October, 2013
© 2013 Technology Councils of North America. All rights reserved.

www.technologycouncils.org

National Surv...
Research Methodology and Background
About TECNA | CompTIA | TechVoice
About TECNA
The Technology Councils of North America (TECNA) represents almost 50 IT and...
About This Research
The data for this quantitative study was collected via an online survey conducted during September 201...
Profile of Survey Respondents
Industry Sector
47%
10%
5%
5%
5%
4%
4%
3%
2%
2%
2%
1%
1%
1%
8%

Number of Employees

Informa...
Geographic Segmentation Categories
This report contains a number comparisons among geographic regions. The
following group...
Section 1: Assessment of Business Conditions
Business Sentiment Expected to Improve
Modestly Over Next Six Months
Rating on a 100-point scale | 100=highest | 0=Lowest
...
Business Sentiment Comparison YOY
Rating on a 100-point scale | 100=highest | 0=Lowest

2012
62.1

2013
66.0

66.4

68.8

...
Business Sentiment Segmentation:
Regional Ratings
Rating on a 100-point scale | 100=highest | 0=Lowest

67 67
64 66
54

67...
Business Sentiment Segmentation:
Regional Ratings YOY
Rating on a 100-point scale | 100=highest | 0=Lowest
Average of 3 ra...
Business Sentiment Segmentation:
Industry Sector Ratings
Rating on a 100-point scale | 100=highest | 0=Lowest

70

67
57

...
Business Sentiment Segmentation:
Regional Ratings
Rating on a 100-point scale | 100=highest | 0=Lowest

64
55

58 58 56

6...
Section 2: Business Investment & Workforce
Many Businesses Plan to Increase Investments
Timeframe: over next 6 months

Planning
Decreases
Investments in new products...
Expected Increases in Investment YOY
Expected increased in investment | Timeframe: over next 6 months
59%

Investments in ...
Business Investment Segmentation:
Region and Company Size Ratings
Percent indicating a planned INCREASE in investment over...
Business Investment Segmentation:
Industry Sector Ratings
Percent indicating a planned increase in investment over next 6 ...
Executives Express a Range of Concerns
that Could Derail Business Activity

Timeframe: over next 6 months

44%

General la...
Threats to Growth Concerns Segmentation:
Region and Company Size Ratings
Percent indicating a planned increase in investme...
Perceptions of Tech Talent Availability
Perceptions of quantity and quality of tech talent in respondents’ state/province/...
Perceptions of Tech Talent Availability Segmentation
Perceptions of quantity and quality of tech talent in respondents’ st...
Perceptions of Tech Talent Availability Segmentation
Perceptions of quantity and quality of tech talent in respondents’ st...
Perceptions of Tech Talent Availability YOY
25%

Significant shortage

22%
44%

Moderate shortage

50%

14%

Equilibrium, ...
Workforce Gains / Losses Projections
Timeframe: over next 12 months

Hiring staff - positions newly
created or additional ...
Workforce Gains / Losses Projections Segmentation
74% 72%

59%

Micro
46%

49%

47%

<10 employees

Small Firm
10-99 emplo...
Likelihood to Use More Foreign Workers
(e.g. H1B Visa) Should They Become Available
Timeframe: over next 12 months

Very l...
Likelihood to Use More Foreign Workers
(e.g. H1B Visa) Segmentation
43%

42%

21%

20%

Very likely

21%

22%

22%

Somewh...
Section 3: Public Policy Issues
Rating of How Government Represented
the Interests of the Tech Sector
Timeframe: during past two years

State/Regional
Gov...
How State/Regional Government Represented
the Interests of the Tech Sector Segmentation
45%

45%

40%

Northeast

35% 36% ...
Rating of How State/Regional Government
Represented the Interests of the Tech Sector YOY
Timeframe: during past two years
...
Preferences for Policy Actions
Access to capital for technology companies

46%

STEM education at the K-12 level

41%

STE...
Preferences for Policy Actions Segmentation
Micro
Firms

Small
Firms

Medium
Firms

Large
Firms

Access to capital for tec...
Perceptions of Most Negative Aspects of Tax Policies
Tax code complexity and the time and burden
required of businesses to...
Tax Code Perceptions Segmentation
Northeast

Midwest

South

West

Tax code complexity and the time and burden
required of...
Self Assessment of Desirability of
Local Area for Tech Startups
53%
47%

44%

42%

42%

41%

Northeast
Midwest
South

32%
...
Most Executives Believe the Tech Sector Is
Under-performing Its Potential
69% 70%
62%

Northeast

58%

Midwest
South
29%

...
Perception of Tech Sector Performance YOY
2012

2013
Believe Tech Sector
performing at
about its potential

Don’t know

7%...
Perceptions of Factors Contributing to
a Healthy Tech Sector in Region
Quality of life

56%

Skilled workforce

49%

Entre...
Perceptions of Factors Contributing to a
Healthy Tech Sector Segmentation
Northeast

Midwest

South

West

Quality of life...
Perceptions of Factors that can Inhibit
Tech Sector Growth / Performance
Early, mid and late-stage financing capacity

44%...
Perceptions of Factors that can Inhibit Tech
Sector Growth / Performance Segmentation
Northeast

Midwest

South

West

Ear...
Expectations of Sectors’ Ability to Drive
innovation/startups/job growth
44%

Information technology or telecommunications...
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2013 TECNA National Survey of Technology, Policy & Strategic Issues

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This second 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.

