H U M A N R E S O U R C E S

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1 Introduction I n a knowledge-based economy, the educational attainment and technology savvy of the workforce are strong contributors to a region s overall economic prosperity. This section benchmarks Ohio against its competitive peers in its ability to build strong human capital, based on its performance in producing, attracting, and retaining an educated and skilled workforce. Three subcategories of benchmarking H U M A N R E S O U R C E S indicators are used in this section to assess Ohio s human resources: Quality of Education Workforce Characteristics Technology Capacity BENCHMARK RESULTS Strengths Strong in school resources invested in K-12 levels Strong high-school attainment rate Relatively high workforce productivity Competitive access to technology in public schools Neutral Factors o Average SAT & ACT scores o Average household computer and Internet usage Weaknesses _ Net out-migration of undergraduate freshmen students _ Undistinguished reputation for higher educational institutions and programs _ Weak higher education attainment among workforce _ Weak in attracting of out-of-state workers and students _ Slow growth of workforce, exacerbated by domestic out-migration _ Inadequate supply of innovation economy workers (technology & science intensive fields) _ Relatively small percentage of workers employed as professionals, managers, and technicians H U M A N R E S O U R C E S Benchmarking Ohio s Economic Competitiveness 1

2 Introduction Summary of Benchmarking Indicators National Ranking (out of 50) Benchmark Ranking (out of 16) Indicator Ohio Indicator Value Quality of Education Average composite ACT scores 21.4 (66% of students take ACT) 25 9 Average composite SAT scores 1,077 (28% of students take SAT) 24 6 % of population 25 & older with high school diploma 87.2% 25 5 Current expenditure per pupil in public elementary and secondary schools $8, Student-teacher ratio in public elementary and secondary schools Net migration of freshman students in/out of state % of undergraduate freshman who graduated within a 6 year period 55.4% 15 6 Average peer assessment score for undergraduate 2.79 colleges & universities ranked by U.S. News & World (scale of 1-5, 5=highest) Report 19 8 Average peer assessment score for graduate programs 3.00 ranked by U.S. News & World Report (scale of 1-5, 5=highest) Workforce Characteristics % of population aged 25 and older with associate s degree or higher 28.1% % growth of adults with bachelor s degree and higher ( ) 27.9% % growth of civilian labor force ( ) 4.0% % growth of population years old ( ) -15.3% Net domestic interstate migration -27, Net international migration 15, Manufacturing value-added per employee $116, Technology Capacity % of schools where at least half of teachers use Internet for instruction 76% 20 6 % of 4 th graders who use a school computer at least once or twice a week 54% % of schools with Internet access from one or more classrooms. 96% 5 1 % of schools with Internet access that connect through T1/T3 line or cable modem 87% 4 2 % of households with computers 57.6% 25 7 % of households with Internet access 50.9% 26 8 Number of science & engineering graduate students 16, % of associate s degrees earned in innovation economy fields 40.5% 5 2 % of bachelor s degrees earned in innovation economy fields 25.1% 28 9 % of graduate degrees earned in innovation economy fields 28.2% Number of doctoral scientists & engineers in the workforce 20, % of jobs held by managers, professionals, & technicians 26.3% Number of workers in high-tech occupations 149, % of employment in high-tech occupations 2.8% Benchmarking Ohio s Economic Competitiveness

3 Quality of Education T oday s companies place a premium on an educated, skilled workforce that can understand new concepts easily, apply those concepts, and integrate them with other ideas. States and regions build this type of workforce by establishing and supporting educational and training institutions that have high standards and meet the demand for new worker skills in flexible ways. Quality of Education To measure Ohio s ability to provide a skilled, welleducated workforce to its businesses, we examine indicators related to secondary education performance, the resources invested in the public education system and performance of the higher education sector. Benchmarking Indicators Quality of Education Secondary Education Performance School Resources Higher Education Performance 1) Average SAT & ACT scores 2) % of population aged 25 and older with high school diploma or higher 1) Current expenditure per pupil in public elementary and secondary schools 2) Student-teacher ratio in public elementary and secondary schools 1) Net migration of freshman students in/out of state 2) % of undergraduate freshman who graduated within a 6 year period 3) Peer assessment scores for colleges and universities Benchmarking Ohio s Economic Competitiveness 3

