Abstract of the Madison Region's Information and Communication
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Abstract of the Madison Region’s Information and Communication Technology Industry Cluster 2018 This page is intentionally blank Abstract of the Madison Region’s Information and Communication Technology Industry Cluster Prepared for Madison Region Economic Partnership Matt Kures Craig Kettleson and Michael Gay University of Wisconsin-Extension Madison Region Economic Partnership Center for Community and Economic Development Financial support provided by Wisconsin Economic Development Corporation The information and opinions in this report are those of the authors and do not necessarily reflect those of the Madison Region Economic Partnership or the University of Wisconsin-Extension. Any trade and company names listed in this publication are used solely to provide specific information. Mention of a trade or company name does not constitute a warranty or endorsement to the exclusion of other products or organizations not mentioned. This page is intentionally blank Contents Section 1 - ICT Human Capital in the Madison Region. Section 2 - ICT Industries in the Madison Region. Section 3 - Key ICT Subsectors and Industry Trends Section 4 - ICT Cluster Support and Development Ecosystem. Section 5 - Opportunities and Key Strategic Initiatives to Support the Madison Region’s ICT Industry Sector Appendix I1 – Key Terms Frequently Used Appendix 1A – Descriptions of Computer and Mathematical Occupations Appendix 1B – Top 50 Location Quotients (All Metro Areas Regardless of Size) Appendix 2A – ICT Direct Industry Descriptions Appendix 2B – ICT Dependent Industry Descriptions Appendix 2C – ICT Driven Manufacturing Industry Descriptions Appendix 4A – Internet Availability Characteristics without Satellite Appendix 4B – Median Housing Costs as a Percent of Median Computer and Mathematical Wages – Top 50 Metro Areas Appendix 4C – Office Market Snapshot List of Figures Section 1 Figure 1.1 - Computer and Mathematical Occupation Categories Figure 1.2 - Computer and Mathematical Occupations in the Madison Region (Census Tract of Residence) Figure 1.3 - Computer and Mathematical Occupations (2001 to 2017) Figure 1.4 - Percent Change in Computer and Mathematical Occupations since 2001 Figure 1.5 - Computer and Mathematical Occupation Location Quotient Trends 2001 to 2017 Figure 1.6 - Industries with the Greatest Dependence on Computer and Mathematical Occupations Figure 1.7 - Industries Employing the Greatest Number of Computer and Mathematical Occupations (Percent of All Computer and Mathematical Occupations in the United States) Figure 1.8 - Top 50 Metropolitan Statistical Areas for Total Computer and Mathematical Occupations (2017) Figure 1.9 - Location Quotient Rankings - Top 50 MSAs for Computer and Mathematical Occupations (2017) Figure 1.10 - Annual Average Wages for Computer and Mathematical Occupations (in constant $2017) Figure 1.11 - Annual Average Wage Rankings - Top 50 MSAs for Computer and Mathematical Occupations (2017) Figure 1.12 - Distribution of Computer and Mathematical Occupations in the Madison MSA (2016) Figure 1.13 - Distribution of Computer and Mathematical Occupations in the Janesville-Beloit MSA (2016) Figure 1.14 - Typical Educational Attainment for Computer and Mathematical Occupations Figure 1.15 - Women as a Share of Total Employment by Occupation - Madison MSA in 2016 Figure 1.16 - Women as a Share of Computer and Mathematical Occupations - Top 50 ICT Metropolitan Statistical Areas Figure 1.17 - Underrepresented Minorities as a Share Total Employment by Occupation (Madison MSA 2016) Figure 1.18 - Underrepresented Minorities as a Share of Computer and Mathematical Occupations - Top 50 ICT MSAs Figure 1.19 - Underrepresented Minorities as a Share of Computer and Mathematical Occupations and Share of Total Population - Top 50 Metro Areas for Computer and Mathematical Occupations Figure 1.20 - Place of Birth by Occupation for the Madison Region - Share of Workers born in Another State or Outside of the United States Section 2 Figure 2.1 - Madison Region Establishments by Employment size in ICT Direct Industries (2016) Figure 2.2 - Change in Computer Systems Design and Related Service Establishments - 2005 to 2016 Figure 2.3 - Madison Region Non-employers in Computer Systems Design and Related Services Figure 2.4 - Business Stages Figure 2.5 - Start-up Trends in Software Publishing and Computer Systems Design & Related Services (1998 to 2016) Figure 2.6 - Total Employment in ICT Direct Industries - 2000 to 2016 Annual Averages Figure 2.7 - Employment Change in Software Publishers Figure 2.8 - Employment Change in Data Processing, Hosting, and Related Services and Other Information Services Figure 2.9 - Employment Change in Computer Systems Design and Related Services Figure 2.10 - Share of Total ICT Direct Employment by Job Zone Figure 2.11 - Software Publisher Occupations by Share of Industry Employment - Top 30 Occupations (2017) Figure 2.12 - Data Processing, Hosting and Related Services Occupations by Share of Industry Employment - Top 30 Occupations (2017) Figure 2.13 - Other Information Services Occupations by Share of Industry Employment - Top 30 Occupations (2017) Figure 2.14 - Computer Systems Design and Related Services Occupations by Share of Industry Employment - Top 30 Occupations (2017) Figure 2.15 - Madison Region Quarterly New Hires and Separations by ICT Direct Industries Figure 2.16 - Madison Region Age Distribution in ICT Direct Industries Figure 2.17 - Madison Region Growth of Employees under Age 35 and Ages 35 to 44 Figure 2.18- Establishments by Employment Size in ICT Dependent Industries (2016 in Eight County Region) Figure 2.19 - Madison Region ICT Dependent Employment and Location Quotients (2016) Figure 2.20 - ICT, Government and Educational Services Figure 2.21 - Computer and Mathematical Occupations as a share of Total Employment - Top 10 Manufacturing Categories Figure 2.22 - Establishments by size in ICT Driven Manufacturing Industries (2016 in Eight County Region) Figure 2.23 - ICT Driven Manufacturing Industry Employment and Location Quotients (2016 in Madison Region) Figure 2.24 - Computer and Electronic Product Manufacturing Establishment Concentrations Figure 2.25 - Navigational, Measuring, Electromedical, and Control Instruments Mfg. Establishment Concentrations Figure 2.26 - Nine Technologies Driving Industry 4.0 Section 3 Figure 3.1 - Estimated U.S. Spending on Cybersecurity by Industry (2016) Figure 3.2 - Location Quotient and Employment Trends in Madison Region Insurance Carriers Figure 3.3 - Projected change in Mobile App Consumer Spending: Top 5 Markets Figure 3.4 - Share of Revenue from Games and Apps (2017 to 2022) Figure 3.5 - Potential Annual Economic Impact of IoT in 2025 ($ Billions, adjusted to 2015 dollars) Figure 3.6 - Madison Region Employment and Location Quotient Trends for Electronic Shopping and Mail-Order Houses (2003 to 2016). Section 4 Figure 4.1 - Number of Broadband Providers by Census Block (including Satellite) Figure 4.2 - Maximum Advertised Download and Upload Speeds by Census Block (including Satellite) Figure 4.3 - Maximum Advertised Upload Speeds by Census Block (including Satellite) Figure 4.4 - Interstate Mobility by Educational Attainment Figure 4.5 - Interstate Mobility by Selected Age Group Figure 4.6 - Selected Factors Influencing Migration among College Graduates Figure 4.7 - Trends in Renter Occupied Housing Figure 4.8 - Renter Occupied Housing Units with Monthly Housing Costs Greater than 35% of Income Figure 4.9 - Median Gross Rent in Top 50 Metro Areas by Total Computer and Mathematical Occupations Employment Figure 4.10 - Owner Occupied Housing Units with Monthly Housing Costs Greater than 35% of Income Figure 4.11 - Median Monthly Owner Occupied Housing Costs in Top 50 Metro Areas by Total Computer and Mathematical Occupations Employment Figure 4.12 - Annual Home Sales by County in the Madison Region Figure 4.13 - Single Family Home Permits by County in the Madison Region Figure 4.14 - Median Sales Price by County in the Madison Region Figure 4.15 - Downtown and Capitol East Concentrations of Firms in the Madison Region ICT Cluster Figure 4.16 - WEDC Main Street and Connect Community Programs Figure 4.17 - Investor Networks Figure 4.18 - Wisconsin Angel and Venture Capital Investment - ICT Industry, 2015 to 2017 Section 5 Figure 5.1 - Snapshot of the Madison Region’s ICT Direct, ICT Dependent and ICT Driven Manufacturing Industries Figure 5.2 - Wisconsin Games Alliance Timeline Introduction Contemporary economic development strategies recognize that regional assets are the true drivers of employment and income growth. The Madison Region is endowed with many potential assets, including competitive industry concentrations; high levels of human and social capital; robust physical infrastructure; and unique natural resources and exceptional quality of life characteristics. While these assets influence many aspects of the regional economy, several are directly connected to the Information and Communication Technology (ICT) industry sector.1 Specifically, the Region has a diversity of firms engaged in a variety of ICT niches; a robust innovation and entrepreneurial (I&E) ecosystem; world-class educational institutions; and extraordinary levels of human capital that contribute to a highly skilled labor force. The mere presence of these regional strengths, however, does not guarantee future prosperity and development of the ICT cluster or the broader Region. Instead, the Madison Region must find ways to leverage these assets in innovative manners