NEW REPORT HIGHLIGHTS WORLD'S TOP TECHNOLOGY MARKETS.

High Tech New Comprises 26% Of All US Manufactured Exports

The US high-tech industry exported a record $181 billion in manufactured products in 1999 (26 percent of all U S goods exports), selling at least $1 million in leading-edge tech products to 172 countries worldwide, according to data found in Cybernation 2.0: The US High-Tech Industry and World Markets.

This report, released by the American Electronics Association (AEA) and The Nasdaq Stock Market, is a comprehensive analysis of over 65 markets worldwide where the US exports at least $50 million in high-tech products.

The report shows that the top markets for US high-technology exports in 1999 were Canada, Mexico, Japan, the United Kingdom, and South Korea. The fastest growing large markets between 1993 and 1999 were the Philippines, South Korea, Ireland, Brazil, and Mexico, among countries where the US exports at least $1 billion in electronics. US high-tech manufacturers have also substantially increased their investments in these dynamic markets since 1993.

AEA found that those countries that have successfully established a thriving technology industry like the United States, Canada, Singapore, and the Netherlands share some common characteristics. These include: high Internet, computer, and phone penetration rates, a vibrant venture capital market, access to skilled labor, significant research and development expenditures, low telecom costs, and a new found emphasis on innovation and risk taking.

William T. Archey, AEA President and CEO, said, "High technology has become the driver of successful economies throughout the world. It is clear from these new data that the US high-tech community, with its culture of creativity, flexibility, and innovation, a vibrant venture capital market, and a labor force consisting of the world's best and brightest, is now the model for success in the world's most competitive technology markets."

For example, Singapore with three million consumers and the highest gross domestic product (GDP) per capita in the Asia-Pacific market, is one of the most competitive and open markets in the world. It also has the highest percentage of 24-year-olds with technical degrees in Asia. Singapore possesses a strong venture capital market and is second only to Australia in Internet users per capita within Asia. These ingredients have attracted US tech investment. Singapore ranks second worldwide in US technology manufacturing investment overseas at $7.5 billion, surpassed only by the United Kingdom and ahead of Japan.

AEA also found that the fastest growing tech markets are beginning to adopt the "best practices" of today's successful technology-driven economies. Indeed, the dynamic small Irish economy of 3.7 million people is now the fifth largest US technology export market in Europe and has attracted nearly $2 billion in US manufacturing investment. Ireland boasts a skilled, highly-educated, English speaking workforce and a vibrant venture capital market, ranked third in Europe.

Cybernation 2.0 identifies the leading markets for the US high-technology industry by exports, investment, and Internet, computer, and phone penetration rates. Other general economic indicators included are market size by population and potential market growth using GDP growth rates. Also, Cybernation 2.0 provides data on the relative strengths of venture capital markets, the workforce, and R&D expenditures, worldwide.

Leading US High-Tech Export Markets - 1999

1. Canada                               $29b
2. Mexico                               $22b
3. Japan                                $16b
4. United Kingdom                       $11b
5. South Korea                          $10b
6. Germany                              $ 9b
7. Netherlands                          $ 7b
8. Singapore                            $ 7b
9. Taiwan                               $ 7b
10. Malaysia                            $ 6b

Fastest Growing Large US High-Tech
Export Markets - 1993-1999

                                        Percent
                              1998        1999     Change

1. Philippines                $1.2b      $ 4.9b     299%
2. South Korea                $3.4b      $ 9.9      190%
3. Ireland                    $1.1b      $ 3.1b     186%
4. Brazil                     $1.6b      $ 4.6b     185%
5. Mexico                     $8.1b      $21.9b     171%
6. China                      $1.5b      $ 3.3b     121%
7. Malaysia                   $2.9b      $ 6.2b     118%
8. Netherlands                $3.7b      $ 7.5b     102%
9. Taiwan                     $3.7b      $ 7.3b      95%
10. Israel                    $1.0b      $ 2.0b      95%