HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
September 2003
Prepared by Center for Business Research L. William Seidman Research Institute W. P. Carey School of Business Arizona State University Box 874011 Tempe, Arizona 85287-4011 (480) 965-3961
HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
September 2003
Prepared by: Center for Business Research L. William Seidman Research Institute W. P. Carey School of Business Arizona State University Box 874011 Tempe, Arizona 85287-4011 (480) 965-3961 Peer reviewed by the Arizona Department of Commerce Economic Research Advisory Committee:
Dan Anderson Assistant Executive Director for Institutional Analysis Arizona Board of Regents Kent Ennis Economic Consultant CH2M Hill William P. Patton, Ph.D. Director of Economic Development Tucson Electric Power Marshall Vest Director, Economic and Business Research Eller College of Business and Public Administration University of Arizona Brian Cary Forecast Consultant Pinnacle West Energy Corporation Wayne Fox Director, Bureau of Business and Economic Research Northern Arizona University Elliott D. Pollack Elliott D. Pollack & Co. Don Wehbey Economist Research Administration Arizona Department of Economic Security Lisa Danka Director, Commerce & Economic Development Commission Arizona Department of Commerce James B. Nelson Economic Development Manager Salt River Project Brad Steen Chief Economist Arizona Department of Transportation
Technical review by:
Todd Bankofier President Arizona Technology Council Sandra Watson Director, Innovation and Technology Arizona Department of Commerce Bob Hagen Chairman Southern Arizona Technology Council Quinn Williams Attorney at Law Greenberg Traurig, LLP Pat Stoner CEO Stoner-Roland, LLC Ed Zito Regional President Comerica Bank and Chairman, Governor's Council on Innovation & Technology
2003 by the Arizona Department of Commerce. This document may be reproduced without restriction provided it is reproduced accurately, is not used in a misleading context, and the author and the Arizona Department of Commerce are given appropriate recognition. This report was prepared for the Arizona Department of Commerce with funding from the Commerce and Economic Development Commission. Elements of this report may be presented independently elsewhere at the author's discretion. This report will be available on the Internet for an indefinite length of time at http://www.azcommerce.com/Economic/default.asp. Inquiries should be directed to the Office of Economic Information and Research, Arizona Department of Commerce, (602) 280-1300. The Arizona Department of Commerce has made every reasonable effort to assure the accuracy of the information contained herein, including peer and/or technical review. However, the contents and sources upon which it is based are subject to changes, omissions and errors and the Arizona Department of Commerce accept no responsibility or liability for inaccuracies that may be present. THIS DOCUMENT IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY. THE ARIZONA DEPARTMENT OF COMMERCE PRESENTS THE MATERIAL IN THIS REPORT WITHOUT IT OR ANY OF ITS EMPLOYEES MAKING ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING THE WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, OR ASSUMING ANY LEGAL LIABILITY OR RESPONSIBILITY FOR THE ACCURACY, COMPLETENESS, OR USEFULNESS OF ANY INFORMATION, APPARATUS, PRODUCT, OR PROCESS DISCLOSED, OR REPRESENTING THAT ITS USE WOULD NOT INFRINGE PRIVATELY OWNED RIGHTS. THE USER ASSUMES THE ENTIRE RISK AS TO THE ACCURACY AND THE USE OF THIS DOCUMENT AND ANY RELATED OR LINKED DOCUMENTS.
HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
September 2003
TABLE OF CONTENTS Preface Summary Definition of High-Technology Activities Description of High-Technology Activities in Arizona Arizona Counties Concentration of High-Technology Activities in Arizona Relative to the National Average Arizona Counties Economic Impact of High-Technology Activities in Arizona Methodology Arizona Counties LIST OF TABLES 1. Components of High-Technology Activities by Standard Industrial Classification and North American Industry Classification System 2. Summary of Arizona's High-Technology Activities by Category 3. High-Technology Employment by Category and County, 2001 4. Per Capita Employment Location Quotients in 2001 by Category and County 5. Economic Impact of High-Technology Activities on the Arizona Economy in 2001 6. Economic Impact of Selected High-Technology Activities by County in 2001 2 2 4 7 7 11 16 16 17 20 20 20 22
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September 2003 INTRODUCTION This report was commissioned by the Arizona Department of Commerce on behalf of the Governor's Council for Innovation and Technology. The information will be used to assist in the preparation of the state's plan for improving Arizona's business climate in support of technology industries. The report has four primary components: � Define Arizona's high-technology activities using the North American Industry Classification System (NAICS). � Describe high-technology activities in Arizona using the latest data (2001) on employment and payroll. � Analyze the change in high-technology activities between 1990 and 2001. � Estimate the economic impact of high-technology activities. SUMMARY The concentration of high-technology activities in Arizona declined between 1990 and 2001. Arizona no longer has a high-technology presence much different than the national average. However, since high-technology activities primarily are export-oriented (selling most of their output to customers from outside the state), high-tech's economic impact is considerable. PER PERSON EMPLOYMENT IN HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA AS A RATIO TO THE NATIONAL AVERAGE
Percent 130 125 120 115 110 105 100 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
Employment in high-technology activities rose a little more in Arizona than the national average between 1990 and 2001, but the state's population growth and employment growth in other sectors was even greater, causing Arizona's high-tech concentration to fall. Per capita employment in high-technology activities in Arizona decreased from 30 percent higher than the national average in 1990 to 9 percent more in 2001. Based on payroll, Arizona's high-technology activities expanded less rapidly than the national average over the 11 years. Thus, the downward trend in Arizona's high-technology concentration was more precipitous based on payroll, with per capita payroll dropping from 26 percent higher than the national average in 1990 to 4 percent lower in 2001. Arizona has a narrow base of high-technology activities. Only two of 12 high-tech categories -- manufacturing of aerospace products and of semiconductors and other electronic components -- had a greater relative presence in Arizona (a figure greater than 1 in the following chart) than the national average in 2001. In the past, two other categories (communications equipment and instruments) also had an above average concentration in Arizona. PER PERSON EMPLOYMENT IN ARIZONA RELATIVE TO NATIONAL AVERAGE High-Technology Activities, 2001
Research and Testing Architectural/Engineering Software/Computer Servs Telecommunications Aerospace Photographic Equip Instruments Electronics Equipment Audio/Video Equipment Communications Equip Computer Equipment Pharmaceuticals/Medicines 0.00 0.50 1.00 1.50 2.00 2.50 3.00
Geographically, high-technology activities are highly concentrated in the state's two large urban areas. In 2001, the Phoenix area had above average activity in several categories, though only the aerospace and electronics categories were much above the national average. The Tucson area's activity was highly focused in the aerospace category. The gross contribution of high-technology activities to the Arizona economy can be assessed by using conventional input-output models to calculate the economic impacts of total employment in this sector. This kind of calculation suggests that, when multiplier effects are included, hightech activities can account for 19 percent of employment, 23 percent of value added (gross state product) and 25 percent of earnings in Arizona.
