One of the most significant benefits of high-tech and high-tech manufacturing companies is that the largest markets for these companies’ goods and services are outside of Montana.  Consequently, they become net importers of wealth.  In contrast, a local retailer, although essential to our economy, recirculates dollars already in the state (unless it is a visitor who is shopping) – they generally do not make Montana’s economic pie larger.

The advantage of wealth coming in from outside the state is the economic ripple effect it creates.  Economists tell us that a dollar introduced into an economy tends to circulate 5 to 7 times before settling.  For example: a high-tech company sells something to a company out-of-state and they pay their local employee; the employee in turn shops locally; the shop then buys goods from another local firm, who in turn pays their employees, etc.  All businesses in the local community benefit from this larger pie; everyone gets a bigger slice.

High-tech and high-tech manufacturing industries increase the wealth coming into the state, making our economic pie larger.