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[1], but by 2016, it’s expected to be more than $46 billion.[2]
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:
{C}1. {C}Washington = 4.47
{C}2. {C}California = 2.71
{C}3. {C}Massachusetts = 1.71
{C}4. {C}Oregon = 1.70
{C}5. {C}Georgia = 1.56
{C}6. {C}New Jersey = 1.29
{C}7. {C}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://ctia.it/QQVDnJ (PDF).
About CTIA
CTIA-The Wireless Association® (www.ctia.org) is an international organization representing the wireless communications industry. Membership in the association includes wireless carriers and their suppliers, as well as providers and manufacturers of wireless data services and products. CTIA advocates on behalf of its members at all levels of government. The association also coordinates the industry’s voluntary best practices and initiatives, and sponsors the industry’s leading wireless tradeshows. CTIA was founded in 1984 and is based in Washington, DC.
About the Application Developers Alliance
The Application Developers Alliance is an industry association dedicated to meeting the unique needs of application developers as creators, innovators, and entrepreneurs. Alliance members include more than 10,000 individual application developers and dozens of companies, investors, and stakeholders in the apps ecosystem.
About South Mountain Economics
South Mountain Economics LLC (http://www.southmountaineconomics.com) provides cutting-edge research and consulting on innovation, jobs and economic development. In a data-driven economy, South Mountain Economics shows how to harness better data to create better jobs.
Roger Entner, Recon Analytics, The Wireless Industry: The Essential Engine of US Economic Growth, 2012, available at http://reconanalytics.com/wp-content/uploads/2012/04/Wireless-The-Ubiquitous-Engine-by-Recon-Analytics-1.pdf (last visited Sept. 10, 2012).
In-App Purchases to Outpace Pay-Per-Download Revenues in 2012, ABI Research, Feb. 16, 2012, available at http://www.abiresearch.com/press/in-app-purchases-to-outpace-pay-per-download-reven (last visited Sept.
10, 2012).
