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New TechNet Study: Illinois Among Top 10 App Economy Job Producing U.S. States

Study Shows Nearly 500,000 "App Economy" Jobs in U.S.

WASHINGTON, DC -- (Marketwire) -- 02/07/12 -- TechNet, an Illinois Technology Association national partner, and the bipartisan policy and political network of technology CEOs that promotes the growth of the innovation economy, today released a new study showing that there are now roughly 466,000 jobs in the "App Economy" in the United States, up from zero in 2007. The study also found that Illinois is in the top ten of U.S. states with roughly 4 percent of App Economy jobs in the nation.

The study, sponsored by TechNet and conducted by Dr. Michael Mandel of South Mountain Economics LLC, also found that App Economy jobs are spread throughout the nation. The top metro area for App Economy jobs is New York City and its surrounding suburban counties, although together San Francisco and San Jose together substantially exceed New York. And while California tops the list of App Economy states, more than two-thirds of App Economy employment is outside of California and New York. The results also suggest that the App Economy is growing quickly and that the location and number of app-related jobs are likely to shift greatly in the years ahead.

"America's App Economy -- which had zero jobs just 5 years ago before the iPhone was introduced -- demonstrates that we can quickly create economic value and jobs through cutting-edge innovation," said Rey Ramsey, President and CEO of TechNet. "Today, the App Economy is creating jobs in every part of America, employing hundreds of thousands of U.S. workers today and even more in the years to come."

"The App Economy, along with the broad communications sector, has been a leading source of hiring strength in an otherwise sluggish labor market," said Dr. Michael Mandel, the report's author and President of South Mountain Economics and former Chief Economist for BusinessWeek.

"As the technology industry and in particular software evolves, the app economy is becoming a critical new area of development and growth," says Fred Hoch, President, Illinois Technology Association. "Illinois, with rich resources in data, development, advertising and design, is poised to take a leading role in this newly evolving ecosystem and related job creation."

The full study, entitled "Where the Jobs Are," is available at: http://www.technet.org/new-technet-sponsored-study-nearly-500000-app-economy-jobs-in-united-states-february-7-2012/

Top U.S. Metro Areas With Highest Percentage of App Economy Jobs

New York-Northern N.J.-Long Island  9.2%
San Francisco-Oakland-Fremont       8.5%
San Jose-Sunnyvale-Santa Clara      6.3%
Seattle-Tacoma-Bellevue             5.7%
Los Angeles-Long Beach-Santa Ana    5.1%
Washington-Arlington-Alexandria     4.8%
Chicago-Naperville-Joliet           3.5%
Boston-Cambridge-Quincy             3.5%
Atlanta-Sandy Springs-Marietta      3.3%
Dallas-Fort Worth-Arlington         2.6%

Top Ten States for App Economy Jobs (Percentage)

California                         23.8%
New York                            6.9%
Washington                          6.4%
Texas                               5.4%
New Jersey                          4.2%
Illinois                            4.0%
Massachusetts                       3.9%
Georgia                             3.7%
Virginia                            3.5%
Florida                             3.1%

The research shows that when it comes to employment impacts, each app represents jobs -- for programmers, for user interface designers, for marketers, for managers, for support staff. Conventional employment numbers from the Bureau of Labor Statistics are not able to track such a new phenomenon because this economic ecosystem is so new. The research analyzed detailed information from The Conference Board Help-Wanted OnLine® (HWOL) database, a comprehensive and up-to-the-minute compilation of want ads, to estimate the number of jobs in the App Economy.

The total number of Apps Economy jobs includes jobs at 'pure' app firms such as Zynga as well as app-related jobs at large companies such as Electronic Arts, Amazon, and AT&T, as well as app 'infrastructure' jobs at core firms such as Google, Apple, and Facebook. In addition, the App Economy total includes employment spillovers to the rest of the economy.

About Dr. Michael Mandel and South Mountain Economics LLC
Dr. Michael Mandel is president of South Mountain Economics LLC, a consulting firm which tracks the impact of innovation and trade on state, local, and national labor markets. His blog, "Mandel on Innovation and Growth," can be found at http://www.southmountaineconomics.com. Dr. Mandel, who holds a PhD in economics from Harvard University, formerly served as chief economist at BusinessWeek, where he directed the magazine's coverage of the domestic and global economies. While at BusinessWeek, Dr. Mandel was named one of the top 100 business journalists of the 20th century for his writings on innovation and growth. He received multiple awards for his work, including "Best Economic Journalist of the Year" by the World Leadership Forum, and the Gerald Loeb Award for Business and Financial Journalism, the top award in the field. Dr. Mandel also serves as Chief Economic Strategist at the Progressive Policy Institute in Washington DC. He is Senior Fellow at the Mack Center for Technological Innovation at the Wharton School, and produces education-oriented economics videos through his company Visible Economy LLC. He is also the author of four books, including an introductory economics textbook, Economics: The Basics, now in its second edition. His main twitter feed is @MichaelMandel, and his textbook twitter feed is @MandeltheBasics.

About TechNet:
TechNet is the national, bipartisan network of CEOs that promotes the growth of technology industries and the economy by building long-term relationships between technology leaders and policymakers and by advocating a targeted policy agenda. TechNet's members represent more than one million employees in the fields of information technology, biotechnology, e-commerce and finance. TechNet has offices in Washington, D.C., Palo Alto, Sacramento, Seattle, Boston and Austin. Web address: www.technet.org. You can also follow us on Facebook and Twitter at @technetupdate.

About ITA
The Illinois Technology Association, a next-generation business organization, is a driving force behind the growth of Illinois' vibrant technology industry. ITA's mission is to accelerate the growth of our 700 member companies, drive their visibility and bridge the technology talent gap from startups to industry leaders in software, services, and information technology businesses. Through collaboration and collective action, ITA brings the industry together to drive member success and advocate for the Illinois technology community locally and nationally. Illinois is a national leader in technology and ITA is committed to its continued growth. For more information about ITA, please visit www.illinoistech.org or follow us on twitter @itabuzz.

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