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2013 TECNA National Survey of Technology, Policy & Strategic Issues

  1. 1. October, 2013 © 2013 Technology Councils of North America. All rights reserved. www.technologycouncils.org National Survey of Technology, Policy and Strategic Issues
  2. 2. Research Methodology and Background
  3. 3. About TECNA | CompTIA | TechVoice About TECNA The Technology Councils of North America (TECNA) represents almost 50 IT and Technology trade organizations who, in turn, represent more than 16,000 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. About TechVoice TechVoice is a newly-formed partnership of the Computing Technology Industry Association (CompTIA), the Technology Councils of North America (TECNA), and participating regional technology associations. Collectively, we represent thousands of technology companies across the country employing millions of workers. We are dedicated to empowering and mobilizing the grassroots tech community to impact legislative and regulatory issues important to growth, innovation and job creation.
  4. 4. About This Research The data for this quantitative study was collected via an online survey conducted during September 2013. A total of 1,763 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. This includes primarily U.S. based Councils, with a smaller degree of participation from Canadian Councils. The margin of sampling error at the 95% confidence level for the overall results is +/- 2.4 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 Marketing Research Association (MRA) and conforms to its guidelines for survey best practices and research ethics. Any questions about the research methodology or data collection can be directed to research@comptia.org.
  5. 5. Profile of Survey Respondents Industry Sector 47% 10% 5% 5% 5% 4% 4% 3% 2% 2% 2% 1% 1% 1% 8% Number of Employees Information technology (IT) or telecommunications 29% Professional services (non IT) 11% Financial/Banking/Insurance 13% Healthcare/Medical 9% Education 15% Life sciences 4% Advanced manufacturing (non IT sector) 18% Media/Publishing/Entertainment Environmental or energy technology Government (federal, state, local) Retail/Wholesale AMTUC (Agriculture, Mining, Transportation, Utilities, Construction) Hospitality/Food/Beverage Advanced materials Other industry sector Job 52% 24% 17% 2% 4% Less than 10 10 to 19 20 to 49 50 to 99 100 to 499 500 to 999 1,000 or more employees Level CEO, President, Owner, etc. Executive - CIO, CTO, CFO, CMO, COO, VP or equivalent Management – Director, Team Leader or equivalent Consultant Other
  6. 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=460) Midwest (n=275)            Connecticut Technology Council (CTC) Greater Philadelphia Alliance for Capital & Technologies (PACT) Massachusetts Technology Leadership Council (MLTC) New Hampshire High Tech Council (NHHTC) New Jersey Tech Council (NJTC) New York Technology Council (NYTECH) West (n=530)       Arizona Technology Council (ATC) Colorado Technology Association Idaho Technology Council (ITC) Technology Association of Oregon (TAO) Utah Technology Council (UTC) Washington Technology Industry Association (WTIA) Canada (n=NA)  Tech South East Illinois Technology Association (ITA) Minnesota High Tech Association (MHTA) Northeast Ohio Software Association (NEOSA) Technology Council of Greater Kansas City (KCNext) Wisconsin Technology Council South (n=484)            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) North Carolina Technology Association (NCTA) Tampa Bay Technology Forum (TBTF) Technology Association of Georgia (TAG) Technology Association of Louisville Kentucky (TALK) Tech Birmingham
  7. 7. Section 1: Assessment of Business Conditions
  8. 8. Business Sentiment Expected to Improve Modestly Over Next Six Months Rating on a 100-point scale | 100=highest | 0=Lowest Current Rating Projected Rating 66.0 67.7 56.4 59.3 50.8 68.8 73.2 54.6 North America Global Economy Economy Rating Rating Tech Sector Rating Individual Company Rating Project Rating = next 6 months Source: TECNA Base: 1,763 senior U.S. technology and business executives
  9. 9. Business Sentiment Comparison YOY Rating on a 100-point scale | 100=highest | 0=Lowest 2012 62.1 2013 66.0 66.4 68.8 56.4 46.3 North America Economy Rating Tech Sector Rating Individual Company Rating Source: TECNA Base: 1,763 senior U.S. technology and business executives
