High-Tech Entrepreneurs Create Jobs, Contribute to Economic Growth in New Jersey

EDISON, N. J., Oct. 21, 1998 — Officials from Microsoft Corp.’s New Jersey office today released a report showing that New Jersey’s technology entrepreneurs are contributing significantly to the state economy, including driving the generation of 111,000 jobs and $5.5 billion in wages in the state in 1997.

The study, called the
“The New High-Tech Entrepreneurs,”
was released as part of an effort by Microsoft to underscore the importance of small high-tech businesses to the overall economy. In an effort to better serve these high-tech businesses and their customers in New Jersey, Microsoft has recently expanded its office there and is focusing on the state as a single, distinct market. The Microsoft New Jersey District will focus on working with consumers as well as the state’s predominant industries including telecommunications, pharmaceuticals, professional services and manufacturing.

“Extending back to Thomas Edison, New Jersey has a great heritage as an important staging ground for entrepreneurs and inventors,”
said Steve Ballmer, president of Microsoft.
“This region is continuing on this path by becoming one of the leading sectors for high-technology entrepreneurs. With more than 323,000 IT positions open in this country, it is clear that businesses of all sizes are ultimately going to the markets where they can find the resources they need to be successful. We are working hard with our industry partners to help ensure that New Jersey has the technical resources it needs to be successful in a multitude of markets.”

Microsoft commissioned the study, which was conducted by Virginia-based economic consulting firm Nathan Associates Inc., in response to the desire of Microsoft’s solution providers to profile their industry and the impact on their state’s economy. The study detailed the following about the New Jersey high-tech industry:

  • The state has over 11,400 high-tech businesses

  • More than 111,000 jobs result directly from the high-tech industry, with an additional 237,000 jobs resulting from indirect or

  • Wages from technology or related jobs are estimated at $5.5 billion

  • Sales exceed $15.7 billion in the technology industry

  • Tax revenue gained from the technology industry equaled nearly $2.7 billion

“Through jobs, wages and tax revenues, New Jersey’s economy profits from the growth of the high-tech sector, which is due in large part to the thousands of small businesses and entrepreneurs,”
said Martin Thall, general manager, Microsoft New Jersey District.
“In addition to the huge opportunities created by the growth of the high-tech sector, a significant opportunity exists to increase the economic contribution to the community and to protect consumers and honest resellers by reducing software piracy.”

Thall said that software piracy – the theft of software through illegal copying of genuine programs or through counterfeiting and distribution of imitation products – takes a considerable economic toll on New Jersey in the form of lost jobs, retail sales and tax revenue. He referenced data released by Microsoft from International Planning & Research Corp. of Redmond, Wash., which notes that one in every five programs was pirated in New Jersey in 1997, with the following economic impact:

  • Nearly 4,400 technology and related jobs lost, equating to wage and salary losses of almost $206 million

  • Retail sales losses of nearly $418 million

  • Loss of nearly $36 million in federal and state tax revenues

“Software piracy has dangerous consequences for our industry and for our economy as a whole,”
said Thai Lee, president of Software House International Inc., a New Jersey-based provider of microcomputer products and services.
“Organized counterfeiting rings and illegal reseller operations enjoy an unfair competitive advantage, which poses a threat to legitimate businesses and undermines the integrity of the products we provide our customers. It is a threat we must counter head on.”

Customers or resellers with questions about the legitimacy of Microsoft products should contact the Microsoft anti-piracy hot line, toll free, at (800) RU-LEGIT (785-3448), or send
e-mail to [email protected]. More information about software piracy can be obtained by calling the Business Software Alliance anti-piracy hot line at (888) NO-PIRACY (667-4722) or sending e-mail to [email protected].

“As a dynamic and flourishing center of entrepreneurial spirit, New Jersey’s importance in the global marketplace will continue to increase,”
Ballmer added.
“We are committed to working closely with businesses in the state to do what it takes to preserve this spirit and increase the growth of the high-technology sector in New Jersey.”

Founded in 1975, Microsoft (Nasdaq
) is the worldwide leader in software for personal computers. The company offers a wide range of products and services for business and personal use, each designed with the mission of making it easier and more enjoyable for people to take advantage of the full power of personal computing every day.

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