Northeast Ohio Experienced High Tech Employment Growth in 2007
News Release:
(Cleveland) December 22, 2008—NorTech, Northeast Ohio’s leading technology-based economic development organization, today released data from its annual report that analyzes growth in the region’s high tech sector. The full report, entitled “The High Tech Sector in Northeast Ohio”, will be available to the public in mid-January and monitors Northeast Ohio’s high tech sector through 2007. The report compares Northeast Ohio’s high tech sector with the Midwest region and the U.S. from the perspective of employment and wages in high tech industries and their eight technology groups, as well as research and development activity. The annual analysis is commissioned by NorTech and prepared by the Center for Economic Development at Cleveland State University Maxine Goodman Levin College of Urban Affairs.
At the beginning of the decade, national high tech employment was down sharply as a result of the collapse of the dot-com bubble. Based on high tech employment data of recent years, 2004 marked the reversal of the downward trend and employment has since improved. A major finding of the forthcoming report indicates that employment in Northeast Ohio’s high tech industries was up 2.7% since 2004 despite an overall decline of 0.2% in the region’s employment across all industries. In absolute terms, Northeast Ohio added 4,436 jobs in the high tech sector between 2004 and 2007 while Northeast Ohio lost 3,162 jobs overall in that same period.
Northeast Ohio still faces a challenge to close the gaps in employment growth between the Midwest and U.S. For the same period, 2007 high tech employment in the Midwest (IN, IL, MI, MN, OH, WI) was up 3.6% over 2004; U.S. was up 6.6% since 2004. To achieve the same growth rate as in the Midwest, Northeast Ohio would have had to increase high tech employment by a total of 5,995 jobs - approximately 1,500 more jobs than recorded. To achieve the same growth rate as in the U.S., Northeast Ohio would have had to increase high tech employment by a total of a total of 10,885, as opposed to 4,436 - approximately 6,500 more.
In 2007, total employment in Northeast Ohio was 1,999,668 with 170,602 jobs credited to the high tech sector, representing 8.53% of our regional economy. The Midwest and U.S. percentages of high tech employment were 9.02% and 9.53%, respectively.
Average wages in the high tech sector far exceed average wages across all industries for every geography. In 2007, the average wages in Northeast Ohio’s high tech industries was $70,985 while the average wage across all industries was $40,399. Full details on areas of tech sector growth in 2007 as well as Gross Regional Product (GRP) and technology research and development activity will be available in the full report in mid-January.
“We are pleased that employment in the region’s high tech industries grew in 2007, even in the midst of an overall decrease in employment in Northeast Ohio. Technology-based economic development results from long-term investments and the 2007 data shows the benefits of this sustained effort over the years by the state, regional business community, and private foundations. The outlook for 2008 is uncertain given the current economic conditions, but continued investment in technology is needed to continue the creation of more high-tech, high paying jobs for the future,” said Dorothy Baunach, president and chief executive officer of NorTech.
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.
Copies of the final report will be available for download in mid-January 2009 at www.nortech.org and http://urban.csuohio.edu/economicdevelopment/index.shtml.
NorTech believes the findings in its annual high tech report reflect one method of measuring technology-based economic development in Northeast Ohio. Updates will also be used to inform strategic planning efforts, educate policy makers, and inform funding sources. For additional information about this study, please call Dorothy Baunach at 216-363-6883, or Dr. Ziona Austrian at 216-687-3988.
NorTech:
NorTech, the Northeast Ohio Technology Coalition, is a technology-based economic development organization that serves as the voice and catalyst for making Northeast Ohio a global leader in technology development, commercialization and innovation. NorTech works closely with regional technology leaders to build a globally-competitive, innovation driven, technology economy by fostering technology development and commercialization that has potential to build new, economy-sustaining industry clusters and strengthen and grow existing clusters. www.nortech.org
Center for Economic Development (CED) at Cleveland State University’s Maxine Goodman Levin College of Urban Affairs:
The Center for Economic Development encompasses research and technical assistance activities aimed at furthering the development potential of the Cleveland region and Ohio. It concentrates on economic impact analyses, industry clusters, economic indicators, and investigating innovation and entrepreneurship. The CED is one of 12 research centers within the College that provide applied research, technical assistance, and training to public officials, community leaders, and the private sector with the objective of enhancing the quality of life in urban communities.
The Maxine Goodman Levin College of Urban Affairs is ranked among the top eight schools of urban affairs in the United States. The College is ranked second in the graduate specialty of city management and urban policy in U.S. News and World Report’s 1998, 2002 and 2005 issues of “America’s Best Graduate Schools.” The College offers 12 degree programs: bachelor’s, master’s, Ph.D. and dual degree programs that provide the opportunity to earn the Juris Doctor (JD) with a Master’s in Public Administration (JD/MPA) a Master’s in Urban Planning, Design, and Development (JD/MUPDD), or a JD/Master of Arts in Environmental Studies. The College is also home to Economic Development Quarterly (EDQ), the leading journal in the field of economic development.
http://urban.csuohio.edu/economicdevelopment/index.shtml