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a State of the Market Report in Greater Baltimore and Cyber Security prepared by: 3.16.2015 Patrick Dougherty Chief Market Analyst the State of Maryland

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Page 1: Cyber Security - EAGB · The EAGB is a partnership of regional business executives, government officials and leaders from higher education. Our mission is simple, to promote the region

a State of the Market Report

in Greater Baltimore andCyber Security

prepared by:

3.16.2015

Patrick Dougherty Chief Market Analyst

the State of Maryland

Page 2: Cyber Security - EAGB · The EAGB is a partnership of regional business executives, government officials and leaders from higher education. Our mission is simple, to promote the region
Page 3: Cyber Security - EAGB · The EAGB is a partnership of regional business executives, government officials and leaders from higher education. Our mission is simple, to promote the region

1 E. Pratt Street, Suite 200, Baltimore, MD 21202 | 410.468.0100 | 888.298.4322 | www.greaterbaltimore.org 1

Tom SadowskiPresident and CEOEconomic Alliance of Greater [email protected]

The Economic Alliance of Greater Baltimore is proud to publish this Cyber Security State of the Market Report. Maryland and the Baltimore region are home to one of the most dominant and fastest growing cyber security clusters in the world. Our market boasts a collection of major industry players, federal and military assets, strong start-up and second-stage communities, diverse government programs, investment opportunities, internationally-recognized pioneers in the field, skilled labor force and nation-ally-ranked higher education partners — all producing some of the best research and entrepreneurial talent in the country.

The EAGB is a partnership of regional business executives, government officials and leaders from higher education. Our mission is simple, to promote the region as a world-class market in which to live, work, learn and invest. Our economic development efforts are focused on providing strategic thought leadership and engaging community stakeholders to foster business attraction and growth, job creation and new investment.

This report serves as a testimony to our market’s “world-class” standing in cyber security in every as-pect. We hope you find it helpful and welcome your inquiries and collaboration in pursuit of your busi-ness interests here in Maryland and the Baltimore region.

Sincerely,

Augie ChiaseraRegional President, M&T BankChairman, Economic Alliance of Greater Baltimore

Letter from the EAGB

Page 4: Cyber Security - EAGB · The EAGB is a partnership of regional business executives, government officials and leaders from higher education. Our mission is simple, to promote the region

Cyber Security in Greater Baltimore and the State of Maryland2

Greater Baltimore and the State of Maryland are home to one of the fastest growing and most prolific Cyber Security industries in the United States and the world. With a dense concentration of Cyber Se-curity professionals and a steady pipeline of students graduating with degrees in Science, Technology, Engineering, Mathematics, and Cyber Security, the region and State are primed to continue to serve as the epicenter for the country’s Cyber Security industry.

The Department of Defense, the primary Cyber Security buyer in the federal government is located in nearby Washington, DC. The top five nondefense buyers of Cyber Security solutions are also located in Washington, DC, and many have offices and operations in Greater Baltimore/Central Maryland.1

The importance of the Cyber Security industry continues to grow. Cisco estimates that 8.7 billion de-vices were connected to the internet at the end of 2012, and expects 40 billion devices to connect to the internet by 2020.2 Trends in technology suggest that the importance of a safe and operational internet will only become more critical. As more information is stored online and as more businesses and prod-ucts rely on network connectivity to maintain productivity or even to operate, the need to implement network security solutions becomes increasingly ubiquitous.

Recent news shows that even the largest and most technology-focused organizations are not immune to cyber threats. 97 percent of Fortune 500 companies have been hacked, and the other 3 percent are likely to have been as well and are simply unaware of a specific breach.3 Only recently it was revealed that the payment systems of Home Depot and Target were breached,4 resulting in an as many as 100 million credit card numbers stolen.5 Social engineering has caused the loss of personal and private information from the accounts of many individuals.6 Clearly, Cyber Security is unique in that its applica-tions and its need spans the public and private sectors as well as daily life.

In addition to a growth in Cyber Security funding, analysts predict a shift in Cyber applications and therefore how information security expenditures are allocated. While the focus is currently on prevention and blocking cyber threats, it’s estimated that 60% of enterprise information security budgets will be allocated to rapid detection and response approaches to information security.7 Activity monitoring and forensic capabilities are important in new Cyber Security solutions, and an estimated 80% of endpoint protection platforms will offer these features by 2018.8 Indeed, an adaptive approach to information se-curity that combines preventive, detective, retrospective, and predictive capabilities is of the greatest importance to private and public operations.

The fast-growing high-tech specialty will continue to be an important part of the local economy, and con-tinued innovation and commercialization efforts will help the region to maintain its position as the global center of the Cyber Security industry. The information in this report demonstrates that Greater Baltimore and Maryland are national leaders in the Cyber Security industry. However, this research may fail to capture employees engaged in emerging Cyber Security applications, undefined occupational roles relating to Cyber Security, or companies operating in stealth. Data presented in this report is considered accurate at the time of publication, but may not capture the rapid changes of this growing marketplace.

Introduction

Page 5: Cyber Security - EAGB · The EAGB is a partnership of regional business executives, government officials and leaders from higher education. Our mission is simple, to promote the region

1 E. Pratt Street, Suite 200, Baltimore, MD 21202 | 410.468.0100 | 888.298.4322 | www.greaterbaltimore.org 3

› Fluid commuting patterns between the region, State, and neighboring jurisdictions expand the Greater Baltimore and State of Maryland labor forces.

› Professionals working in Central Maryland have access to a number of transportation options, includ-ing rail, air, and road, that allow for easy movement across the region and State or between regions.

› The already robust Cyber Security industry in Greater Baltimore and Maryland would have an even greater impact on local economies if all currently open positions were filled with qualified professionals over the next five years.

› Over 77,000 skilled Cyber Security professionals reside in the Greater Baltimore metropolitan region, and over 211,000 reside in the Baltimore-Washington corridor.

› Greater Baltimore is one of the most densely concentrated Cyber Security markets, and is strategi-cally situated in the Cyber-dense northeast corridor.

› Maryland anchors the concentrated Mid-Atlantic Cyber Security labor force and is home to one of the most densely concentrated Cyber Security workforces in the country.

› Median wages for Cyber Security professionals in Greater Baltimore and Maryland are competitive with wages in other Northeast Corridor and concentrated Cyber Security markets.

› Greater Baltimore and Maryland are among the best educated areas in the country, and continue to produce high-quality graduates to fill available STEM and Cyber Security jobs.

› Five Maryland universities are recognized as Centers of Excellence in Information Assurance and Cyber Defense education and research.

› Local universities outspend most other regions on computer science research and development, and have increased research and development expenditures faster than the national average.

› The Baltimore-Washington region lags other prominent Cyber Security regions in venture capital ac-quisition.

› Maryland features a number of Cyber Security firms of all ages and sizes in addition to large federal contractors and many Cyber Security-focused federal operations.

› A number of Cyber Security support organizations exist around Maryland, including Centers of Excel-lence and startup incubators.

› The State of Maryland has instituted multiple programs to help small Cyber Security companies cap-ture funding and ease the cost of secure capital.

Key Facts and Findings

Page 6: Cyber Security - EAGB · The EAGB is a partnership of regional business executives, government officials and leaders from higher education. Our mission is simple, to promote the region

Cyber Security in Greater Baltimore and the State of Maryland4

Defining the MarketGeography

Washington-Baltimore CSA10

With a 2012 population of 9,443,180, the Washington-Baltimore-Arlington CSA ranks 4th in size among all US CSAs. The CSA region is comprised of the Baltimore MSA, the Washington, DC MSA, the Winchester, VA-WV MSA, the California-Lexington Park, MD MSA, the Chambersburg-Waynesboro, PA MSA, the Hagerstown-Martinsburg, MD-WV MSA and the Cambridge, MD and Easton, MD Micropolitan Statistical Areas.

Central Maryland

When discussing talent and labor, this report will use Central Maryland and the State of Maryland as the statistical regions when possible. Commuting patterns reveal a strong network of commuters to and from the Maryland DC Suburbs. This region is comprised of the Baltimore MSA and the counties of Frederick, Montgomery, and Prince George’s.

While Greater Baltimore is a clearly defined geographic area, the region is part of a larger economic area that extends across traditionally defined statistical areas. Firms in Greater Baltimore employ talent from all around the Washington-Baltimore region, and the transportation network allows a fluid relationship with the two intertwined markets.

Baltimore MSA9

With a 2013 population of 2,770,738, the Baltimore MSA ranks 20th in size among all US MSAs. It is comprised of Baltimore City and the surrounding counties of Anne Arundel, Baltimore, Carroll, Harford, Howard and Queen Anne. Cecil County is a partner of the Economic Alliance, but is not included in the official metro data for Greater Baltimore. For this report, data on Cecil County employment is included in Baltimore MSA, Central Maryland, and Washington-Baltimore CSA employment figures where noted. MSAs that are comparable in size include San Diego, St. Louis, Tampa, Pittsburgh, and Denver.

Baltimore MSA Maryland DC Suburbs

Washington DC Northern Virginia

Page 7: Cyber Security - EAGB · The EAGB is a partnership of regional business executives, government officials and leaders from higher education. Our mission is simple, to promote the region

1 E. Pratt Street, Suite 200, Baltimore, MD 21202 | 410.468.0100 | 888.298.4322 | www.greaterbaltimore.org 5

Defining the MarketCommuter Patterns: Greater BaltimoreMore than 137,000 DC metro area residents commute to Greater Baltimore for work daily. Additionally, more than 200,000 Greater Baltimore residents commute to the DC metro area. Commuters from the Maryland suburbs that are traditionally defined as the DC Metro constitute more than one-tenth of the Greater Baltimore labor pool. Combined, these two regions create Central Maryland, which is used as the statistical base for the Greater Baltimore region when appropriate.

Regional Commuters

From Baltimore MSA to:

From MD Suburbs of DC to:

From DC to:

From Northern VA to:

Baltimore MSA 926,529 108,150 6,863 22,826

MD/DC Suburbs 149,761 471,226 38,851 84,084

DC 29,026 202,991 158,770 178,038

Northern VA 22,181 93,212 35,976 913,624

Source: US Census Bureau, Longitudinal Employer-Household Dynamics, OnTheMap, 2011

The Baltimore-Washington region is well connected internally and to the East Coast through comprehensive interstate, rail, and air networks and hubs. Amtrak trains go from New York to three stations in Baltimore and Central Maryland in less than 2.5 hours. The MARC Train offers low cost travel between Greater Baltimore and the DC Metro. BWI is one of the fastest growing airports in the US and offers frequent flights to cities nationally and internationally.

These regional connections allow for the fluid movement of residents from one market to the next, which expands the talent pool and market of Greater Baltimore far into the DC Metro area.

