The Technology Alliance’s economic impact report comprehensively measures the contribution of innovation-driven industries on jobs, exports, tax revenues, and associated economic activity in Washington State. This periodic report – the only one of its kind in the state – tracks the tremendous growth of high-impact tech jobs and reveals important changes with far-reaching implications for our economic future, including the explosion in software and computer services employment, the shift from manufacturing to services, and the increasing share of total jobs supported by innovation. State and local leaders need to fully grasp the impact of our innovative industries and the challenges ahead to ensure that the trajectory of high-impact job growth will continue and that Washington’s citizens fully benefit from the innovation economy.

1. The State of Technology
INNOVATION
OPPORTUNITY
IMPACT
Susannah Malarkey
Executive Director, Technology Alliance

2. Thought leaders for a strong innovation economy.

3. Our focus: 3 drivers of economic success.
Excellent K-12 & higher
education systems
Strong research &
commercialization
Robust entrepreneurial
climate

4. What we do: inspire, connect, and inform.
Inspire appreciation and
support for our world-class
research institutions
Create a more connected
innovation community to
advance commercialization
Inform policy & business
leaders about the impact of
our innovative sectors

5. Innovation is in our nature.
Industry Break-down of Technology-Based Employment
University & Federal Research
Waste Treatment & Remediation Chemicals & Petroleum
Management of Companies Machinery
& Enterprises Computers & Electrical
Equipment Manufacturing
Scientific R&D
Management
& Technical Aerospace &
Consulting Motor Vehicle
Architecture & Manufacturing
Engineering
Electronic
Software,
Computer Data Processing Shopping
Telecommunications Systems & Other Info.
Design Commercial
Services
Equipment Merchant
Wholesalers
Total Tech-Based Jobs=434,343
Source: William B. Beyers/Technology Alliance, The Economic Impact of Technology-based Industries
in Washington State, 2012

6. Tech industries are growing.
Private Sector Technology-based Employment, 1988-2011
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0
1988 1990 1992 1994 1996 1998 2000 2002 2007 2009 2011
Other Tech Software/Computer Services Aerospace
Source: William B. Beyers/Technology Alliance, The Economic Impact of Technology-based Industries
in Washington State, 2012

7. Tech industries create jobs across our state.
Direct Technology-based Employment, by County
6,076
2,551
5,525
60,866
13,454
247,958
14,146 3,499
4,046
2,404
1,537
20,256
1,141
13,709
> 10,000 1,000–10,000 251–1,000 101–250 < 100
Source: William B. Beyers/Technology Alliance, The Economic Impact of Technology-based Industries
in Washington State, 2012

8. Tech industries are high-impact.
Labor $94,531
Income $49,829
Out-of- 76%
State Sales 27%
Job 3.32
Multiplier 2.33 Non-tech industries
Indicators of Economic Activity: Tech-Based vs. All Other Industries
Source: William B. Beyers/Technology Alliance, The Economic Impact of Technology-based Industries
in Washington State, 2012

9. Tech industries create jobs across our economy.
1,441,721
Services
1,007,378 748,945
494,343
Trade Other
176,251 48,463
Tech- Total
based Indirect Jobs Manufacturing
33,719
Jobs Jobs Impact
Tech-Based Job Impacts in Washington State
Source: William B. Beyers/Technology Alliance, The Economic Impact of Technology-based Industries
in Washington State, 2012

10. Our vision for Washington’s future success:
Washington will be home to the
best educated, most innovative
workforce in the nation, and the
most attractive location in which to
start, grow and sustain the
innovative companies that create
new, high-impact jobs.

11. Workforce: Washington’s got talent.
2 1
5 5
8
Intensity of Engineers Computer Life & % of payroll
S&E workforce specialists Physical in high tech
Scientists NAICS
Washington’s National Ranking: Innovative Workforce
(Various Years)
Sources: National Science Foundation, Science & Engineering Indicators, 2012; Milken Institute, State
Technology & Science Index, 2011

12. But… we’ve also got a mismatch.
Washington’s National Ranking: Degree Production
(Various Years)
32
37
45 45 44
NS&E Total Engineering Computer S&E graduate
bachelor’s bachelor’s degrees science degrees program
production production per 1,000 per 1,000 participation
occupations occupations
Sources: National Science Foundation, Science & Engineering Indicators, 2012; National Council on
Higher Education Management Systems.

13. And… we have disinvested in talent.
Major State Budget Components, % Change in General Fund
Appropriations
2007-09 Biennium to 2012 Supplemental
(Higher Education includes Opportunity Pathways Account)
+5%
0
-5%
-10%
-15%
-20%
-25%
-30%
Total State Higher Education Human Services K-12
Source: Washington State Higher Education Coordinating Board, 2012

14. We need to grow our STEM programs.
Annual STEM Degree Production and Projected Annual Job Openings
(Washington State, 2008-2018)
6,900
STEM
Bachelor’s 4,400
4,700 Production
2,200 Gap
2,500
STEM STEM STEM Annual
Bachelor’s Graduates Graduates STEM Job
Working
Graduates, 20 Working in Openings
09 Outside of STEM
STEM
Source: McKinsey & Company (Special Analysis for the Technology Alliance), 2012

15. Our partners: advancing the innovation agenda.
Innovation Coalition: the unified voice of
the statewide innovation community
TA Associates: a regional network supporting
innovation centers across the state

16. Questions?
susannahm@technology-alliance.com
www.technology-alliance.com