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An economic impact analysis by county indicates that high-technology activities accounted for 22 percent of employment, 25 percent of value added and 28 percent of earnings in Maricopa County in 2001. In Pima County, high tech accounted for 19 percent of employment, 23 percent of value added and 27 percent of earnings. High-tech activities are much less significant in other counties. In no other county does high tech account for more than 6 percent of employment or more than 8 percent of earnings.
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
DEFINITION OF HIGH-TECHNOLOGY ACTIVITIES Multiple efforts to define high-technology activities have been made by different groups using the Standard Industrial Classification (SIC). (The SIC has a hierarchical structure, with 10 divisions divided into a number of two-digit major groups, which are further subdivided into three-digit industry groups and four-digit industries.) Seven definitions made since 1998 were reviewed, each using three-digit SIC industry groups as the building blocks of a high-technology group: � U.S. Bureau of Labor Statistics (BLS): "High-Technology Employment: A Broader View," Monthly Labor Review, June 1999. Based on research and development (R&D) and technology-oriented employment, the BLS identified 12 high-technology intensive industry groups and another 19 high-technology groups. (Joe Esher at the University of Arizona used the list of 31 groups as the basis for the Industry Cluster Analysis.) � U.S. Department of Commerce: The Emerging Digital Economy, June 1999. Based on judgment, 14 industry groups were selected. � American Electronics Association (AEA): Cyberstates 4.0. Eleven industry groups were selected, based on judgment. � RFA: Eleven industry groups were included based on judgment. � Milken Institute: America's High-Tech Economy, July 1999. Fourteen industry groups were considered to spend an above-average amount of revenue on R&D and employ an above industry-average number of technology-using occupations. � National Science Foundation: Science and Engineering Indicators, 1998. A short list of six manufacturing industry groups with high R&D spending was created. � One Source Information Services: A long list of 48 industry groups were classified as high-technology. The more extensive lists of industry groups from the BLS and One Source include a number of activities not generally considered to be high technology. The shorter BLS list and the lists from the other five sources were compared. Any industry group appearing on more than one list was included in the definition of high technology used for this project. One exception was made: engineering and architectural services was included though it appeared only on the Milken list (it also was on the long lists of the BLS and One Source). The result was a list of 16 three-digit SIC industry groups (in two of these industry groups, a four-digit industry was omitted), which were aggregated into 12 high-technology categories. The SIC is being replaced by the North American Industry Classification System (NAICS). Like the SIC, the NAICS is hierarchical, increasingly detailed from two-digit sectors to three-digit subsectors to four-digit industry groups to five- and six-digit industries. Using Appendix B of the NAICS manual, which matches SIC codes to NAICS codes, a list of high-technology activities based on NAICS was developed. In the drug manufacturing and photographic equipment categories, the NAICS definition exactly matched that based on the SIC. Otherwise, a three-digit SIC industry group usually could be closely correlated to a four-digit NAICS industry group or a six-digit NAICS industry. The exceptions were engineering and architectural services, and research, development and testing services (see Table 1 for the description of these categories) -- caution should be exercised in comparing 1997 or earlier data to subsequent data. 4
HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
TABLE 1 COMPONENTS OF HIGH-TECHNOLOGY ACTIVITIES BY STANDARD INDUSTRIAL CLASSIFICATION AND NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM
SIC 283 357 except 3579 365 366 367 372 and 376 381, 382 and 384 SIC Description Manufacturing of Drugs Manufacturing of Computer and Office Equipment (except Office Machines not elsewhere classified) Manufacturing of Household Audio and Video Equipment Manufacturing of Communications Equipment Manufacturing of Electronic Components and Accessories Manufacturing of Aircraft and Parts and Manufacturing of Guided Missiles and Space Vehicles and Parts Manufacturing of Search, Detection, Navigation, Guidance, Aeronautical, and Nautical Systems, Instruments and Equipment; Manufacturing of Laboratory Apparatus and Analytical, Optical, Measuring, and Controlling Instruments; and Manufacturing of Surgical, Medical and Dental Instruments and Supplies Photographic Equipment and Supplies Telephone Communications and Communication Services not elsewhere classified Computer Programming, Data Processing, and Other Computer Related Services except Computer Rental and Leasing NAICS 3254 3341 and 333313 3343 and 51222 3342 3344 3364 3345, 3391 and 333314 NAICS Description Pharmaceutical and Medicine Manufacturing Computer and Peripheral Equipment Manufacturing and Office Machinery Manufacturing Audio and Video Equipment Manufacturing and Integrated Record Production and Distribution Communications Equipment Manufacturing Semiconductor and Other Electronic Component Manufacturing Aerospace Product and Parts Manufacturing Navigational, Measuring, Electromedical and Control Instruments Manufacturing; Medical Equipment and Supplies Manufacturing; and Optical Instrument and Lens Manufacturing
386 481 and 489 737 except 7377
325992 and 333315 5133 3346, 5112, 514191, 5142, 5415 and 811212
Photographic Film, Paper, Plate and Chemical Manufacturing and Photographic and Photocopying Equipment Manufacturing Telecommunications Manufacturing and Reproducing Magnetic and Optical Media; Software Publishers; On-Line Information Services; Data Processing Services; Computer Systems Design and Related Services; and Computer and Office Machine Repair and Maintenance
(continued)
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
TABLE 1 (continued) COMPONENTS OF HIGH-TECHNOLOGY ACTIVITIES BY STANDARD INDUSTRIAL CLASSIFICATION AND NORTH AMERICAN INDUSTRY CLASSIFICATION SYSTEM
871 873 Engineering, Architectural, and Surveying Services Research, Development and Testing Services � � � 5413 except 54138 54138 and 5417 333295 54162 54169 Architectural, Engineering and Related Services except Testing Laboratories Testing Laboratories and Scientific Research and Development Services Semiconductor Machinery Manufacturing Environmental Consulting Services Other Scientific and Technical Consulting Services
Source: The list of SIC activities was derived from the sources described in the text. The SIC was matched to NAICS using Appendix B of the North American Industry Classification System manual produced by the U.S. Office of Management and Budget, 1997.
