Nearly 900,000 American jobs come from tech exports, AeA reports

California was the leading high-tech export state with $48.2 billion in exports in 2007, followed by Texas with $35.9 billion. But the two states also recorded the largest decrease in tech exports.

By Suzanne Deffree, Managing Editor, News -- Electronic News, 9/23/2008

United States high-tech merchandise exports totaled $214 billion in 2007 and provided nearly 900,000 American jobs, according to research released today from the AeA.

According to the technology trade association's "Trade in the Cyberstates 2008" report, the $214 billion total declined 3% compared to 2006's $220 billion total. However, the report noted that high tech remains the single largest merchandise export sector in the US, representing 18% of all exports to the world. High-tech imports totaled $333 billion in 2007, up by 3%, resulting in a high-tech trade deficit of $118 billion, AeA found.

"Trade is critical for the US high-tech industry and for every state's economy," said Christopher W Hansen, president and CEO of AeA, in a statement. "The bad news is that US tech exports declined slightly in 2007. The good news, however, is that tech exports rose in 29 states. These exports support nearly 900,000 American jobs -- an often overlooked fact."

AeA's Trade in the Cyberstates 2008 -- a study on high-tech trade flows at the national level and tech goods exports for all 50 states, the District of Columbia, and Puerto Rico -- reported that of the 29 states that saw tech export growth between 2006 and 2007, the largest growth was in Virginia, Florida, Idaho, New Jersey, and Utah, as measured by dollar increase.

Unsurprisingly, California was the leading high-tech export state with $48.2 billion in exports in 2007, followed by Texas with $35.9 billion. But the two states also recorded the largest decrease in tech exports last year, with California dipping 6.8% and Texas dipping 7%.

The largest overseas markets for US high-tech exports last year were the European Union at $46.6 billion, Canada at $29.4 billion, Mexico at $26 billion, China at $14.5 billion, Japan at $11.9 billion, and Singapore at $9.2 billion, according to the AeA data.

The fastest growing large export markets (defined by AeA as having $1 billion or more in U.S. tech exports) for US tech exports between 2006 and 2007 were Portugal at more than 204% growth, the Dominican Republic at more than 45% growth, Belgium at more than 41% growth, Colombia at more than 28% growth, and Argentina at more than 21% growth.

What goes out, however, also comes in, and the AeA reported that the US imported $112.3 billion worth of high-tech products from China, $51.3 billion in products from Mexico, $33.4 billion from the European Union, $29.2 billion from Japan, and $25.1 billion Malaysia.

According to AeA, high tech was the second largest import sector, just behind energy products. The largest high-tech import subsectors in 2007 were computers and peripheral equipment at $103.2 billion, communications equipment at $74 billion, and consumer electronics at $54.4 billion.

"We urge our leaders in Washington, DC, to work together to open new foreign markets for US exports," said Rob Mulligan, an AeA senior VP, in the statement. "And our trade partners need to uphold their side of the bargain by protecting intellectual property, lowering tariffs and non-tariff barriers to trade, and supporting international trade commitments. In a global economy, the only way to succeed is to support open trade policies where American companies and workers can compete freely and fairly."