High-technology is a pillar of Oregon's economy. This research details the industry's growth and contribution in terms of jobs, wages, GDP, and exports.

1. Oregon’s High-
Technology Sector
July 2022 Oregon Office of Economic Analysis

2. Oregon Office of
Economic Analysis
2
Tech is a Pillar of Oregon’s Economy
• Oregon High-Tech
• 1 in 17 jobs
• 1 in 16 businesses
• 1 in 9 wages paid

3. Oregon Office of
Economic Analysis
3
Record-High Tech Employment
High-tech jobs in Oregon
are at their highest level
ever reached, now
surpassing even the
dotcom boom era
High-tech jobs in Oregon
account for nearly 6% of
all jobs in Oregon, similar
to the nation overall

4. Oregon Office of
Economic Analysis
4
Strong wage gains in high-paying sector
In the 1970s, on average, High-Tech
paid 10% more than the statewide
average wage
In 2021, on average, High-Tech paid
nearly double the statewide average
wage (+97%)

5. Oregon Office of
Economic Analysis
5
High productivity drives economic growth

6. Oregon Office of
Economic Analysis
6
Tech is Oregon’s highest valued export

7. Oregon Office of
Economic Analysis
7
Tech is Portland-centric in Oregon
(77% of the jobs are in the tri-county area)

8. Oregon Office of
Economic Analysis
8
• From 2011 to 2021, the number of high-tech
business units (similar to establishments) in
Oregon increased from 5,900 to 10,200
• As a share of all private sector business units, tech
increased from 4.8% in 2011 to 6.2% in 2021
• Self-employment for high-tech increased as
well. Based on the Census’ Nonemployer
Statistics, the number of establishments in
Oregon in tech-heavy industries increased
from 12,100 in 2014 to 12,700 in 2019 (most
recent year available), for a growth rate of
about 1% per year
Start-up activity remains strong

9. Oregon Office of
Economic Analysis
9
• From 2011 to 2021, software
employment has increased
nearly 17,000, accounting for
78% of all high-tech job gains
• From 2011 to 2021, the
number of software company
business units has increased
by 4,100, accounting for 94%
of all high-tech business unit
gains
• Note that these are payroll
jobs at firms classified in
software industries
Software growth has lead industry

10. Oregon Office of
Economic Analysis
10
Oregon’s strong software growth is
keeping pace with nation
• Software jobs (prepackaged
and custom) have essentially
doubled in the past 16 years
both in Oregon and across
the country
• Oregon is a steady 1.1% of
the U.S. software jobs
• Oregon’s location quotient is
0.81 meaning the local
concentration of software
jobs is 20% lower than the
national concentration
• Note that these are payroll
jobs at firms classified in
software industries

11. Oregon Office of
Economic Analysis
11
Portland’s software cluster is growing
• Software and related occupations
have increased 50%, or 24,000 jobs
in the past 15 years in the Portland
region
• Such jobs have increased from
around 4% to 5% of all regional jobs
• Portland has consistently ranked at
the 90th percentile across all U.S.
metros, meaning the local
concentration in software and
related occupations is larger than in
90% of all U.S. metros
• A small number of metros have very
high concentrations in software-
related jobs
• Note that these are software and
related occupations and the workers
may be employed in firms in any
industry, not just at tech firms

12. Oregon Office of
Economic Analysis
12
Portland is above average, trailing only a
handful of tech-dominant metros

13. Oregon Office of
Economic Analysis
13
Data: 2019 & 2020 ACS | Geographic groups based on Public Use Microdata Areas (PUMAs)
Source: Census, IPUMS-USA, Oregon Office of Economic Analysis
Software is slightly less Portland-centric
69% of software and related occupations are in the Portland tri-county region.
Growth in rest of state may strengthen with increased WFH opportunities.
North
Coast
Portland
Salem
Mid-Valley
North
Central
Northeast
Bend
Eugene
Southeast
Southwest
Medford
Oregon Tech Talent
US: 4.3% OR: 4.3%
1.0 – 1.5%
> 6.0%
2.5 – 4.0%
1.5 – 2.5%
Non-Manufacturing, Technology-Related Occupations as Share of All Jobs
Region Tech Talent Share
Portland Tri-County 6.2%
USA 4.3%
Oregon 4.3%
Linn-Benton 3.8%
Marion-Polk-Yamhill 3.4%
Deschutes 2.8%
North Coast 2.4%
Lane 2.4%
Jackson 2.0%
Northeast 1.8%
North Central 1.7%
Southeast 1.4%
Southwest 1.3%

