ABSTRACT
This chapter describes demographic and economic trends in Texas that define the environment for economic development. It reviews the history of science and technology policy in the state, and outlines issues which will influence the evolution and impact of science and technology policies in Texas. The expansion of the Hispanic population will influence economic growth in Texas. The Texas economy of the 1980s is characterized by shifts in both sectoral and regional shares of employment and output; traditional industries are declining and new ones are emerging. The economy of Texas has traditionally been based on agriculture and on the extraction and processing of natural resources. Employment in the nondurable industries increased by less than 50 percent between 1960 and 1980; their share of manufacturing employment dropped rapidly between 1977 and 1982. The finance, insurance, and real estate and the services sectors have also experienced rapidly increasing employment in Texas.
