Understanding Maryland’s Economic Competitiveness: Spotlight on Technology

Maryland has a considerable number of high-tech business establishments but lags behind in business growth.

• The data: Maryland has 14,227 high tech business establishments with payroll; however the percentage of business establishment change is ranked as 43rd in the country.

Maryland tech employment is strong but faces regional competition.

• The data: Maryland's net tech employment ranks highly, indicating a strong tech sector, which can be a positive sign for the state's economy, and can make the state attractive for investment and skilled workers. However, among nearby states, only Delaware ranks worse in this area.

• Why it matters: Having a strong high-tech sector can offer significant opportunities for businesses, as well as benefits to the broader community. Some benefits of a strong high-tech sector include access to a skilled workforce, increased innovation and competitiveness, investments in research and development, and positive economic impact. Some areas to watch include labor costs and competition for talent.

Maryland has a strong share of high-tech jobs.

• The data: Maryland ranks towards the top for the share of high-tech jobs that make up the state's total employment. Maryland's share of total employment is higher than the national average, and among nearby states, only Virginia ranks better in this area.

• Why it matters: Having a strong share of high-tech jobs can have positive impacts on business and the economy. These tend to be high-paying, highly skilled jobs, and a high number of tech jobs can help spur innovation, attract other businesses, and help the economy grow.

Maryland Tech Wages Among Highest in the Nation.

• The data: Maryland ranks 7th in the country for median high-tech wages, with the median wage for a tech worker in Maryland coming in at $109,357, which is 123% more than the median wage for all occupations in the state.

• Why it matters: Maryland's high median tech wages are a sign of a vibrant tech sector, and make the state attractive to top talent, helping to build a highly skilled workforce. The influx of highly-paid workers also strengthens local economies through increased consumer spending and tax revenue. However, the high wages make labor more expensive for tech companies, potentially deterring expansions or new startups in the state. Businesses also must compete harder for talent, raising hiring and retention costs.