Symposium I: Florida High Tech Jobs and Economic Development

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1 Symposium I: Florida High Tech Jobs and Economic Development April 4, 2011 Charles J. Mullin, Ph.D. Principal, ERS Group Adjunct Professor, Economics Department, Florida State University

2 What Is High-Tech? What Does It Look Like? What is a High-Tech Firm/Job? Why Focus on High-Tech? How Can Government / Funding Promote Innovation? What Does a Successful University Spinoff Look Like? ERS Group

3 What is the Definition of a High-Tech Firm? Key Components: Research and development expenditures Employment of scientists, engineers, technicians New products or production processes using scientific method Evolves over time What is High-Tech today may not be High-Tech tomorrow

4 What is the Definition of a High-Tech Occupation? Key Components: Utilizes innovative techniques that improve the way that people p live and work Uses techniques that are not yet industry or societal standard, but are functional and effective Requires technical knowledge Occupations are constantly evolving Source: P. Kilcoyne, Research and Technology Occupational Employment, Presented at Advancing Measures of Innovation NSF Workshop, 2006.

5 Labor Productivity Growth Rates (by Industry) Industry (Top 10) Annualized Growth Rate Electronic computers 29.46% Computer storage devices 19.91% Wireless telecommunications carriers (except satellite) 16.13% Commercial equipment 14.13% Semiconductors and related devices 13.19% Radio, television, and other electronics stores 13.09% Travel agencies 12.97% Electronic shopping and mail order houses Electromedical and electrotherapeutic apparatuses 12.07% 10.05% Household appliance stores 9.05% Industry (Bottom 10) Men's and boys' cut and sew apparel Apparel accessories and other apparel manufacturing Annualized Growth Rate 12.46% 6.79% Apparel lknitting i mills 5.67% 5 Wholesale electronic markets and agents and brokers Steel products from purchased steel 5.03% 4.70% 4 Other publishers 4.59% Oil and gas extraction 3.69% Turbines and turbine generator set units Printed circuit assemblies (electronic assemblies) 2.69% 2.57% Coal mining 2.42% Source: BLS, Industry Labor Productivity and Costs: Indexes,

6 Wage Rates of (Non)High-Tech Jobs 10 MSAs with the largest proportion of high-tech workers MSA High Tech High Tech Non-High Tech Employment Share Annual Wage Annual Wage San Jose Sunnyvale Santa Clara, CA 12.0% $109,711 $61,036 Boulder, CO 10.3% $93,438 $48,310 Lowell Billerica Chelmsford, MA NH 10.1% $94,561 $49,909 Framingham, MA 10.0% $93,753 $54,251 Durham, NC 9.7% $84,626 $45,699 Huntsville, AL 9.0% $85,084 $42,397 Palm Bay Melbourne Titusville, FL 6.9% $78,958 $39,949 Seattle Bellevue Everett, WA 6.9% $89,477 $50,510 Bethesda Frederick Gaithersburg, MD 6.4% $91,293 $54,469 Washington Arlington Alexandria, DC VA MD WV 6.4% $94,941 $57,721 Average (Top 10) $91,584 $50,425 Source: BLS, Occupational Employment Statistics (OES) Survey, May 2009,

7 Wage Rates of (Non)High-Tech Jobs 10 MSAs with the smallest proportion of high-tech workers MSA High Tech High Tech Non-High Tech Employment Share Annual Wage Annual Wage Anderson, IN 0.0% n/a $32,518 Danville, VA 0.0% n/a $29,754 Ocean City, NJ 0.0% n/a $36,499 Lebanon, PA 0.1% $47,310 $35,460 Lima, OH 0.1% $92,180 $35,208 Yuba City, CA 0.1% $67,710 $40,306 Glens Falls, NY 0.1% $58,530 $37,093 Sandusky, OH 0.2% $32,970 $33,092 Pocatello, ID 0.2% $65,560 $33,318 Brunswick, GA 0.2% $55,910 $33,917 Average (Bottom10) $60, $34,717 Source: BLS, Occupational Employment Statistics (OES) Survey, May 2009,

