A new report analyzing the Maryland Technology Development Corp. finds that the agency “makes a significant and growing contribution to the Maryland economy.”
The Jacob France Institute at the University of Baltimore produced the report, which TEDCO paid for.
TEDCO has six core investing programs. Companies supported by those programs employed nearly 5,000 Marylanders in fiscal year 2021, according to the report. The report estimates that an additional 2,500 jobs were indirectly supported by purchases made by those companies, and a further 3,000 jobs were supported as “induced impacts.” Those are impacts from an increase in local incomes.
Similarly, the report said companies supported by its investing created close to $1.3 billion in economic output, with an additional $1 billion of indirect and induced economic output. According to the report, that led directly to $44 million of state and local tax revenue, plus $56 million of indirect and induced tax revenue.
The report says TEDCO’s six core investing programs have a return on investment of 29%. According to the report, the legislature appropriated almost $36 million to TEDCO for fiscal year 2021. Of that money, $10 million was for the Maryland Technology Infrastructure Funds, money that was not included in the analysis.
The Jacob France Institute has produced reports every three years for TEDCO since 2013. Each report has shown a growing number of jobs and economic output supported by TEDCO’s investments. This is the first report analyzing its six core programs since lawmakers placed stricter rules on the agency in 2019.
The changes came after a state audit found some investments made by TEDCO went to companies in which a majority of employees worked outside the state, as well as some firms that had ended up leaving the state altogether.
