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MARYLANDMaryland leads the pack in the Enterprising StatesTechnology and Entrepreneurshipcategory, ranking 1st for the 3rd year in a row. Further breakdown of this indicatorreveals that Maryland ranks 1st in STEM job concentration, 1st in academic researchand development, 3rd in high-tech business concentration, and 9th in 10-year STEMjob growth.

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Re-creating Equality of Opportunity

Looking to double down on this momentum, the Marylandlegislature has passed a budget that increases last yearsscience and technology funding and includes $12 millionto continue the successful Biotech Tax Credit program, $9million for the R&D Tax Credit, and $4 million for the CyberTax Credit. The Biotech Tax Credit allows investors who

invest in seed-stage biotechnology companies to take upto a 50% investment tax credit. These changes by the 2014legislature represent increases in funding for all three ofthese tech-friendly programs.

The cybersecurity sector is a key target industry forMaryland, as demonstrated by the continuation of theCybersecurity Investment Incentive Tax Credit referencedabove and by local, state, and federal public-privatepartnership efforts. Investors who invest a minimum of$25,000 in Qualified Maryland Cybersecurity Companiescan receive up to a 33% refundable tax credit with amaximum of $250,000 in a year.

The 2014 legislature also created a CybersecurityInvestment Fund for seed-stage Maryland cybersecuritycompanies, modeled after the states TechnologyCommercialization Fund. Local entities, such asMontgomery County, are stepping up to augment theseincentives and federal investments to support startups andattract cybersecurity firms, as evidenced by a $4.5 millionlocal investment in the National Cybersecurity Center ofExcellence in Rockville.

High-tech-related business is a strength for thestate, ranking 3rd for its share of high-tech business

establishments, such as computer systems designand programing, engineering firms, and high-techmanufacturing. In 2013, 7.6% of Marylands businessestablishments were in high-tech sectors; nationally, thatshare is 4.5%.

The talent pipeline remains strong in Marylandranking3rd in this years reportand contributes to the strongconcentration of high-tech businesses. The state ranks 9tin educational attainment and 11th for college affordabilityTalent production is another strength, ranking 13th in totadegrees awarded for the size of the state.

In 2012, 23,482 Maryland graduates earned degrees orcertifications in a STEM-related field. This talent supplyhelps balance the demand created by the states high-techeconomy. There are 217,000 STEM workers in the state,accounting for 7.7% of the total workforce, the highestconcentration of STEM workers in the nation.88The succeof the talent pipeline can be traced back to high school andearlier. Nearly 30% of Maryland high school seniors scoreat least a 3 on an Advanced Placement exam in 2013, thehighest share in the nation.

Maryland has established several public-privatecollaborative projects to ensure continued success of thestates STEM economy and education system, includingthe governors STEM Task Force, the Maryland BusinessRoundtable for Education, We Work for Health, and JuniorAchievement. In the past five years, the biotech industryalone invested more than $100 million and 27,000 voluntehours in STEM education. These efforts reach 500,000students and 8,000 teachers every year.89

STEM Job Concentration 1

Academic R&D Intensity 1

H.S. Advanced Placement Scores 1

Adjusted Median Family Income 2

High-Tech Share of All Businesses 3

Productivity Growth 9

STEM Job Growth 9

Educational Attainment 9

College Affordability 11

Economic Output per Job 12

New Startup Rate 13

Higher-Ed Degree Output 13

Broadband Speed Availability 13

Gross State Product Growth 14

Labor Force Utilization 14

Per Capita Income Growth 23

Broadband Provider Availability 23

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