The technology sector is “back in the saddle again.” After a wild ride through the early 1990s dot-com boom and a subsequent fall when the bubble burst, high-tech companies are now adding jobs at a pace not seen in more than a decade. Last year, such firms added some 150,000 jobs across the country compared to 87,400 in 2005. In 2005, Texas had the second largest number of workers with about 446,000, behind California (919,322), and ahead of New York, Florida, Virginia, and other leading states in the high-tech industry.
According to a recent report by the American Electronic Association (AeA), tech companies employed approximately 5.8 million people in 2006. The fastest expanding tech businesses last year were software companies, which added about 88,500 jobs. Semiconductor manufacturers increased their worker total by nearly 11,000. On the other hand, communications services and computer and peripheral equipment maker companies lost jobs.
In 2005, the most recent state data available from AeA, Texas added 10,339 tech jobs, compared to California with 14,402. The hike in Texas was fueled by growth in engineering, computer systems design, and semiconductor manufacturing. Florida gained 10,874 new tech workers that year, but has less than 277,000 total employees in tech industries.
While California provides the highest average annual wage for a tech worker at $95,295, high-tech employees in the Lone Star State receive around $75,430 per year. California techies are paid more than double the average private sector wage in that state, while in Texas, the annual salaries of those with high-tech jobs are over 84% higher than the average worker in the private sector. Nationwide, high-tech wages are about 86% above average private-sector salaries. Tech workers make less than $50,000 annually in only seven states and Puerto Rico.
In California, the largest industry sector is computer systems design and related services, while in both Texas and Florida, the chief tech sector is telecommunications services. Texas has about 56 high-tech jobs per 1,000 private sector positions, while California and Florida have 71 and 41, respectively.
A caveat to the above statistics: AeA’s definition of high tech encompasses Internet and telecommunications services along with semiconductors and electronic manufacturing. It does not, however, include the biotech industry, which is an integral and increasing part of general high-tech operations in Texas and elsewhere.
In fact, the biosciences industries are booming across the nation, and some economic observers have even declared the beginning of the “Bio Century.” In the US, about 1.2 million workers take home paychecks from biosciences enterprises. With an almost unlimited wellspring of knowledge to be tapped, every state is strengthening research capabilities in preparation for launching new biosciences activities or expanding those currently in operation.
Biotech has been one of the most sought-after industries and is considered a very attractive candidate by almost every state economic development plan (including Texas’). Drivers in biotech site selection include an appropriate mix of universities, research facilities, incubators, and skilled labor.
Every state and many local communities are always looking to create new organizations, partnerships, and collaborations of joint ventures to entice biotech into their spheres of influence and operation. Among the most important elements in Texas’ arsenal for acquiring and retaining vital high-tech and biosciences projects are the Texas Enterprise Fund and the Emerging Technology Fund. These funds were instrumental in the state’s 363 significant acquisitions or expansions in 2006. . The Lone Star State already has a strong presence in several biosciences sectors, and concerted efforts are underway to cement the state’s position at the forefront of other biosciences fields. Texas is the national leader in agricultural feedstock and chemicals, and continued growth in that sector is expected, especially with the expanding biosciences research facilities at the University of Texas system and Texas A&M University, as well as other places.
To remain a leader in the high-tech arena, Texas must stay vigilant and continually seek ways to increase available workers, strengthen research, and enhance opportunities that encourage ongoing high-tech growth and development across the state. This task becomes even more challenging as major sectors begin to converge in the very tiny but huge world of nanotechnology. The capacity to “think small” will be imperative to future success.