This third annual survey by TECNA, a non-profit trade association of regional technology organizations which serves as a leading voice in growing the North American technology economy, provides current and future technology trends locally, regionally and nationally. The survey was conducted in partnership with CompTIA, the non-profit association for the IT industry.

1. ww w. t e c h n o l o g y c o u n c i l s . o r g
2014 National Survey
of Technology, Policy
and Strategic Issues
© 2014 Technology Councils of North America. All rights reserved.

2. About TECNA | CompTIA | TechAmerica
About TECNA
The Technology Councils of North America (TECNA) represents almost 50+ IT and
Technology trade organizations who, in turn, represent more than 22,000 technology-related
companies in North America. TECNA serves its members and the industry through
its strong peer-to-peer network and its regional initiatives to raise the visibility and
viability of the technology industry.
About CompTIA
CompTIA is the voice of the world’s information technology (IT) industry. Its members
are the companies at the forefront of innovation; and the professionals responsible for
maximizing the benefits organizations receive from their investments in technology.
CompTIA is dedicated to advancing industry growth through its educational programs,
market research, networking events, professional certifications, and public policy
advocacy.
TechAmerica is the public sector and public policy department of CompTIA, advocating
before decision-makers at the state, federal and international levels of government.
Representing technology companies of all sizes, TechAmerica is committed to
expanding market opportunities and driving the competitiveness of the U.S.
technology industry around the world.

4. About This Research
The data for this quantitative study was collected via an online survey conducted during October 2014. A total of
1,561 senior (C-level) U.S. IT and business executives belonging to one of the regional technology associations
affiliated with the Technology Councils of North America (TECNA) participated in the survey.
The margin of sampling error at the 95% confidence level for the overall results is +/- 2.53 percentage points.
Sampling error is larger for subgroups of the data, such as region or company size.
As with any survey, sampling error is only one source of possible error. While non-sampling error cannot be
accurately calculated, precautionary steps were taken in all phases of the survey design, collection and processing
of the data to minimize its influence.
The study was conducted in conjunction with the Computing Technology Industry Association (CompTIA), with data
collection support from Decipher, Inc.
CompTIA is a member of the Market Research Association (MRA) and adheres to its guidelines for research best
practices and ethics. Any questions about the research methodology or data collection can be directed to
research@comptia.org.
For questions or issues related to TECNA, contact TECNA’s executive director Bob Moore, bmoore@tecna.org.

5. Profile of Survey Respondents
Industry Sector Number of Employees
23% Less than 10
9% 10 to 19
14% 20 to 49
11% 50 to 99
17% 100 to 499
5% 500 to 999
22% 1,000 or more employees
Job Level
43% CEO, President, Owner, etc.
30% Executive - CIO, CTO, CFO, CMO, COO, VP or equivalent
19% Management – Director, Team Leader or equivalent
3% Consultant
3% Other
20% IT services / Solution providers
12% Enterprise Software
11% Consulting
7% Healthcare / Life sciences
5% Finance
4% Digital media / E-commerce
4% Cloud service provider
4% Telecommunications services / ISP
3% Hardware / OEM
2% Data / Analytics
2% Advanced manufacturing
2% Social / Web
2% Energy technology / Cleantech
1% Mobile apps
1% Semiconductor
21% Other

6. Geographic Segmentation Categories
This report contains a number comparisons among geographic regions. The
following groupings are based on standard U.S. Census Bureau categorizations.
Northeast (n=277)
 Connecticut Technology Council (CTC)
 Greater Philadelphia Alliance for Capital & Technologies (PACT)
 Massachusetts Technology Leadership Council (MLTC)
 New Hampshire High Tech Council (NHHTC)
 New York Technology Council (NYTECH)
 Tech Collective (Rhode Island)
Midwest (n=346)
 Illinois Technology Association (ITA)
 Minnesota High Tech Association (MHTA)
 Northeast Ohio Software Association (NEOSA)
 Technology Association of Nebraska
 Technology Council of Greater Kansas City (KCNext)
South (n=538)
 Austin Technology Council (ATC)
 Council for Entrepreneurial Development (CED)
 Chattanooga Technology Council
 Chesapeake Regional Tech Council (CRTC)
 Howard Tech Council
 Metroplex Technology Business Council (MTBC)
 Nashville Technology Council
 North Carolina Technology Association (NCTA)
 Roanoke-Blacksburg Technology Council
 Tampa Bay Technology Forum (TBTF)
 Technology Association of Georgia (TAG)
 Technology Association of Louisville Kentucky (TALK)
 Tech Birmingham
West (n=400)
 Arizona Technology Council (ATC)
 California Technology Council
 Colorado Technology Association
 Idaho Technology Council (ITC)
 New Mexico Technology Council
 Technology Association of Oregon (TAO)
 Utah Technology Council (UTC)
 Washington Technology Industry Association (WTIA)