  10. 10. Business Sentiment Segmentation: Regional Ratings Rating on a 100-point scale | 100=highest | 0=Lowest 67 67 64 66 54 67 70 71 69 Northeast 58 58 56 49 52 52 51 Midwest South West U.S. Economy Rating Global Economy Rating Tech Sector Rating Individual Company Rating Source: TECNA Base: 1,763 senior U.S. technology and business executives Northeast=460, Midwest=275, South=484, West=530
  11. 11. Business Sentiment Segmentation: Regional Ratings YOY Rating on a 100-point scale | 100=highest | 0=Lowest Average of 3 ratings: U.S. economy + tech sector + individual company rating 61.4 57.0 65.5 64.3 58.2 58.0 64.0 59.4 2012 2013 Northeast Midwest South West Source: TECNA Base: 1,763 senior U.S. technology and business executives Northeast=460, Midwest=275, South=484, West=530
  12. 12. Business Sentiment Segmentation: Industry Sector Ratings Rating on a 100-point scale | 100=highest | 0=Lowest 70 67 57 55 56 66 61 65 68 Information Technology Sector 51 50 51 Other Tech Sectors Other Industry Sectors North America Economy… Global Economy Rating Tech Sector Rating Individual Company Rating Source: TECNA Base: 1,763 senior U.S. technology and business executives IT sector=826, Non-IT tech sectors=184, Other industry sectors=753
  13. 13. Business Sentiment Segmentation: Regional Ratings Rating on a 100-point scale | 100=highest | 0=Lowest 64 55 58 58 56 67 68 70 65 65 73 69 Micro Firm 52 51 49 51 <10 employees Small Firm 10-99 employees Medium Firm 100-499 employees Large Firm 500+ employees North America Economy Rating Global Economy Rating Tech Sector Rating Individual Company Rating Source: TECNA Base: 1,763 senior U.S. technology and business executives Micro=516, Small=604, Medium=261, Large=382
  14. 14. Section 2: Business Investment & Workforce
  15. 15. Many Businesses Plan to Increase Investments Timeframe: over next 6 months Planning Decreases Investments in new products or business lines 4% No Change Expected Planning Increases 37% 59% 39% 57% Staffing levels in technical positions 4% Marketing/advertising expenditures 6% 43% 51% Technology expenditures 5% 44% 51% Staffing levels in non-technical positions 7% Staff training or professional development 5% Business travel 11% Capital expenditures (e.g. non technology) 9% Cost cutting 7% 46% 47% 53% 42% 52% 59% 70% 37% 32% 23% Source: TECNA Base: 1,763 senior U.S. technology and business executives
  16. 16. Expected Increases in Investment YOY Expected increased in investment | Timeframe: over next 6 months 59% Investments in new products or business lines 59% 57% Staffing levels in technical positions 57% 51% Marketing/advertising expenditures 53% 51% 52% Technology expenditures 47% 51% Staffing levels in non-technical positions 42% Staff training or professional development 42% 37% Business travel 41% 2012 32% Capital expenditures (e.g. non technology) Cost cutting 2013 33% 23% 27% Source: TECNA Base: 1,763 senior U.S. technology and business executives
  17. 17. Business Investment Segmentation: Region and Company Size Ratings Percent indicating a planned INCREASE in investment over next 6 months Planned Increase Northeast Midwest South West Staffing levels in technical positions 54% 61% 58% 57% Investments in new products or business lines 62% 61% 55% 59% Marketing/advertising expenditures 49% 52% 49% 54% Technology expenditures 49% 50% 50% 53% Staffing levels in non-technical positions 44% 51% 46% 47% Micro Firms Small Firms Medium Firms Large Firms Staffing levels in technical positions 48% 69% 69% 45% Investments in new products or business lines 54% 65% 62% 54% Marketing/advertising expenditures 56% 60% 52% 29% Technology expenditures 50% 52% 59% 43% Staffing levels in non-technical positions 43% 56% 58% 29% Planned Increase Micro: <10 employees Medium: 100-499 employees Small: 10-99 employees Large: 500+ employees Source: TECNA Base: 1,763 senior U.S. technology and business executives Micro=516, Small=604, Medium=261, Large=382
  18. 18. Business Investment Segmentation: Industry Sector Ratings Percent indicating a planned increase in investment over next 6 months Information Tech Sector Other Tech Sectors Other Sectors 70% Staffing levels in technical positions 54% 45% 62% 58% 56% Investments in new products or business lines 54% Staffing levels in non-technical positions 38% 41% 56% Marketing/advertising expenditures 47% 47% 52% Technology expenditures 47% 50% Source: TECNA Base: 1,763 senior U.S. technology and business executives IT sector=826, Non-IT tech sectors=184, Other industry sectors=753
