1. The Economic Impact of Technology-Based Industries in Washington State 2000 William B. Beyers & David P. Lindahl Department of Geography University of Washington

2. Background Two prior TA sponsored studies - benchmarked against 1995 and 1997 The current study is benchmarked against 1999/2000 Goal in the current study: an analysis as similar as possible, to foster comparisons of results Results are broadly comparable, but not in their entirety

3. Overview of Research Project Defining Technology-based Industry Trends in Washington State Technology Employment and Comparison of Washington to Other U.S. States Economic Impact Analysis Conclusions

4. Defining Technology-Based Industry Arbitrary considerations of industries (AEA) Intensity of R&D expenditures Share of labor force in R&D activities Mixtures of the above This TA study: Using consistent definition from U.S. Bureau of Labor Statistics and WA Dept. of Employment Security This definition differs slightly from the two previous studies, expanding covered employment by about 1.4% in 2000

5. Examples of R&D Occupations Engineering, Mathematical & Natural Science Managers Industrial Production Managers Engineers (all categories) Architects, except landscape and marine Civil Engineering Technicians and Technologists Physical Scientists (all categories) Life Scientists (all categories) Computer Programmers Data Base Administrators Mathematical Scientists & related workers (all categories) Social Scientists (all categories)

6. R&D Activity in Washington State

8. Aerospace Other Technology Based Industries - 50,000 100,000 150,000 200,000 250,000 300,000 19741976197819801982198419861988199019921994199619982000 Employment Trend - Technology Based Industries- Washington State 1974-2000

9. Change in Concentration in Washington State 1985 LQ1995 LQ1997 LQ Manufacturing Aerospace 5.489.3010.69 Computers & Electronic Machinery 0.390.530.92 Machinery & Motor Vehicles 0.300.660.43 Chemicals & Petroleum 1.890.300.43 Specialized Instruments & Devices 1.210.800.83 Biomedical/Biochemical Manufacturing 0.430.720.77 Services Engineering, Research, and Management Consulting Services 0.981.181.09 Software and other Computer Services 0.871.351.39 TOTAL TECHNOLOGY INDUSTRIES 1.101.391.42

10. .73 -.86.86 -.98.98 – 1.13 1.13 – 1.42 Location Quotients.28 -.73 1.42 Concentration of Technology-Based Employment

11. .56 -.69.69 -.93.93 – 1.27 1.27 – 1.94 Location Quotients.35 -.56 1.42 1.94 Concentration of Technology-Intensive Employment

12. Concentration of Non-Aerospace Technology Based Employment.77 -.90.90 – 1.01 1.01 – 1.17 1.17 – 1.47 Location Quotients.30 -.77 0.94

13. Technology Based Employment in Washington Counties 51 - 200 201 - 680 681 – 3,600 3,600 – 176,097 1 - 50 0 176,097 42,046

14. Economic Impact Model Framework

15. Impact Analysis Results Direct Impacts:% Change 1997-2000 Sales Revenue: $71.3 billion17.6% Employment 285,835 7.3% Labor Income $17.5 billion26.1% Taxes $.6 billion26.2% Total Impacts: Sales Revenue $127.4 billion20.6% Employment 1,013,67713.2% Labor Income $39.0 billion27.8% Taxes $2.8 billion-1.7%

16. Total and Direct Impacts by Industry + = Direct Jobs Indirect Jobs Total Jobs Impact Trade Other Industries Services High Tech Mfg. 285,835 727,842 1,013,677 Direct Indirect

17. Job Multipliers by Industry

18. Conclusions Technology-based industry now accounts for 38% of all jobs in Washington State Economic impacts are relatively high due to high wages (87% above average in 2000) Technology-based industries have grown rapidly, expanding from 6.7% to 10.4% of state employment between 1974 and 2000 Washington’s concentration of these industries has remained high compared to the nation R&D activity in Washington State is high relative to the size of our population