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App Economy Created 519,000 Jobs Across the U.S.

 

Top 5 app “intensity” states are WA, CA, MA, OR and GA 
 
App economy impact for these 5 states is more than $13.6 billion each year 
 
Washington, D.C. (October 4, 2012) – The app economy has created 519,000 jobs nationwide  and is a significant economic driver for a number of states, according to a study released today by CTIA-The Wireless Association® and the Application Developers Alliance. The report, entitled “The Geography of the App Economy,” also calculates the number of app economy jobs in each state, the “app intensity” (share of app economy jobs relative to overall jobs) and the economic impact for states. The research was conducted by Dr. Michael Mandel and Judith Scherer of South Mountain Economics, LLC.
 
While app innovation is occurring across the country, particularly in renowned high-tech areas such as California and Washington, some unexpected states have emerged to the top app economy states. For example, Virginia and Maryland have close ties to government agencies and the military thus are developing apps for those sectors. Massachusetts’ app developers are making higher education more accessible, while one Colorado app developer created the iTriage app, which helps people identify what could be wrong based on their medical symptoms.  
 
The app economy is in its infancy, but is growing at an exponential rate. Apple iTunes and Android Market application stores first opened in 2008. According to CTIA’s research, there are more than 2.4 million apps available on more than 11 different operating systems from more than 28 independent non-carrier stores. In 2011, the mobile app revenue was almost $10 billion , but by 2016, it’s expected to be more than $46 billion. 
 
The top 10 app economy states, ranked by economic impact (per million each year), are: 
 
1. California = $8,241
2. Washington = $2,671
3. New York = $2,313
4. Texas = $1,183
5. Massachusetts = $1,143
6. New Jersey = $1,087
7. Georgia = $1,062
8. Illinois = $847
9. Virginia  = $788
10. Pennsylvania = $632
 
 
The “app intensity” is determined by taking the percentage of app economy jobs in a state as a share of total jobs, which measures the importance of these jobs to a state. The national average is 1. The top 10 “app intensity” states and intensity figures are:
 
1. Washington = 4.47
2. California = 2.71
3. Massachusetts = 1.71
4. Oregon = 1.70
5. Georgia = 1.56
6. New Jersey = 1.29
7. New York = 1.16
8. Virginia = 1.04
9. Delaware = 0.93
10. Colorado = 0.90  
 
 
Apps are increasingly a part of consumers’ everyday lives. Consumers’ insatiable demand for apps is driving the app innovation across the country. An example of the rapid growth of innovation, Applico, a New York-based app development firm and board member of the Application Developers Alliance, hired its first employee in May 2010 and expects to employ as many as 150 by the end of 2012. 
 
“The app economy took off in 2008 and shows no signs of slowing down. It’s a significant driver of great jobs that pay well while fostering and creating truly revolutionary and innovative ideas, products and services. Few could have known four years ago that we’d use our wireless devices to improve efficiency and effectiveness in industries such as health care, education, transportation and utilities. Precisely predicting what those capabilities will be four years from now is just as challenging, but I’m confident that the wireless industry’s competitiveness and customer service-driven focus will lead to more awe-inspiring and innovative wireless devices and apps,” said CTIA President and CEO Steve Largent. 
 
“The app industry is a borderless economic force, providing opportunity across the country--even in places we might not expect.  In a challenging economic environment, the app industry has created more than a half million jobs in the five years since Apple’s iPhone launched. This new industry is propelling innovation and jobs in urban centers and rural states. And this is just the beginning,” said Jon Potter, President of the Application Developers Alliance.
 
“The mobile app economy is still in its infancy and it's accelerating at an unprecedented rate. Mobile apps are creating a tectonic shift in how everyone lives their lives and operates their businesses. As a result, jobs are being created across the spectrum - both technical and non-technical,” said Alex Moazed, President and CEO of Applico and member of the Alliance Board.
 
Building on the February 2012 study by South Mountain Economics that measured the total number of app jobs nationwide, this study delves deeper into the App Economy. Researchers examined The Conference Board Help Wanted OnLine (HWOL) database of help wanted ads in each state to calculate the number of app jobs as well as the economic impact of each state’s app economy.
 
To download a copy of the study, please click here: http://appdevelopersalliance.org/files/pages/The%20Geography%20of%20the%20App%20Economy.pdf (PDF).  
 
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