Technology and Data: A Decade of Economic Transformation
Over the past decade, the economic landscape of the United States has undergone a significant transformation, driven by the rapid growth of the technology and data sectors. This shift has been particularly pronounced in certain states, where the percentage of GDP attributed to these industries has seen remarkable increases. In this blog post, we will analyze the growth of technology and data economic output from 2012 to 2022, highlight the states that have experienced the most significant growth, and explore the primary drivers behind this trend. Additionally, we will identify the states poised for continued growth in the coming years.

A Decade of Growth: 2012 to 2022
In 2012, the technology and data sectors were already important contributors to the GDP of many states. However, the past decade has seen these industries expand at an unprecedented rate. According to data from the Bureau of Economic Analysis (BEA), states such as California, Texas, and Washington have been at the forefront of this growth. For instance, California's technology and data sector accounted for approximately 10% of the state's GDP in 2012. By 2022, this figure had grown to nearly 15%, reflecting the state's dominance in the tech industry (1).
Similarly, Texas and Washington have seen their technology and data sectors grow from 8% and 9% of GDP in 2012 to 13% and 14% in 2022, respectively (2). These states have benefited from a combination of factors, including a strong talent pool, favorable business environments, and significant investments in research and development.
States with the Most Significant Growth
While the traditional tech hubs have continued to thrive, several other states have emerged as significant players in the technology and data sectors. North Dakota and South Dakota, for example, have seen their technology and data economic output grow by over 200% from 2012 to 2022 (3). This growth can be attributed to a combination of factors, including investments in infrastructure, a focus on education and workforce development, and the attraction of tech companies seeking lower operating costs.
Colorado and Utah have also experienced substantial growth, with their technology and data sectors now accounting for 12% and 11% of their GDP, respectively (4). These states have leveraged their natural beauty and high quality of life to attract tech talent, while also fostering a supportive environment for startups and innovation.
Primary Drivers of Growth
Several key factors have driven the growth of the technology and data sectors across the country:
Talent and Education: States that have invested in education and workforce development have been able to attract and retain top tech talent. Universities and technical schools play a crucial role in providing the skilled workforce needed for these industries.
Business Environment: States with favorable business climates, including low taxes and regulatory support, have been able to attract tech companies and startups. This has led to the creation of tech hubs that drive economic growth.
Infrastructure and Connectivity: Investments in infrastructure, including high-speed internet and transportation, have enabled states to support the needs of tech companies and remote workers.
Quality of Life: States that offer a high quality of life, including access to outdoor recreation and affordable housing, have been able to attract tech workers seeking a better work-life balance.
Looking Ahead: States Poised for Future Growth
As we look to the future, several states are well-positioned to continue their growth in the technology and data sectors. Idaho, Montana, and Nevada are among the states expected to see significant increases in their tech economic output over the next decade (5). These states have already begun to attract tech companies and talent, and their investments in education, infrastructure, and quality of life will likely pay dividends in the years to come.
In conclusion, the past decade has seen remarkable growth in the technology and data sectors across the United States. States that have invested in talent, infrastructure, and quality of life have reaped the benefits of this economic transformation. As we move forward, the continued growth of these industries will be crucial for driving innovation and economic prosperity.
1: Bureau of Economic Analysis, "Gross Domestic Product by State, 2012 and 2022."
2: Bureau of Economic Analysis, "Gross Domestic Product by State, 2012 and 2022."
3: Bureau of Economic Analysis, "Gross Domestic Product by State, 2012 and 2022."
4: Bureau of Economic Analysis, "Gross Domestic Product by State, 2012 and 2022."
5: Bureau of Economic Analysis, "Gross Domestic Product by State, 2012 and 2022."
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