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
In addition to this matching process, three additional NAICS industries (all small in size) were considered to be high-technology activities. By SIC these activities cannot be isolated because of their inclusion with a multitude of activities in "not elsewhere classified" industries. County Business Patterns, an annual product of the U.S. Bureau of the Census, is the only source of detailed sectoral data for states and counties. It excludes government and a few private-sector activities (such as crop and animal production and rail transportation). Data were reported by SIC through 1997 and by NAICS from 1998 through the latest data for 2001. The number of establishments, employment and payroll are reported for the full detail of the SIC or NAICS, but the employment and payroll data frequently are withheld to avoid violating federal disclosure limitations. These undisclosed data were estimated for this project. To provide a historical background, data from 2001 were compared to 1990, a comparable year within the economic cycle. Annual data were collected for the state and nation, but the data collection at the county level was limited to 1990 and 2001. DESCRIPTION OF HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA Arizona Establishments, Employment and Payroll in 2001 Based on all three measures of size reported in County Business Patterns -- number of establishments, employment, and payroll -- the largest high-technology category in Arizona in 2001 was software and computer services (see Table 2A). Semiconductor and other electronic component manufacturing was second largest based on employment and payroll, followed by aerospace product and parts manufacturing. These two categories were dominated by establishments with a large number of employees; the number of establishments in each was relatively few. Telecommunications and architectural, engineering and related services were among the top five on all three measures. As a share of private-sector employment counted in County Business Patterns, the hightechnology activities as a whole accounted for 5.5 percent of the state's establishments, 8.3 percent of its employment, and 14.7 percent of its payroll. Thus, the average high-technology establishment size (27 workers) is greater than the private-sector average (17 workers) and the average payroll per employee in high tech is considerably higher than the all-sector average. At about $54,400, the average high-technology payroll per employee in 2001 was 77 percent higher than the private-sector total of $30,700. Five high-tech categories -- all of moderate-tolarge size -- had a figure in excess of $55,000: aerospace manufacturing, communications equipment manufacturing, electronic component manufacturing, instruments manufacturing, and software/computer services. Arizona's high-technology activities account for a greater share of total private-sector activity than the national average on each of the three measures of size. In 2001, the high-technology
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
share in Arizona as a ratio to the national high-technology share was 1.10 based on number of establishments, 1.20 calculated on employment, and 1.22 measured by payroll.
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TABLE 2A SUMMARY OF ARIZONA'S HIGH-TECHNOLOGY ACTIVITIES BY CATEGORY, 2001
Number of Establishments Software/Computer Services 2,101 Electronic Components Mfg 150 Aerospace Mfg 66 Architectural/Engineering Services 2,051 Telecommunications 815 Instruments Mfg 315 Research and Testing Services 326 Communications Equipment Mfg 39 Computer Equipment Mfg 51 Pharmaceuticals/Medicines Mfg 27 Audio/Video Equipment Mfg 12 Photographic Equipment Mfg 17 HIGH-TECHNOLOGY SUBTOTAL 5,970 Other High Technology 476 HIGH-TECHNOLOGY TOTAL 6,446 Other than High Technology 109,858 PRIVATE-SECTOR TOTAL 116,304 First Quarter Payroll In Thousands $474,778 440,454 419,446 231,297 245,840 183,037 58,547 75,995 12,038 10,530 3,806 1,398 2,157,166 34,013 2,191,179 12,714,060 14,905,239 Employment per Establishment 16 202 389 10 26 41 15 123 22 34 40 12 27 6 25 16 17 Payroll per Employee $55,345 58,035 65,434 43,278 46,332 56,078 47,862 63,488 41,981 45,584 31,983 26,377 54,470 49,384 54,383 28,564 30,707
Employment 34,314 30,358 25,641 21,378 21,224 13,056 4,893 4,788 1,147 924 476 212 158,411 2,755 161,166 1,780,433 1,941,599
Notes: Employment is expressed as of the week including March 12 and includes part-time employees. Payroll per employee is calculated as first quarter payroll divided by employment, times four. Employment and payroll figures were estimated for 2001 in the communications equipment, computer equipment, and audio/video equipment categories. Source: Calculated from U.S. Department of Commerce, Bureau of the Census, County Business Patterns, 1990 through 2001.
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
TABLE 2B SUMMARY OF ARIZONA'S HIGH-TECHNOLOGY ACTIVITIES BY CATEGORY, 1990 TO 2001 PERCENT CHANGE
Number of Establishments Software/Computer Services 329% Electronic Components Mfg -4 Aerospace Mfg 6 Architectural/Engineering Services 89 Telecommunications 189 Instruments Mfg 176 Research and Testing Services 57 Communications Equipment Mfg 77 Computer Equipment Mfg 24 Pharmaceuticals/Medicines Mfg 125 Audio/Video Equipment Mfg -8 Photographic Equipment Mfg 113 HIGH-TECHNOLOGY SUBTOTAL 139 Other than High Technology 31 PRIVATE-SECTOR TOTAL 34 Employment 447% 12 -9 102 71 2 21 -25 -66 6 1 175 40 58 57 Payroll 637% 76 24 132 81 15 120 -14 -69 57 11 142 78 98 95 Employment per Establishment 28% 16 -15 7 -41 -63 -23 -58 -73 -53 9 30 -41 21 17 Payroll per Employee 35% 58 36 15 6 13 82 15 -9 49 10 -12 27 25 24
Notes: Employment is expressed as of the week including March 12 and includes part-time employees. Payroll is for the first quarter. Payroll per employee is calculated as first quarter payroll divided by employment, times four. The 1990 to 2001 percent change is inflation-adjusted for payroll and payroll per employee. The percent change could not be calculated for the "other high technology" category (the three industries identifiable only in the NAICS classification). Employment and payroll figures were estimated for 2001 in the communications equipment, computer equipment, and audio/video equipment categories and for 1990 in the categories of software/computer services, instruments, computer equipment, audio/video equipment, and photographic equipment. Source: Calculated from U.S. Department of Commerce, Bureau of the Census, County Business Patterns, 1990 through 2001.