7. Key Findings
- The 2014 TECNA National Survey of Technology, Policy and Strategic Issues reveals positives on a number of fronts. Measures of business
sentiment improved across-the-board, continuing the upward sloping trend since 2012. The rating of the overall U.S. economy increased
the most year-over-year (6.8 percentage points), significantly closing the gap with the tech sector, which continues to out-perform. The
rating of the tech sector improved 5.9 points to 71.9 on a 100-point scale. The self-assessment portion of the business sentiment rating
improved a modest 3.4 points to 72.2, but overall, executives express the most confidence in their own company’s position. At a macro
regional level, few differences in the ratings exist, although differences do emerge at the individual state level. For the tech sector rating,
the Midwest region experienced the most improvement, jumping from most bearish in 2012 to most bullish in 2014.
- Looking ahead over the next two quarters, 41% of executives expect further improvement in the U.S. economy. In contrast, only 22%
project a strengthening global economy. A slightly greater number (25%) actually expect the global economy to deteriorate over this
period. This likely reflects concerns over the continued sluggishness in the Euro Area, some slowing in key emerging markets and the
general uncertainty of international conflicts. Nearly half of respondents expect improvement in the tech sector, while a nearly equal
number expects the sector to maintain its position. With many sectors of national and global economies moving in lock-step, out-performing
the mean, which has been the case with the tech sector the past few years, is especially notable. Interestingly, the smallest of
companies in this study – those in the under 10 employee range and those in the 10-99 range, have slightly more positive outlooks than
larger firms. This may be a function of smaller firms operating primarily regionally versus larger firms that may be more reliant on
overseas revenue streams and therefore more exposed to any softening in the global economy.
- Positive business sentiment is often a useful directional guide because of the actions it may foretell. For example, consistent with the
improvements in the sentiment measures, approximately 6 in 10 executives plan to increase their investments in new products or
business lines at their company. Additionally, 52% plan to spend more on technology and 34% plan to make general capital expenditures.
Business travel is an oft-used proxy for business health. Fifty-one percent of TECNA executives, up from 37% in 2013, expect to increase
their level of business travel, suggesting more customer visits, meetings, trips to conferences and related.
- While sentiment is generally positive, executives recognize the many factors that can quickly derail growth. Topping the list this year is
the concern over the umbrella category of talent shortages, labor prices and employee churn. Concern jumped 13 points from 34% in
2013 to 47% in 2014. In an industry marked by disruption and commoditization, downward pressure on pricing and lower margins are
perennial concerns. Thirty-eight percent of executives rated that as a key concern. On a positive note, the data suggests an improving
landscape for access to credit and capital. Concern fell from 36% in 2012, to 29% in 2013 and 23% in 2014. Of course, access to credit and
capital is heavily dependent on company size and very small firms continue to face challenges in this area.

8. Key Findings Continued
- As noted previously, shortages of talent, labor inflation and employee churn rank as top concerns among tech sector executives. To
further quantify this concern, a NET 74% indicates there is a significant or moderate shortage in the quality of workers in their state or
region. A near equal number – 76%, indicates there is a quantity shortage. Relatively few believe the labor market in the tech sector is in
equilibrium, meaning the supply of labor roughly equals demand. Executives in the West region rate the shortage as most severe, while
executives in the Northeast relatively less so.
- With an unemployment rate well under the national rate, computer, software and related tech jobs have experienced strong demand
over the past few years. The tech sector, as the largest employer of these positions, will likely keep the momentum going. According to
the TECNA study, 63% of executives report a planned increase in headcount due to newly created positions. Another 34% are in the
process of back-filling openings for existing positions. Both rates are on par with 2013. A NET 15% of executives expect layoffs, stemming
from either the permanent elimination of certain positions or layoffs associated with weak sales or business cycle issues. Small (10-99
employees) and medium-size (100-499) companies voice the strongest commitment to expanding their workforces as a result of
expansion and newly created positions. In contrast, large companies are most likely to be in a position of back-filling openings. The TECNA
research highlights the predicament many companies find themselves in: demand for labor (aka job openings) not aligned with the supply
for labor (aka pool of qualified candidates). The study did not go into detail on the specifics on the positions where the disconnect is
greatest, but generally, it parallels innovation and growth areas: cybersecurity, cloud, big data, mobility, business process automation and
so forth.
- Public policy and technology increasingly intersect. As technology affects more areas of the economy on more levels, touch points with
the policy arena become inescapable. Moreover, the pace of innovation continues to accelerate, widening the gap between the
deployment of technology and the rate at which policies and regulations can keep up. At a Federal level, TECNA executives see few
positives. Only 15% (net) rate the Federal government as doing a good job in supporting the interests of the tech sector. State and local
governments fair slightly better, with 37% rating their performance as it relates to supporting the tech sector as well or very well. It is
unclear from the results if the ratings reflect disappointment over specific actions or inactions, or if it is more a general expression of
frustration over gridlock and dysfunction. Another contributing factor may be the belief held by many TECNA executives that their region
is under-performing its potential. Executives may see opportunities to grow the tech sector in their region, contingent on a coordinated
policy effort to overcome hurdles such as workforce issues, regulatory uncertainty, tax code complexity, or infrastructure inadequacies.
- The sectors TECNA executives expect to drive growth in the short-term include: software/apps, life sciences/healthcare tech,
data/analytics, IT services and cloud computing/data center. Although relatively low in the ratings, the growth driver with the largest
percent change over the next two years is energy technology/cleantech.

9. Section 1
Assessment
of Business
Conditions
and the
Economy

10. Business Sentiment Continues to Trend Upward
46.3 46.3
62.1
66.4
50.8
56.4
66.0
68.8
54.6
63.2
71.9 72.2
Global Economy
Rating
U.S. Economy
Rating
Tech Sector
Rating
Company Self-
Assessment Rating
2012 2013 2014
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Rating on a 100-point scale

11. 53.0
61.5
69.6 69.9
55.4
63.3
72.9 72.9
55.4
64.4
72.4 71.7
54.0
62.8
72.1
73.7
Global
Economy…
U.S.
Economy…
Tech
Sector…
Company Self-
Assessment…
Northeast
Midwest
South
West
Business Sentiment Segmentation:
Regional Ratings
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Northeast=277, Midwest=346, South=538, West=400

12. Business Sentiment Regional Trending
U.S. Economy Rating Tech Sector Rating
2012 2013 2014 2012 2013 2014
Northeast 46.0 54.1 61.5 64.1 63.6 69.6
Midwest 46.9 57.8 63.3 65.2 65.6 72.9
South 46.7 58.2 64.4 65.9 67.4 72.4
West 45.6 56.2 62.8 63.9 67.0 72.1
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Northeast=277, Midwest=346, South=538, West=400

13. 53.4
61.3
70.8
67.7
55
63.2
71.1 72.2
55.9
65.1
74.5 75.9
54.4
63.7
72.1 73.6
Global
Economy…
U.S.
Economy…
Tech
Sector…
Company Self-
Assessment…
Micro Firm
Small Firm
Medium Firm
Large Firm
Business Sentiment Segmentation:
Firm Size Ratings
<10 employees
10-99 employees
100-499 employees
500+ employees
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Northeast=277, Midwest=346, South=538, West=400

14. 6-Month Outlook Generally Favorable
Global
Economy
U.S.
Economy
Tech
Sector
Company Self-
Assessment
22%
52%
25%
41%
48%
11%
47%
49%
4%
65%
33%
3%
% Expecting
Improvement
% Expecting
No Change
% Expecting
Weakening
Source: TECNA
Base: 1,561 senior U.S. technology and business executives