4 Quality of Education Secondary Education Performance Why are these indicators important? These indicators are good proxy measurements of the quality of education received by secondary students in each state. States with high SAT/ACT scores generally have strong K-12 educational systems and are preparing their students well for post-secondary education. The percentage of population aged 25 and older with high school diploma or higher is used as a proxy indicator for comparing the high school dropout rate across states. Where does Ohio stand? Ohio s students are above the national average on both the average SAT and ACT scores. Across all U.S. states, Ohio s ranks in the middle on both tests, at 25 th on ACT scores and 24 th on SAT scores. Among the benchmark states, Ohio ranks in the top half on both measures; only three states Minnesota, Wisconsin, and Michigan rank higher in both measurements. State-to-state comparisons of SAT/ACT scores have to be viewed in the context of student participation rate in those tests. States with lower participation rates tend to have higher average scores, because fewer lowperforming students are included in the average. Ohio s ACT participation rate of 68 percent (2004) is comparable to that in Minnesota, Wisconsin, and Michigan, but much higher than the national average of 40 percent. On SAT, Ohio s participation rate of 28 percent is below the national average of 48 percent, but twice the level of participation found in Michigan, Minnesota, and Wisconsin. With more than 87 percent of its adults 25 years and older holding at least a high school diploma, Ohio ranks fifth among the benchmarking peers in this measurement, indicating a relatively low high school dropout rate. Nationwide, Ohio falls in the top half across all U.S. states in this indicator. Average composite ACT and SAT scores ( ) ,173 1,179 1,179 1, Percent of population aged 25 and older with high school diploma or higher (2003) 1,140 1, ,106 Average composite ACT scores ,038 1,002 1,018 1,004 1,049 1,077 1, , ,100 1,050 1, Average composite SAT scores Massachusetts Minnesota Wisconsin Pennsylvania California Indiana Arizona Michigan Ohio Virginia Florida Illinois Kentucky North Carolina Texas Georgia Source: The College Board & ACT, Inc. Average ACT scores (2004) Average SAT scores (2003) 4 Benchmarking Ohio s Economic Competitiveness

5 Quality of Education School Resources Why are these indicators important? Expenditures per pupil in public schools provide a good indicator of the overall emphasis and value that is placed on education in a state. Many recent studies have found that school expenditures have a positive correlation with student achievement levels. Studentteacher ratio in public elementary and secondary schools is the best available proxy indicator to provide a class size comparison across states. Many researchers have found that students in small classes perform better than students in larger classes, especially at the elementary school level and in the case of disadvantaged children. Where does Ohio stand? At $8,069 per pupil ( ), Ohio is competitive on public education expenditures relative to its benchmarking peers. Only Massachusetts, Michigan, Wisconsin and Pennsylvania spent more than Ohio per head on K-12 education. The nationwide average spending on education per head is $7,734. Ohio s level of spending on education also is reflected in its favorable student-teacher ratio in public elementary and secondary schools. Ohio ranks 5 th among the benchmark states and ahead of most Midwestern and northern rates on this indicator. Current expenditures per pupil in public elementary & secondary schools ( ) Massachusetts (4) Michigan (11) Wisconsin (13) Pennsylvania (14) Ohio (15) Illinois (16) Minnesota (20) Indiana (21) Virginia (23) California (24) Georgia (25) Texas (35) Kentucky (38) North Carolina (39) Florida (43) Arizona (47) $10, $8, $8, $8, $8, $7, $7, $7, $7, $7, $7, $6, $6, $6, $6, $5, $5, $6, $7, $8, $9, $10, $11, Source: National Center for Education Statistics Benchmarking Ohio s Economic Competitiveness 5

6 Quality of Education Student-teacher ratio in public elementary & secondary schools ( ) Virginia (5) 14.1 Massachusetts (16) Wisconsin (19) 14.4 Source: National Center for Education Statistics 14.7 Texas (23) 15.0 Ohio (26) 15.4 North Carolina (28) 15.4 Pennsylvania (29) Georgia (33) Illinois (34) 16.0 Minnesota (36) 16.2 Kentucky (37) 16.7 Indiana (38) 17.5 Michigan (42) 18.6 Florida (45) 20.0 Arizona (48) California (49) Benchmarking Ohio s Economic Competitiveness