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
This ratio of the concentration of an activity in a local area (such as a state) to the national concentration also is known as the "location quotient." Calculating location quotients based on sectoral share overstates the concentration of any activity in Arizona since the state's private sector is small relative to the state's population. Location quotients also can be calculated based on per capita measures; Arizona's figures (presented in a later section) are not as high on this basis. Using employment, Arizona's sectoral share in 2001 was larger than the national average in four of the 12 high-technology categories. The sectoral shares in the electronic components and aerospace categories were at least three times greater than the national average but were only slightly higher in the architecture/engineering services and communications equipment categories. The average establishment size in Arizona in 2001 was well above the national average in the electronics and aerospace categories (at more than 200 employees per physical location) and about the same as the national average in communications equipment (an average of 123 workers) and software/data processing (an average of only 16 employees). The overall hightechnology figure was 12 percent higher than the national average despite a smaller than average figure in eight of 12 categories. Nationally, each of the 12 high-technology categories had a payroll per employee figure in excess of $50,000 in 2001. At nearly $75,000, the software/data processing category was the only one with a figure greater than $63,100. Payroll per employee in Arizona in 2001 was between 7 and 11 percent greater than the national average in the aerospace, instruments, and electronics categories. The figure was about average in communications equipment, but below average in the other eight categories (by more than 20 percent in six categories). The Arizona figure was far below the national average, and only about equal to Arizona's all-sector average, in the audio/video equipment and photographic equipment categories. Overall high-tech payroll per employee in Arizona was 11 percent less than the national average. In the private sector as a whole, Arizona's average wage was 13 percent less than the national average. Change in Establishments, Employment and Payroll between 1990 and 2001 The number employed in Arizona's high-technology activities rose 41 percent between 1990 and 2001, a little more than the national high-tech average of 33 percent, but less than Arizona's allsector figure of 57 percent. High-technology employment in Arizona rose faster than the national high-tech average in the 1994-95 period, but growth in the other years since 1990 ranged from a little more to a little less than the national average. Relative to overall employment growth in Arizona, high-tech lagged behind in each year through 1997, but generally increased more than the slowing overall rate from 1998 through 2001. The inflation-adjusted percent change in Arizona's high-technology payroll was 78 percent between 1990 and 2001, a little less than the national high-tech average of 84 percent. Overall payroll growth in Arizona was 95 percent. The percentage increase in the number of high-tech establishments was greater in Arizona than nationally, and also was greater than the overall Arizona figure. The average number of employees per high-technology establishment dropped
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significantly between 1990 and 2001 nationally and in Arizona. Average high-tech payroll per employee rose 27 percent in Arizona but 39 percent nationally; the private-sector increase in Arizona was 24 percent. As late as 1994, high-tech payroll per employee in Arizona was only 3 percent less than the national average, but was 11 percent less by 2001. As a share of the private-sector total, high-technology employment in Arizona slipped from 9.1 percent in 1990 to 8.3 percent in 2001; nationally, the share rose during this period. The hightech share of payroll also dropped in Arizona, from 15.9 to 14.7 percent, while the national share increased. The location quotient based on sectoral share decreased from 1.45 to 1.20 for employment and from 1.56 to 1.22 for payroll. On each of the three measures, the software/computer services category posted the fastest growth by far between 1990 and 2001 both nationally and in Arizona. The architecture and engineering services and telecommunications categories expanded significantly both nationally and in Arizona. Research and testing services expanded rapidly as well, though employment growth in Arizona was modest. The very small photographic equipment category also expanded rapidly in Arizona, but shrunk considerably nationally. Employment decreased nationally in instruments, computer equipment, audio/video, aerospace, and photographic equipment. In Arizona, the decline was much less than the national average in aerospace but much more in computer equipment. Communications equipment employment also fell in Arizona (see Table 2B). Payroll per employee in Arizona jumped in the research and testing services category and also rose substantially in electronic components and pharmaceuticals/medicines. Nationally, the average wage gain was considerable in software/computer services and electronic components. Counties More than three-fourths of the state's high-technology employees worked in Maricopa County in 2001 -- compared to the county's 60 percent share of residents. Of the 12 high-technology categories, the Phoenix area's share exceeded 90 percent in four, including electronic components manufacturing, and topped 75 percent in four others. The notable exceptions were instruments manufacturing and aerospace manufacturing. Pima County's share of the state's high-technology employment slightly exceeded its 16 percent population share. Close to half of the state's aerospace workers were in the Tucson area. The county also had relatively large shares in two small categories -- research and testing and photographic equipment. Little high-technology employment was located in the other 13 counties (see Table 3A). While these counties account for nearly one-fourth of the state's residents, they have only 5 percent of the high-technology employment (Table 3B). The share is under 20 percent in each category and exceeds 10 percent only in instruments manufacturing and research and testing services. In 11 counties, high-technology activities accounted for less than 4 percent of private-sector employment in 2001. The share was greater than the state average of 8.3 percent in Pima, Maricopa and Cochise counties.