15. 21%
42%
46%
64%
25%
38%
46%
58%
23%
44%
48%
67%
21%
40%
50%
68%
Global
Economy…
U.S.
Economy…
Tech
Sector…
Company Self-
Assessment…
Northeast
Midwest
South
West
6-Month Outlook Segmentation:
Regional Expectations for Improvement
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Northeast=277, Midwest=346, South=538, West=400

16. 21%
41%
49%
70%
24%
41%
48%
70%
21%
40%
46%
64%
22%
42%
45%
54%
Global
Economy…
U.S.
Economy…
Tech
Sector…
Company Self-
Assessment…
Micro Firm
Small Firm
Medium Firm
Large Firm
6-Month Outlook Segmentation:
Firm Size Expectations for Improvement
<10 employees
10-99 employees
100-499 employees
500+ employees
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Micro=352, Small=515, Medium=269, Large=424

17. % Expecting Improvement % Expecting No Change or Weakening
IT Services Firms Enterprise Software Firms Telecom/ISP/Cloud Consulting Firms
63%
27%
63%
37%
70%
30%
53%
47%
65%
35%
58%
42%
6-Month Outlook Segmentation:
Expectations for Improvement at Their Company Among Different Types of Tech Firms
71%
29%
Digital
Media/Apps/Dat
a Firms
Healthcare/Life
sciences Firms
OEM/Adv
Mfg/Semiconductor Firms Other Firms
72%
28%
Source: TECNA
Base: 1,561 senior U.S. technology and business executives

18. Section 2
Business
Investment
Drivers and
Factors that
Could Slow
Growth

19. Business Investment Expectations
3%
4%
5%
5%
5%
6%
4%
8%
5%
58%
71%
35%
43%
44%
44%
46%
51%
39%
34%
24%
Planning
Increases
62%
52%
51%
51%
47%
45%
58%
Investments in new products or business lines
Staffing levels in technical positions
Technology expenditures
Marketing/advertising expenditures
Business travel
Staffing levels in non-technical positions
Staff training or professional development
Capital expenditures (e.g. non technology)
Cost cutting
Timeframe: over next 6 months
Planning
Decreases
No Change
Expected
Source: TECNA
Base: 1,561 senior U.S. technology and business executives

20. Business Investment Expectations Trending
27%
33%
42%
41%
51%
53%
51%
52%
47%
51%
62%
59%
59%
57%
23%
32%
37%
42%
47%
51%
57%
24%
34%
51%
45%
52%
58%
Investments in new products or business lines
Staffing levels in technical positions
Marketing/advertising expenditures
Technology expenditures
Staffing levels in non-technical positions
Staff training or professional development
Business travel
Capital expenditures (e.g. non technology)
Cost cutting
2014
2013
2012
% expecting to increase investment or activity
Source: TECNA
Base: 1,561 senior U.S. technology and business executives

21. Business Investment Segmentation
Percent indicating a planned increase in investment over next 6 months
Planned Increase Northeast Midwest South West
Staffing levels in technical positions 54% 58% 59% 58%
Investments in new products or business lines 62% 58% 62% 65%
Marketing/advertising expenditures 54% 46% 50% 55%
Technology expenditures 50% 47% 54% 56%
Staffing levels in non-technical positions 49% 42% 47% 52%
Planned Increase Micro Firms Small Firms Medium Firms Large Firms
Staffing levels in technical positions 47% 67% 67% 49%
Investments in new products or business lines 57% 66% 64% 59%
Marketing/advertising expenditures 56% 64% 49% 31%
Technology expenditures 51% 54% 55% 49%
Staffing levels in non-technical positions 40% 60% 55% 33%
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Northeast=277, Midwest=346, South=538, West=400

