Massachusetts is the Nation's Fifth Ranked High-Tech State; State's Techies Earn $64,400.

Business/High-Tech Editors

WOBURN, Mass.--(BUSINESS EDITORS)--May 17, 2000

Massachusetts's high-technology industry continues to rebound, adding 25,100 technology jobs between 1993 and 1998, according to Cyberstates 4.0: A State-by-State Overview of the High-Technology Industry, a new analytical report released today by the American Electronics Association (AEA) and The Nasdaq Stock Market. The study found that Massachusetts employed 216,700 high-tech industry workers in 1998, adding technology jobs every year since 1994.

AEA's Cyberstates 4.0 reports that Massachusetts is the country's fifth largest high-tech state, behind California, Texas, New York, and Illinois. The state's high-tech industry workforce earned an average wage of $64,400 in 1998, or 70 percent more than the average private sector wage.

Cyberstates 4.0 also examines 1999 electronics merchandise exports from each state. The study found that Massachusetts is one of the nation's leading technology exporters. Overseas sales of electronics products from the state totaled $9.1 billion last year. This represents 54 percent of all exports from the state.

Two new features in this edition of Cyberstates include data on venture capital investments and research and development expenditures. Massachusetts ranked second nationwide by venture capital investments in 1999 at $3.7 billion, and fifth in R&D, at $11.1 billion.

"The 25,100 new high-tech jobs in Massachusetts demonstrate the renewed vibrancy of the state's tech industry today. As the second ranked state by venture capital investments last year, investors have indicated their confidence in Massachusetts companies," said Tom Leonard, Chairman of the Board of Alpha Industries, and Chairman of AEA's New England Council.

Nationally, Cyberstates 4.0 shows that the high-tech industry has added 1.2 million new jobs since 1993. High-tech industry employment reached a projected five million workers in 1999.

Cyberstates 4.0 is the fourth and most comprehensive edition of AEA's Cyberstates reports. The study includes chapters on national employment and wages in the technology industry. It also measures the economic importance of high tech in each state, using the most recent U.S. government data on jobs, payroll, wages, and exports. The report includes one-page overviews for all 50 states, Puerto Rico, and the District of Columbia, detailing these statistics along with growth and leading industry segments.

AEA members can purchase the Cyberstates 4.0 report for $95; non-members for $190. Call AEA at 800-284-4232 or 408-987-4200.

The American Electronics Association is the nation's largest high-tech trade group, representing over 3,000 U.S.-based technology companies. Membership spans the industry product and service spectrum, from semiconductors and software to computers, Internet and telecommunications systems and services. With 18 regional U.S. councils and offices in Brussels, Tokyo, and Beijing, AEA offers a unique global policy grassroots capability and a wide portfolio of valuable business services and products for the high-tech industry. For 56 years, AEA has been the accepted voice of the U.S. technology community.

     What Does High Tech Mean for Massachusetts?

     --   216,654 high-tech workers (5th ranked cyberstate), adding
          25,129 jobs between 1993 and 1998

     --   Massachusetts ranked 3rd in terms of high-tech employment
          concentration with 79 high-tech workers for every 1,000
          private sector workers

     --   High-tech workers earned an average wage of $64,404, or 70%
          more than the average private sector wage

     --   Massachusetts's average high-tech wage increased 22%, or by
          $11,500, between 1993 and 1998, adjusted for inflation

     --   A high-tech payroll of $14 billion (4th ranked cyberstate)

     --   Nearly 7,500 high-tech establishments

     --   High-tech exports totaled $9.1 billion in 1999 (3rd ranked
          cyberstate)

     --   Massachusetts's high-tech exports made up 54% of the total
          exports from the state in 1999

     --   Venture capital investments of $3.7 billion in 1999 (2nd
          ranked cyberstate)

     --   R&D expenditures in Massachusetts of $11.1 billion in 1997

     Massachusetts's National Industry Segment Rankings:

     --   2nd in industrial electronics manufacturing employment with
          21,000 jobs

     --   3rd in computers and office equipment manufacturing
          employment with 27,600 jobs

     --   4th in software services employment with 46,500 jobs

Source: Cyberstates 4.0, data are for 1998 unless otherwise noted Published by the American Electronics Association (www.aeanet.org)