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TABLE 3A HIGH-TECHNOLOGY EMPLOYMENT BY CATEGORY AND COUNTY, 2001
Pharmaceuticals/Medicines Mfg Computer Equipment Mfg Communications Equipment Mfg Audio/Video Equipment Mfg Electronic Components Mfg Instruments Mfg Photographic Equipment Mfg Aerospace Mfg Telecommunications Software/Computer Services Architectural/Engineering Services Research and Testing Services HIGH-TECHNOLOGY SUBTOTAL Other HIGH-TECHNOLOGY TOTAL ARIZONA Maricopa 924 899 1,147 930 4,788 4,350 476 432 30,358 27,812 13,056 8,433 212 130 25,641 13,450 21,224 18,154 34,314 26,761 21,378 17,051 4,893 2,421 158,411 120,823 2,755 2,291 161,166 123,114 Pima 19 179 269 42 2,110 2,813 73 12,072 1,699 5,801 2,928 1,591 29,596 300 29,896 Balance 6 38 169 2 436 1,810 9 119 1,371 1,752 1,399 881 7,992 164 8,156 Apache 0 0 0 0 59 0 0 0 143 3 11 1 217 0 217 Cochise 0 0 0 0 2 31 0 0 146 1,389 361 372 2,301 5 2,306 Coconino 0 34 2 0 127 1,186 7 0 109 56 172 166 1,859 67 1,926 Gila 0 0 0 0 12 20 0 0 51 23 69 2 177 3 180
(continued)
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TABLE 3A (continued) HIGH-TECHNOLOGY EMPLOYMENT BY CATEGORY AND COUNTY, 2001
Pharmaceuticals/Medicines Mfg Computer Equipment Mfg Communications Equipment Mfg Audio/Video Equipment Mfg Electronic Components Mfg Instruments Mfg Photographic Equipment Mfg Aerospace Mfg Telecommunications Software/Computer Services Architectural/Engineering Services Research and Testing Services HIGH-TECHNOLOGY SUBTOTAL Other HIGH-TECHNOLOGY TOTAL Graham 0 0 0 0 0 0 0 7 20 6 28 0 61 0 61 Greenlee 0 0 0 0 0 0 0 0 7 0 0 0 7 0 7 La Paz 0 0 0 0 0 0 0 0 29 0 2 0 31 0 31 Mohave 2 2 0 2 60 208 2 27 335 32 140 31 841 5 846 Navajo 2 0 0 0 0 15 0 0 113 19 27 24 200 28 228 Pinal 0 0 0 0 26 2 0 0 97 6 59 221 411 10 421 S. Cruz 0 0 0 0 123 108 0 14 20 10 11 19 305 3 308 Yavapai 2 2 167 0 16 167 0 71 209 88 328 37 1,087 24 1,111 Yuma 0 0 0 0 11 73 0 0 92 114 162 8 460 19 479
Note: Employment is expressed as of the week of March 12, 2001 and includes part-time employees. Many of the employment figures were estimated. Source: Calculated from U.S. Department of Commerce, Bureau of the Census, County Business Patterns, 2001.
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TABLE 3B HIGH-TECHNOLOGY EMPLOYMENT BY CATEGORY AND COUNTY AS A PERCENTAGE OF THE STATE TOTAL, 2001
Pharmaceuticals/Medicines Mfg Computer Equipment Mfg Communications Equipment Mfg Audio/Video Equipment Mfg Electronic Components Mfg Instruments Mfg Photographic Equipment Mfg Aerospace Mfg Telecommunications Software/Computer Services Architectural/Engineering Services Research and Testing Services HIGH-TECHNOLOGY SUBTOTAL Other HIGH-TECHNOLOGY TOTAL Population Maricopa 97.29% 81.08 90.85 90.76 91.61 64.59 61.32 52.46 85.54 77.99 79.76 49.48 76.27 83.16 76.39 60.20 Pima Balance Apache Cochise Coconino 2 .06% 0.65% 0.00% 0.00% 0.00% 15.61 3.31 0.00 0.00 2.96 5.62 3.53 0.00 0.00 0.04 8.82 0.42 0.00 0.00 0.00 6.95 1.44 0.19 0.01 0.42 21.55 13.86 0.00 0.24 9.08 34.43 4.25 0.00 0.00 3.30 47.08 0.46 0.00 0.00 0.00 8.01 6.46 0.67 0.69 0.51 16.91 5.11 0.01 4.05 0.16 13.70 6.54 0.05 1.69 0.80 32.52 18.01 0.02 7.60 3.39 18.68 5.05 0.14 1.45 1.17 10.89 5.95 0.00 0.18 2.43 18.55 5.06 0.13 1.43 1.20 16.26 23.54 1.29 2.25 2.22 Gila 0.00% 0.00 0.00 0.00 0.04 0.15 0.00 0.00 0.24 0.07 0.32 0.04 0.11 0.11 0.11 0.97
(continued)
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TABLE 3B (continued) HIGH-TECHNOLOGY EMPLOYMENT BY CATEGORY AND COUNTY AS A PERCENTAGE OF THE STATE TOTAL, 2001
Pharmaceuticals/Medicines Mfg Computer Equipment Mfg Communications Equipment Mfg Audio/Video Equipment Mfg Electronic Components Mfg Instruments Mfg Photographic Equipment Mfg Aerospace Mfg Telecommunications Software/Computer Services Architectural/Engineering Services Research and Testing Services HIGH-TECHNOLOGY SUBTOTAL Other HIGH-TECHNOLOGY TOTAL Population Graham Greenlee 0.00% 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.03 0.00 0.09 0.03 0.02 0.00 0.13 0.00 0.00 0.00 0.04 0.00 0.00 0.00 0.04 0.00 0.63 0.16 La Paz Mohave 0.00% 0.22% 0.00 0.17 0.00 0.00 0.00 0.42 0.00 0.20 0.00 1.59 0.00 0.94 0.00 0.11 0.14 1.58 0.00 0.09 0.01 0.65 0.00 0.63 0.02 0.53 0.00 0.18 0.02 0.52 0.37 3.05 Navajo 0.22% 0.00 0.00 0.00 0.00 0.11 0.00 0.00 0.53 0.06 0.13 0.49 0.13 1.02 0.14 1.89 Pinal 0.00% 0.00 0.00 0.00 0.09 0.02 0.00 0.00 0.46 0.02 0.28 4.52 0.26 0.36 0.26 3.56 S. Cruz Yavapai 0.00% 0.22% 0.00 0.17 0.00 3.49 0.00 0.00 0.41 0.05 0.83 1.28 0.00 0.00 0.05 0.28 0.09 0.98 0.03 0.26 0.05 1.53 0.39 0.76 0.19 0.69 0.11 0.87 0.19 0.69 0.75 3.31 Yuma 0.00% 0.00 0.00 0.00 0.04 0.56 0.00 0.00 0.43 0.33 0.76 0.16 0.29 0.69 0.30 3.11
Note: Employment is expressed as of the week of March 12, 2001 and includes part-time employees. Many of the employment figures were estimated. Source: Calculated from U.S. Department of Commerce, Bureau of the Census, County Business Patterns, 2001.