22. Executives Express a Range of Concerns Over
Factors that Could Slow Business Activity
4%
5%
5%
4%
12%
12%
13%
22%
35%
35%
35%
35%
36%
32%
16%
36%
47%
19%
36%
22%
31%
4%
10%
20%
28%
29%
34%
27%
44%
42%
33%
38%
34%
3%
10%
16%
19%
23%
27%
35%
38%
47%
Talent shortage/labor prices/employee churn
Lower margins/downward pressure on pricing
Unexpected shock
Domestic competition
General lack of confidence/paralysis
Government regulation
Disruptive technologies or business models
Weak corporate demand
Access to credit/capital
Weak consumer demand
Stock market volatility
Overseas competition
Input/commodity price inflation
Weak export market
2014
2013
2012
Source: TECNA
Base: 1,561 senior U.S. technology and business executives

23. Growth Inhibitors Segmentation
Percent indicating a planned INCREASE in investment over next 6 months
Planned Increase Northeast Midwest South West
Talent shortage/employee retention/workforce 42% 50% 45% 50%
Lower margins/downward pressure on pricing 36% 36% 40% 37%
Government regulation 32% 32% 37% 35%
Disruptive technologies/business models 27% 30% 28% 26%
Access to credit/capital 27% 15% 22% 27%
Planned Increase Micro Firms Small Firms Medium Firms Large Firms
Talent shortage/employee retention/workforce 28% 53% 59% 47%
Lower margins/downward pressure on pricing 26% 35% 43% 47%
Government regulation 33% 30% 30% 43%
Disruptive technologies/business models 18% 25% 34% 35%
Access to credit/capital 39% 29% 13% 8%
Source: TECNA
Base: 1,561 senior U.S. technology and business executives

24. Section 3
Workforce
Issues

25. Perceptions of Tech Talent Availability [Quantity]
2%
9%
14%
44%
25%
1%
7%
12%
49%
27%
Significant
surplus
Moderate
surplus
Equilibrium,
supply roughly
equals demand
Moderate
shortage
Significant
shortage
2013 2014
NET
shortage
in talent
quantity
in 2014
= 76%
NET surplus
or equilibrium
in 2014
= 20%
Perceptions of quantity and quality of tech talent in respondents’ state/region
Note: don’t know responses not shown
Source: TECNA
Base: 1,521 senior U.S. technology and business executives

26. Perceptions of Tech Talent Quality
Perceptions of quantity and quality of tech talent in respondents’ state/region | quality was not addressed in the 2013 survey
1%
7%
15%
51%
23%
Significant
surplus
Moderate
surplus
Equilibrium,
supply roughly
equals demand
Moderate
shortage
Significant
shortage
NET
shortage
of quality
talent in
2014
= 74%
NET surplus
or equilibrium
in 2014
= 23%
Note: don’t know responses not shown
Source: TECNA
Base: 1,521 senior U.S. technology and business executives

27. Perceptions of Tech Talent Availability Segmentation
Perceptions of quantity and quality of tech talent in respondents’ state/province/region
69%
42%
76% 76%
53% 52%
80%
48%
27%
23% 24% 32%
Northeast Midwest South West
Perception of
a significant
shortage
Perception of
a moderate
shortage
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Northeast=270, Midwest=339, South=515, West=383

28. Perceptions of Tech Talent Availability Segmentation
NET
shortage
Enterprise Software firms 49%
84%
51%
45%
54%
57%
50%
43%
47%
23%
15%
20%
34%
25%
20%
33%
33%
IT Services firms
Consulting firms
Digital Media/Apps/Data firms
Telecom/ISP/Cloud firms
Healthcare/Life sciences firms
OEM/Adv Mfg/Semiconductor firms
Other types of firms
Perception of a
significant shortage
Perception of a
moderate shortage
84%
77%
79%
77%
70%
59%
70%
Source: TECNA
Base: 1,521 senior U.S. technology and business executives

29. Workforce Gains / Losses Projections
17%
5%
5%
8%
Timeframe: over next 12 months
31%
63%
16%
7%
34%
63%
Hiring staff - positions newly
created or additional headcount
Hiring staff - back-fill openings
for existing headcount
Laying-off staff - positions that
have been permanently eliminated
Laying-off staff - positions reduced due to downsizing,
slow sales or other business cycle issues
None of above - expect no hiring nor layoffs
2014
2013
Source: TECNA
Base: 1,521 senior U.S. technology and business executives

