Georgia’s Tech Industry Adds 3,000 Jobs
Venture Capital Investments Rise in Georgia for Second Straight Year

Alpharetta, GA (April 2, 2008) – AeA, the nation’s largest technology trade association representing all segments of the high-tech industry, released today its 11th annual Cyberstates report detailing national and state trends in high-tech employment, wages, and other key economic factors. Cyberstates 2008: A Complete State-by-State Overview of the High-Technology Industry is a 148-page report and is available for downloading.

Georgia's high-tech industry added 3,000 net jobs to its economy, totaling 165,500 in 2006, the most current state data available. This is the first net job gain since the bursting of the tech bubble in 2001. Despite this growth, Maryland grew faster moving Georgia from 11th to 12th largest cyberstate by tech industry employment. The average Georgia tech worker earned $75,900 in 2006 or 86 percent more than the state’s average private sector wage of $40,800.

Tech industry job gains in 2006 were led by engineering services (+1,700 jobs), computer systems design and related services (+1,000 jobs), and Internet services, which rebounded from job losses last year to add 900 jobs. The largest job losses continued to be in telecommunications services, which shed 1,300 jobs. High-tech manufacturing recorded a modest loss of 200 net jobs in 2006.

Venture capital investments in Georgia rose 30 percent in 2007, totaling $463 million, up from $355 million in 2006. This ranks Georgia 14th nationwide. These gains come on top of a $100 million, or 39 percent increase between 2005 and 2006.

"Georgia’s high-tech industry has finally turned the corner, adding jobs for the first time since the bursting of the tech bubble in 2001,” said Jon Van Duyne, Chair of the AeA Southeast Council. "We are by no means certain that this growth will continue, but the fact that venture capital investments in the Peach State increased in both 2006 and 2007 is an encouraging sign. This is often a leading indicator of future growth in the technology industry.”

“Georgia’s best shot at continuing to grow its high-tech industry is to address its competitiveness issues,” added Van Duyne. “State and local officials need to work to improve math and science curricula in our K-12 system, to do everything they can to continue to attract venture capital to the state, to promote research at our universities, and to invest in the state’s decaying and increasingly clogged infrastructure. To that end, AeA was proud to help pass the Georgia telework bill, which provides incentives to allow employees to work from home, which increases productivity and reduces congestion on our roads."

Nationally, Cyberstates 2008 shows that the high-tech industry added jobs for the third consecutive year. Tech industry employment totaled 5.9 million, after adding 91,400 jobs in
2007. This is on top of job gains of 139,000 in 2006 and 87,400 in 2005.

This 11th edition of Cyberstates provides a comprehensive review of the high-tech industry nationally and state-by-state in terms of high-tech employment, wages, payroll, and establishments. Cyberstates also offers data on venture capital investments and R&D expenditures.

Two other major AeA cyber reports are forthcoming that analyze the U.S. high-tech industry: Cybercities 2008: An Overview of the High-Technology Industry in the Nation’s Top 60 Cities, and Trade in the Cyberstates 2008: A State-by-State Overview of High-Tech International Trade.

Cyberstates 2008 can be purchased for $125 for AeA members and $250 for non-members. Visit www.aeanet.org/cyberstates to download the report, or call 408.987.4200. 

What Does High Tech Mean for Georgia?

• 165,500 high-tech workers in 2006 (12th ranked cyberstate)
   

• 3,000 jobs added between 2005 and 2006
   

• High-tech firms employed 49 of every 1,000 private sector workers in 2006, ranked 20th nationwide
   

• High-tech workers earned an average wage of $75,900 (15th ranked), or 86 percent more than Georgia's average private sector wage
   

• A high-tech payroll of $12.6 billion in 2006, ranked 14th nationwide
   

• 11,800 high-tech establishments in 2006, ranked 9th nationwide
   

• Venture capital investments of $463 million in 2007, up 30 percent from $355 million in 2006, ranked 14th nationwide
   

• R&D expenditures of $4.1 billion in 2004, ranked 20th nationwide

Georgia’s National Industry Sector Rankings:

• 5th in telecommunications services employment with 45,800 jobs
   

• 6th in software publishers employment with 11,000 jobs
   

• 6th in Internet services employment with 18,400 jobs

Source: Cyberstates 2008

Data are for 2006 unless otherwise noted.

2006 state data are the most current available for employment, wages, payroll, establishments, and industry sector jobs.

Published by AeA, Advancing the Business of Technology (www.aeanet.org)

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About AeA

AeA, the nation’s largest technology trade association, representing all segments of the high-tech industry, is dedicated solely to helping our members’ top line and bottom line. We do this in partnership with our small, medium, and large member companies by lobbying governments at the state, federal, and international levels, providing access to capital and business opportunities, and offering select business services and networking programs. For more information, please visit http://www.aeanet.org.   

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