Page 8: Cyber Security - EAGB · The EAGB is a partnership of regional business executives, government officials and leaders from higher education. Our mission is simple, to promote the region

Cyber Security in Greater Baltimore and the State of Maryland6

Defining the MarketCommuter Patterns: State of Maryland

Over 2 million Maryland employees commute to work from within the State of Maryland. Another 264,000 workers commute into Maryland from outside the state, with the majority of these interstate commuters traveling from Virginia, Pennsylvania, and Washington, DC. Additionally, nearly 440,000 Marylanders leave the State for work every day. Of this total, nearly 60 percent commute to the District of Columbia.

Interstate Commuters

From Maryland to:

From Virginia to:

From Pennsylvania to:

From DC to:

Maryland 2,002,809 86,674 65,530 46,909

Virginia 127,774 2,975,581 8,104 37,668

Pennsylvania 20,654 4,344 4,891,831 712

District of Columbia 250,805 169,955 3,551 158,770

Source: US Census Bureau, Longitudinal Employer-Household Dynamics, OnTheMap, 2011

65,530

46,909

86,674

22,896

20,519

250,805

Page 9: Cyber Security - EAGB · The EAGB is a partnership of regional business executives, government officials and leaders from higher education. Our mission is simple, to promote the region

1 E. Pratt Street, Suite 200, Baltimore, MD 21202 | 410.468.0100 | 888.298.4322 | www.greaterbaltimore.org 7

Defining the MarketTransportation

The Greater Baltimore and Maryland economies rely on companies and employees getting around the region and the world efficiently. The following are some of the options available to workers and businesses.

• Amtrak is connected to major markets across the northeast corridor from Washington to Boston. The MARC Train is a state-subsidized commuter train that connects Baltimore to Washington, DC at a low cost.

• The east coast’s major thoroughfare, I-95, passes directly through Baltimore and Central Maryland. The I-695 loop and I-70 connect the central and western parts of Maryland to other states.

• The Baltimore Metro Subway connects Owings Mills through Baltimore to Johns Hopkins Hospital. The Baltimore Light Rail connects Hunt Valley through Baltimore to BWI Airport.

• The three major Baltimore-Washington area airports (BWI, DCA and IAD) provide direct service to all major US cities and most international destinations.

83

50

95

95

95

495495

270

70

295

97

695

695

301

50

50

140

795

Che

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ay

Patapsco River

AMTRAK / M

ARC RAIL

LIN

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Amtrak / MARCRail Station

ANNEARUNDEL

BALTIMORECOUNTY

CALVERT

CAROLINE

CARROLL

CECIL

CHARLESDORCHESTER

FREDERICK

HARFORD

HOWARD

MONTGOMERY

PRINCEGEORGE’S

QUEENANNE'S

ST. MARY'S

SOMERSET

TALBOT

BALTIMORE CITY

DISTRICTOF COLUMBIA

ADAMS CHESTERYORK LANCASTER

ARLINGTON

FAIRFAX

WESTMORELAND

KING GEORGE

PRINCEWILLIAM

STAFFORD

LOUDOUN

PENNSYLVANIA

VIRGINIA

Columbia

Towson

BethesdaAnnapolis

Bowie

Woodlawn

Owings Mills

Hunt Valley

White Marsh

Middle River

Dundalk

Aberdeen

Havre de Grace

Elkton

Westminster

Port Deposit

Rockville

Washington

Frederick

REAGANNATIONALAIRPORT

BWI AIRPORT

DULLES AIRPORT

FortMeade

AberdeenProvingGround

APG Edgewood

NSAFDA

NIH

Pentagon

Johns HopkinsApplied Physics Lab

National Institutesof Standards and Technology

NSF

NASAGoddard

Fort Detrick

Centers for Medicareand Medicaid Services

National Cancer Institute

NIH

Social SecurityAdministration

Census Bureau

University of MarylandBaltimore County

Johns HopkinsUniversity

University ofMaryland, Baltimore

University of MarylandCollege Park

Baltimore

PORT OF BALTIMORE

Page 10: Cyber Security - EAGB · The EAGB is a partnership of regional business executives, government officials and leaders from higher education. Our mission is simple, to promote the region

Cyber Security in Greater Baltimore and the State of Maryland8

Defining the Cyber Security MarketEconomic Contribution & Impact: Greater Baltimore

The economic contribution of the Cyber Security industry to the Greater Baltimore, including Cecil County, and State of Maryland economies can be estimated using IMPLAN software. To do so, the output of the technology-focused Custom Computer Programming Services and Computer Systems Design Services industries native to IMPLAN serve as proxies for the Cyber Security industry. Both the Custom Computer Programming and Computer Systems Design industries are significant contributors to the regional and State economies. Further, the impact of future hiring in the Cyber Security industry can be estimated using hiring in these industries. The 2012 model year is the most recent data available for all industries within IMPLAN.

In 2012, Custom Computer Programming Services contributed an estimated $2.97 billion to the regional economy, including direct, indirect, and induced outputs, over 1.8% of the total output of the region. Much of this output was driven by federal government demand, which accounted for $1.13 billion in output. Nondefense spending accounted for nearly $86 million worth of federal demand, and the federal government invested over $1 billion in Custom Computer Programming Services. Over $171 million worth of domestic goods and services produced by Custom Computer Programming Services was ex-ported in 2012.

The Computer Systems Design Services industry contributed $3.05 billion of total output to the regional economy in 2012. Over half of this was due to federal government demand, which totaled $1.52 billion. The majority of this output was driven by demand from nondefense federal applications and federal in-vestment. Households demanded $1.73 million of output from the Computer Systems Design Services industry, and the industry exported $224 million of domestic goods and services.

There are 13,393 available jobs in Cyber Security, according to the Cyber Security Jobs Report pro-duced by the Abell Foundation and the Cyber Technology Innovation Center. Filling these jobs over the next five years would generate a great impact on the regional economy and would represent a signifi-cant increase in Cyber Security employment. An additional 13,393 Cyber Security employees would bolster the productivity of the industry and the labor income earned by the regional residents filling those jobs would increase the productivity of the local industries supported by household purchases.

If it is assumed that all 13,393 jobs are filled by new workers residing in Greater Baltimore, earning the regional occupational industry median of $104,665, and that 60% of hiring occurs in the Computer Systems Design Services industry, the Greater Baltimore region would see an additional $3.88 billion of output in 2020 dollars. The additional employment in Cyber Security would support 11,914 addi-tional jobs in the region, most of which are in the Food Service and Employment Services industries. Statewide, the hiring of 13,393 additional Cyber Security professionals in the Greater Baltimore Region would result in another $1 million of output generated primarily by Greater Baltimore residents spending income outside the region.

See Appendix A for the complete breakdown of the employment, income, and output impacts of filling all currently open Cyber Security positions in the Greater Baltimore region.

Note: Direct output is the final market value of goods and services produced by an industry. Indirect output is the final market value of goods and services produced to satisfy the demand of an industry. Induced output is the final market value of goods and services produced to satisfy the demand for typical household expenditures of an industry’s employees.

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1 E. Pratt Street, Suite 200, Baltimore, MD 21202 | 410.468.0100 | 888.298.4322 | www.greaterbaltimore.org 9

Defining the Cyber Security MarketEconomic Contribution & Impact: State of Maryland

Based on a 2012 model year, the most recent data available, the federal government drove the majority of Custom Computer Programming Services output from the State of Maryland. Federal government de-mand resulted in an estimated $2.57 billion in output in 2012 from the Custom Computer Programming Services industry, with federal investment accounting for over 91% of that output. Households did not contribute to the demand for Custom Computer Programming Services. The industry exported nearly $165 million of domestic goods.

The Custom Computer Programming Services industry contributed an estimated total output, including direct, indirect, and induced outputs, of $6.39 billion to the State of Maryland economy in 2012.

The Computer Systems Design Services industry was also led by federal government demand worth nearly $3.36 billion in output. Federal nondefense applications accounted for over $2.4 billion of the industry’s output. State and local government demand accounted for $174 million of output, and house-hold demand led to $3.5 million of output. Much of the household demand originated in households earning over $50,000 annually. Almost $500 million of domestic goods and services produced by the Computer Systems Design Services industry was exported in 2012.

The Computer Systems Design Services industry contributed an estimated total output of $6.50 billion to the State economy.

According to the Cyber Security Jobs Report, there exist an estimated 19,413 jobs in Cyber Security across the State of Maryland. If those jobs can be filled over the next five years, the impact on the State economy would be tremendous. In addition to increasing productivity in the Custom Computer Program-ming and Computer Systems Design Services industries, the additional labor income earned by the Maryland residents that fill those jobs would bolster the State’s service economy and industries that households support through normal purchasing.

Hiring nearly 20,000 new Cyber Security employees that reside in Maryland would generate an addi-tional $3.9 billion of direct output and nearly $6 billion of total output in 2020 dollars. Most of the indirect and induced outputs that result from this massive hiring would be expected to come from various real estate industries, such as the sale and rental of new office space to house additional employees and the sale of homes.

These impacts do not include the value of outcomes such as money saved by households and their banks caused by protecting more people and devices more effectively from identity theft, for instance. This sort of outcome as a result of additional Cyber Security hiring is of tremendous value as well.

See Appendix A for the complete breakdown of the employment, income, and output impacts of filling all currently open Cyber Security positions in the Greater Baltimore region.

Note: Quoted state and regional expected impacts assume employment of workers previously unemployed or employed elsewhere in the country. If these workers left other local jobs for Cyber Security work, their Cyber Security industry impact would be substantial, but their impact on the overall economy would be small because they are already contributing to local output, paying state taxes, and purchasing or renting local homes.

Page 12: Cyber Security - EAGB · The EAGB is a partnership of regional business executives, government officials and leaders from higher education. Our mission is simple, to promote the region

Cyber Security in Greater Baltimore and the State of Maryland10

Defining the Cyber Security MarketMarket Overview

The Cyber Security industry is constantly seek-ing qualified professionals to fill the number of jobs available. Nearly 20,000 Cyber Security jobs are available in Maryland, while Baltimore ranks third among regions with the most avail-able Cyber Security jobs.11

The country’s largest defense contractors value Maryland’s proximity to Washington, DC and are some of the region’s largest employers. Many of the region’s largest IT and defense contractors are among employers with the most Cyber Se-curity job openings.12

The federal government is expected to spend $13.3 billion on Cyber Security in 2015,13 a fig-ure that is estimated to grow at 6.2% every year through 2020.14 In March 2014, the Department of Homeland Security proposed a budget that included $378 million for network security de-ployment and $144 million for threat diagnostics and mitigation.15 The private sector is expected to spend $12.4 billion on Cyber Security by 2016.16 Firms located in Greater Baltimore and the State of Maryland are well-positioned to take advantage of the continuously growing govern-ment and consumer markets for Cyber Security solutions.

Top 10 Cyber Security Job Titles2012

Rank Title

1 Information Security Analyst

2 Security Management Specialist

3 Computer Systems Analyst

4 Software Developer, Applications

5 Network & Computer Systems Admin

6 Software Developer, Systems Software

7 Computer Systems Engineer/Architect

8 Auditor

9 Security Manager

10 Intelligence Analyst

Source: Burning Glass InternationalSalt Lake City, 2,095

San Antonio, 3,165

Austin

Denver

Boston

Baltimore

San Francisco

Palo Alto

Maryland

3,663

6,924

11,683

13,393

13,710

17,570

19,143

Cyber Security Jobs by Region

Source: Cyber Technology and Innovation Center Cyber Security Jobs Report, 2013

Top 10 IT and Cyber Security EmployersMaryland

2013

Rank Company Employees

1 Northrop Grumman 9,790

2 Verizon 8,290

3 Lockheed Martin 7,910

4 Booz Allen Hamilton 7,500

5 JHU APL 5,000

6 Leidos 4,120

7 Comcast 4,000

8 CSC 3,120

9 Westat 2,280

10 BAE Systems 2,000

Source: Maryland Department of Business and Economic Development

Page 13: Cyber Security - EAGB · The EAGB is a partnership of regional business executives, government officials and leaders from higher education. Our mission is simple, to promote the region

1 E. Pratt Street, Suite 200, Baltimore, MD 21202 | 410.468.0100 | 888.298.4322 | www.greaterbaltimore.org 11

EmploymentWorkforce Density

Total Cyber Security Concentration50 Largest US Metros

2013

Rank Metro Area US Index

1 San Jose 4.18

2 Seattle 2.66

3 Washington, DC 2.56

4 San Francisco 1.95

5 Boston 1.92

6 Austin 1.80

7 Denver 1.74

8 Raleigh 1.71

9 Baltimore 1.49

10 Atlanta 1.45

Baltimore/CMD 1.44

Source: Bureau of Labor Statistics Occupational Employment Statistics

Total Cyber Security Concentration50 US States

2013

Rank Metro Area US Index

1 Virginia 1.97

2 Washington 1.86

3 Massachusetts 1.61

4 Colorado 1.50

5 Maryland 1.46

6 Washington, DC 1.45

7 New Jersey 1.29

8 California 1.26

9 Delaware 1.13

10 Georgia 1.05

Given the limitations of data, it is difficult to precisely quantify the Cyber Security workforce across markets and industries. This report uses several data categories and techniques to best capture the Cyber Security workforce in Baltimore and other major US markets. The numbers presented are based on the number of employees in each region with skills applicable to Cyber Security, but do not necessarily reflect the number of employees working for Cyber Security-focused companies or actively in Cyber Security roles.

To quantify Cyber Security, the EAGB combined a number of occupational designations with job descriptions defined in Appendix B relevant to Cyber Security. The data includes all employees working in Information Technology fields that focus on information security, cyber breach prevention, and data loss remediation, but does not include non-technical professionals that may be employed by a Cyber Security firm. The most complete data comes from the Bureau of Labor Statistics Occupational Employment Statistics (OES), an annually updated source.

OES data indicates that Greater Baltimore is one of the most concentrated markets in the US, with 49% more of its workers concentrated in Cyber Security occupations than the US average. In absolute terms, Greater Baltimore ranks 16th with 42,515 employees working in Cyber Security occupations. However, when including the rest of the Central Maryland region, the area would rank 10th in terms of total employment with 77,506 employees in Cyber Security occupations.

The State of Maryland ranks fifth among all states and the District of Columbia with 46% more Cyber Security professionals than would be expected based on national averages. 82,735 professionals are employed in Cyber Security occupations in Maryland, making it the 14th largest market by total size.

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Cyber Security in Greater Baltimore and the State of Maryland12

Cyber Security EmploymentBaltimore-Washington Employment

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Occupational Employment Comparison Breakdown of Cyber Security in the Baltimore-Washington Region

OccupationBaltimore-

Washington CSAGreater Baltimore /

Central MD Baltimore MSA

Computer and Information Systems Managers 23,180 8,660 4,810Auditors 29,050 12,524 7,205Computer and Information Research Scientists 3,940 2,825 1,330Information Security Analyst 12,260 3,013 1,830Computer Programmers 13,180 6,555 3,300Software Developers, Applications 42,160 11,415 6,100Software Developers, Systems Software 37,530 13,273 7,310Database Administrators 7,910 3,375 1,800Network and Computer Systems Administrators 27,430 10,428 5,870Computer Network Architects 14,320 5,175 2,890Mathematician 430 265 70Total 211,390 77,506 42,515

Greater Baltimore / Central MD77,506 (37%)

Washington, DC21,550 (10%%)

Northern VA / Southern MD112,334 (53%)

Source: Bureau of Labor Statistics Occupational Employment Statistics 2013 data

Nearly 37% of the Baltimore-Washington Cyber Security workforce is located in Central Maryland, an increase of two percentage points from the previous year. Most of Cyber Security employees work in Software Development of Applications and Systems Software, followed by Auditors and Network and Computer Systems Administrators. Central Maryland is nearly two and a half times as dense with Infor-mation Security professionals than the US average.

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1 E. Pratt Street, Suite 200, Baltimore, MD 21202 | 410.468.0100 | 888.298.4322 | www.greaterbaltimore.org 13

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Washington, DC

New York

SanFrancisco

LosAngeles

Dallas

Chicago

Seattle

Cyber Security EmploymentMetropolitan Employment Density

Low Concentration Moderate Concentration High Concentration

Source: Bureau of Labor Statistics, Occupational Employment Statistics, 2013; Data compiled by EAGBNote: Size of circle denotes relative density

Greater Baltimore is among the country’s metropolitan regions most densely populated by professionals in Cyber Security-related jobs. Along with the Washington, DC Metro, the Baltimore-Washington cor-ridor forms the foundation of the Cyber Security industry on the east coast.

The region also sits along one of the most densely populated technology corridors in the country. Nearly all metropolitan areas in the Northeast Corridor are home to an above-average concentration of Cyber Security professionals, and this density extends south to metros in Virginia and North Carolina. Cyber Security employees in the Greater Baltimore region sit at the core of the country’s Cyber Security indus-try and benefit from easy access to Cyber-dense metros along the east coast.

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Cyber Security in Greater Baltimore and the State of Maryland14

Cyber Security EmploymentState Employment

Occupational Employment Comparison Breakdown of Cyber Security in the Baltimore-Washington Region

Occupation Maryland Washington, DC

Computer and Information Systems Managers 9,430 3,320Auditors 13,475 5,570Computer and Information Research Scientists 3,040 310Information Security Analyst 3,170 800Computer Programmers 6,980 1,350Software Developers, Applications 12,240 3,080Software Developers, Systems Software 13,930 1,740Database Administrators 3,590 960Network and Computer Systems Administrators 11,230 3,420Computer Network Architects 5,350 930Mathematician 300 70Total 82,735 21,550

Source: Bureau of Labor Statistics Occupational Employment Statistics 2013 data

Maryland is home to the fifth most concentrated market for Cyber Security professionals. There are nearly one and a half times as many Cyber Security professionals in Maryland than the national aver-age would suggest given the size of Maryland’s population. The Cyber Security workforce in Maryland includes 82,735 high-tech professionals, most of whom are employed as Software Developers for Appli-cations and Systems Software, Auditors, and Network and Computer Systems Administrators. There are over twice as many Information Security Analysts in Maryland than the US average. Maryland is also home to five times the number of Mathematicians that the national average would suggest, likely due to the role Mathematicians play in cryptology and the presence of multiple large intelligence agencies in Maryland and Washington, DC.

Cyber Security companies based in Maryland also have access to 21,550 qualified professionals in Washington, DC and 159,830 professionals in Cyber-related occupations in Virginia. Most Cyber Secu-rity professionals in Virginia are located in the DC Metro region, and therefore are part of the commuting shed that encompasses the Baltimore-Washington corridor.

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1 E. Pratt Street, Suite 200, Baltimore, MD 21202 | 410.468.0100 | 888.298.4322 | www.greaterbaltimore.org 15

State Employment Density

Among all states in the US, Maryland ranks fifth in concentration of Cyber Security professionals. Neigh-boring Virginia, which shares a mobile workforce with Maryland, ranks first, while Washington DC ranks sixth. There are nearly 50% more professionals in Cyber Security occupations in Maryland than would be expected based on national averages.

19% of professionals in Maryland work in STEM fields, more than anywhere else in the country.17 The State of Maryland certainly benefits from its proximity to Washington, DC. The proliferation of federal and military offices and contractors offering IT and Cyber Security services helps induce human capital relocation to the State. However, a growing consumer-minded technology community with a strong fo-cus on Cyber Security exists within the state, and is often supported by former government employees seeking to educate, work in, or launch businesses in the private sector.

Moderate ConcentrationVery Low Concentration Very High ConcentrationSource: Bureau of Labor Statistics, Occupational Employment Statistics, 2013; Data compiled by EAGBNote: Hawaii and Alaska, not pictured, have very low concentrations of Cyber Security professionals.

Cyber Security Employment

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Cyber Security in Greater Baltimore and the State of Maryland16

EmploymentMetropolitan Wages

The median wage for Cyber Security professionals in Greater Baltimore is slightly below that of other densely concentrated Cyber Security markets. However, the cost of living in the Baltimore region is low relative to other hubs in the Cyber Security industry. Median annual wages for Cyber Security profes-sionals in Greater Baltimore are significantly more than median wages for all jobs, which is typical for high-tech jobs that require experience and education.

Wages for technology professionals in the Baltimore-Washington corridor are the second-highest in the country, behind only San Francisco.18 The presence of the federal government works to keep technology wages high in the region, particularly in aerospace and defense.

Occupational Wage Comparison Breakdown of Cyber Security Wages in the Baltimore-Washington Region

Occupation Baltimore Boston DC Denver New YorkSan

Francisco SeattleComputer and Information Systems Managers

$128,410 $133,920 $144,700 $135,180 $148,100 $154,960 $139,840

Auditors $67,150 $72,460 $77,360 $68,060 $80,160 $76,110 $69,280

Computer and Information Research Scientists

$98,810 $124,140 $119,230 $114,160 $101,680 $117,130

Information Security Analyst $93,960 $91,620 $106,180 $80,960 $114,140 $109,560 $100,540

Computer Programmers $76,400 $80,960 $83,810 $85,000 $84,670 $94,860 $114,410

Software Developers, Applications $108,220 $97,830 $107,070 $92,940 $100,880 $107,330 $111,230

Software Developers, Systems Software

$116,460 $113,050 $109,810 $96,020 $105,820 $114,060 $111,480

Database Administrators $83,970 $98,910 $96,080 $89,190 $98,880 $92,000

Network and Computer Systems Administrators

$88,080 $79,790 $92,860 $79,840 $87,130 $92,400 $82,490

Computer Network Architects $100,240 $111,830 $110,300 $99,390 $114,700 $119,340 $108,740

Mathematician $94,240 $111,500 $133,270 $110,970 $134,250 $129,360

Median Annual Cyber Security Wage $94,240 $104,665 $107,070 $94,480 $101,680 $109,560 $109,985

Source: Bureau of Labor Statistics Occupational Employment Statistics 2013 data

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1 E. Pratt Street, Suite 200, Baltimore, MD 21202 | 410.468.0100 | 888.298.4322 | www.greaterbaltimore.org 17

State Wages

Employment

The median wage for Cyber Security professionals in Maryland is slightly higher than that of other states dense with Cyber Security professionals. However, the median annual wage for many individual occupations is similar to or less than wages in other states. Maryland’s valuable Mathematicians drive up the State’s median annual Cyber Security wage. Median wages for Cyber Security professionals in Maryland are significantly greater than median wages for all occupations, as is the case in all states, due to the advanced technical nature of the work.

Occupational Wage Comparison Breakdown of Cyber Security Wages in Maryland

Occupation MD DC VA MA CO WA CAComputer and Information Systems Managers

$133,840 $144,380 $141,830 $131,300 $132,920 $134,030 $146,280

Auditors $70,130 $81,460 $71,120 $71,800 $65,390 $66,900 $70,580

Computer and Information Research Scientists

$106,830 $115,740 $112,770 $112,920 $117,610 $127,040 $110,760

Information Security Analyst $95,540 $101,500 $103,840 $90,010 $83,140 $100,260 $101,000

Computer Programmers $81,610 $90,920 $75,900 $80,670 $83,640 $111,620 $87,100

Software Developers, Applications $102,670 $91,440 $102,890 $97,800 $92,980 $110,080 $107,870

Software Developers, Systems Software

$107,400 $94,090 $110,800 $112,870 $100,410 $110,010 $117,040

Database Administrators $87,190 $88,640 $91,580 $78,800 $93,540 $89,610 $89,970

Network and Computer Systems Administrators

$88,260 $86,810 $87,210 $78,750 $77,120 $78,950 $82,430

Computer Network Architects $102,170 $100,080 $107,500 $110,620 $98,220 $95,070 $111,560

Mathematician $117,770 $115,470 $106,850 $111,500 $60,210 $119,160 $106,300

Median Annual Cyber Security Wage $102,170 $94,090 $103,840 $97,800 $92,980 $110,010 $106,300

Source: Bureau of Labor Statistics Occupational Employment Statistics 2013 data

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Cyber Security in Greater Baltimore and the State of Maryland18

EducationMetropolitan Educational Attainment

Percent with Bachelor’s Degree or Higher25 Largest US Metros

2012

Rank Metro Area %1 Washington, DC 47.6%

2 San Francisco 44.1%

3 Boston 42.8%

4 Denver 38.8%

5 Minneapolis 38.4%

6 Seattle 37.5%

7 New York 36.3%

8 Baltimore 35.5%

9 Atlanta 34.9%

10 San Diego 34.4%

US 28.5%

Percent with Graduate or Professional Degree25 Largest US Metros

2012

Rank Metro Area %1 Washington, DC 22.7%

2 Boston 18.9%

3 San Francisco 17.3%

4 Baltimore 15.2%

5 New York 14.9%

6 Denver 13.5%

7 Seattle 13.4%

8 Chicago 13.1%

9 Philadelphia 13.1%

10 San Diego 13.0%

  US 10.6%

Source: US Census Bureau, American Community Survey 2012, 5-year estimates

The Baltimore-Washington region is one of the best educated regions in the country and arguably the world. Independently, Greater Baltimore ranks eighth nationally with 35.5 percent of residents holding Bachelor’s Degrees or higher and fourth nationally with 15.2 percent of residents holding graduate or professional degrees. Nearby Washington, DC ranks first in both of these areas.

Businesses located in the Greater Baltimore region benefit from the ease of travel between Baltimore and Washington, DC, as they are able to draw skilled professionals from both metropolitan regions to build a competitive internal workforce.

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1 E. Pratt Street, Suite 200, Baltimore, MD 21202 | 410.468.0100 | 888.298.4322 | www.greaterbaltimore.org 19

EducationState Educational Attainment

Maryland is one of the best educated states in the country, ranking in the top five states for both per-centage of residents with a Bachelor’s degree or higher and percentage of residents with a graduate or professional degree. Maryland companies have the ability to draw employees from nearby Washington, DC and Virginia, both of which rank among the top ten best educated states.

The National Security Agency designates high-achieving institutions National Centers of Academic Ex-cellence in Information Assurance and Cyber Defense (IA/CD). Seven Maryland universities are listed under this new, exclusive designation. California, a much larger state, ranks second with four Centers of Academic Excellence. University of Maryland, Baltimore County is the only Maryland school to be listed as a Center of Academic Excellence in both education and research. Prince George’s Community Col-lege is the only two-year school in the country to earn Center of Academic Excellence honors. Towson University and University of Maryland University College are both recognized for excellence in IA/CD education, and University of Maryland, College Park is recognized for excellence in IA/CD research.

Percent with Bachelor’s Degree or HigherStates2012

Rank Metro Area %1 Washington, DC 51.2%

2 Massachusetts 39.0%

3 Colorado 36.7%

4 Maryland 36.3%

5 Connecticut 36.2%

6 New Jersey 35.4%

7 Virginia 34.7%

8 Vermont 34.2%

9 New Hampshire 33.4%

10 New York 32.8%

US 28.5%

Percent with Graduate or Professional DegreeStates2012

Rank Metro Area %1 Washington, DC 28.7%

2 Massachusetts 16.8%

3 Maryland 16.4%

4 Connecticut 15.8%

5 Virginia 14.4%

6 New York 14.1%

7 Vermont 13.5%

8 New Jersey 13.4%

9 Colorado 13.2%

10 New Hampshire 12.3%

  US 10.6%

Source: US Census Bureau, American Community Survey 2012, 5-year estimates

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Cyber Security in Greater Baltimore and the State of Maryland20

EducationCyber Security Pipeline

In addition to boasting a well-educated population, Greater Baltimore and Maryland universities prepare a number of future Science, Technology, Engineering, Mathematics (STEM), and Cyber Security profes-sionals.

Over the last four years, over 12,000 Bachelor’s, Master’s, and Doctorate degrees in Computer Science have been awarded to students at Maryland universities. Another 21,000 students have earned As-sociate’s degrees in technology-based fields that directly apply to business and communications, data processing, and health.

In 2013 alone, 26,709 degrees in Science, Technology, Engineering, and Mathematics fields were awarded by universities across the State of Maryland. This represents nearly 37% of all degrees award-ed during the 2012-2013 school year. Since 2008, 373 Cyber Security degrees have been awarded at universities across Maryland. Another 193 Cyber Security certificates have been awarded in the last five years, with the majority of all degrees and certificates being conferred in 2012.

Source: Maryland Higher Education Commission Annual Data Book, selected and

compiled by EAGB *Unknown/Non-Degree students are not reflected in the Total.

STEM Degrees Conferred from Maryland Colleges and UniversitiesBachelor’s and Higher

2010-2013

Science Technology

Engineering MathematicsTotal

STEM

Bachelor’s 18,098 7,121 5,355 1,434 32,008

Master’s 9,455 5,297 3,808 499 19,059

Doctorate 4,918 251 846 159 6,174

Associate’s 1 21,597 655 - 22,253

Total 32,472 34,266 10,664 2,092 79,494

Students Enrolled in STEM in Maryland Colleges and UniversitiesBachelor’s and Higher

2011

Science Technology

Engineering MathematicsTotal

STEM

Bachelor’s 10,024 6,162 3,503 767 20,456

Master’s 6,886 7,019 3,708 1,323 18,936

Doctorate 9,268 828 1,772 1,866 13,734

Certificate 255 3,010 151 - 3,416 Unknown/Non-Degree* 9,955 25,202 4,299 214 39,670 Total 26,433 17,019 9,134 3,956 56,542

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1 E. Pratt Street, Suite 200, Baltimore, MD 21202 | 410.468.0100 | 888.298.4322 | www.greaterbaltimore.org 21

FundingUniversity Research and Development

Venture Capital

Venture Capital Investment - Cyber SecuritySelect Markets

2009-2014

Rank Metro Area PWC Region Funds

1 San Francisco Silicon Valley $29,785,619,600

2 Boston New England $4,808,459,400

3 Baltimore-Washington DC/Metroplex $2,490,377,900

4 All Texas Metros* Texas $2,330,058,800

5 Seattle Northwest $2,246,959,400

6 Denver Colorado $865,480,400

Source: PricewaterhouseCoopers MoneyTree Survey Report; data through 2Q 2014Markets selected based on most concentrated Cyber Security MarketsCyber Security industries include: Information Technology Services, Networking & Equipment, and Software*Texas metropolitan regions include Austin, Dallas, Houston, and San Antonio.

Venture Capital Deals - Cyber SecuritySelect Markets

2008-2012

Rank Metro Area Deals

1 San Francisco 3,197

2 Boston 872

3 Baltimore-Washington 430

4 Seattle 406

5 All Texas Metros* 338

6 Denver 222

Baltimore-Washington is a premier market for Cyber Security innovation and has been widely recog-nized as a leader in the Cyber Security industry. However, the region lags behind others in terms of venture funds captured. Among the six most concentrated Cyber Security markets, the DC/Metroplex ranks third in obtaining venture funds. The region has seen only a small fraction of the venture capital and number of deals that similar regions have captured from 2008-2012. Over the last 5 years, Maryland has captured 32% of Cyber Security-related venture capital investment in the DC/Metroplex region.