30. Workforce Gains / Losses Projections Segmentation
4% 2%
10%
57%
6% 4%
33%
74%
7% 6%
44%
66%
11% 10%
51% 52% Micro
<10 employees
Small Firm
10-99 employees
Medium Firm
100-499 employees
Large Firm
500+ employees
Hiring staff -
positions newly
created or
additional
headcount
Hiring staff -
back-fill openings
for existing
headcount
Laying-off staff -
positions that
have been
permanently
eliminated
Laying-off staff –
positions reduced due
to downsizing, slow
sales or other business
cycle issues
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Micro=340, Small=506, Medium=260, Large=411

31. Workforce Gains / Losses Projections Segmentation
6% 5%
33%
60%
10%
6%
36%
58%
8% 7%
34%
64%
4% 3%
34%
66%
Northeast
Midwest
South
West
Hiring staff -
positions newly
created or
additional
headcount
Hiring staff -
back-fill openings
for existing
headcount
Laying-off staff -
positions that
have been
permanently
eliminated
Laying-off staff –
positions reduced
due to downsizing,
slow sales or other
business cycle issues
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Northeast=270, Midwest=339, South=515, West=383

32. Section 4
Public Policy
Issues

33. Rating of How Well Government Represents
the Interests of the Tech Sector
Rating of Federal Government Rating of State/Local Government
15%
30%
41%
12%
1%
15%
30%
41%
14%
1%
Very
poorly
Poorly Just
okay
Well Very
well
2013 2014
9%
16%
38%
28%
8%
7%
17%
39%
29%
8%
Very
poorly
Poorly Just
okay
Well Very
well
2013 2014
Source: TECNA
Base: 1,500 senior U.S. technology and business executives

34. Rating of How Well State/Regional Government
Represents the Interests of the Tech Sector
41%
43%
16%
43% 43%
14%
48%
40%
12%
44%
40%
16%
NET poorly Just okay NET well
Northeast
Midwest
South
West
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Northeast=270, Midwest=339, South=515, West=383

35. Preferences for Policy Actions in 2015
10%
14%
19%
21%
18%
15%
26%
25%
25%
26%
25%
20%
24%
37%
44%
46%
41%
43%
41%
40%
3%
11%
18%
25%
22%
25%
32%
36%
42%
STEM education at higher ed levels
STEM education K-12 level
Taxation and/or regulation reform
Access to capital for tech companies
Access to state level funding for innovation
Govt. efficiency through the use of technology
Increased broadband deployment
Promotion of business between public sector and tech companies
Tech infrastructure in schools
Immigration policy to allow more STEM skilled workers
Modernization of telecommunications laws
Opportunities for tech transfer to create new tech companies
Tech adoption in healthcare in rural and urban areas
Access to public data
Immigration policy to restrict STEM workers
2014
2013
na Source: TECNA
Base: 1,504 senior U.S. technology and business executives

36. Perceptions of Most Negative Aspects of Tax Policies
12%
3%
9%
17%
22%
33%
16%
5%
10%
15%
28%
26%
Tax code complexity and the time and burden
required of businesses to manage taxes
Corporate tax rates that are generally
too high on businesses
Too many tax deductions or loopholes for
special interests or sophisticated taxpayers
Personal tax rates that are generally too
high on consumers
Tax policy governing the repatriation
of overseas profits
Don't know / other
2014
2013
Source: TECNA
Base: 1,477 senior U.S. technology and business executives

37. Perceptions of Most Negative Aspects of
Tax Policies Segmentation
Planned Increase Northeast Midwest South West
Tax code complexity and the time and burden
26% 24% 33% 26%
required of businesses to manage taxes
Too many tax deductions or loopholes for special
interests or sophisticated taxpayers
20% 17% 10% 18%
Corporate tax rates that are generally too high on
businesses
22% 26% 28% 28%
Personal tax rates that are generally too high on
consumers
11% 7% 10% 10%
Tax policy governing the repatriation of overseas
profits
4% 7% 4% 3%
Planned Increase Micro Firms Small Firms Medium Firms Large Firms
Tax code complexity and the time and burden
36% 29% 26% 22%
required of businesses to manage taxes
Too many tax deductions or loopholes for special
interests or sophisticated taxpayers
17% 16% 17% 12%
Corporate tax rates that are generally too high on
businesses
24% 30% 26% 24%
Personal tax rates that are generally too high on
consumers
10% 8% 12% 10%
Tax policy governing the repatriation of overseas
profits
3% 4% 2% 8%
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Northeast=259, Midwest=323, South=516, West=379

