ericacbarnett

Brookings-Affiliated Report Says Seattle Must Diversify Beyond Big Tech; Only 33 of 303 Startups Grew Past 50 Employees

A 127-page Brookings-affiliated report led by Ryan Donahue urges Seattle to diversify its tax base away from a few large tech firms by cultivating startups in AI, green energy and maritime industries and helping them scale into midsize companies that remain local. The report warns Seattle currently struggles to grow and attract midsize firms—only 33 of 303 local tech startups (2015–2019) exceeded 50 employees and the city added just 16 net new midsize tech companies (2017–2023)—leaving its economy vulnerable and heavily reliant on a handful of firms that fund most JumpStart tax revenue.