Theme-Logo Arizona Technology Report
Arizona has emerged as a national leader in innovation, R&D investment, and talent development with a diverse range of technology sectors. The Arizona Technology Council advocates on behalf of its membership for policies that will propel success and sustainability, such as recapitalizing the Angel Investment Tax Credit or opposing laws that may prohibit our members’ employees to work safely in Arizona. The results are clearly seen in a growing workforce, a clear pattern of innovation, and engagement of diverse stakeholders. We have continued to see our local technology community grow and flourish in recent years, and Arizona has an incredible opportunity to claim its place in the national playing field of competitive tech markets. We hope this report showcases not only the areas in which we are excelling, but also uncovers areas where we can focus attention to encourage improvement.


Industry Wages


Industry Jobs



The economic impact of the technology sector in Arizona goes beyond traditional technology occupations and industries. Over half all technology jobs are not in the technology sector at all, but many are in-house positions at companies representing nearly every industry on the map. Specifically, only 48% of technology positions in AZ are those within the tech industry. On the other hand, technology companies employ much more than just tech geeks; they also need traditional administrative, HR, accounting, marketing, and sales positions, just to name a few.

For every 1 job in information and computer technology, there's 1.04 jobs outside of the sector
Tech Industry Job Multiplier
220 new jobs in other sectors

Industry employment changed


in the last year

Wages changed


in the last year

Wages are


the national average

Employment Growth (YoY Change)
Employment Growth (YoY Change)
State Comparison
Average Industry Pay
Average Industry Pay
Arizona enjoys a diverse mix of tech industries and professions, with the average tech wage nearly doubling the average wage in non-tech sectors. Currently, computer systems design, semiconductor manufacturing, and aerospace product and parts manufacturing representing roughly half of the annual wage totals in the state of Arizona.
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Top Sectors by Employment
within the tech industry
Industry Employees Yearly Wage Firms
5415 - Computer Systems Design and Related Services 34,216 $90,028.00 4,077
3364 - Aerospace Product and Parts Manufacturing 26,324 $103,448.00 121
3344 - Semiconductor and Other Electronic Component Manufacturing 20,310 $133,627.00 154
517 - Telecommunications 15,228 $71,796.00 628
2211 - Electric Power Generation, Transmission and Distribution 9,030 $118,208.00 54

The industry contributed


in total taxes last year

The number of firms changed


in the last year

Industry employs


other parts of the country

Year-over-year change in industry firms
Top 5 Sectors by Firms
within the tech industry
Industry Firms Growth (YoY)
5415 - Computer Systems Design and Related Services 4,077 0.03%
3364 - Aerospace Product and Parts Manufacturing 121 0.03%
3344 - Semiconductor and Other Electronic Component Manufacturing 154 -0.04%
517 - Telecommunications 628 -0.02%
2211 - Electric Power Generation, Transmission and Distribution 54 0.01%


Startups in Arizona on Angelist


Average startup valuation in Arizona


Venture Capital invested in 2018
VC Investment Amounts
VC Investment Deals
Patents Awarded
Academic R&D per $1,000 of GDP
R&D as a Percentage of GDP
R&D as a Percentage of GDP
State Comparison
SBIR Awards
Number of Awards
STTR Awards
Number of Awards
SBIR Awards
Amount Awarded
STTR Awards
Amount Awarded
Ready to apply?

Check out training opportunities and spotlights of past winners at the Arizona Commerce Authority's SBIR/STTR Resource Center

One of the biggest and consistent struggles we hear from our members is talent attraction. Despite the Phoenix Valley having a robust population of millennials, there is still a significant shortage of mid-to-high-level technical talent, with many of these positions requiring extensive education.

The Arizona Technology Council is constantly working to improve workforce development and education in Arizona. Our Workforce Development + Education Committee, in collaboration with the Greater Phoenix Chamber of Commerce, recently spearheaded an economic development initiative focused on business retention and expansion. The AZ Cybersecurity Workforce Collaborative is made up of industry professionals, educators, and training partners working to address talent shortages of security analysts at the junior, mid, and senior levels. The group has created a website promoting cybersecurity careers in Arizona,

The Council also supports the enabling of Arizona K-12 students to gain coding and programming skills in the classroom, and became a founding partner in CSforAZ (Computer Science for Arizona), a statewide initiative bringing together a coalition focused on accelerating CS education and teacher development in Arizona K-12 schools.  


of Arizona's population has at least a high school diploma


of Arizona's population has at least a Bachelor's degree
Bachelor's Degrees in Science and Engineering
Conferred per 1,000 Individuals 18–24 Years Old (Degrees)
Science and Engineering Degrees
as a Percentage of Higher Education Degrees Conferred (Percent)