Maryland-based venture-backed companies averaged annual revenue growth of 9.3% and job growth of 3.7% from 2006 to 2008. Both rates were the second highest among states, according to a new report, "
Venture Capital: The Economic Importance of Venture Capital-Backed Companies to the U.S. Economy
" released by IHS Global Insight.
As venture-backed firms are overwhelmingly high-tech - and high risk - the success of these firms indicates Maryland's hospitable climate and strategic support of such companies, as demonstrated by the state's numerous tax credits for high-tech investment and strategic location near federal research laboratories and other companies engaged in complementary high-tech activities, according to the Maryland Department of Business and Economic Development (DBED).
Maryland ranked 14th overall for revenue earned at venture-backed companies with an average of some $40 million. Maryland, with its strength in the healthcare industry, edged out perennial powerhouses Massachusetts and Texas for second place with 3.7 percent compound annual job growth and bested fellow upstart Arizona for second place in revenue growth, according to the report.
Source: IHS Global Insight
Writer: Walaika Haskins