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
Between 1990 and 2001, high-technology employment increased 35 percent in Maricopa County, considerably less than the 62 percent rise in all private-sector employment. The Phoenix area experienced strong increases in the software/computer services (428 percent), architectural/engineering services (135), and telecommunications categories (90), but employment fell significantly in the computer equipment (-71), communications equipment (-32), aerospace categories (-31), and instruments (-22). In Pima County, high-technology employment rose 63 percent, well above the pace in Maricopa County and also greater than the Tucson area's private-sector advance of 40 percent. Large gains were realized in software/computer services (708 percent), instruments (202), research and testing (76), aerospace (43), and architectural/engineering services (28). Only electronic components had a sizable drop in employment (-33). In the rest of the state, high-technology employment rose 50 percent, about equal to the 52 percent climb in private-sector employment. High-tech categories with significant gains included software/computer services (266 percent), instruments (64), research and testing (46), and architectural/engineering services (35). CONCENTRATION OF HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA RELATIVE TO NATIONAL AVERAGE This section summarizes location quotients in Arizona over the 12-year period from 1990 through 2001. The location quotients discussed in this section were calculated from per capita figures rather than from sectoral shares. Arizona's employment location quotient of the 12 hightech categories combined fell from 1.30 in 1990 to 1.09 in 2001, the lowest value over the 12 years. A greater decrease was experienced in the high-tech location quotient based on per capita payroll -- from 1.26 in 1990 to 0.96 in 2001. The location quotient based on per capita establishments also dropped, from 1.05 in 1990 to 0.97 in 2001. Based on these figures, Arizona no longer has a high-technology presence much different than the national average. Including the three small industries identifiable in the NAICS but not in the SIC (manufacturing of semiconductor equipment, environmental consulting services, and other scientific and technical consulting services), Arizona's overall high-technology location quotient based on per capita employment was 1.08 in 2001, down slightly from 1.13 in 1998, the first year of NAICS data. The remainder of this section is based on the employment location quotient. Arizona Only two of Arizona's 12 high-technology categories had a location quotient (LQ) in excess of 1 in 2001: Aerospace manufacturing's LQ was a very high 3.06 and the LQ for semiconductor and other electronic component manufacturing was nearly as high at 2.70. Six of the 12 categories experienced a declining LQ over the 12 years, while four had a rising value.
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
Categories with Rising Location Quotients Aerospace Product and Parts Manufacturing: From a low of 2.28 in 1992 and 1993, the LQ climbed considerably, reaching a high of 3.06 in 2001. Architectural, Engineering and Related Services: The LQ has climbed moderately from a low of 0.76 in 1992 to 0.97 in 2001. Software and Computer Services: The LQ climbed between 1991 and 1999, from 0.55 to 0.84. The 2001 value was 0.82. Photographic Equipment Manufacturing: Though rising, the LQ remained very low in 2001 at 0.23. It had been as low as 0.06 in 1990. Categories with No Trend in Location Quotients Audio and Video Equipment Manufacturing: The LQ has fluctuated between 0.53 and 0.84, with the 2001 value of 0.68 about equal to that in the early 1990s. Telecommunications: The LQ has held between 0.8 and 1.0 except for a lower value in 2000. The 2001 value was 0.90. Categories with Declining Location Quotients Semiconductor and Other Electronic Component Manufacturing: The LQ exceeded 3 through 1993 but then dropped to a low of 2.55 in 1997. The 2001 value of 2.70 was typical of the period since 1995. Communications Equipment Manufacturing: The LQ has fluctuated widely over the period, from 0.67 in 1995 to 1.75 in 1990 and 1991. After four consecutive years above 1, the LQ in 2001 was 0.95. Instruments Manufacturing: The LQ was above 1 through 1998 and as high as 1.4 in 1995 and 1996. The 2001 value of 0.90 was the lowest over the period. Computer and Peripheral Equipment Manufacturing: The LQ fell substantially during the 1990s from 0.84 in 1990 to 0.29 in 1997, with most of the drop occurring between 1991 and 1992. The 2001 LQ of 0.28 was the lowest over the 12-year period. Pharmaceutical and Medicine Manufacturing: The very low LQ of 0.21 in 2001 was the lowest over the 12-year period. The highest LQ was 0.47 in 1994. Testing Laboratories and Scientific Research and Development Services: The 2001 LQ was down to 0.54, the lowest over the 12 years; the 1990 LQ was 0.83.
18
HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
Counties Two Arizona counties -- Maricopa and Pima -- had high-technology location quotients (based on per capita employment) in excess of 1 in 2001. No other county had a figure approaching 1 and only a few categories had a LQ in excess of 1 in any of these 13 counties (see Table 4). Maricopa County's overall high-technology location quotient was close to 1.4 in 2001, with seven of the 12 categories having a LQ greater than 1. The LQ in two of these categories barely exceeded 1. Only in Arizona's two major categories -- aerospace and electronics -- was the LQ in the Phoenix area above 1.5. In Pima County, the overall high-technology location quotient was a little above 1.2, but only four categories had a LQ more than 1, and three of these were less than 1.2. The Tucson area had a strong concentration only in the aerospace category -- with a very high LQ of close to 9. Cochise and Coconino were the only other counties with overall high-technology location quotients greater than 0.3. In Cochise County, the software/computer services and research and testing categories had moderately high location quotients. Cochise was the only county with a location quotient greater than 1.1 in these categories. In Coconino County, the LQ was a high 3.7 in instruments manufacturing, but much of this was due to the activities of one company. The only other LQ greater than 1.1 was for electronic components manufacturing in Santa Cruz County. The decline in the state's high-technology location quotient between 1990 and 2001 resulted from a drop in Maricopa County from 1.77 to 1.38. Large decreases in LQ occurred in several of the Phoenix area's high-tech categories: computer equipment, communications equipment, electronic components, instruments, and research and testing services. Modest increases were registered in the software/computer services and architectural/engineering services categories. In contrast to Maricopa County, the overall location quotient rose a little in Pima County, from 1.15 to 1.25, despite a large fall in the LQ for electronic components. Aerospace, instruments, and software/computer services had sizable increases. Changes in location quotients between 1990 and 2001 were minimal in the 13 less populous counties. The largest changes in the overall high-technology LQ occurred in Apache County, with a decrease from 0.37 in 1990 to 0.12 in 2001, and in Coconino and Santa Cruz counties, which had increases of just more than 0.1.
