NorTech releases Brief on the Performance of Northeast Ohio’s High-Tech Economy
Thursday, July 29th, 2010NorTech today released its annual Northeast Ohio High-Tech Economy Brief, which analyzes performance of the region’s technology economy. The Brief also compares Northeast Ohio to the remainder of Ohio, the Midwest and the U.S. from the perspective of employment, output, productivity and average wages in high-tech industries in 2008.
The Northeast Ohio High-Tech Economy Brief sites that high-tech industries are adding jobs to the economy with a higher annual average wage than non high-tech industries. The jobs include both technology and non-technology workers. However a majority of the jobs are in non-technology oriented occupations, which demonstrates that growth in high-tech industries benefits all sectors of the region’s workforce.
“The data reinforce the importance of Northeast Ohio’s technology industries to our region’s economy and its workforce,” said Rebecca O. Bagley, president and CEO of NorTech. She continued, “It also shows that Northeast Ohio is continuing to transition to a more diversified economy driven by growth in our high-tech industries. However, this type of transition takes time. As our economy begins to recover from the recent recession, now is the time for the public and private sectors to accelerate investments to keep momentum moving forward.”
Specifically the Brief indicates:
• Northeast Ohio’s high-tech industries benefit all sectors of region’s workforce
A major finding of the analysis confirms that growth in high-tech industries benefits all sectors of the region’s workforce and is not limited to occupations with technical degrees. 3 out of 4 jobs in Northeast Ohio’s high-tech industries are in non high-tech occupations.
• Northeast Ohio’s high-tech employment grows despite decline in non high-tech industries
From 2007 to 2008, employment in Northeast Ohio’s high-tech industries grew by 1.8% or 3,025 jobs, despite the decline in employment in non high-tech industries. In fact, Northeast Ohio’s high-tech employment growth surpassed the remainder of Ohio and the Midwest.
• Average wage in high-tech industries is nearly double the average wage in non high-tech industries
The average wage in Northeast Ohio’s high-tech industries was 48% higher than the average wage in non high-tech industries - $71,864 compared to $37,246.
• Growth trend in Northeast Ohio’s academic research expenditures continues
In 2008, Northeast Ohio colleges and universities reported $493 million in research expenditures. From 2000-2008, Northeast Ohio’s academic research expenditures posted a 50% growth rate, outpacing the remainder of Ohio, the Midwest and the US.
“Northeast Ohio’s economy is continuing to add jobs in high-tech industries while jobs in non high-tech industries are declining,” said Ziona Austrian, Ph.D., director of the Center for Economic Development at Cleveland State University’s Levin College of Urban Affairs. She continued, “Sustaining long-term high-tech industry growth is important to creating jobs, and attracting capital, companies and talent so Northeast Ohio can be globally competitive.”
Download the Northeast Ohio High-Tech Economy Brief.
The annual Northeast Ohio High Tech Economy Brief summarizes the key findings from the full Report, commissioned by NorTech and prepared by the Center for Economic Development at Cleveland State University’s Maxine Goodman Levin College of Urban Affairs. The Cleveland State research team used a definition of high-tech industries and occupations developed by Daniel Hecker, an economist at the U.S. Bureau of Labor Statistics. This definition was used to study Northeast Ohio’s 21-county area consisting of six metropolitan regions (Cleveland-Elyria-Mentor, Akron, Canton-Massillon, Mansfield, Sandusky, and Youngstown-Warren-Boardman) and eight non-metropolitan counties.