By Business Oregon
During his farewell speech in 1975, Oregon’s thirtieth Governor Tom McCall stated, “Oregonians with a heritage of independence are not inclined to wait for others to answer their own problems.” Upholding this state reputation for a heritage of independence, Oregon has often followed its own unique path as its citizens have been action-oriented and driven by a passion for this place they call home.
Oregonians are innovators and in addition to strong job growth over the past ten years, Oregon continues to rank highly for innovation and entrepreneurship. Business Oregon, the state’s economic development agency, recently released an update to their Innovation Index ranking the entrepreneurial and innovative activity within all states and the District of Columbia. Oregon ranked 7th overall in the 2024 Innovation Index among the 50 states and the District of Columbia.
Oregon was roughly in the top one-third of states for 14 of the 18 metrics tracked in the Index. One notable takeaway from the Innovation Index was that Oregon did very well in higher education and our university partners help maintain the state’s innovative ecosystem by educating highly skilled workers, developing new technologies, and spinning off new businesses.
Oregon is considered a place with a high “second paycheck.” Your first paycheck, according to famed Oregon economist Ed Whitelaw, are the wages paid by your employer. Your second paycheck comes from the natural beauty, recreational opportunities, or cultural amenities in the state where you reside. Professor Whitelaw had found that workers, especially those in the high-tech sector, were showing strong preferences for natural amenities as early as the 1980s. This is something Oregon has in abundance to this day. A mobile and entrepreneurial workforce that arrives with diverse skills and, in many instances, their own businesses, also takes advantage of the impeccable scenery and diverse recreational opportunities.
Many entrepreneurs have aligned their business ventures with Oregon’s fantastic outdoor recreation opportunities. The Outdoor Gear and Apparel subsector was the fastest growing Target Industry Group in Oregon over the past ten years. This subsector employs close to 6,000 workers in cutlery, bicycle, and sporting goods manufacturing and wholesaling. Oregon-based companies like Keen, Nike, Adidas America, and Columbia Sportswear, continue to thrive in Oregon and new Outdoor Gear and Apparel businesses are introduced frequently. From world-renowned kiteboarding and windsurfing in the Columbia Gorge to the slopes of Mt. Hood, Oregon’s outdoor-oriented culture attracts a workforce uniquely driven to create and grow this sector. The state of Oregon continues to lean into its reputation as a second paycheck hub to grow and expand at a time when workers are more mobile than ever.
According to estimates from the Bureau of Labor Statistics, total non-farm employment in Oregon rose by 15.2 percent between July 2014 and July 2024 (+271,600 jobs). That is impressive growth during a ten-year period. For some context, between July 2004 and July 2014 total non-farm employment in Oregon expanded by just 7.1 percent (+114,100 jobs). You might be thinking to yourself that the slower growth in the 2004-2014 period is due to the impact of the Great Recession. You wouldn’t be wrong, but our most recent decade also captures the effect of the pandemic recession of 2020.
The ten-year growth rate ranks strong compared to the rest of the nation. Oregon outpaced the national growth rate from 2014 to 2024 (+14.1 percent). Oregon’s growth of 15.2 percent during the last decade was the 16th fastest of all states and the District of Columbia.
The innovative nature of Oregon’s workforce and entrepreneurs has helped to spur incredible growth in a few highly sought after business types, including biomedical, professional and technical services, software/ IT, and semiconductor/ electronic product manufacturing. A notable strength of Oregon and its business ecosystem revolves around research and development, leading to numerous spin-off ventures and industry clustering.
Oregon’s semiconductor industry is a great example of this R&D expertise and clustering. The broader semiconductor and electronic products industry expanded by nearly 20 percent over the past decade with semiconductor manufacturing accounting for most of those jobs in Oregon. In July 2022, Congress passed the CHIPS Act, a massive federal investment to strengthen semiconductor manufacturing, research, and design here in the U.S. This investment was spurred in a large part due to an erosion of U.S. semiconductor production from 37 percent of total global production in 1990 to just 12 percent in 2022. In response to this federal investment, the state legislature passed Senate Bill 4, which allocated up to $200 million in state funds to support Oregon firms who are receiving CHIPS Act dollars. These investments by the federal and state government in the semiconductor industry should lead to substantial economic gains in Oregon as the sector is a critical employer in the state, accounting for well over 30,000 high-paying jobs.
These recent successes do not mean that the state is without some challenges. As is the case for most other states, housing and childcare affordability and availability are pressing issues facing the existing workforce. But Oregon is stepping up. In response to these challenges, Oregon’s legislature invested over $258 million in the 2024 legislative session for housing needs across the state. And perhaps more impactful, the legislature allowed cities a one-time urban growth boundary expansion to expand the land available for housing in communities across the state. Business Oregon is also invested in supporting affordable housing opportunities to bolster business development and competitiveness, with several programs that help with housing access for working families.
Business Oregon is working with the Department of Early Learning and Care, other state agencies, and private and non-profit entities to implement a grant and loan program to provide financial assistance for child care infrastructure activities. The Child Care Infrastructure Program invests in the expansion of early child care infrastructure activities by awarding grants and loans to eligible applicants for projects involving fixed, immovable assets like new construction, repairs, renovations, modernizations, retrofitting, property acquisition, and planning projects. This program will assist in alleviating stress for parents seeking child care in a space that is safe, updated, and affordable.
Business Oregon takes on many diverse economic development strategies. We grow Oregon businesses, as well as bring new companies to the state. We work to increase Oregon’s global markets through export promotion and international trade. We make investments in industry research, development, and entrepreneurship to set the stage for the next big industry opportunity. We work with communities to enhance and expand infrastructure and community safety with projects such as water/wastewater systems, seismic rehabilitation for schools, and rural broadband development. Our vision of “Prosperity for all Oregonians” is carried out through investing in Oregon businesses, communities, and people to promote a globally competitive, diverse, and inclusive economy. Learn more about what the programs that Business Oregon offers at www.oregon.gov/biz/.