In fiscal year 2012 alone, nearly $2.5 billion was spent on computer science and mathematics research and development at US colleges and universities,19 $1.8 billion of which was financed by the federal government.20

Math and Computer ScienceR&D Expenditures at Universities

States, FY 2012

Rank State $000

1 California 335,343

2 Pennsylvania 211,354

3 Texas 202,964

4 Maryland 201,963

5 New York 166,606

Source: National Center for Science and Engineering Statistics, National Science Foundation

Math and Computer ScienceR&D Expenditures at Universities

Universities, FY 2012

Rank University $000

1 Johns Hopkins University 136,798

2 Carnegie Mellon University 113,650

3 U of Southern California 103,413

4 U of Illinois, Urbana-Champaign 97,603

5 Georgia Institute of Technology 92,937

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Cyber Security in Greater Baltimore and the State of Maryland22

FundingHigher Education Research & Development, Metropolitan Region

US

% Growth in R&D Expenditures, 2009-2012

R&

D E

xpen

ditu

res

per

10,0

00 R

esid

ents

, Tho

usan

ds

Low and ImprovingR&D Expenditure

High and ImprovingR&D Expenditure versus US

High and DecliningR&D Expenditure

Low and DecliningR&D Expenditure

US Metro R&D Expendituresper 10,000 People: $80,777

US Metro Change in R&D Expenditure per 10,000 people: 14%

-100 -50 0 50 100 150 200

100

200

300

400

500

ClevelandDenver

Jacksonville

Baltimore

Pittsburgh

Austin

Raleigh

Salt Lake City

BostonColumbusAtlantaSan Diego

Buffalo

San JoseLos Angeles Washington, DC

ProvidencePortland

PhiladelphiaChicagoSacramento

New YorkVirginia BeachLouisville

San

Memphis

Hartford

Houston

Charlotte

Oklahoma City DetroitPhoenix DallasSt. LouisMiami

Birmingham

New Orleans

RiversideLas Vegas MilwaukeeSan Francisco

Kansas CityRichmond

Orlando

Nashville

Antonio

Cincinnati

Baltimore universities spend more per capita than all but one other metropolitan regions on comput-er science research and development. Universities in Greater Baltimore spend almost $380,000 per 10,000 residents on computer science research and development, and have increased spending on computer science research and development 35 percent since 2009. Baltimore is one of just eleven of the largest metro regions in the country in which universities spent more than average on computer sci-ence research and development and increased research and development spending since 2009. Com-puter science research and development expenditures in Greater Baltimore were led by Johns Hopkins University, which ranked third nationally after spending $96 million in 2012.21

Comparative Computer Science R&D Expenditures50 Largest US Metros

2009-2012

Source: National Science Foundation; Data compiled by EAGBNote: Minneapolis, Seattle, Tampa, and Indianapolis not pictured. None would fall in “high and improving” quadrant. Expenditures by Johns Hopkins University were imputed and are listed at different amounts in different NSF tables, likely due to differing calculation methods. To ensure accuracy, imputed JHU data is compared only to other information in the table for which it was prepared.

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1 E. Pratt Street, Suite 200, Baltimore, MD 21202 | 410.468.0100 | 888.298.4322 | www.greaterbaltimore.org 23

Federally Funded Higher Education Research & Development, Metropolitan Region

Funding

US

% Growth in R&D Expenditures, 2009-2012

R&

D E

xpen

ditu

res

per 1

0,00

0 R

esid

ents

, Tho

usan

ds

Low and ImprovingR&D Expenditure

High and ImprovingR&D Expenditure versus US

High and DecliningR&D Expenditure

Low and DecliningR&D Expenditure

US Metro Federally Funded R&DExpenditures per 10,000 People: $60,211

US Metro Change in Federally Funded R&D Expenditure per 10,000 people: 23%

-100 -50 0 50 100 150 200

100

200

300

400

500

Baltimore

Pittsburgh

Austin

Raleigh

Salt Lake City

Boston

Columbus

Atlanta

San Diego BuffaloSan JoseLos Angeles

Washington, DC

Providence

Portland

PhiladelphiaChicagoSacramento New York

Virginia BeachLouisvilleSan Antonio

MemphisHartford

HoustonCharlotte

Detroit

Phoenix

DallasSt. Louis

Miami

BirminghamNew Orleans Riverside

Las Vegas

Kansas CityRichmondOrlando Nashville

ClevelandDenverJacksonville

Source: National Science Foundation; Data compiled by EAGBNote: Minneapolis, Oklahoma City, Seattle, Tampa, Indianapolis, Milwaukee, San Francisco, and Cincinnati not pictured. None would fall in “high and improving” quadrant.

Comparative Federally Financed Computer Science R&D Expenditures50 Largest US Metros

2009-2012

Universities in Greater Baltimore ranked second for federally financed computer science research and development expenditures in 2012. The region is dependent on federal financing, with over 86% of all computer science research and development expenditures at universities being financed by the federal government. Greater Baltimore is one of only ten of the fifty largest regions that spent more than the national average on federally financed computer science research and development and increased fed-erally funded research and development expenditures from 2009-2012.

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Cyber Security in Greater Baltimore and the State of Maryland24

FundingHigher Education Research & Development, State of Maryland

US

% Growth in R&D Expenditures, 2009-2012

R&

D E

xpen

ditu

res

per

10,0

00 R

esid

ents

, Tho

usan

ds

Low and ImprovingR&D Expenditure

High and ImprovingR&D Expenditure versus US

High and DecliningR&D Expenditure

Low and DecliningR&D Expenditure

US R&D Expendituresper 10,000 People: $57,618

US Change in R&D Expenditureper 10,000 people: 14%

-100 -50 0 50 100 150 200 250

50

100

150

200

250

300

MD

MA

HI PA

IL

GA

DC

OR

UT

RI

DEALCANY

COTX

NE NHVA

WIMS

NDNMAZ OK

NJIA

AKIDMI

KS

LA

MOSC

VTFL

WY

MTNV AR

ME

WV

KY

NC

CTOH

Universities within the State of Maryland spend more per capita on computer science research and development than universities anywhere else in the country by a wide margin. Maryland universities spend over $255,000 per 10,000 State residents, a figure that has increased 38% since 2009. Maryland is one of ten states to both spend more per capita and have increased spending faster than the US on computer science research and development. Maryland ranked third nationally for total computer sci-ence research and development expenditures at universities in 2012, spending over $151 million.22

Comparative Computer Science R&D ExpendituresStates

2009-2012

Source: National Science Foundation; Data compiled by EAGBNote: Indiana, South Dakota, Tennessee, Minnesota, and Washington not pictured. Only IN and SD would fall in “high and improving” quadrant.

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1 E. Pratt Street, Suite 200, Baltimore, MD 21202 | 410.468.0100 | 888.298.4322 | www.greaterbaltimore.org 25

Federally Funded Higher Education Research & Development, State of Maryland

Funding

US

-100 -50 0 50 100 150 200 250 300

50

100

150

200

250

% Growth in Federally Funded R&D Expenditures 2009-2012

TXNH

CT

OH

Fed

eral

ly F

unde

d R

&D

Exp

endi

ture

s

Low and ImprovingFederal Funding

High and ImprovingFederal Funding versus US

High and DecliningFederal Funding

Low and DecliningFederal Funding

US Federal Fundingper 10,000 People: $42,949

US Change in Federal Fundingper 10,000 people: 23%

per

10,0

00 R

esid

ents

, Tho

usan

ds

MD

MA

HI

PA

IL

GADC

OR UTRI DEALCA

NYCO

NE NC VAWIMS NDNMAZ

OKNJIAAK IDMI KSLA MO SCVTFL WA

WYMT KYNV

ARME WV

Comparative Federally Financed Computer Science R&D ExpendituresStates

2009-2012

Source: National Science Foundation; Data compiled by EAGBNote: Indiana, South Dakota, Tennessee, Minnesota, and Washington not pictured. Only IN and SD would fall in “high and improving” quadrant.

Maryland universities rank first nationally in federally financed computer science research and develop-ment expenditures per capita. Universities in Maryland spend nearly $220,000 per 10,000 residents on federally funded computer science R&D, a 40% growth from 2009. Maryland is one of eleven states in which per capita federally funded expenditure and growth in federally funded expenditures were both above the national average in 2012. 86% of Maryland university expenditure on computer science re-search and development is federally funded.

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Cyber Security in Greater Baltimore and the State of Maryland26

Key AssetsFederal Agencies

83

50

95

95

95

495495

270

70

295

97

695

695

301

50

50

Pocomoke

Che

sape

ake B

ayPatapsco River

AMTRAK / M

ARC RAIL

LIN

E

Amtrak / MARCRail Station

ANNEARUNDEL

BALTIMORECOUNTY

CALVERT

CAROLINE

CARROLL

CECIL

CHARLESDORCHESTER

FREDERICK

HARFORD

HOWARD

KENT

MONTGOMERY

PRINCEGEORGE’S

QUEENANNE'S

ST. MARY'S

SOMERSET

TALBOT

WICOMICO

BALTIMORE CITY

CASTLE

ADAMS CHESTERYORK LANCASTER

ARLINGTON

CAROLINE

FAIRFAX

RICHMOND

WESTMORELAND

KING GEORGE

PRINCEWILLIAM

STAFFORD

LOUDOUN

DISTRICTOF COLUMBIA

PENNSYLVANIA

VIRGINIA

Columbia

Towson

Bethesda AnnapolisBowie

Woodlawn

Owings Mills

Hunt Valley

White Marsh

Middle River

Dundalk

Aberdeen

Havre de Grace

Elkton

Westminster

Port Deposit

Rockville

Baltimore

Washington

Frederick

REAGANNATIONALAIRPORT

BWI AIRPORT

DULLES AIRPORT

FortMeade

AberdeenProvingGround

APG Edgewood

NSAFDA

NIH

Pentagon

Johns HopkinsApplied Physics Lab

National Institutesof Standards and Technology

NSF

NASAGoddard

Fort Detrick

Centers for Medicareand Medicaid Services

National Cancer Institute

NIH

Social SecurityAdministration

Census Bureau

1

1

1

2

2

2

2

3

4

5

6

7

7

22

8

8

8

8

8

9

10 10

10

11

11

12

13

13

14

15

16

17

18

18

19

19

19

20

21

8

23

24

28

Greater Baltimore / Central Maryland : Largest IT OperationsNorthrop Grumman (11,000)Lockheed Martin (9,777)Verizon Wireless (6,976)Constellation Energy (6,768)T. Rowe Price (4,169)IBM (3,400)Computer Sciences Corporation (3,029)General Dynamics (2,000)Hughes Network Systems (1,971)SAIC (1,900)BAE Systems (1,700)Legg Mason (1,650)

Booz Allen Hamilton (1,400)ARINC (1,300)Raytheon Solipsys (1,300)Honeywell Technology Solutions (1,200)AAI (A Textron company) (1,097)Allegis Group-Teksystems (1,006)ATK (900)MICROS Systems (815)Aspen Systems (800)Ciena (676)L-3 Communications Titan Group (600)Battelle (400)

BreakAway Ltd. (110)Big Huge Games (100)Firaxis (65)Bethesda Softworks (NA)

123456789101112

131415161718192021222324

25262728

* Greater Baltimore is considered one of the top 5 US markets for Animation, Gaming and Simulation. What started as gaming development for entertainment has evolved to include simulation for

as AAI, have made simulation part of their product lines.