7 Quality of Education Higher Education Performance Why are these indicators important? Migration of college and university students is a useful indicator for measuring the quality of a state s higher education system. Typically, states that attract significant numbers of out-of-state students have a large number of competitive colleges and universities. Attracting talented out-of-state university students also provides opportunities to retain those students in the workforce after graduation. Percent of undergraduate freshmen who graduated within 6-year period is a good proxy indicator of the quality and output of the higher education system. For students who did not complete their degree requirements in six years, the probability of getting a degree usually drops significantly. Peer assessment scores for colleges and universities are assigned by US News and World Report in its annual college and university rankings. The scores, assigned to educational institutions by their peers, are measurements of the reputation of the overall higher education institutions and programs in a state. Where does Ohio stand? Ohio is one of five among the benchmarking peers that experienced a net out-migration of freshman in Compared to Illinois, which experienced a net loss of 10,222 students, Ohio s loss of 526 freshman students may seem minor. However, Ohio s position among its competitors, as well as its national ranking of 39 th on this indicator, suggests that the state risks losing a portion of its future workforce to other regions of the country. More than 55 percent of Ohio s undergraduates complete their degrees in less than six years, placing it sixth among in the benchmarking group. Across all U.S. states, Ohio is also quite competitive, ranking 15 th in this indicator. On peer assessment scores, Ohio s undergraduate institutions rank in the middle, while its graduate programs place it among the bottom three states in the benchmark group. Across all U.S. states, Ohio places 19 th and 26 th on the peer assessment scores on undergraduate institutions and graduation programs respectively. While the overall average reputation of Ohio s higher education institutions may not be an overriding problem, it does suggest an area of weakness when Ohio competes with other states for new investment and location of companies that rely on a highly skilled, highly educated workforce. The average reputation of its colleges and universities also may account for the state s net out-migration of freshman students. Benchmarking Ohio s Economic Competitiveness 7

8 Quality of Education Net migration of freshman students in/out of state (2000) Pennsylvania (1) 12,721 Florida (2) Massachusetts (3) North Carolina (4) Arizona (5) Indiana (6) 10,043 9,399 8,302 7,563 6,455 Virginia (9) Kentucky (22) California (25) Wisconsin (27) Georgia (28) Michigan (36) Ohio (39) Minnesota (40) Texas (45) ,251 4,389 1,301 1, Illinois (49) -10,222-15,000-10,000-5, ,000 10,000 15,000 Source: National Center for Education Statistics 70.0% Percent of undergraduate freshmen who graduated within a 6-year period (2004) 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% 35.0% 30.0% Pennsylvania (1) 63.8% 62.8% 58.3% 56.4% 55.7% 55.4% 54.9% 52.4% 49.8% 49.6% 49.2% 48.5% 46.3% 45.2% 41.4% 39.6% Massachusetts (2) Minnesota (7) California (11) Virginia (13) Ohio (15) Illinois (16) Wisconsin (18) Indiana (22) Michigan (23) Arizona (25) North Carolina (27) Florida (32) Kentucky (33) Texas (39) Source: U.S. News & World Report * For classes entering , average of all ranked schools in state Georgia (41) 8 Benchmarking Ohio s Economic Competitiveness

9 Quality of Education Peer assessment scores for colleges and universities (2004) Average peer assessment score: undergraduate colleges & universities (score of 1-5) Average peer assessment score: graduate programs (score of 1-5) California Massachusetts Minnesota Indiana Wisconsin Virginia Illinois Ohio Georgia Pennsylvania North Carolina Kentucky Texas Arizona Florida Michigan Source: U.S. News & World Report Graduate programs Undergraduate colleges & universities Benchmarking Ohio s Economic Competitiveness 9

10 Workforce Characteristics S tates that are successful in the New Economy typically have a large or fast-growing supply of human capital to meet employers needs. This section measures the overall workforce education level, focusing on individuals with higher education. States that have a wide variety and large number of available job opportunities will attract the young, skilled workers that are critical for building a dynamic Workforce Characteristics workforce. In addition to looking at growth rates for the civilian labor force and the young adult labor force, this section examines migration of people into and out of the state. A high level of worker productivity is also critical for building industry competitiveness and, accordingly, is incorporated into the benchmarking analysis. Benchmarking Indicators Workforce Characteristics Workforce Education Level Growth of Workforce Migration of Population 1) % of adults with higher education 2) % growth of adults with bachelor s degree and higher ( ) 1) % growth of civilian labor force ( ) 2) % growth of population aged years old ( ) 1) Net domestic interstate migration 2) Net international migration Workforce Productivity Manufacturing value-added per employee 10 Benchmarking Ohio s Economic Competitiveness

11 Workforce Characteristics Workforce Education Level Why are these indicators important? Fundamental changes in the economy such as reliance on technology and emphasis on speed and flexibility have made workforce skills the number one concern for employers in both high-tech and nonhigh-tech industries. These indicators measure the education attainment of the workforce by looking at the share of the adult population (25 years or older) with a higher education, defined as those with an associate s/technical (2-year) degree, a bachelor s degree, or a graduate/professional degree, as well as growth rate of this workforce segment over the past decade. Where does Ohio stand? Ohio is weak in the higher education attainment of its workforce, with 28.1 percent of adults holding associate s degrees and above, compared to the national average of 32.1 percent. Among the benchmarking peers, the higher education attainment of Ohio s adult population is weak across all degree levels, placing it third from the bottom in this indicator. Looking at the growth rate of adults with a bachelor s degree or higher, Ohio ranks 23 rd nationwide, with a growth rate of 28 percent over This growth places Ohio fifth from the bottom across the benchmark states and behind all of its peer states in the Midwest. Improving the higher education attainment of Ohio s working population will be critical for supplying a highly-skilled, innovative workforce that can compete for investments and jobs in the high value-added and high-tech sectors of the national economy. Percent of adults with higher education (2001) 50.0% 45.0% 40.0% 35.0% 14.8% 30.0% 25.0% 20.0% 15.0% 10.0% 20.8% 11.9% 19.4% 9.1% 19.2% 10.1% 18.1% 10.4% 17.3% 8.3% 15.6% 7.2% 16.0% 8.8% 14.4% 8.1% 15.1% 8.2% 16.5% 7.8% 16.4% 7.0% 15.8% 8.7% 14.6% 7.6% 14.2% 7.8% 12.6% 7.3% 10.8% 5.0% 0.0% Massachusetts (1) 7.3% 6.1% 8.2% 7.1% 6.4% 7.6% 7.7% 7.3% 6.9% 5.2% 5.6% 6.9% 6.4% 6.4% 6.3% 5.1% Virginia (8) Minnesota (10) California (12) Illinois (15) Florida (24) Wisconsin (27) Michigan (29) Arizona (32) Georgia (33) Texas (34) North Carolina (35) Pennsylvania (36) % of adults over 25 with associate's degree % of adults over 25 with bachelor's degree % of adults over 25 with graduate/professional degree Source: Census Bureau Ohio (39) Indiana (41) Kentucky (47) Benchmarking Ohio s Economic Competitiveness 11

12 Workforce Characteristics Growth rate of percent of adults over 25 with bachelor s degree and higher ( ) 40.0% 35.0% 30.0% 25.0% 20.0% 33.3% 33.0% 31.9% 31.1% 30.9% 30.9% 30.6% 30.3% 29.9% 29.8% 27.9% 27.9% 27.7% 20.4% 19.1% 15.0% 14.5% 10.0% 5.0% 0.0% Michigan 23.2% Kentucky 18.1% Illinois 27.7% North Carolina 22.8% Wisconsin 23.2% Massachusetts 35.6% Florida 23.9% Indiana 20.3% Minnesota 28.3% Pennsylvania 23.2% 31.3% 21.7% 24.7% 28.2% 24.2% 23.3% Virginia Ohio Georgia California Texas Arizona Source: Census Bureau % of adults over 25 with bachelor's degree and higher (2001) Growth rate of % of adults over 25 with bachelor's degree or higher ( ) 12 Benchmarking Ohio s Economic Competitiveness

13 Workforce Characteristics Growth of Workforce Why are these indicators important? The civilian labor force and population growth rates measure the quantity of human resources, i.e., the size of the workforce, available to employers in the state. A large and/or growing labor force allows businesses to draw from a healthy pool of workers to meet their hiring needs. Businesses in states with a shrinking young adult labor force may face a lack of entry-level workers with specialized, high-tech skills. This trend also may indicate future shortages of workers as the current generation ages. Where does Ohio stand? The civilian labor force in Ohio grew five percent in , much lower than the U.S. average of 6.4 percent. Among the benchmark states, Ohio s growth rate in this indicator is comparable to states in the Midwest, but much lower than those for Arizona, Florida, and North Carolina states that experienced double-digit increases in the civilian labor force over the same period. Ohio s labor force growth has been driven primarily by older segments of the population, as is evident by examining the growth of the population segment of year olds. In this segment, Ohio experienced a net loss of 15.3 percent over This declining young adult population reflects the national trend of low birth rates during the late-1960s and 1970s, as well as the national trend of young adults moving to southern and western states. On a state level, it also may reflect a weak ability to attract young adults from out-of-state to work in Ohio. Growth of civilian labor force ( ) 25.0% 20.0% 19.3% 15.0% 10.0% 12.9% 11.4% 9.9% 9.1% 8.3% 8.2% 7.0% 5.0% 4.4% 4.2% 4.0% 4.0% 3.2% 0.0% 1.4% 1.3% 0.3% Arizona (2) Florida (4) Source: Bureau of Labor Statistics North Carolina (6) Georgia (9) Minnesota (10) Virginia (11) Texas (12) California (16) Massachusetts (32) Wisconsin (33) Pennsylvania (34) Ohio (35) Indiana (39) Illinois (43) Kentucky (44) Michigan (46) Benchmarking Ohio s Economic Competitiveness 13

14 Workforce Characteristics Growth of population aged years old ( ) 20.0% 17.0% 15.0% 2.5% -1.5% -6.9% -8.0% -9.1% -9.1% -9.2% -13.5% -13.7% -14.1% -15.3% 6.1% 10.6% 10.0% 5.0% 0.0% -5.0% -10.0% -15.0% Arizona (3) Georgia (5) North Carolina (7) Texas (9) Florida (11) Kentucky (16) California (18) Virginia (21) Illinois (22) Indiana (23) Michigan (30) Minnesota (31) Wisconsin (32) Ohio (36) Massachusetts (38) -15.9% Pennsylvania (42) -18.4% -20.0% Source: Census Bureau 14 Benchmarking Ohio s Economic Competitiveness

15 Workforce Characteristics Migration of Population Why is this indicator important? States that are able to attract workers from other regions and countries provide an expanding and dynamic labor force that supports industry competitiveness and growth. Many factors contribute to the attractiveness of a state for in-migration, including job opportunities and the state s overall environment and quality of life. Where does Ohio stand? Ohio has experienced a net loss of 27,497 people to domestic migration in , one of the most severe across the nation (Ohio ranks 45 th nationwide on this indicator). Among Ohio s benchmarking peers in the Midwest, Minnesota, Michigan, and Illinois also experienced a net loss of population to domestic migration. Domestic out-migration from Ohio partly reflects migration patterns among the nation s aging population to sunny states for retirement. In Ohio, part of that population loss in has been offset by a net international in-migration of 15,478 people. Net domestic and international population migration ( ) 300, , , , ,000 50, , , , ,303 34,266 61,200 38,914 31,785 27,462 28,412 31,395 25,100 15, ,010 5,416 8,592 21,201 7,841 9,427 4,981 11,147 Florida 1,019 Arizona -7,705 14,589 Georgia 25,279 Virginia -25,583 North Carolina -27,497 15,478 Texas -45,099 33,447 Kentucky -73,980 66,911 Pennsylvania -94, ,051 Wisconsin Indiana Minnesota Michigan Ohio Massachusetts Illinois California Source: Census Bureau Net domestic migration Net international migration Benchmarking Ohio s Economic Competitiveness 15

16 Workforce Characteristics Workforce Productivity Why is this indicator important? Value-added per employee is a good proxy indicator of workforce productivity. Value-added in manufacturing is calculated by subtracting the costs of a company s materials, inputs, and contracted services from the revenue earned from its products. Value-added and productivity usually are tied to investment, innovation, and process improvements. Technology-intensive sectors, such as computers and communications, typically have high value-added and thus pay the highest wages. Where does Ohio stand? Ohio falls right in the middle among the benchmark states on the productivity indicator, but performs better than most of its peer states in the Midwest Illinois, Michigan, Kentucky, Pennsylvania, Wisconsin, and Minnesota. At $116,330, manufacturing value-added per employee in Ohio is slightly below the U.S. average of $116,750. Ohio ranks 17 th across all U.S. states in this indicator. Manufacturing value-added per employee (2001) $180, $160, $140, $120, $100, $80, $60, $40, $20, $80.00 $162, $152, $131, $126, $122, $120, $118, $117, $116, $116, $115, $114, $114, $109, $102, $99, Virginia (3) Source: Census Bureau Arizona (4) North Carolina (8) Texas (9) California (12) Indiana (13) Georgia (15) Massachusetts (16) Ohio (17) Illinois (19) Michigan (22) Kentucky (23) Pennsylvania (24) Wisconsin (32) Minnesota (38) Florida (40) 16 Benchmarking Ohio s Economic Competitiveness

17 Technology Capacity A technology-literate workforce is a sought-after resource to companies in the most innovative, rapidly expanding sectors of the economy. The technology capacity indicators used in this study measure the degree to which a state s workforce meets the demands of today s technology-driven economy. Technology in education measures the degree to which technology has been adopted in the K-12 levels to prepare students as tomorrow s workforce. Measuring the proliferation of household computers and Internet Technology Capacity access in the state reveals the degree to which technology has been incorporated into everyday society. To be competitive in attracting and retaining high-tech firms, a state must have a good supply of skilled scientists and engineers, and as well as workers with managerial, professional and other technical training. Indicators under the categories of innovation economy education and knowledge economy workers measure the supply of workers with such qualifications, both in the current workforce, and in the higher educational system pipeline. Benchmarking Indicators Technology Capacity Technology in Education Technology Access Innovation Economy Education Knowledge Economy Workers 1) % of schools where at least half of teachers use Internet for instruction 2) % of 4 th graders who use a school computer at least once or twice a week 3) % of schools with Internet access from one or more classrooms 4) % of schools with Internet access that connects through T1/T3 line or cable modem 1) % of households with computers 2) % of households with Internet access 1) Number of science & engineering graduate students 2) % of degrees earned in innovation economy fields 1) Number of doctoral scientists & engineers in the workforce 2) % of jobs held by managers, professionals, and technicians 3) Number and % of employment in high-tech occupations Benchmarking Ohio s Economic Competitiveness 17

18 Technology Capacity Technology in Education Why are these indicators important? Integrating technology into teaching can help improve educational performance. This section examines both the use of technology in schools and the access to technology in schools. At the K-12 level, access to computers and the Internet facilitates the learning of computer skills at an early age and helps to equip young people to meet the demands of the New Economy. Schools that have high-speed Internet connections benefit from faster transmission of information, thus allowing the Internet to be a more accessible learning tool. Where does Ohio stand? Ohio s performance in use of technology in schools ranges from fair to poor. Ohio places seventh among the benchmark states on the percent of its schools having at least half of their teachers using Internet for instruction. However, Ohio is way behind all peer states in the percent of 4 th graders who use a school computer at least once a week and ranks 45 th in the nation in this indicator. By contrast, Ohio ranks first among all peer states in access to technology in schools, measured by the percent of schools with internet access from one or more classrooms. Ohio also performs quite well in the high-speed Internet connection indicator, tying with Illinois to rank second in the peer group. Taken together, these results suggest that Ohio s schools at the K-12 level are competitive in supplying access to technology, but are much weaker in applying that technology to the classroom setting, particularly at the lower grade levels. Use of technology in schools (2003) 90% 85% 80% 75% 70% 84% 75% 82% 80% 79% 73% 78% 76% 76% 76% 76% 71% 74% 74% 72% 72% 71% 65% 60% 62% 65% 65% 68% 63% 66% 62% 62% 68% 61% 68% 67% 65% 55% 54% 56% 50% Kentucky Virginia Georgia North Carolina Illinois Indiana Ohio Texas Wisconsin Michigan Minnesota Pennsylvania Massachusetts Arizona Florida California Source: Education Week % of schools where at least half of teachers use Internet for instruction % of 4th graders who use a school computer at least once or twice a week 18 Benchmarking Ohio s Economic Competitiveness

19 Technology Capacity Access to technology in schools (2003) 100% 95% 90% 85% 96% 87% 95% 95% 94% 84% 93% 93% 85% 93% 84% 92% 84% 92% 90% 91% 90% 87% 89% 89% 89% 89% 88% 80% 75% 70% 75% 78% 81% 80% 80% 75% 73% 77% 74% 65% 60% Ohio Kentucky North Carolina Texas Georgia Indiana Wisconsin Florida Minnesota Virginia Illinois Arizona California Michigan Pennsylvania Massachusetts % of schools with Internet access from one or more classrooms Source: Education Week % of schools with Internet access that connect through T1/T3 line or cable modem Benchmarking Ohio s Economic Competitiveness 19