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
TABLE 4 PER CAPITA EMPLOYMENT LOCATION QUOTIENTS IN 2001 BY CATEGORY AND COUNTY
AZ 0.21 0.28 0.95 0.68 2.70 0.90 0.23 3.06 0.90 0.82 0.97 0.54 1.09 0.84 1.08 Mar Pima 0.34 0.03 0.38 0.27 1.44 0.33 1.03 0.37 4.11 1.15 0.96 1 . 1 9 0.24 0.49 2.67 8.87 1.28 0.44 1.06 0.85 1.28 0.81 0.44 1.08 1.38 1.25 1.16 0.56 1.37 1.23 Ap Coch Coco 0.00 0.00 0.00 0.00 0.00 0.38 0.00 0.00 0.02 0.00 0.00 0.00 0.41 0.01 0.51 0.00 0.09 3.67 0.00 0.00 0 . 3 4 0.00 0.00 0.00 0.47 0.28 0.21 0.01 1 . 4 8 0 . 0 6 0.04 0.73 0.35 0.01 1 . 8 3 0 . 8 3 0.12 0.70 0.57 0.00 0.07 0.92 0.11 0.69 0.58 Gila 0.00 0.00 0.00 0.00 0.11 0.14 0.00 0.00 0.22 0.06 0.32 0.02 0.13 0.09 0.12 Counties Grah Gre LPaz 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.13 0.00 0.00 0.14 0.19 0.33 0.02 0.00 0.00 0.20 0.00 0.02 0.00 0.00 0.00 0.07 0.03 0.06 0.00 0.00 0.00 0.07 0.03 0.06 Moh 0.02 0.02 0.00 0.09 0.18 0.47 0.07 0.11 0.47 0.03 0.21 0.11 0.19 0.05 0.19 Nava 0.02 0.00 0.00 0.00 0.00 0.05 0.00 0.00 0.25 0.02 0.06 0.14 0.07 0.45 0.08 Pinal 0.00 0.00 0.00 0.00 0.07 0.00 0.00 0.00 0.12 0.00 0.07 0.69 0.08 0.09 0.08 SC Yava Yum 0.00 0.01 0.00 0.00 0.01 0.00 0.00 1.01 0.00 0.00 0.00 0.00 1.47 0.04 0.03 0.99 0.35 0.16 0.00 0.00 0.00 0.22 0.26 0.00 0.11 0.27 0.13 0.03 0.06 0.09 0.07 0.45 0.24 0.28 0.12 0.03 0.28 0.23 0.10 0.12 0.22 0.19 0.28 0.23 0.10
Pharmaceuticals/Medicines Mfg Computer Equipment Mfg Communications Equipment Mfg Audio/Video Equipment Mfg Electronic Components Mfg Instruments Mfg Photographic Equipment Mfg Aerospace Mfg Teleco mmunications Software/Computer Services Architectural/Engineering Services Research and Testing Services SUBTOTAL Other TOTAL
Note : Location quotients of 1.10 or higher are in bold. Source: Calculated from U.S. Department of Commerce, Bureau of the Census, County Business Patterns, 2001.
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
ECONOMIC IMPACT OF HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA Methodology Economic impact analysis traces the full impact, direct and indirect, of an industry on jobs and incomes in a local economy. An industry directly affects an economy by employing workers and paying income to workers and owners. Even more significant are the indirect effects that arise when an industry purchases goods and services from other local businesses, when these suppliers place upstream demands on other producers, when workers either directly or indirectly associated with industry operations spend a portion of their incomes in the local economy and when governments spend new tax revenues. In the end, the cumulative changes in jobs and incomes are a multiple of the initial direct effects. Economic impacts were estimated using the Arizona module of IMPLAN, an input-output model developed and maintained by the Minnesota IMPLAN Group, Inc. The specific model used was based on IMPLAN's 2000 national economic database. In building the model, trade flows were calculated using IMPLAN's "regional purchase coefficients," which are econometrically derived estimates of the percentage of demand for a specific commodity that is satisfied by local producers. Type SAM (Social Accounting Matrix) multipliers were used with a maximum amount of spending assumed to be recycled. Leakages from the Arizona economy arise from import purchases and saving. IMPLAN provides estimates of the impact of an activity on local employment, employee compensation (earnings) and value added. Employment consists of both full- and part-time jobs. Employee compensation includes wages, salaries and benefits. Value added is the sum of employee compensation, proprietor income, property income and indirect business taxes. An activity's contribution to gross state product can be measured by its value added. Impacts on state and local tax revenues were calculated outside of IMPLAN. Each activity was assumed to generate tax revenues in a fixed proportion to its value added. The factor used to estimate revenues was the ratio of total Arizona state and local tax revenues in fiscal year 2000 to gross state product. The economic impacts estimated for each high-technology industry were based on and driven by that industry's total employment. The impacts represent the gross contribution an industry makes to the local economy, not the amount of economic activity that is supported by purchases from out-of-state funds. Arizona When both direct and indirect effects are considered, high-technology activities accounted for approximately 19 percent of total employment in Arizona in 2001 (see Table 5). In terms of their full economic impact, the three high-tech categories most important to Arizona's employment were electronic components (accounting for 5.0 percent of employment), aerospace (3.4 percent) and telecommunications (3.1 percent).
