Productivity gains, the 2000 dot.com bust, and weak US and international economies were much more important factors in the job losses of the past three years than the much ballyhooed phenomenon of offshoring, according to the trade group that represents the US high-tech sector.

The American Electronics Association did not provide figures to back up its analysis: researchers noted that there is no hard data on the number of jobs that have been relocated to India, China, and other countries by corporations seeking cheaper labor and lower overheads.

But they argued that election-year "hysteria" had obscured the facts, and that projections that as many as 3.3 million service jobs would go overseas by 2015 were both flawed and misleading.

The AeA, which represents industry titans such as Microsoft Corp., Intel Corp., Cisco Systems and Motorola Inc., cautioned against the protectionist sentiment that is sweeping through state legislatures across the country.

"Protectionist legislation may result in retaliation, jeopardizing 171 billion dollars in high-tech exports and large surpluses of high-tech services sold overseas," it said. "Indeed, for many high-tech companies, the majority of their revenues are at risk."

US IT companies draw 60 percent of their revenues from markets outside their domestic market, according to the US Bureau of Economic Analysis.

State and federal authorities should look to boost the high-tech sector as an engine of growth for US jobs, instead of ditching their commitment to free markets, the AeA said.

It urged US authorities to put their own house in order first by addressing structural problems that make it difficult for US companies to compete on a global stage, from skyrocketing employee health care costs to "rising litigation and regulatory costs."

The group also called for corporate tax breaks for research and development, and on a more controversial note, it urged US authorities to issue green cards or work permits to foreign nationals studying engineering, science, or maths upon completion of their degrees in order to make use of their intellectual capital.

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