February 2015
Economic Pulse: Insights on Maryland's advanced industries
Mikra Krasniqi is an economist at theMaryland Department of Business and Economic Development.
Maryland is fostering the growth of advanced industries, thanks in part to the State's highlyeducated and diverse workforce, a recent report shows.
"America's Advanced Industries," by the Brookings Institute, identifies more than 50 advanced industries that occupy a vital place in the U.S. economy. Industries involved in science, technology, engineering and mathematics known as STEM fields enable the nation to maintain high productivity in the face of increasing international competition.
Regional indicators within the Brookings Institute study found that Maryland is well positioned to harvest the fruits of these industries; the State ranks among the nation's top 12 states for overall strength in advanced industries, and sixthin the country foremployment in advanced industry services.The overall share of employment in advanced industries in Maryland is at 9.5 percent.
Maryland's leadership in advanced industries can be attributed to its focus on education, especially in STEM fields. Home to a wide range of higher education centers of academic excellence, the State has consistently ranked at or near the top of investments in education and human capital.This has fostered the development of clusters of technology-driven industries and bolstered knowledge-based employment.
Advanced industries in Baltimore region
Most of Maryland's advanced industry employment is concentrated in the Baltimore-Columbia-Towson area. Between 2010 and 2013, output in advanced industries grew by 1.5 percent, while employment expanded by 5.6 percent, ranking ahead of the Washington, D.C. metropolitan area. According to the report, advanced industries in the Baltimore region directly employ 124,970 full-time workers or 9.1 percent of all jobs in the area, with an average annual pay of $99,760, ranking 17thin the nation. This direct employment supports an additional 99,980 indirect jobs in supporting services and industries. The region's overall economic output of advanced industries is about $25.3 billion, accounting for 16 percent of all output (See Table 1).
Annual growth in advanced industries
The Baltimore-Columbia-Towson area outpaced the neighboring Washington, D.C. metropolitan area both in employment growth and output between 2010 and 2013. Employment in Baltimore grew by 1.8 percent during this period, while output increased by 2.3 percent. Washington, D.C. saw a lower increase of 0.7 percent in jobs and 1.2 percent growth in output for advanced industries (See Figure 1).
Top Advanced industries in Maryland
The top largest advanced industries in the Baltimore area are in computer design, architecture and engineering, management consulting, research and development services, precision instruments, power generation and supply, and wireless telecom carriers. All together, the State's top 10 advanced industries employ 108,750 people. These workers account for 87 percent of all employment in the Baltimore area's advanced industries.
EconomicNews
Silicon Valley pays less than Bethesda. No, really.– Washington Post
County official: P&G plant a boon for region– Herald Mail Media
EconomicEvents
Managing Economic Development Offices – February 26-27
Highlights for Business Success – March 25
2015 MEDA Annual Conference – April 26-28
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