High Science, Engineering, and Technology Employment Establishments as a Percentage of All Business Establishments (Percent)
This indicator represents the portion of a state's business establishments that are classified as being part of industries with high employment in science, engineering, and technology (SET) occupations. High SET employment 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. SET 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 seek to attract such industries because their relatively high compensation levels draw workers and increase state tax revenues. This indicator does not take into account establishment size, as each establishment is counted without regard to the number of its employees. See indicator S-54 for data on employment concentration in high SET employment industries.
The U.S. Census Bureau tracks information on establishments, which it defines as single locations at which business is conducted or where services or industrial operations are performed. An establishment is not necessarily identical with a company or enterprise, which may consist of one establishment or more.
The data on business establishments in high SET employment industries for the years 2003–08 are based on the establishments’ classification according to the 2002 edition of the North American Industry Classification System (NAICS). The data for the years 2009–12 are based on classification according to the 2007 edition of NAICS, and subsequent years use 2012 NAICS codes. See the State Indicators data tool technical notes for a description of how industries are defined as high SET employment. Data for years prior to 2003 are not directly comparable because of the switch to NAICS.
Data source: U.S. Census Bureau, special tabulations of the Business Information Tracking Series.