By Staff Report Thursday, October 12th, 2023

The United States technology industry is worth nearly $2 trillion, the most of any nation and one of the states leading that charge is California, according to a new study.

Published by Appy Pie, a software company, the study released a study on the “Best States for Tech Companies” using the most recent data from the Census Bureau, Bureau of Labor Statistics, and the U.S. Patent and Trademark Office across six metrics in all 50 states and D.C.

The six metrics included startup survival rates, venture capital growth, patent innovation, concentration of tech firms and workers, concentration of tech workers and public funding.

According to the study, California ranked No. 2, trailing only Massachusetts due to its high concentration of tech workers and firms as well as high federal funding for tech innovation.

California ranked No. 1 for patents (127.8 per capita), No. 3 for startup survival (55.2%), No. 6 for tech workers (8.6% of workforce), No. 7 for tech firms (6.2% of all companies), Ranks No. 7 for public funding ($356 per capita) and No. 31 for VC growth over the last five years (269%).

California outranked Massachusetts only two metrics: patents per 100,000 (127.8) and startup survival rate (55.2%).

Rounding out the top 10 after Massachusetts and California was Maryland, Virginia, Colorado, Washington, Oregon, Connecticut, New Hampshire, and Utah, respectively.

The study also found that the AI industry would reach $1.3 trillion over the next decade, up from $40 billion in 2022.

Source: Appy Pie 

$1.9T – The value of the U.S. technology industry

55.2% – startup survival rate in California, third-highest in the country

$40B – The value of the AI industry in 2022