TEDCO, Maryland’s Technology Development Corporation, released a new study of technology incubators’ impact on the state economy. Overall, early-stage high-tech companies are a resoundingly positive aspect of our economic landscape. Quoting from the report, here are some key findings:
Incubator Firms in 2006:
- Employed 14,044 employees in the state (5,374 direct employees and 8,670 indirect employees)
- These jobs contributed $845 million in annual salary and benefits to Maryland households
- Gross state product contributions totaled $1.2 billion
- Increased state output by $2.7 billion per year
- Contributed $104 million in state and local taxes.
Incubators in Maryland:
- 18 technology incubators in operation comprising 453,061 square feet
- 4 proposed technology incubators
- Maryland has a strong high-tech industry, with over 15,000 establishments employing almost 200,000 in 2006.
- The average annual pay for high-tech jobs is $75,000, more than 60% higher than the statewide average annual wage of $46,000.
- The high-tech industry in Maryland overall has a location quotient of 1.54, indicating that employment in high-tech industries in Maryland is more highly concentrated than in other states in the nation. (An LQ between 0.75 and 1.25 is interpreted to mean that employment is similar to the national average. An LQ above 1.25 indicates concentration).
- The three most concentrated industries are management, scientific, and technical consulting services (LQ = 3.01); computer systems design and related services (LQ = 2.33); and communications equipment manufacturing (LQ = 2.06).
- Academic R&D totaled $2.36 billion in 2005. This is the fourth highest in the nation and surpasses North Carolina, Massachusetts and Virginia.
- There are over 40 research centers in Maryland, including a significant presence of federal labs and prominent university institutes.
- Taken together, these facts provide the state with a strong foundation for additional technology incubator growth.
- 359 incubator clients and graduates from 18 incubators supported by TEDCO were surveyed.
- The survey had an overall response rate of 45%.
The full report in PDF can be found on the TEDCO site: