"Paul Graham has a nice article on how to start a startup up but does not get into defining the term technology startup."

I'd already covered that here: http://www.paulgraham.com/wealth.html

Thanks for the pointer PG. Great essay. There are like a dozen gem quotes in there. I will update my post with a pointer.

To pull directly from the article a technology startup is "measurement and leverage, where measurement comes from working with a small group, and leverage from developing new techniques."

If I pull from chunks I come up with:

A small group of people inventing a new way to solve a difficult problem that is hard for others to duplicate.

Is that far off from how you would sum it up?

It's probably easier to list a few things that are NOT technology startups (at least in 2009): consulting company, staffing company, technology product resale company, ecommerce site.

"Technology startups make unique products that people want."

So basically they are just a business.

Excellent comment +1.