20 Technology Capacity Technology Access Why are these indicators important? The share of the population online is probably the best indicator of a state s progress toward the digital economy. Computer ownership and Internet usage are good indicators of the workforce s overall technology savvy, both now and in the future. Where does Ohio stand? Ohio s ranking in technology access is average across all U.S. states, and more or less in the middle range within the peer group. Almost 51 percent of Ohio s households have Internet access, and 57.6 percent of households had computers in It should be noted that Ohio s population is more computer and Internet savvy compared to the peer states in the Midwest, with the exception of Michigan. Percent of households with computers and Internet access (2001) 70.0% 65.0% 60.0% 55.0% 50.0% 45.0% 40.0% 55.6% 64.6% 55.3% 61.5% 54.9% 58.8% 54.7% 59.1% 52.8% 55.9% 51.9% 59.4% 51.2% 58.3% 50.9% 57.6% 50.2% 56.4% 48.7% 53.5% 47.7% 53.7% 47.3% 53.2% 46.9% 53.0% 46.7% 52.4% 44.5% 50.1% 44.2% 49.8% Minnesota California Virginia Massachusetts Florida Arizona Michigan Ohio Wisconsin Pennsylvania Texas Indiana Illinois Georgia Source: Department of Commerce % of households with Internet access % of households with computers North Carolina Kentucky 20 Benchmarking Ohio s Economic Competitiveness

21 Technology Capacity Innovation Economy Education Why are these indicators important? Science and engineering (S&E) students today represent the pipeline of tomorrow s scientists and engineers in the workforce. The number of graduate students currently enrolled in science and engineering programs is a good tool to forecast future workers in this critical human resources area. This section also measures the percent of degrees earned in innovation economy fields, which are defined as associate s, bachelor s, and graduate degrees earned in fields strong in technology, science and math content. Where does Ohio stand? Measured in gross numbers, Ohio is quite strong in total S&E graduate students enrolled, ranking eighth nationwide in this indicator. However, measured on a per 10,000 people basis, Ohio s ranking drops to 20 th place across all U.S. states. On both measurements, Ohio is behind Illinois and Pennsylvania, and ahead of Michigan, Indiana, Wisconsin, Minnesota, and Kentucky. On degrees earned in innovation economy fields, Ohio is strongest in the percent of associate s degrees earned in those fields. The state is much weaker in the percent of bachelor s and graduate degrees earned in innovation economy fields, placing in the bottom half of the benchmark states. Nationwide, Ohio also is below the median, ranking 28 th in both measurements. Number of science & engineering graduate students (2001) 60, , Number of S&E graduate students 40,000 30,000 20,000 10, , , ,115 20, , , , , , , , , , , , , Number of S&E graduate students per 10,000 people California Texas Illinois Massachusetts Pennsylvania Florida Ohio Michigan Virginia North Carolina Georgia Indiana Wisconsin Arizona Minnesota Kentucky Source: National Science Foundation Total S&E graduate students S&E graduate students per 10,000 people Benchmarking Ohio s Economic Competitiveness 21

22 Technology Capacity Percent of degrees earned in innovation economy fields (2000) 45.0% 40.0% 35.0% 36.8% 34.5% 36.6% 34.0% 39.6% 34.6% 34.3% 39.3% 40.5% 37.8% 40.9% 34.9% 30.0% 25.0% 20.0% 15.0% 28.8% 27.9% 29.3% 27.3% 33.1% 27.2% 33.9% 26.8% 27.2% 23.1% 26.6% 26.0% 29.7% 25.5% 28.2% 25.2% 25.1% 28.2% 24.7% 26.2% 24.3% 25.7% 30.1% 19.7% 24.2% 28.3% 24.0% 25.1% 23.9% 31.4% 21.7% 22.6% 28.7% 18.9% 20.3% 29.1% Michigan Wisconsin Pennsylvania Virginia Georgia Indiana Massachusetts North Carolina Ohio Illinois Minnesota Florida Kentucky Texas California Arizona Source: Indiana Chamber & National Center for Education Statistics % of associate's degrees earned in 'innovation economy' fields % of graduate degrees earned in 'innovation economy' fields % of bachelor's degrees earned in 'innovation economy' fields 22 Benchmarking Ohio s Economic Competitiveness

