| The High Technology Industry plays a special role in economic development. It is believed that it is closely related to higher productivity, wages, tax revenues, demand for high skill labor, and higher growth rates compared to other industries. However, less is known about this industry by firm size, its economic performance in the last couple of years, its importance within the whole economy, its location choices and spreading patterns within the country.;In this study, firms in the High Technology Industry in the United States are categorized into small and large firms according to the number of employees and identified where they are located. The analysis is done at a county level in the United States and covers the years from 1998 to 2009. I explore whether or not small or large firms follow the same location decisions. Furthermore, I analyze the location and spreading patterns within the country; to be able to infer whether such location decision has remained in the same area or has spread around to other areas in the country.;The results show from 1998 to 2009 the High Technology Industry increased the number of establishments by 31%, which is higher than any other industry in the United States. During the same period, the number of establishments in non-metropolitan areas increased 136%, implying that the High Technology Industry has spread across the country. Another important finding is that while in 2009 the High Technology Industry paid from 12% to 45% higher annual wages than the average industry in the country, the average output per firm decreased 55% in real dollars in comparison to 2001. It was also found that no matter if firms are large or small; in general this industry follows the same incentives to decide its geographic location.;Keywords: High Technology Industry, establishment size, economic growth, firm location. |