8 Rising Tide Lifts All Boats $100,000 Average Annual Wages of Workers in "High-Tech" and "Low-Tech" MSAs $91,584 $80,000 53% Annua al Wage $60,000 $40,000 $60,024 $50,425 45% $34,717 $20,000 $0 High Tech workers Non-High Tech workers "High-Tech" MSAs (Top 10) "Low-Tech" MSAs (Bottom 10)

9 National Rank Wage Rates of (Non)High-Tech Jobs Florida MSAs with the largest proportion of high-tech workers MSA High Tech Employment Share High Tech Annual Wage Non-High Tech Annual Wage 7 Palm Bay Melbourne Titusville, FL 6.9% $78,958 $39, Fort Walton Beach Crestview Destin, FL 4.2% $77,576 $35, Tallahassee, FL 3.2% $60,288 $38, Gainesville, FL 2.8% $58,432 $39, Tampa St. Petersburg Clearwater, FL 2.7% $70,435 $39, Orlando Kissimmee, FL 26% 2.6% $68, $37, West Palm Beach Boca Raton Boynton Beach, FL 2.4% $70,110 $41, Jacksonville, FL 2.1% $69,735 $38, Fort Lauderdale Pompano d Beach Deerfield Beach, FL 2.1% $67,103 $39, Pensacola Ferry Pass Brent, FL 1.8% $57,995 $34, Miami Miami Beach Kendall, FL 1.8% $67, $39,781 Average (Top half of Florida MSAs) $67,916 $38,613 Source: BLS, Occupational Employment Statistics (OES) Survey, May 2009,

10 Wage Rates of (Non)High-Tech Jobs Florida MSAs with the smallest proportion of high-tech workers National Rank MSA High Tech Employment Share High Tech Annual Wage Non-High Tech Annual Wage 214 Punta Gorda, FL 1.3% $56,739 $33, Lakeland Winter Haven, FL 1.2% $59,610 $35, Deltona Daytona Daytona Beach Ormond Beach, FL 11% 1.1% $56,006 $33, Bradenton Sarasota Venice, FL 1.1% $63,063 $36, Ocala, FL 1.1% $56,534 $34, Cape Coral Fort Myers, FL 1.1% $71,289 $37, Panama City Lynn Haven, FL 1.0% $64,719 $32, Naples Marco Island, FL 0.9% $64,833 $37, Port St. Lucie, FL 0.9% $53,783 $35, Sebastian Vero Beach, FL 0.6% $51,667 $35, Palm Coast, FL 0.3% $52,710 $29,095 Average (Bottom half of Florida MSAs) $59,178 $34,633 Source: BLS, Occupational Employment Statistics (OES) Survey, May 2009,

11 Rising Tide Lifts All Boats in Florida Too $80,000 Average Annual Wages of Workers in "High-Tech" and "Low-Tech" Florida MSAs $69,138 $60,000 20% $57, Annu ual Wage $40,000 $38,512 13% $34,035 $20,000 $0 High Tech workers Non-High Tech workers "High-Tech" MSAs (FL Top 5) "Low-Tech" MSAs (FL Bottom 5)

12 Legislation Can Help Promote Innovation Example: Bayh-Dole Act of 1980 Allowed recipients of ffederal research funds the right to retain patents Allowed market forces to guide commercialization of innovations US Universities 1980 (a) 2009 (b) University Patents 300 3,417 Licensing Agreements 276 4,374 Startups Sources: (a) D. Siegel, University-Industry Knowledge Flows: An Overview, Presented at Advancing Measures of Innovation NSF Workshop, (b) AUTM U.S. Licensing Activity Survey FY2009.