14. Oregon Office of
Economic Analysis
14
Oregon’s historical strength is hardware

15. Oregon Office of
Economic Analysis
15
Challenge is hardware has not been an employment
growth sector this century but is a large contributor to
business investment and productivity

16. Oregon Office of
Economic Analysis
16
Missed Opportunity
• In recent years there have been at least 4
major announcements of new semiconductor
fabs nationwide. Congress is likely to pass the
CHIPS Act to support domestic semiconductor
manufacturing.
• Possible reasons cited as to why Oregon
missed out
• Industrial land
• Tax incentives
• Workforce
• Firm diversification to new locations
• Housing affordability for workers
• Ultimate impact will be determined by the
nature of these new facilities in the years
ahead. Did Oregon miss out on new R&D
facilities in addition to the production?
New Fab Announcements High-Tech Jobs Timeline
TSMC (AZ) 1,600 Early 2023
Samsung (TX) 2,000 Late 2024
Intel (OH) 3,000 2025
GlobalFoundries (NY) 1,000 ?
SUM 7,600

17. Oregon Office of
Economic Analysis
17
And yet, Oregon semiconductor firms are booming,
adding nearly 5,000 jobs since early 2021

18. Oregon Office of
Economic Analysis
18
• High-Tech is a very productive,
high-wage sector that is a pillar of
Oregon’s economy
• Oregon’s legacy and strength is in
hardware manufacturing
• Oregon still outperforms here, but
until recently, hardware has not an
employment growth sector
• Software dominates growth
• Potential impacts of working from
home include less Portland-centric
with stronger growth elsewhere in
the state, and potentially fewer
outposts if direct flights to tech hubs
are less important
Bottom Line: Software expected to
continue to lead growth

19. Oregon Office of
Economic Analysis
19
Contact
www.OregonEconomicAnalysis.com
@OR_EconAnalysis
joshua.lehner@oregon.gov
(971) 209-5929

20. Oregon Office of
Economic Analysis
20
Defining Hardware and Software
Based on Level 1 high-tech industries as
identified in a 2005 BLS report
https://www.bls.gov/opub/mlr/2005/07/art6full.pdf -
NAICS Industry Hardware/Software
3254 Pharmaceutical & medicine manufacturing Hardware
3341 Computer & peripheral equipment manufacturing Hardware
3342 Communications equipment manufacturing Hardware
3344 Semiconductor & electronic component manufacturing Hardware
3345 Electronic instrument manufacturing Hardware
3364 Aerospace product & parts manufacturing Hardware
5112 Software publishers Software
5161 Internet publishing & broadcasting Software
5179 Other telecommunications Software
5181 Internet service providers & Web search portals Software
5182 Data processing, hosting & related services Hardware
5413 Architectural, engineering & related services Software
5415 Computer systems design & related services Software
5417 Scientific research-and-development services Software

21. Oregon Office of
Economic Analysis
21
Defining Tech Talent
SOC Occupation
11-3021 Computer and Info. Systems Managers
15-1111 Computer and Info. Research Scientists
15-1121 Computer Systems Analysts
15-1122 Information Security Analysts
15-1131 Computer Programmers
15-1132 Software Developers, Applications
15-1133 Software Developers, Systems Software
15-1134 Web Developers
15-1141 Database Administrators
15-1142 Network and Comp. Systems Admin.
15-1143 Computer Network Architects
15-1151 Computer User Support Specialists
15-1152 Computer Network Support Specialists
15-1199 Comp. Occ., All Other (QA, testers)
17-2061 Computer Hardware Engineers
17-2071 Electrical Engineers
17-2072 Electronics Engineers, Except Computer
17-2112 Industrial Engineers
17-3023 Electrical & Electronics Engineering Tech.
Occupational codes based on report from
the Austin Technology Council
Data used in this report is based on the
IPUMS-USA variable OCC2010, aligning as
closely as possible to the standard SOC
codes