ANIMATION, GAMING & SIMULATION*

* Regional employment shown in parentheses; the same company number is used to indicate multiple locations. Also shown are regional companies with a high concentration of IT workers.

The distance between Baltimore and Washington, D.C. is approximately 35 miles.

Amtrak / MARC Rail Line

Light Rail Line

Baltimore Metro Subway

Research Facilities and Federal Institutions

Philadelphia

1. Northrop Grumman2. Lockheed Martin3. Verizon Wireless4. Constellation Energy5. T. Rowe Price6. IBM7. Computer Sciences Corporation8. General Dynamics

9. Hughes Network Systems10. SAIC11. BAE Systems12. Legg Mason13. Booz Allen Hamilton14. ARINC15. Raytheon Solipsys16. Honeywell Technology Solutions

17. AAI18. Allegis Group-Teksystems19. ATK20. MICROS Systems21. Aspen Systems22. Ciena23. L-3 Communications24. Battelle

The Baltimore-Washington corridor is dense with IT operations and Defense contractors. The map be-low shows the largest IT operations in Greater Baltimore/Central Maryland alongside the federal agen-cies and institutions located in the region.

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Key AssetsFederal Agencies

Greater Baltimore’s proximity to Washington, DC creates an ideal place for many Cyber Security-focused federal opera-tions and institutions. Maryland is home to 12 major military installations and 50 federal agencies. The Greater Baltimore/Central Maryland region is within a short drive of federal agencies located in Washington, DC, making communication and collaboration with federal agencies easier. The following select Cyber Security-related agencies and institutions are located throughout Greater Baltimore and the State of Maryland:

National Institute of Standards and Technology (NIST)23

• NIST promotes US innovation and industrial competitiveness by advancing measurement science, standards, and technology in ways that enhance economic security and improve our quality of life.

• NIST’s Computer Security Division (CSD) provides standards and technology to protect information systems against threats to the confidentiality, integrity, and availability of information and services.24

• CSD at NIST develops standards, metrics, tests, and validation programs to measure and validate the security in information systems and services.25

US Cyber Command (CYBERCOM)26

• CYBERCOM directs the operations and defense of specified Department of Defense information networks.

• CYBERCOM prepares to, and when directed, conducts full-spectrum military cyberspace operations in order to enable actions in all domains.

• Located at Fort Meade, CYBERCOM ensures US and Allied freedom of action in cyberspace and works to deny the same to US adversaries.

National Security Agency (NSA)/Central Security Service (CSS)

• The NSA aims to improve and modernize the security of sensitive information systems and produce timely and actionable intelligence.27

• The CSS was established to promote full partnership between the NSA and the cryptologic elements of the armed forces.28 It partners with military and civilian leaders to address critical military-related issues in support of tactical intelligence objectives.29

• The NSA and CSS collaborate in developing education programs at the elementary, secondary, and college lev-els.30

• The NSA High Performance Computing Center-2, scheduled for completion in 2016, will protect national security networks and provide authorities with intelligence and warnings regarding cyber threats.31

Defense Information Systems Agency (DISA)32

• DISA ensures that information is accessible to the joint forces while protecting it from adversaries and promotes the safe sharing of information.

• DISA’s Field Security Operations develops information assurance standards and training for the Department of Defense to secure computing devices and boost cyber defense awareness.

Aberdeen Proving Ground (APG)33

• APG focuses Cyber Security efforts not only on on network protection, but also on device-level security on unique military hardware such as radar and sensors.

• APG’s Cyber Security mission includes offensive capabilities to attack networks as well as protecting trusted sys-tems.

• APG occupies a unique geographic and talent-development position that allows it to play a key role in developing the region’s Cyber Security workforce.

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Cyber Security in Greater Baltimore and the State of Maryland28

Key AssetsFirms

Greater Baltimore is home to some of the world’s leading Cyber Security companies and a number of vibrant startups. A select few companies in the regional Cyber Security ecosystem are shown below:

These firms, as well as many others, are at various stages of the growth cycle. Regardless, they are all continually expanding their services, hiring qualified employees, and leading the country in Cyber Se-curity innovation. For startups and established firms, the resources and human capital needed to grow a Cyber Security organization are available in Greater Baltimore and Maryland. The dense clustering of companies of various ages and in every stage of growth allows for collaboration and positive network externalities. Building integrated and well-connected networks is critical to a healthy ecosystem that encourages growth. The concentration of Cyber Security firms in the region and the State is key to the foundation of the Cyber Security industry in Greater Baltimore and Maryland.

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Key AssetsGreater Baltimore Firms

More than 6,000 people work for the twenty-five largest Cyber Security firms based in Greater Balti-more, and over 2,500 of those employees are local to the Greater Baltimore region. Among the twenty-five largest Cyber Security firms, the twelve to report their revenues earned nearly $1.5 billion in 2013. Many of the region’s largest Cyber Security employers have clustered densely; some even occupy the same office building. The map below shows the locations of the twenty-five Greater Baltimore-based Cyber Security firms with the largest local workforce, and the companies listed from largest to smallest local workforce.

Che

sape

ake B

ay

Patapsco River

ANNEARUNDEL

BALTIMORECOUNTY

CALVERT

CAROLINE

CARROLL

CECIL

CHARLESDORCHESTER

FREDERICK

HARFORD

HOWARD

MONTGOMERY

PRINCEGEORGE’S

QUEENANNE'S

ST. MARY'S

SOMERSET

TALBOT

BALTIMORE CITY

DISTRICTOF COLUMBIA

ADAMS CHESTERYORK LANCASTER

FAIRFAX

WESTMORELAND

KING GEORGE

PRINCEWILLIAM

STAFFORD

LOUDOUN

PENNSYLVANIA

VIRGINIA

KENT

1. KEYW Corp.(494 local employees)

2. Vision Technologies Inc. (315)3. TeleCommunication

Systems Inc. (300)4. SafeNet Inc. (290)5. Tenable Network

Security Inc. (184)6. CyberPoint International (120)7. Exceptional Software

Strategies (96)

8. Ross Technologies Inc. (RTGX) (90)

9. Accuvant Inc. (77)10. Axom Technologies Inc. (65)11. MRE Technology Solutions (65)12. Mind Over Machines Inc. (3)13. Canton Group (49)14. TechGuard Security LLC (48)15. IntelliGenesis LLC (48)16. SCD Information

Technology LLC (48)

17. Continental TechnologiesInc. (CTI) (47)

18. Hexis Cyber Solutions (41)19. Data Networks (38)20. Academy Solutions

Group LLC (30)21. Farfield Systems Inc. (28)22. ZeroFOX (25)23. Trusant Technologies LLC (25)24. EventTracker (25)25. RedOwl Analytics (20)

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Cyber Security in Greater Baltimore and the State of Maryland30

Key AssetsFacilities and Support

The Greater Baltimore region and the State of Maryland recognize the importance of providing support and business re-sources to Cyber Security entrepreneurs and innovators. Some of Greater Baltimore’s and Maryland’s additional Cyber Security support organizations are shown below, with a short description of each.

CyberMaryland37

• Public/private partnership organized by the Maryland Department of Business and Economic Devel-opment (DBED) that offers resources and services to Cyber companies

• Curator of the CyberMaryland Map and publisher of the CyberMaryland Report• CyberMaryland Conference facilitates interaction with industry leaders and emerging technologies38

Maryland Cyber Challenge & Competition (MDC3)42

• High school, college, and professionals demonstrate practical skills in Cyber Security• All members of winning teams are awarded a scholarship from the NSA and an internship with SAIC• MDC3 is held in conjunction with the CyberMaryland Conference to introduce students to the Cyber

industry and showcase the skills of regional students43

bwtech@UMBC Cyber Incubator34

• Offers business and technical support to early stage Cyber Security companies• Provides services to 22 resident companies and five affiliate companies in the Cyber Incubator• Specialized CYNC Program allows companies to work with Northrop Grumman representatives and

resources to commercialize Cyber Security technology35

• The CYNC Program serves an additional five companies

Chesapeake Innovation Center36

• Incubator that partners with corporate and government partners to identify technology solutions to mission critial problems

• Recently added a Health IT support to traditional security and defense focus

The GroundFloor• Co-working space opened in 2013 to facilitate commercialization with nearby Aberdeen Proving

Ground44

• Collaboration with other regional incubators encourages partnerships across the corridor45

National Cyber Security Hall of Fame• Honors innovation and leadership in the Cyber Security Industry40

• Recognizes achievement in technology, policy, awareness, education, and business41

National Cyber Security Center of Excellence39

• Strives to increase the rate of adoption of secure technology• Advances the Cyber Security industry and accelerates effective innovation• Develops practical Cyber solutions based on commercially available technology

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Key AssetsState Support

The State of Maryland is keenly aware of its strength in Cyber Security and has implemented policies to aid the growth of young Cyber companies.

Cybersecurity Investment Incentive Tax Credit (CIITC)46

The CIITC provides a refundable income tax credit to qualified Cyber Security companies located in Maryland that secure investment from investors. This program serves to attract Cyber companies to start or grow in Maryland and creates incentive to invest in Maryland Cyber Security companies. Com-panies receiving investment are eligible to earn credit equal to 33% of an eligible investment, limited to $250,000 per investor each fiscal year. A single company may not receive total credits exceeding 15% of the total annual program appropriation, and is limited to two years of participation in the program. Montgomery County offers an additional credit to Montgomery County companies receiving the CIITC.

Employer Security Clearance Costs (ESCC) Tax Credit47

The ESSC Tax Credit provides income tax credits for expenses related to federal security clearance costs, construction of Sensitive Compartmented Information Facilities (SCIFs), and first-year leasing costs for small businesses doing security-based contract work. With the ESSC Tax Credit, a business may qualify for an income tax credit of up to $200,000 per taxable year for qualified security clearance administrative expenses, an income tax credit of 50% of project costs or $200,000 for the construction or renovation of an accredited SCIF, and small businesses are eligible to claim an income tax credit of up to $200,000 for costs of rental payments during the first year of a rental agreement to perform security-based contracting work. The ESCC Tax Credit program is capped at $2 million annually.

The Maryland Cybersecurity Fund48

The Maryland Venture Fund formed a $5 million Cybersecurity Fund to invest in qualified seed and early stage companies developing novel cyber solutions. The Maryland Cybersecurity Fund invests in hardware and software tools and techniques that protect information sharing, identity theft, and confi-dentiality of data.

Invest Maryland Challenge49

The State of Maryland hosts the Invest Maryland Challenge, an early-stage business competition, com-plete with a Pitch Across Maryland bus tour that makes it easier for businesses around the State to pitch their products. The Invest Maryland Challenge celebrates the State’s most innovative companies and awards winners $100,000 in funding, legal services, coworking space membership, and CyberMaryland conference packages. The competition now features a dedicated Cyber Security category as well as an IT Hardware and Software category.

Orange Knocks Cyber Fund (OKCF)50

The Maryland Technology Development Corporation (TEDCO) invests in compelling technology com-panies that offer Cyber Security solutions through the OKCF. This is a multi-stage, private equity fund that maintains a portfolio of 15-25 companies across the Mid-Atlantic region.

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Cyber Security in Greater Baltimore and the State of Maryland32

TrendsSocial Engineering

One of the most vulnerable points in any network system is the end user. Using the same predictable password for multiple accounts is common, but may leave private information easily accessed. To guard against social engineering, many online services like Facebook, Twitter, and Google have enabled two-factor authentication that forces users to have the correct password and a separate code sent to the authorized user’s mobile phone. An expansion of this practice to online banking portals or internet-connected wearable devices may be an obstacle for end users, but would help increase the security of vital information. Hardware changes or modifications, like screens that can only be seen from a specific point, are being developed to protect sensitive information from nearby individuals. Continuing to edu-cate computer users of all ages as to the necessity of strong passwords and properly caring for online information is an important piece of reducing the negative impact of social engineering.

Cloud Computing

Storing information and programs on the cloud is a popular and cost-effective practice that consolidates data and security responsibility in the hands of a small number of highly qualified individuals. The global cloud industry has grown from an estimated $79 billion in 2010 to $149 billion in 2014,51 thanks to the efficiency and savings associated with the practice. However, this intensifies the risk of a data breach, as one intrusion can result in more valuable information being stolen or duplicated. There are also dis-agreements regarding who is responsible for the data in transit and different data collection and privacy laws between state and international boundaries that data travels through. Protecting cloud data will be a prime concern as more information is stored remotely for ease of use, and agreeing on how to treat cloud data across state and country lines will be a real policy concern.

Mobile Computing & the Internet of Things

While mobile technology began in 1973 with the invention of the first mobile phone, it wasn’t until 2012 that mobile devices accounted for 20% of all web traffic.52 In a predictable response to the proliferation of smartphones, tablets, and internet-connected cars and health tracking devices, security risks have migrated toward mobile devices and the Internet of Things. At the beginning of 2013, over 350,000 unique variants of malware were created to target mobile devices.53 Only a few years prior, no mobile malware existed. Many companies now allow and encourage employees to bring their own devices to work, which is efficient and cost-saving for the organization, but introduces security risks when poten-tially poorly-secured devices join the corporate network. Effectively and proactively protecting mobile devices and the Internet of Things is an important issue in Cyber Security that will likely be a primary focus of the industry moving forward.

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ConclusionsCompetitiveness Statement

Greater Baltimore and the State of Maryland are home to strong and growing Cyber Security industries. Cyber Security and other high-tech industries are already a significant contributor to local economies, and filling open positions in the State would greatly expand the impact of technology industries. Cyber Security professionals and businesses in Greater Baltimore and Maryland are set up for success.

Skilled Workforce

The region and State are among the most densely concentrated with Cyber Security professionals. Employers have available to them a well-educated and mobile workforce, including commuters from Washington, DC, Virginia, and Pennsylvania. In addition to a large existing workforce, new Cyber Se-curity professionals graduate from Maryland’s two- and four-year colleges and universities every year. Maryland is a national leader in the existing STEM workforce, and local higher education institutions work to ensure that the State maintains its technical workforce and its students are well-prepared for the in-demand jobs available in the Cyber Security industry.

Available Financing

While the region may trail other large Cyber Security markets in venture capital funding, Greater Balti-more and Maryland are alone in their ability to secure public financing for Cyber Security research and development. Higher education institutions in the region and the State are not only the largest spenders on computer science research and development, they are also increasing the amount spent annually. The State of Maryland has also created a number of investment and financing vehicles to aid young Cyber Security and high-tech companies.

Key Geography

Because of its location, the State of Maryland is a popular home for federal contractors. Washington, DC is only 40 miles from Baltimore, and businesses located in Central Maryland are within easy commut-ing distance to federal agencies that support and hire contractors to create and supply Cyber Security solutions. Firms with an interest in federal regulations, contracting, and policy regarding information se-curity have a regional presence. Additionally, young Cyber Security companies benefit from the existing network of large organizations.

Support Assets

Cyber Security companies of all sizes and ages throughout the State of Maryland have access to a network of support organizations. Incubator and accelerator organizations that aid information security firms, particularly those that serve federal contracts, exist in the Maryland counties between Washing-ton, DC and Baltimore City. The annual CyberMaryland Conference facilitates interaction between com-panies and Cyber Security policymakers and industry leaders. The State of Maryland has recognized Cyber Security as a growth industry and has dedicated considerable resources to encouraging the industry’s continued growth.

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Cyber Security in Greater Baltimore and the State of Maryland34

ConclusionsLooking Ahead

The Greater Baltimore region and the State of Maryland have established themselves as national lead-ers in the Cyber Security industry. As the Cyber Security industry continues to grow, the Baltimore-Washington corridor and the State of Maryland must remain at the forefront of commercialization, edu-cation, policy, and technology trends.

Private Sector Opportunity

As the number of network-connected devices continues to grow and expand into every facet of civilian life, commercially relevant and consumer-facing Cyber Security solutions will become more important to the industry. Information security presents a tremendous challenge in banking, health care, and other industries that deal with sensitive, personal information. The United States is the only country in which public sector spending on Cyber Security matches private sector spending.54 While the United States may prove to be unique due to its dominant position in the world, private sector expenditure on Cyber Security may soon outstrip government expenditure. With this in mind, commercializing existing and new information assurance solutions will be important to the continued growth and authority of the re-gional and State Cyber Security industries.

Education

There are thousands of Cyber Security jobs across the country and in Maryland alone that are difficult to fill due to the scarcity of qualified professionals. A small pipeline of educated and experienced profes-sionals has developed, and regional colleges and universities have become national leaders in train-ing future Cyber Security leaders. Many local institutions have worked with Cyber Security leaders to introduce students to opportunities and training to fill specific needs within the industry. Building upon an existing framework for technology education, particularly at the high school level, will help prepare students for local jobs.

Business Support and Financing

Attracting innovation capital has proven challenging for the Baltimore-Washington region and the State of Maryland across a number of industries. Greater Baltimore and Maryland must do a better job of at-tracting innovation capital to ensure competitiveness in private industry and to reduce reliance on feder-al funds. By continuing to invest in grant and loan programs like those created and managed by TEDCO and DBED, commercially relevant ideas generated in the region can reach the lucrative private market.

New Technology and Trends

Technology is said to grow at an exponential rate, creating an environment in which new products and solutions remain viable for a short period of time. By that same principle, Cyber Security will need to be available for applications that may be only in their nascent stages. Students, educators, and firms in Greater Baltimore and Maryland will need to stay informed and active on developing early-stage tech-nologies to remain relevant in a constantly changing environment. Continued innovation is an important factor in revenue and company and local employment growth.

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The Economic Alliance is a partnership of government, industry, and higher education promoting Greater Baltimore as a world-class market in which to live, work, learn, and invest. This unique and dynamic partnership is central to fostering high-value, sustainable economic development throughout the Greater Baltimore region.

The Economic Alliance advances regional economic development by:

MARKETINGpromoting the region

BUSINESS RETENTIONpreserving the business base and facilitating growth

BUSINESS ATTRACTIONbringing in new business to grow jobs and investment

PARTNERSHIPconvening business, education, and government leaders tofoster economic development

THOUGHT LEADERSHIPestablishing the region as aworld-class market for research, business, and innovation

To learn more about the Greater Baltimore region, downloadmarket reports, or schedule a tour, visit us at greaterbaltimore.org

@Econ_Alliance /greaterbaltimore

/company/economic-alliance-of-greater-baltimore

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Cyber Security in Greater Baltimore and the State of Maryland36

About the EAGB2014 Summary of Activities

› Four Quarterly Economic Updates

› BGE Economic Impact Study

› Regional Innovation Brief

› Regional University Report

› Cyber Security in Greater Baltimore and the State of Maryland

› 3D Printing & Advanced Manufacturing White Paper

THOUGHT LEADERSHIP

› BioHealth Innovation: BioHealth Regional Innovation Cluster

› CyberMaryland: Conference, Hall of Fame Event, RSA Conference, and Mission Coordination

› Digital Harbor Foundation: National Center of Excellence in Technology Education

› EAGB/GBC/Greater Washington Initiative Cyber Task Force

› Annie E. Casey Foundation & Goldseker Foundation: Next Economy Initiative

› Maryland Chamber of Commerce: Competitiveness Coalition Steering Committee

› Executive Mission to San Diego, CA

› EdTech Maryland

› Collegetown Network & UMBC: Maryland Technology Internship Partnership (HB 1317)

› Baltimore Development Corporation: support for a new CEDS and economic development vision for Baltimore City

› UM Upper Chesapeake Health, SC&H, & Harford County: CHP installment and utility incentives

PARTNERSHIP

› CEO Dinners: EnGrade/McGraw Hill, ZeroFox, Red Owl Analytics, Catalyst IT

› Champion Profiles, including John Cammack, Kelly Hodge-Williams, Stephen Panill

› Bi-Monthly Newsletter

› Baltimore Story campaign

› EdSurge Summit drawing over 800 Educators, Investors, and Industry Professionals

› EdTech Founder’s Event

› East Meets West Tech Dinner with Artis Ventures

MARKETING

› FLIR Corporation R&D and Manufacturing Facility Expansion

› Kaiser Permanente Regional Medical Facility Expansion

› Citelighter Relocation and Expansion

› Amazon.com Distribution Facility Location

› Advance Maryland: 6 Companies Assisted in Regional Economic Gardening Effort

› DreamIt Health Accelerator: 8 Companies Graduated, 4 Companies Received Funding Commitments

› Support of the Retention of McCormick & Co. Headquarters

BUSINESS ATTRACTION & RETENTION

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Appendix ACyber Security Hiring Impacts

Cyber Security Hiring Local Economy Impacts, 2020

Study Area & Impact Direct Indirect Induced TotalEAGB Region

Employment 13,393.0 2,980.4 8,934.1 $25,307.4

Labor Income $1,630,062,110 $182,526,824 $511,939,099 $2,324,528,034

Output $2,049,452,237 $311,904,144 $1,370,172,770 $3,877,117,912

EAGB Region + ROS*

Employment 13,393.0 2,982.3 8,937.8 25,313.1

Labor Income $1,630,062,110 $182,676,974 $512,198,390 $2,324,937,474

Output $2,049,452,237 $457,853,695 $1,370,868,356 $3,878,174,289

Maryland

Employment 19,413.0 4,638.5 12,084.7 36,136.2

Labor Income $2,361,863,093 $291,206,550 $674,342,107 $3,327,411,750

Output $3,296,950,989 $746,693,286 $1,855,008,941 $5,898,653,216

Economic Alliance of Greater BaltimoreData Source: IMPLAN 2012 Coefficients based on EAGB analysis of BGE information*Rest of State

There are three key effects that together make up the aggregate economic impact of Cyber Security hiring. They include:

› Direct Effect: Economic activities directly associated with Cyber Security operations. For Cyber Secu-rity hiring, the direct impact consists of the market value of goods and services provided by new Cyber professionals. Direct impacts also include the median wages of full- and part-time workers.

› Indirect Effect: Second-order economic activities of industries that respond to demand generated by the direct economic activities of Cyber Security firms. These industries supply goods and services to companies providing information security solutions. Examples of industries that experience indirect impact due to Cyber Security hiring include telecommunications, employment services, and account-ing services.

› Induced Effect: Refers to the economic activities generated by spending from workers supported by the direct and indirect effects of Cyber Security hiring. As full- and part-time Cyber Security profes-sionals use their income on typical household consumption, they create additional economic activity. Workers that use their income to purchase retail, housing, banking, and food services support the employment and wages of workers in those industries.

The numbers presented below are considered rough estimates based on projected hiring and median wage of Cyber Security professionals and should not be used for long-term planning. Each of these geographical computations is done separately and should not be compared to one another.

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Cyber Security in Greater Baltimore and the State of Maryland38

Appendix BOccupational Definitions from the Bureau of Labor Statistics

The Economic Alliance defines Cyber Security as the following occupations, listed below with the official US Bureau of Labor Statistics definition of each.54 The most common Cyber Security job titles were included in this industry definition:55

• Computer and Information Systems Managers: Plan, direct, or coordinate activities in such fields as elec-tronic data processing, information systems, systems analysis, and computer programming.

• Auditors: Examine, analyze, and interpret accounting records to prepare financial statements, give advice, or audit and evaluate statements prepared by others. Install or advise on systems of recording costs or other financial and budgetary data.

• Computer and Information Research Scientists: Conduct research into fundamental computer and infor-mation science as theorists, designers, or inventors. Develop solutions to problems in the field of computer hardware and software.

• Information Security Analyst: Plan, implement, upgrade, or monitor security measures for the protection of computer networks and information. May ensure appropriate security controls are in place that will safeguard digital files and vital electronic infrastructure. May respond to computer security breaches and viruses.

• Computer Programmers: Create, modify, and test the code, forms, and script that allow computer applica-tions to run. Work from specifications drawn up by software developers or other individuals. May assist soft-ware developers by analyzing user needs and designing software solutions. May develop and write computer programs to store, locate, and retrieve specific documents, data, and information. Software Developers, Appli-cations: Develop, create, and modify general computer applications software or specialized utility programs. Analyze user needs and develop software solutions. Design software or customize software for client use with the aim of optimizing operational efficiency. May analyze and design databases within an application area, working individually or coordinating database development as part of a team. May supervise computer programmers.

• Software Developers, Systems Software: Research, design, develop, and test operating systems-level software, compilers, and network distribution software for medical, industrial, military, communications, aero-space, business, scientific, and general computing applications. Set operational specifications and formulate and analyze software requirements. May design embedded systems software. Apply principles and tech-niques of computer science, engineering, and mathematical analysis.

• Database Administrators: Administer, test, and implement computer databases, applying knowledge of database management systems. Coordinate changes to computer databases. May plan, coordinate, and implement security measures to safeguard computer databases.

• Network and Computer Systems Administrators: Install, configure, and support an organization’s local area network (LAN), wide area network (WAN), and Internet systems or a segment of a network system. Monitor network to ensure network availability to all system users and may perform necessary maintenance to support network availability. May monitor and test Web site performance to ensure Web sites operate cor-rectly and without interruption. May assist in network modeling, analysis, planning, and coordination between network and data communications hardware and software. May supervise computer user support specialists and computer network support specialists. May administer network security measures.

• Computer Network Architects: Design and implement computer and information networks, such as local area networks (LAN), wide area networks (WAN), intranets, extranets, and other data communications net-works. Perform network modeling, analysis, and planning. May also design network and computer security measures. May research and recommend network and data communications hardware and software.

• Mathematician: Conduct research in fundamental mathematics or in application of mathematical techniques to science, management, and other fields. Solve problems in various fields using mathematical methods. Note: The Mathematician occupation category includes Cryptologists and other information security-related occupations.

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Appendix CWorks Cited

1. Larkin, Gloria B. “Cybersecurity: The Federal Market Driver.” The Business Monthly. 6 Nov. 2012. 15 Sep. 2014. <http://www.bizmonthly.com/cybersecurity-the-federal-market-driver/>.

2. Singer, P W, and Allan Friedman. Cybersecurity and Cyberwar: What Everyone Needs to Know. , 2014. Print. : Oxford Univer-sity Press, 2014.

3. Ibid.4. Bose, Nandita . “Home Depot Confirms Security Breach Following Target Data Theft.” Reuters. 9 Sep. 2014. 9 Sep. 2014. <http://

www.reuters.com/article/2014/09/09/us-usa-home-depot-databreach-idUSKBN0H327E20140909>.5. Chen, Brian X. “Home Depot Investigates a Possible Credit Card Breach.” The New York Times. 2 Sep. 2014. 2 Sep. 2014.

<http://www.nytimes.com/2014/09/03/technology/home-depot-data-breach.html>.6. Henry, Alan . “Why Social Engineering Should Be Your Biggest Security Concern.” Lifehacker. 4 Sep. 2014. 4 Sep. 2014. <http://

lifehacker.com/why-social-engineering-should-be-your-biggest-security-1630321227/+barrett>.7. MacDonald, Neil, and Peter Firstbrook. “Designing an Adaptive Security Architecture for Protection from Advanced Attacks.”

Gartner (2014): Gartner. 16 Sep. 2014.8. Ibid.9. Office of Management and Budget. “Revised Delineations of Metropolitan Statistical Areas, Micropolitan Statistical Areas, and

Combined Statistical Areas, and Guidance on Uses Ofthe Delineations OfThese Areas.” Whitehouse.gov. Office of Manage-ment and Budget, 28 Feb. 2013. Web.

10. Ibid.11. CyberPoint International, CyberMaryland, and Welz & Weisel Communications. “Cyber Security Jobs Report.” Ed. Baltimore

Cyber Technology & Innovation Center (CTIC). The Abell Foundation, 8 Jan. 2013.12. Ibid.13. SecurityWeek News, . “Federal Cyber Security Spending Expected to Reach $13.3 Billion by 2015.” SecurityWeek. 3 Dec. 2010.

10 Sep. 2014. <http://www.securityweek.com/federal-cyber-security-spending-expected-reach-133-billion-2015>.14. “US Federal Cybersecurity Market Forecast 2015-2020.” Market Research Media. 5 Sep. 2014. <http://www.marketresearch-

media.com/?p=206>.15. Perera, David . “DHS Proposes $1.25 Billion for Cybersecurity Spending.” FierceGovernmentIT. 4 Mar. 2014. 15 Sep. 2014.

<http://www.fiercegovernmentit.com/story/dhs-proposes-125-billion-cybersecurity-spending/2014-03-04>.16. “US Private Sector Homeland Security Market - 2012 Edition.” Homeland Security Research. 2012. 15 Sep. 2014. <http://home-

landsecurityresearch.com/2012/07/us-private-sector-homeland-security-market-2012-edition/>.17. “Enterprising States.” US Chamber of Commerce. 2014. 1 Aug. 2014. <http://www.uschamberfoundation.org/

enterprisingstates/#map/N/MD/>.18. “2014-2013 Dice Tech Salary Survey.” Dice. 2014. 2 Feb. 2014.19. National Center for Science and Engineering Statistics. “Higher Education R&D Expenditures, Ranked By All R&D Expen-

ditures, by R&D Field: FY 2012.” NSF.gov. National Science Foundation, September 2014. Web. <http://ncsesdata.nsf.gov/herd/2012/html/HERD2012_DST_21.html>.

20. National Center for Science and Engineering Statistics. “Federally Financed Higher Education R&D Expenditures, Ranked By All Federal R&D Expenditures, by R&D Field: FY 2012.” NSF.gov. National Science Foundation, September 2014. Web. <http://ncsesdata.nsf.gov/herd/2012/html/HERD2012_DST_23.html>.

21. National Center for Science and Engineering Statistics. “Total and Federally Financed Higher Education R&D Expenditures in the Computer Sciences, Ranked By FY 2012 total: FYs 2009-12.” NSF.gov. National Science Foundation, September 2014. Web. <http://ncsesdata.nsf.gov/herd/2012/html/HERD2012_DST_36.html>.

22. Ibid.23. National Institute of Standards and Technology. “Information Technology - Overview.” Nist.gov. National Institute of Standards

and Technology, n.d. Web. 24 June 2013.24. National Institute of Standards and Technology. “Computer Security Division.” NIST.gov. National Institute of Standards and

Technology, 28 Mar. 2013. Web.25. Ibid.26. US Department of Defense Office of Public Affairs. “U.S. Cyber Command Fact Sheet.” US Department of Defense Office of

Public Affairs, n.d. Web.27. National Security Agency Office of Public Affairs. “National Security Agency/Central Security Service: Clear Values, Clear Vi-

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Appendix CWorks Cited, Continued

sion.” NSA.gov. National Security Agency/Central Security Service, n.d. Web. <http://www.nsa.gov/about/_files/CoreValues.pdf>.

28. National Security Agency. “About NSA.” NSA.gov. National Security Agency/Central Security Service, n.d. Web. 29 Nov. 2011.29. National Security Agency. “Central Security Service (CSS).” NSA.gov. National Security Agency/Central Security Service, 21

Nov. 2012. Web.30. National Security Agency Office of Public Affairs. “National Security Agency/Central Security Service: Clear Values, Clear Vi-

sion.” NSA.gov. National Security Agency/Central Security Service, n.d. Web. <http://www.nsa.gov/about/_files/CoreValues.pdf>.

31. National Security Agency. “Groundbreaking Ceremony Held for Computing Center.” NSA.gov. National Security Agency/Central Security Service, 6 May 2013. Web. 12 July 2013.

32. “DISA: Cybersecurity.” Defense Information Systems Agency. 13 Sep. 2014. <http://disa.mil/Services/Cybersecurity>.33. Battelle Technology Partnership Practice. “Accelerating University Talent Development and Research & Development Partner-

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