AMERICA'S ADVANCED INDUSTRIES
Houston, TX
Advanced industries employ

360,970

Advanced industries directly
account for

12.8%

full-time workers. (2013)
These direct jobs supports an additional

of all jobs in the region.
This employment share is

#9

288,780
indirect jobs in other industries in
the region.
Advanced industries produce

$154.1
billion dollars in output in the region.
(2013, 2005 Chained)

Advanced industries pay, on average

$121,220

among all large metros.

This accounts for

38.4%

of all output in the region (2013).
This compares to average pay of

$63,880
for all industries (2013).

dollars per year (2013).

OUTPUT

5.2%

Why do Advanced Industries Matter?

Advanced industries encompass the nation’s “tech” sector at
its broadest and most consequential. They represent a sizable
economic anchor for the U.S. economy and have led the postrecession employment recovery. Their competitiveness and
growth are prerequisites for any future broadly shared
prosperity. As such, the sector encompasses the country’s best
shot at supporting innovative, inclusive, and sustainable
growth. Advanced industries are present in nearly every U.S.
region, but the sector’s geography is uneven.
For More Information

SEE THE INTERACTIVE
www.brookings.edu/advanced industries

8.3%
2.7%

The Metropolitan Policy Program at Brookings defines
advanced industries as those that: 1) Spend at least $450 per
worker per year on R&D and 2) employ at least 20 percent of
their workforce in STEM-intensive occupations. The definition
identifies 50 4-digit NAICS industries across the manufacturing,
energy, and services sectors that together constitute the
advanced industries super-sector.

VIEW THE FULL REPORT
www.brookings.edu/advancedindustries

Advanced industry annual average growth, 2010-2013

JOBS

What are Advanced Industries?

3.8%

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DATA NOTES
All figures reflect Brookings analysis of data from Moody's Analytics.

Houston, TX

U.S.

Houston, TX

U.S.

 Houston, TX
Twenty-Five Largest Advanced Industries (2013)
There are 12 advanced industries in Houston, TX with LQs over 1.5. LQs over 1.5 indicate specialization☨
Industry
4-Digit
NAICS
Code
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
AI_MFG
AI_NRG

AI_SER

AI_TOTAL

5413
2111
3331
5416
5415
3251
3241
2211
3345
3341
5417
3339
6215
3353
3399
3259
3252
3344
5182
5172
5112
3391
3336
3366
5179

Industry Title

Architecture & Engineering
Oil & Gas Extraction
Agri., Constr., Mining Machinery
Management Consulting
Computer Systems Design
Basic Chemicals
Petroleum & Coal Products
Power Generation & Supply
Precision Instruments
Computer Equipment
R&D Services
General Purpose Machinery
Medical and Diagnostic Laboratories
Electrical Equipment
Misc. Manufacturing
Misc. Chemicals
Resins & Synthetic Rubbers
Semiconductors
Data Processing & Hosting
Wireless Telecom Carriers
Software Products
Medical Equipment & Supplies
Engine & Power Equipment
Ships & Boats
Other telecommunications
Advanced industries manufacturing
Advanced industries energy
Advanced industries services
ADVANCED INDUSTRIES TOTAL

Industry
Employment
(2013)

69,060
58,270
42,370
31,350
29,660
20,960
12,230
11,740
7,880
6,960
6,280
5,890
4,900
4,820
4,500
4,420
3,990
3,370
3,240
2,580
2,080
2,060
1,800
1,710
1,680
138,420
70,020
152,530
360,970

Industry Industry Share
Industry
Industry
Industry Share
of Total
Location
Employment
Output
of Total
Advanced
Advanced
Quotient
Annual
Annual
Industries
Industries
(LQ)☨
Growth 2010Employment Growth 2010Output (2013)
2013
2013
2013
(2013)

2.58
14.83
8.55
1.33
0.88
7.34
5.47
1.50
1.01
2.22
0.50
1.16
1.00
1.69
0.83
2.67
2.17
0.45
0.61
0.84
0.35
0.34
0.89
0.67
1.00
1.28
5.54
1.24
1.48

19.1%
16.1%
11.7%
8.7%
8.2%
5.8%
3.4%
3.3%
2.2%
1.9%
1.7%
1.6%
1.4%
1.3%
1.2%
1.2%
1.1%
0.9%
0.9%
0.7%
0.6%
0.6%
0.5%
0.5%
0.5%

5.5%
8.0%
10.5%
11.1%
7.0%
0.8%
-1.2%
0.5%
2.4%
1.3%
-8.3%
7.2%
1.2%
9.4%
5.9%
5.2%
0.6%
2.5%
1.5%
-6.3%
-1.3%
1.2%
7.7%
-5.4%
-5.3%

6.2%
41.2%
6.2%
3.1%
3.7%
9.3%
10.2%
5.6%
1.2%
1.9%
0.7%
0.7%
0.2%
0.4%
0.3%
1.4%
1.7%
0.5%
0.3%
0.4%
0.6%
0.2%
0.3%
0.1%
0.3%

5.5%
12.3%
17.2%
10.8%
8.5%
1.6%
4.5%
9.3%
5.3%
3.8%
-6.5%
13.1%
2.0%
7.6%
4.8%
4.2%
0.6%
5.2%
-0.2%
-1.0%
4.8%
0.6%
15.3%
-0.9%
-3.1%

38.3%
19.4%
42.3%
100.0%

4.3%
6.6%
5.4%
5.2%

37.3%
46.8%
15.9%
100.0%

5.4%
11.9%
5.8%
8.3%

☨Location quotients are a measure of specialization for an industry using employment. A LQ of over 1 indicates that an industry employs more workers, as a share of total
employment, than the nation as a whole.