Colorado’s software industry supports nearly 200,000 of the state’s 2.7 million jobs, which ranked it seventh behind New Hampshire and ahead of South Carolina.
Nevada and Washington, home of Microsoft, had the fastest software-related job growth, which includes the indirect economic impact of spending by software workers.
Colorado’s software employment grew 25.1% from the group’s previous study two years ago, the study from the Washington D.C.-based nonpartisan research organization showed.
The state ranked fifth in economic output related to software in the two-year period with a 27.4% gain to $20.4 billion, just behind South Dakota and ahead of Wyoming.
The 27.4% growth is more than twice the growth rate of the state’s overall economy. Colorado also ranked seventh in research and development spending on software at $1.01 billion, well behind sixth-ranked North Carolina and just ahead of Georgia. Software R&D in Colorado made up 28.6% of the state’s R&D spending.
“I see tremendous growth in jobs and economic impact from the software industry in Colorado,” said Chris Hopfensperger, executive director of Software.org.
“Not only is that impact coming from traditional players like IBM and Microsoft, but also new-generation software companies like Salesforce.com and a growing number of startups. When I look at Colorado, I see a real tech hub.”
Colorado is adding software-related jobs faster and the industry’s contribution to economic output is growing faster than the nation, but the industry’s share of employment and economic output are lower in the state than the nation. The study found that software industry employment and economic output nationwide are growing at twice the rate of the overall economy.
Nationwide, the software industry directly employs 3.1 million people and supports more than 14 million other jobs, or 10% of employment and up 7.3% in the past two years.
The industry generated $1.6 trillion in economic output, up 19% in the two-year period and nearly 8% of U.S. economic output.
In Colorado, software-related jobs were 7.2% of statewide employment, and the industry generated about 5% of the state’s economic output.
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“When I look at Colorado, I see a real tech hub.” Chris Hopfensperger, executive director, Software.org