38. Self Assessment of Desirability of
Local Area/Region for Tech Startups
20%
41%
36%
16%
54%
28%
9%
45%
42%
9%
41%
47%
Lower-tier
location for
tech startups
Mid-tier
location
for tech
startups
Top-tier
location
for tech
startups
Northeast
Midwest
South
West
The Midwest’s self-assessment
as a top-tier location for tech
startups increased 8 percentage
points over 2013, the most of any
region.

39. Self Assessment of Desirability of
Local Area/Region for Tech Startups
30%
63%
4%
30%
62%
3%
32%
58%
6%
36%
54%
7%
Performing at
about its potential
Under-performing
its potential
Out-performing
its potential
Northeast
Midwest
South
West
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Northeast=259, Midwest=323, South=516, West=379

40. % of Executives Believing the Tech Sector in Their
Region Under-performs Its Potential
63%
58%
62%
58%
69%
70%
54%
62%
Northeast
Midwest
South
West
2014 2013
Source: TECNA
Base: 1,561 senior U.S. technology and business executives
Northeast=259, Midwest=323, South=516, West=379

41. Perceptions of Factors Contributing to a
Healthy Tech Sector in Region
6%
4%
0%
0%
11%
9%
10%
15%
0%
35%
27%
25%
23%
49%
45%
56%
2%
7%
9%
14%
26%
26%
24%
36%
44%
57%
Quality of life
Entrepreneurship/innovation ecosystem
Skilled workforce
Cost advantages
Business friendly environment
Research universities
University alignment with industry needs
General infrastructure capacity
Early, mid, late-stage financing capacity
commercial sector ecosystem
Transportation capacity/quality
K-12 education
Other factors
2014
2013
na
na
na Source: TECNA
Base: 1,481 senior U.S. technology and business executives

42. Perceptions of Factors Contributing to a
Healthy Tech Sector Segmentation
Planned Increase Northeast Midwest South West
Quality of life 49% 55% 55% 69%
Entrepreneurship/innovation ecosystem 45% 42% 41% 50%
Skilled workforce 42% 39% 32% 37%
Cost advantages 11% 23% 34% 32%
Business friendly environment 11% 20% 33% 33%
Research universities 37% 20% 30% 19%
University alignment with industry needs 29% 25% 28% 17%
General infrastructure capacity 11% 20% 14% 13%
Early, mid, late-stage financing capacity 18% 8% 6% 9%
Commercial sector ecosystem 9% 14% 7% 7%
Transportation capacity/quality 10% 12% 5% 3%
K-12 education 4% 8% 3% 1%

43. Perceptions of Factors that can Inhibit
Tech Sector Growth / Performance
8%
13%
11%
11%
11%
12%
17%
0
27%
26%
0
28%
33%
36%
34%
44%
4%
10%
14%
17%
21%
26%
31%
38%
Early, mid, late stage financing capacity
Costs
Workforce
Transportation capacity / quality
K-12 education
Business environment
University/college alignment with industry needs
Entrepreneurship / innovation ecosystem
General infrastructure capacity / quality
Commercial sector ecosystem
Research universities / R&D capacity
Quality of life
2014
2013
na
na
Source: TECNA
Base: 1,470 senior U.S. technology and business executives

44. Expectations of Sectors’ Ability to Drive
Innovation / Startups / Job Growth
3%
3%
2%
2%
2%
3%
1%
4%
1%
8%
8%
6%
9%
30%
24%
22%
1%
4%
6%
6%
8%
10%
14%
22%
Life sciences or healthcare technology
Software / apps
Data / analytics
Cybersecurity
Data center/cloud computing infrastructure
IT services
Energy technology / Cleantech
Advanced manufacturing
Broadcasting / Digital media / entertainment technology
Telecommunications
Defense / military technology
Advanced materials
2-Year Outlook
Today
Source: TECNA
Base: 1,441 senior U.S. technology and business executives