 228,577 10.24 10.16 10.36
New Mexico 3,322 3,658 3,611 43,386 46,763 44,134 7.66 7.82 8.18
New York 35,926 38,368 38,636 500,559 518,608 518,527 7.18 7.40 7.45
North Carolina 14,869 17,671 17,967 207,500 227,444 217,768 7.17 7.77 8.25
North Dakota 964 1,075 1,151 20,371 21,477 21,792 4.73 5.01 5.28
Ohio 19,875 20,486 20,180 269,202 269,855 253,136 7.38 7.59 7.97
Oklahoma 6,859 7,512 7,610 85,633 91,054 89,868 8.01 8.25 8.47
Oregon 7,500 8,453 8,587 102,462 113,054 107,181 7.32 7.48 8.01
Pennsylvania 22,266 23,778 23,956 297,040 304,721 296,514 7.50 7.80 8.08
Rhode Island 1,976 2,108 2,071 29,172 30,299 28,477 6.77 6.96 7.27
South Carolina 5,869 6,942 7,010 98,735 107,685 101,902 5.94 6.45 6.88
South Dakota 1,206 1,347 1,426 24,314 25,797 25,562 4.96 5.22 5.58
Tennessee 8,196 8,980 8,702 129,458 137,547 131,302 6.33 6.53 6.63
Texas 45,062 49,237 50,180 481,804 520,405 521,248 9.35 9.46 9.63
Utah 5,474 6,960 7,139 60,011 71,722 68,725 9.12 9.70 10.39
Vermont 1,453 1,570 1,581 21,747 22,298 21,422 6.68 7.04 7.38
Virginia 18,868 22,607 23,623 182,783 200,131 192,780 10.32 11.30 12.25
Washington 13,171 15,138 15,335 166,229 183,984 175,486 7.92 8.23 8.74
West Virginia 2,257 2,352 2,490 40,225 40,415 38,599 5.61 5.82 6.45
Wisconsin 9,035 9,591 9,709 141,560 146,019 139,332 6.38 6.57 6.97
Wyoming 1,353 1,625 1,686 18,804 20,705 20,189 7.20 7.85 8.35
 
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 an explanation of EPSCoR and non-EPSCoR averages, see the chapter introduction.

SOURCE: Census Bureau, special tabulations (2007, 2010, 2013) of the Business Information Tracking Series (various years).

Science and Engineering Indicators 2014


State Data Tool

The state data tool allows interactive exploration of the 58 indicators in this chapter. Users have the ability to choose and explore a single indicator in-depth, compare multiple indicators for preselected groups, customize their own graphics, or download data tables. Click the button below to get started.

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