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
The overall employment multiplier for Arizona's high-technology activities was 3.5 in 2001, meaning that each high-technology job supports an additional 2.5 jobs. Employment multipliers are highest in categories with high earnings per worker and high interindustry purchases per
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
TABLE 5 ECONOMIC IMPACT OF HIGH-TECHNOLOGY ACTIVITIES ON THE ARIZONA ECONOMY IN 2001
Direct Effects Value Employee Employment Added Compensation Employment Pharmaceuticals/Medicines Mfg 924 $115.0 $51.5 3,252 Computer Equipment Mfg 1,147 101.0 89.3 5,378 Communications Equipment Mfg 4,788 523.6 291.5 24,452 Audio/Video Equipment Mfg 476 25.1 21.7 1,396 Electronic Components Mfg 30,358 4,287.2 2,692.7 141,863 Instruments Mfg 13,056 952.5 871.7 45,122 Photographic Equipment Mfg 212 11.1 8.6 920 Aerospace Mfg 25,641 2,221.7 1,800.5 95,897 Telecommunications 21,224 2,726.1 1,127.2 87,209 Software/Computer Services 34,314 2,279.5 1,827.2 75,525 Architectural/Engineering Services 21,378 1,032.4 856.8 59,217 Research and Testing Services 4,893 157.8 142.5 9,590 HIGH-TECHNOLOGY SUBTOTAL 158,411 14,433.1 9,781.2 549,823 Note: Dollar values are in millions. Source: Center for Business Research, L. William Seidman Research Institute, W. P. Carey School of Business, Arizona State University. Total Effects Value Employee Tax Added Compensation Revenues $241.0 $128.4 $19.9 335.2 236.6 27.6 1,669.1 1,012.9 137.5 75.0 52.9 6.2 10,410.1 6,459.3 857.8 2,710.4 1,965.9 223.3 50.5 33.1 4.2 6,071.8 4,222.8 500.3 6,297.7 3,317.3 518.9 4,483.8 3,168.8 369.5 2,924.3 2,034.6 241.0 416.3 296.1 34.3 35,685.0 22,928.5 2,940.4
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
worker. For Arizona's high-tech categories, the largest employment multipliers (greater than 4.5) were in communications equipment, computer equipment, and electronic components. Employment multipliers were less than 2.5 in research and testing and software/computer services. The direct and indirect effects of high-technology activities accounted for about 23 percent of Arizona's value-added (gross state product) in 2001. The three categories accounting for the largest shares were electronic components (6.7 percent), telecommunications (4.0 percent) and aerospace (3.9 percent). The value-added multiplier for high-technology activities as a whole was 2.5 in 2001. Valueadded multipliers tend to be highest in categories that place heavy demands on local suppliers in other industries and where earnings account for a large share of value added. Labor intensity is important because in regional input-output models labor income is assumed to be recycled within the local economy while capital income is not. Industries with relatively high value-added multipliers (greater than 3.1) in 2001 were photographic equipment, computer equipment, and communications equipment. Industries with low value-added multipliers (less than 2.1) were pharmaceutical manufacturing and software/computer services. Including multiplier effects, high-tech activities accounted for roughly 25 percent of total earnings in Arizona in 2001. The three most important categories were electronic equipment (7.2 percent), aerospace (4.7 percent) and telecommunications (3.7 percent). High-technology activities in Arizona had an overall earnings multiplier of 2.3 in 2001. Earnings multipliers are highest in industries with large interindustry purchases per dollar of earnings. Categories with high earnings multipliers (greater than 2.6) included photographic equipment, communications equipment, and telecommunications. Those with low earnings multipliers (less than 2.1) were software/computer services and research and testing. Because of the way revenues were estimated, high-technology activities accounted for the same share of state and local tax revenues as of value added, 23 percent. Counties Economic impacts were estimated at the county level for industries with "significant" employment. County employment in an industry was considered significant if it exceeded 500 or was at least 100 with a location quotient of at least 0.75. Maricopa County had a significant amount of employment in 11 of the 12 high-technology categories. When multiplier effects are included, these activities accounted for 22 percent of employment, 25 percent of value added and 28 percent of total earnings in the county. Pima County had a significant amount of employment in seven high-technology categories. Together, these categories had an economic impact equal to 19 percent of county employment, 23 percent of value added and 27 percent of county earnings.
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
No other county in Arizona had significant employment in more than two high-technology industries (see Table 6). Counties with two significant industries included Cochise, Coconino and Santa Cruz. Yavapai County had one high-tech industry with significant employment. As a percent of total county employment, the economic impacts of significant high-tech industries in these counties ranged from 1 percent in Yavapai County to 6 percent in Cochise County. When measured by earnings, the contributions of significant high-tech activities ranged from 1 percent in Yavapai County to 8 percent in Cochise County.
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
TABLE 6 ECONOMIC IMPACT OF SELECTED HIGH-TECHNOLOGY ACTIVITIES BY COUNTY IN 2001
Direct Effects Total Effects Value Employee Value Employee Employment Added Compensation Employment Added Compensation Cochise County Software/Computer Services Research and Testing Services Total Coconino County Instruments Mfg Research and Testing Services Total Maricopa County Pharmaceuticals/Medicines Mfg Computer Equipment Mfg Communications Equipment Mfg Audio/Video Equipment Mfg Electronic Components Mfg Instruments Mfg Aerospace Mfg Telecommunications Software/Computer Services Architectural/Engineering Services Research and Testing Services Total 1,389 372 1,761 1,186 166 1,352 899 930 4,350 432 27,812 8,433 13,450 18,154 26,761 17,051 2,421 120,693 $77.7 10.0 87.8 69.8 4.9 74.7 110.9 75.7 535.0 23.5 4,033.5 661.9 1,134.0 2,332.2 1,838.3 868.8 79.0 11,692.7 (continued) $62.4 8.4 70.8 58.9 4.0 62.9 49.6 65.3 303.0 20.3 2,531.5 612.2 929.8 965.3 1,484.3 724.9 67.9 7,753.9 2,593 627 3,220 3,448 281 3,729 3,023 4,141 22,563 1,241 125,293 28,706 48,608 71,291 57,643 46,498 4,542 413,550 $138.2 22.4 160.6 167.5 9.9 177.4 234.0 263.5 1,633.2 69.6 9,673.9 1,838.7 3,171.5 5,371.9 3,575.8 2,427.8 197.9 28,457.9 $98.2 15.9 114.1 120.5 7.1 127.6 124.4 183.4 993.7 49.1 5,997.8 1,344.5 2,214.6 2,829.2 2,537.9 1,699.9 141.4 18,115.9
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HIGH-TECHNOLOGY ACTIVITIES IN ARIZONA
TABLE 6 (continued) ECONOMIC IMPACT OF SELECTED HIGH-TECHNOLOGY ACTIVITIES BY COUNTY IN 2001
Direct Effects Total Effects Value Employee Value Employee Employment Added Compensation Employment Added Compensation Pima County Electronic Components Mfg Instruments Mfg Aerospace Mfg Telecommunications Software/Computer Services Architectural/Engineering Services Research and Testing Services Total Santa Cruz County Electronic Components Mfg Instruments Mfg Total Yavapai County Communications Equipment Mfg Total 2,110 2,813 12,072 1,699 5,801 2,928 1,591 29,014 123 108 231 167 167 $258.0 175.0 1,115.3 231.2 359.2 126.8 60.5 2,326.0 8.1 4.5 12.6 13.5 13.5 $162.3 157.0 885.9 95.3 280.8 103.8 51.0 1,736.1 6.2 3.9 10.2 7.5 7.5 8,489 7,840 39,343 6,471 11,793 7,425 3,091 84,453 385 248 633 579 579 $572.3 420.3 2,446.3 459.7 648.3 325.4 131.6 5,003.9 20.5 10.6 31.1 30.6 30.6 $354.3 306.4 1,705.0 236.7 455.4 225.4 94.3 3,377.5 13.8 7.6 21.4 17.9 17.9
Note: Dollar values are in millions. Activities shown are those with employment of at least 100 and, if less than 500, a location quotient of at least 0.75. Source: Center for Business Research, L. William Seidman Research Institute, W. P. Carey School of Business, Arizona State University.
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Arizona State Agency Publications
