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The high-tech industry refers to sectors that are heavily involved in the research, development, and production of advanced technology products and services. This industry typically includes businesses that leverage cutting-edge innovations. In an increasingly digital world, the conversation around technology often centers on urban hubs known for their innovation and startup culture. However, the presence of high-tech businesses in rural areas is not just a nice-to-have; it’s essential for economic development.  

In order to quantify the disparity in the high-tech industry between rural and urban communities, we need a reliable method for identifying high-tech businesses and their workers.  However, there is no consensus on any method for classifying businesses as high-tech or not.  CORI’s Mapping and Data Analytics and Research teams worked together to assemble a list of North American Industry Classification System (NAICS) codes that we define as “high-tech”.  

Our method is adapted from earlier work from the Census Bureau’s Business Dynamic Statistics (BDS). The BDS method calculates the share of each 4-digit NAICS industry’s workers that are employed in STEM occupations (there are around 100 Standard Occupational Classification codes that the Census identifies as “STEM”.) They then classify an industry as “high-tech” if its share of STEM workers is at least 5x the national average share of STEM workers. 

CORI finds STEM occupations to be too broad of a basis for identifying high-tech industries. We prefer to use the share of tech workers, which we define as Computer and Mathematical Occupation (SOC group 15-0000) workers. The national share of employment in computer and math occupations across all industries is 3.3%. When we calculate the share of computer & math workers in each NAICS industry, three industries have at least 5x the national share of employment in tech occupations:

  • Computer systems design and related services (NAICS code 5415)
    • With 53.16% employment in Computer & Math
  • Software publishers (NAICS code 5132)
    • With 46.74% employment in Computer & Math
  • Computer and peripheral equipment manufacturing (NAICS code 3341)
    • With 24.03% employment in Computer & Math

Based on this definition, 2% of all workers in metropolitan areas are employed at high-tech businesses, while only 0.37% of workers in rural areas can say the same (Lightcast Datarun, 2024.3).  For the high-tech industry to employ rural workers at the same rate it employs metropolitan workers, we would need to see more than 5x growth in the rural high-tech employment rate.  

High-tech businesses in rural areas can drive economic development by creating high-paying jobs. They can both attract skilled workers and offer high-quality jobs to local workers, which helps to reduce rural poverty and improve living standards. They also stimulate local economies by increasing demand for goods and services, fostering innovation, and encouraging entrepreneurship. Additionally, these businesses can enhance connectivity and access to technology, bridging the digital divide and ensuring that rural communities remain competitive in the global economy. Given the positive impact these businesses can have on local economies, it’s unfortunate that only about 6% of them are located in rural counties (Lightcast Datarun, 2024.3).  

However, some rural areas are successfully cultivating an ecosystem of high-tech businesses. By employing CORI’s definition of “high-tech”, we can see that certain micropolitan areas have emerged as leaders in rural high-tech. Here are the Top 25 micropolitans with the most high-tech businesses in 2023: