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The charts and data below update the previous analysis of S&P-1500 Technology Company Founding Dates. Data is shown for all 7 S&P Industry Sectors across the S&P-1500 Companies located in the 12 major CSAs. This uses the same data set as used in the previous several posts, based on the S&P-1500 as of close of business on Friday May 6 2011. See the Overview for further background.

Summary Observations:

One third of all S&P-1500 companies founded since 1991 are in the Technology Sector. This rate is almost twice the rate of any other Sector. These Technology Sector companies represent 55% of the market capitalization and 35% of the revenue of all S&P-1500 companies founded since 1991.

The San Jose/San Francisco CSA continues to expand its lead in the creation of S&P Technology Sector companies, and has 28% of the Technology Sector companies founded since 1991. These companies have 57% of the market capitalization and 45% of the revenue of all Technology Sector companies founded since 1991.

Compared to the Boston CSA, since 1991, and normalizing for population size, the New York and Los Angeles CSAs, each created Technology Sector companies at a slightly greater rate; the Washington DC CSA, at more than twice the rate; the Seattle CSA, at more than 5 times the rate; and the San Jose/San Francisco CSA, at 10 times the rate.

The S&P Financial Sector has 17% of all S&P-1500 founded since 1991. The New York CSA clearly leads, with 20% of the Sector’s companies founded since 1991. The Chicago CSA also shows strong relative growth.

In the S&P Health Care Sector, no CSA particularly stands out; although the San Jose/San Francisco CSA since 1991 has created notably more companies than other CSAs.

In the S&P Consumer Sector, the Los Angeles CSA leads in the creation of companies founded since 1991.

In the S&P Natural Resources Sector, the Houston CSA clearly dominates.

Technology Sector Company Founding Dates

Chart 1a plots the founding dates for the S&P-1500 Technology Sector Companies located in the 12 major CSAs.

Each line represents a CSA. A square marker on the line represents the founding of a company. The x axis is the year the company was founded. The y axis is the cumulative number of companies founded in the corresponding CSA. The legend lists the CSAs with abbreviated names, their local airport or train station code; the CSAs are listed in decreasing order of cumulative number of companies founded, corresponding to the end point of each line. The color assigned to each CSA is consistent across all charts below to more easily enable comparisons. Selecting the chart will provide a full size view of the chart. A line at 1991 delineates companies founded before and since 1991.

As before, the San Jose CSA dominates the Technology Sector by a wide margin; the San Jose CSA includes the greater San Francisco metropolitan area.

Chart 1a.
Click on chart to see full size.

Chart 1b also plots the founding dates for the S&P-1500 Technology Sector Companies as above, but changes the scale of the y-axis to better show the relationship of CSAs other than the San Jose CSA.

Since 1991, the New York CSA created 10 companies in the S&P technology sector; the Boston CSA created 2 companies; the Los Angeles CSA created 7; the Washington DC CSA and the Seattle CSA each created 6 companies.

Compared to the Boston and San Jose CSAs, which have roughly equal total population, the New York CSA has roughly 3 times the population; the Los Angeles CSA has ~2.4 times the population; Washington DC DCA has ~1.1 times the population; and the Seattle CSA ~0.55 times the population.

Thus, compared to the Boston CSA, since 1991, and normalizing for population size, the New York and Los Angeles CSAs, each created S&P Technology Sector companies at a slightly greater rate; the Washington DC CSA, at more than twice the rate; and the Seattle CSA, at more than 5 times the rate.

Chart 1b.
Click on chart to see full size.

Health Care Sector Company Founding Dates

Chart 2 plots the founding dates for the S&P-1500 Health Care Sector Companies located in the 9 major CSAs having companies founded since 1991. The remaining 3 CSAs had no Health Care companies founded since 1991. Here and in following charts for the respective S&P Sectors, only CSAs having companies founded since 1991 are shown in the charts.

The New York CSA has the largest number of S&P-1500 Health Care Sector companies overall at 22, but only 1 was founded since 1991. The Boston CSA and the San Jose CSA each have 15 companies overall. The Boston CSA has 2 companies founded since 1991, whereas the San Jose CSA has 4, and the Los Angeles and the Washington DC CSAs each have 3.

Chart 2.
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Consumer Sector Company Founding Dates

Chart 3 plots the founding dates for the S&P-1500 Consumer Sector Companies located in the 7 major CSAs having companies founded since 1991. A chart line for the Boston CSA is also shown, though the most recently founded company was in 1985 (Staples).

The New York CSA comparatively has significantly more S&P-1500 Consumer Sector companies overall at 22, but only 1 was founded since 1991. The Los Angeles CSA has 7 companies founded since 1991, more than any other CSA. The Chicago CSA has 3 companies founded since 1991.

Chart 3.
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Cyclical Sector Company Founding Dates

Chart 4 plots the founding dates for the S&P-1500 Cyclical Sector Companies located in the 8 of 12 CSAs having companies founded since 1991. In addition, the Houston CSA is also shown.

The New York CSA has both the largest number overall of companies in the Cyclical Sector at 30 and the largest number of companies founded since 1991 in the Sector at 7. Relative to the size of the population, the Minneapolis, Atlanta and Chicago CSAs also are well represented in the S&P-1500 Cyclical Sector and in companies founded since 1991.

The Cyclical Sector is less concentrated in the 12 CSAs relative to the concentration of companies in the Technology, Health Care, and Consumer Sectors. Half of Cyclical Sector companies are located outside of the 12 CSAs. The Cleveland and Milwaukee CSAs each have a significant concentration of Cyclical Sector companies, roughly on par with Minneapolis, and probably should be shown in the chart.

Chart 4.

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Financial Sector Company Founding Dates

Chart 5 plots the founding dates for the S&P-1500 Financial Sector Companies located in the 9 major CSAs having companies founded since 1991.

Unsurprisingly, the New York CSA has the largest concentration of Financial Sector companies. The Los Angeles, Chicago, Boston, and Washington DC CSAs are also well represented in both total number of companies and companies founded since 1991.

Chart 5.
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Natural Resources Sector Company Founding Dates

Chart 6 plots the founding dates for the S&P-1500 Natural Resources Sector Companies located in the 5 major CSAs having companies founded since 1991. The Houston CSA is also shown.

Unsurprisingly, the Houston CSA with its concentration of oil industry companies has the largest number of Natural Resources Sector companies.

Chart 6.

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Utilities Sector Company Founding Dates

Chart 7 plots the founding dates for the S&P-1500 Utilities Sector Companies located in the 5 major CSAs having companies founded since 1991. Each CSA has 1 company founded since 1991

The Utilities Sector is the smallest of the 7 Sectors by market capitalization, and even relative to its size has smallest number of companies founded since 1991.

Chart 7.
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Notes and References

See the overview of this series for Notes and References.

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