13 Top 20 Universities by R&D expenditures in Science and Engineering Field Total R&D Funding Source Academic Institution State Expenditures Federal State/Local Industry Institution Other Johns Hopkins University MD $ 1,856,270 $ 1,587,547 $ 9,037 $ 37,113 $ 97,063 $ 125,510 University of Michigan, All Campuses MI 1,007, ,216 4,490 41, ,675 53,635 University of Wisconsin Madison WI 952, ,898 39,004 18, , ,732 University of California San Francisco CA 947, ,667 29,884 65, , ,048 University of California Los Angeles CA 889, ,505 22,633 47, , ,770 University of California San Diego CA 879, ,428 35,711 62, , ,063 Duke University NC 805, ,767 22, ,515 96, ,169 University of Washington Seattle WA 778, ,353 13,196 76,834 43,002 25,661 Pennsylvania State U, All Campuses PA 753, ,193 63, , ,212 1,622 University of Minnesota, All Campuses MN 740, ,602 62,720 32, ,800 78,299 Massachusetts Institute of Technology MA 736, , ,894 7,875 92,060 University of Pennsylvania PA 726, ,498 17,249 46,886 61, ,402 Ohio State University, All Campuses OH 716, , , , ,583 34,970 Texas A&M University, All Campuses TX 714, , ,243 35, ,105 27,026 Stanford University CA 704, ,507 23,971 58,491 67,413 76,801 University of California Davis CA 681, ,924 57,427 35, ,331 81,553 Cornell University, All Campuses NY 671, ,144 79,529 27, ,628 83,624 University of California Berkeley CA 652, ,069 45,431 71, , ,278 University of Colorado, All Campuses CO 648, ,123 27,719 40,385 41,758 38,432 University it of North thcarolina at Chapel Hill NC 646, ,837 61,456 12, ,527 0 National Average $79,158 $46,956 $5,255 $4,607 $16,136 $6,204 Note: All dollar amounts are in thousands of dollars. Source: NSF Survey of Research and Development Expenditures at Universities and Colleges, 2009.

14 R&D Expenditures in Florida Universities Academic Institution 2009 Total Expenditures Amount National Rank University of Florida $592, University ofsouthflorida $309, University of Miami $248, Florida State University $195, University of Central Florida $113, Florida International University $91, Florida Atlantic University $44, Florida Agricultural and Mechanical University $25, Embry Riddle Aeronautical University $10, Florida Institute of Technology $10, Nova Southeastern University $8, University of North Florida $4, Florida Gulf Coast University $3, University of West Florida $3, Barry University $ Eckerd College $ Jacksonville University $ National Average $79,158 Note: All dollar amounts are in thousands of dollars. Source: NSF Survey of Research and Development Expenditures at Universities and Colleges

15 R&D Expenditures in Florida Universities Academic Institution 2009 State/Local Funding Amount National Rank University of Florida $98,049 6 University of South Florida $32, Florida State University $16, University of Central Florida $14, Florida International University $6, University of Miami $4, Florida Atlantic University $3, Embry Riddle Aeronautical University $1, Nova Southeastern University $1, Florida Institute of Technology $ University of North Florida $ Florida Agricultural and Mechanical University $ Florida Gulf Coast University $ Jacksonville University $ University of West Florida $ Eckerd College $8 498 Barry University $0 543 National Average $5,255 Note: All dollar amounts are in thousands of dollars. Source: NSF Survey of Research and Development Expenditures at Universities and Colleges

16 What is ERS Group? Economic and statistical professional services firm providing expert witness testimony and consulting Build and manage complex databases using latest statistical computer programming Assisted over 3,000 large and small clients, including plaintiffs, Fortune 500 companies, companies in Tallahassee, and local, state and Federal government agencies Offer objective studies for litigation, government regulatory audits, and proactive monitoring studies, as well as for mediation, settlement, or post-settlement monitoring.

17 How Was ERS Group Born? The 1964 Civil Rights Act eventually created a need for statistical analysis in employment litigation (or consulting). Three Florida State University Professors (J. Haworth, C. Haworth and J. Gwartney) developed statistical models (using FSU computers as a private firm) to fill that need. Labor Economist/Professor Joan Haworth was hired as the statistical expert in the EEOC v. Sears Roebuck, Inc. case in 1979 (initial EEOC charge occurred in 1973). Dr. Joan Haworth s precedent-setting analysis and testimony gave rise to Economic Research Services (ERS).

18 ERS Group Organization Who do we employ: Ph.D. Economists and Statisticians Database Analysts Research Associates Project Support Specialists IT Support Specialists

19 ERS Group Growth Year Number of Employees All Offices Tallahassee Office Ph.D. level Current

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