California continues to employ <A HREF="http://www.usatoday.com/tech/techinvestor/industry/2007-04-24-techjobs_N.htm?csp=34">far more technology workers,</A> pay higher wages and attract more venture capital than any other state. But the overall U.S. tech sector is also growing at a surprisingly brisk clip--for now.

That's the conclusion of a highly anticipated annual report by AeA, formerly the American Electronics Association, the country's largest technology trade association. Researchers relied on data from the U.S. Bureau of Labor Statistics, mostly from 2006.