THRIVING 'CYBERSTATE' CALIFORNIA'S ROARING INDUSTRY PRODUCES ALMOST DOUBLE THE JOBS OF TOP RIVAL.

Byline: Jason Z. Cohen  Staff Writer

California's booming high-tech industry has grown to nearly twice the size of its nearest competitor, and high-tech salaries are nearly double the average for other workers in the state, said a report released Wednesday.

The state had an estimated 834,000 high-tech workers in 1998, making an average of $67,000 annually, according to a study by the American Electronics Association and the Nasdaq Stock Market. That's 92 percent more than other California private sector workers earn.

The study, Cyberstates 4.0, found that California added more than 193,000 tech jobs between 1993 and 1998, the most recent year for which job data are available.

``The news is quite good for California. It shows that the state remains a technology powerhouse for the country, and the data really bears that out,'' said Mark Albertson, the American Electronics Association's senior vice president for California.

``It really shows the tremendous strength the high-tech industry has within the economy, and it underscores its importance to California and the rest of the states,'' he said.

The definition of technology industries in the Cyberstates study included companies in three broad categories: Electronics manufacturing, communications services and software and related computer services. The study's definition excludes biotechnology, wholesale and retail trade in technology goods and temporary employees.

Nationally, the high-tech work force surged to 5 million in 1999, adding some 1.2 million workers since 1993, according to the study.

The report said that all 50 states, the District of Columbia, and Puerto Rico added new high-tech jobs between 1997 and 1998. California, Texas, Virginia, Colorado, and Georgia led the nation in high-tech job creation.

``For the first time ever, we're seeing high-tech growth in all 50 states,'' Albertson said. ``That is remarkable when you think of how far the industry has come over a relatively short period of time.''

The study, which gives a state-by-state breakdown of the technology industry, also found that California exported $53 billion worth of high- tech goods, which make up 54 percent of the state's total exports.

``It is, by far and away, our largest export sector. It really is helping drive our success in recent years,'' said Ted Gibson, chief economist for the California Department of Finance. ``Just about everything they do, whether it's producing a good or producing a service is sold outside the state's borders. That's what makes an economy work: You've got to make goods and services that you're able to sell elsewhere.''

Venture capital and research and development are healthy in California as well, the study shows. The state leads the nation with $16.9 billion in venture capital investments in 1999 and $41.7 billion in research and development expenditures in 1997.

Brad Nye, executive director of VIC, the Venice Interactive Community, said venture capital is likely to be invested more cautiously in the near future, but it still will flow.

``I think you're going to continue to see people start businesses. Technology is going to continue to evolve,'' Nye said. ``There's going to be entrepreneurial fervor, especially in Los Angeles in the content arena.''

Venture capitalists have invested based on emotional reactions to a company in the past, Nye said. But they're finding emotion isn't the best guide.

``It's one thing to pour money into these companies, but if they're going to go out of business, what's the point?'' he said. ``A lot of (venture capital) firms are investing in the infrastructure tools and the services - things that help make the Internet work, things that help wireless technology run. Those are very smart plays for the VC community.''