23 Technology Capacity Knowledge Economy Workers Why are these indicators important? Workers who have a strong background in science and engineering are often among the most desirable to employers in today s technology-intensive economy. The doctoral scientists and engineers in the workforce indicator measures both the total number and the proportion of the workforce that holds these advanced degrees. Skilled managers, professionals, and technicians 1 increasingly are vital to businesses seeking higher efficiency and market competitiveness. States and regions that have a large percentage of managers, professionals, and technicians tend to have a large number of professional, service, or high tech companies; a large number of corporate or regional headquarters; or a high concentration of federal or state government offices that employ many managers. In order to capture the high-tech activities occurring throughout different industries, we measure high-tech employment based on occupational employment data, rather than industry-level data. 2 An indicator of hightech employment measures the number of employees working in high-tech occupations, in any industry sector, as well as the share of total state employment comprised of high-tech workers. Where does Ohio stand? With 20,070 doctoral scientists and engineers in its workforce, Ohio is quite strong in this measurement, ranking sixth among the benchmark states and ninth across the nation. Adjusting for workforce size in each state, Ohio s ranking drops slightly within the peer group (to seventh) and to 23rd in the nation. Ohio may be disadvantaged by the relatively small number of corporate and federal R&D laboratory facilitates in the state, compared to states such as California, Virginia and Massachusetts. A relatively small proportion of jobs in Ohio are held by managers, professionals, and technicians, placing it 11th among the benchmark states and 34th in the nation in this indicator. This result seems to be correlated with the high concentration of manufacturing activities in Ohio s traditional economic base. In 2003, approximately 149,100 high-tech workers were employed in Ohio, composing 2.8 percent of all employment. This is below the national average of 3.3 percent. Ohio places eighth among 16 benchmark states on the number of high-tech workers. Adjusted for employment, Ohio s ranking drops to 12th place in the peer group and to 27th place in the nation. 1 Data for this indicator are from the Bureau of Labor Statistics Occupational Employment Statistics and include the following occupational codes: management (11); business & financial operations (13); computers & mathematics (15); architecture & engineering (17); life, physical, & social sciences (19); community & social services (21); legal (23); education, training, & library (25); arts, design, entertainment, sports, & media (27); and healthcare practitioners & technicians (29). 2 The definition of high-tech occupations is drawn from the following publication: Chapple et al. (2004), "Gauging Metropolitan 'High-Tech' and 'I-Tech' Activity," Economic Development Quarterly, Vol. 18, No. 1: Benchmarking Ohio s Economic Competitiveness 23

24 Technology Capacity Number of doctoral scientists and engineers in the workforce (2001) 90, Number of doctoral scientists & engineers 80,000 70,000 60,000 50,000 40,000 30,000 20, Number of doctoral scientists & engineers per 10,000 workers 10, ,870 32,490 29,100 26,140 22,110 20,070 17,460 17,380 16,760 15,740 11,990 11,410 9,580 8,720 7,070 4, California Texas Massachusetts Pennsylvania Illinois Ohio Virginia Michigan North Carolina Florida Georgia Minnesota Indiana Wisconsin Arizona Kentucky Source: National Science Foundation Total doctoral scientists & engineers Doctoral scientists & engineers per 10,000 workers Jobs held by managers, professionals, and technicians as percent of total state employment (2003) Massachusetts (1) 34.5% Virginia (6) 30.8% Minnesota (9) Illinois (12) California (15) Pennsylvania (19) Texas (23) Michigan (25) Arizona (27) Georgia (28) 30.1% 29.6% 29.4% 28.7% 28.0% 27.3% 27.2% 27.2% Ohio (34) North Carolina (36) 26.3% 26.2% Kentucky (42) Wisconsin (43) Florida (44) Indiana (45) 25.1% 25.0% 24.7% 24.1% 20.0% 22.0% 24.0% 26.0% 28.0% 30.0% 32.0% 34.0% 36.0% Source: Bureau of Labor Statistics 24 Benchmarking Ohio s Economic Competitiveness

25 Technology Capacity Employment in high-tech occupations (2003) 700, % 600, % 5.0% 5.0% Number of workers in high-tech occupations 500, , , , % 3.4% 2.4% 2.9% 2.9% 2.8% 2.9% 3.3% 2.8% 3.4% 2.9% 3.1% 2.4% 2.0% 4.0% 3.0% 2.0% % of workers in high-tech occupations 100, , , , , , , , , , , ,640 89,210 77,840 71,150 67,260 34, % 0.0% California Texas Virginia Florida Illinois Pennsylvania Massachusetts Ohio Michigan Georgia North Carolina Minnesota Wisconsin Arizona Indiana Kentucky Source: Bureau of Labor Statistics & SRI International Number of workers in high-tech occupations % of workers in high-tech occupations Benchmarking Ohio s Economic Competitiveness 25

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