Tucson’s Advanced Industry Sector Is Large, but Growth Has Been Slow Lately

Author(s)
Jennifer Pullen, Research Economist
Published
02-19-2015

Advanced industries in the Tucson metropolitan statistical area (MSA) accounted for 34,130 jobs and $6.7 billion in output in 2013, according to a new study by Brookings. Tucson ranked 35th in the nation in the share of employment in advanced industries and 28th in the nation in advanced industries output share.  Brookings published data for 101 metropolitan statistical areas, all states, and the nation.

Advanced industries, as defined by Brookings, are those that invest heavily in research and development and employ a large share of workers with STEM knowledge. These sectors rely on and produce high-technology goods and services. They have the potential to be drivers of innovation in coming years.

In 2013, Tucson’s advanced industry share of employment was 9.2%, compared to 8.7% for the nation. Advanced industries accounted for 18.1% of Tucson’s output, compared to 17.7% for the U.S. Among the 12 western MSAs tracked on the MAP Dashboard, Tucson ranked eighth in employment share and sixth in output share.

Tucson’s largest advanced industry sectors are aerospace product and parts manufacturing; architectural, engineering, and related services; computer systems design and related services; scientific research and development services; and management, scientific, and technical consulting services.

While Tucson’s advanced industry share of employment and output ranked fairly high, employment declined during the 2010-2013 period. Real output growth was positive, but slow, with Tucson ranked 59th out of the 101 metropolitan areas and ninth among the 12 western MSAs.

Advanced industries are defined by Brookings as those with R&D spending per worker in the 80th percentile of industries or higher (exceeding $450 per worker). In addition, the share of workers in an industry whose occupations require a high degree of STEM knowledge must also be above the national average, or 21% of all workers. An industry must meet both criteria to be included.

Brookings identified 50 industries as part of the advanced industry sector, which include a wide range of industries across the manufacturing, energy, and tech service sectors. A few examples include aerospace, computers and peripheral equipment, pharmaceuticals and medical equipment, electric power generation, research and development services, consulting services, and computer systems design.

For more information, visit http://www.brookings.edu/research/reports2/2015/02/03-advanced-industries#/M10420