  19. 19. Executives Express a Range of Concerns that Could Derail Business Activity Timeframe: over next 6 months 44% General lack of confidence/paralysis 47% 42% Government regulation 36% 38% Lower margins/downward pressure on pricing 22% 35% 36% Unexpected shock 34% Labor prices/availability of talent/employee turnover 31% 34% 32% Weak corporate demand 33% Domestic competition 19% 29% Access to credit/capital 36% 27% Disruptive technologies or business models 16% 20% 22% Weak consumer demand 12% 12% Stock market volatility 10% 13% Overseas competition Input/commodity price inflation Weak export market 2013 2012 5% 5% 4% 4% Source: TECNA Base: 1,763 senior U.S. technology and business executives
  20. 20. Threats to Growth Concerns Segmentation: Region and Company Size Ratings Percent indicating a planned increase in investment over next 6 months Northeast Midwest South West General lack of confidence/paralysis 41% 47% 44% 45% Government regulation 38% 42% 46% 42% Lower margins/downward pressure on pricing 37% 31% 42% 39% Labor prices/availability of talent/employee turnover 32% 31% 34% 37% Access to credit/capital 33% 36% 26% 26% Micro Firms Small Firms Medium Firms Large Firms General lack of confidence/paralysis 51% 42% 43% 38% Government regulation 41% 39% 42% 48% Lower margins/downward pressure on pricing 23% 37% 51% 50% Labor prices/availability of talent/employee turnover 26% 37% 46% 33% Access to credit/capital 44% 33% 16% 13% Micro: <10 employees Medium: 100-499 employees Small: 10-99 employees Large: 500+ employees Source: TECNA Base: 1,763 senior U.S. technology and business executives Micro=516, Small=604, Medium=261, Large=382
  21. 21. Perceptions of Tech Talent Availability Perceptions of quantity and quality of tech talent in respondents’ state/province/region 44% NET perception of a surplus = 11% NET perception of a shortage = 69% 25% 14% 9% 2% Significant surplus Moderate surplus Equilibrium, supply roughly equals demand Moderate shortage Significant shortage Source: TECNA Base: 1,763 senior U.S. technology and business executives
  22. 22. Perceptions of Tech Talent Availability Segmentation Perceptions of quantity and quality of tech talent in respondents’ state/province/region 72% 67% 72% 65% 24% 20% 28% 28% Perception of a significant shortage Perception of a moderate shortage 48% 45% 44% Midwest South West 39% Northeast Source: TECNA Base: 1,763 senior U.S. technology and business executives Northeast=460, Midwest=275, South=484, West=530
  23. 23. Perceptions of Tech Talent Availability Segmentation Perceptions of quantity and quality of tech talent in respondents’ state/province/region 73% 66% 60% 21% 17% 43% 42% Information Tech (Non ICT) Technology Sector Perception of a significant shortage 45% 31% Perception of a moderate shortage Other Industry Sector Source: TECNA Base: 1,763 senior U.S. technology and business executives IT sector=826, Non-IT tech sectors=184, Other industry sectors=753
  24. 24. Perceptions of Tech Talent Availability YOY 25% Significant shortage 22% 44% Moderate shortage 50% 14% Equilibrium, supply roughly equals demand 16% 2013 Moderate surplus Significant surplus 9% 10% 2012 2% 2% Source: TECNA Base: 1,763 senior U.S. technology and business executives
  25. 25. Workforce Gains / Losses Projections Timeframe: over next 12 months Hiring staff - positions newly created or additional headcount 63% 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 31% 5% 8% 17% Source: TECNA Base: 1,763 senior U.S. technology and business executives
  26. 26. Workforce Gains / Losses Projections Segmentation 74% 72% 59% Micro 46% 49% 47% <10 employees Small Firm 10-99 employees 30% Medium Firm 100-499 employees 16% 3% 5% 9% 12% 2% 2% 7% Laying-off staff – Laying-off staff positions reduced due positions that to downsizing, slow have been sales or other permanently business cycle issues eliminated Large Firm 10% Hiring staff back-fill openings for existing headcount 500+ employees Hiring staff positions newly created or additional headcount Source: TECNA Base: 1,763 senior U.S. technology and business executives Micro=516, Small=604, Medium=261, Large=382
  27. 27. Likelihood to Use More Foreign Workers (e.g. H1B Visa) Should They Become Available Timeframe: over next 12 months Very likely Somewhat likely 19% Neutral / don't know Somewhat unlikely Very unlikely NET likely = 34% 15% 23% NET unlikely = 43% 12% 31% Source: TECNA Base: 1,763 senior U.S. technology and business executives
  28. 28. Likelihood to Use More Foreign Workers (e.g. H1B Visa) Segmentation 43% 42% 21% 20% Very likely 21% 22% 22% Somewhat likely Micro firms Small firms Medium firms Large firms <10 employees 10-99 employees 35% 25% 14% 11% 14% 100-499 employees 500+ employees Source: TECNA Base: 1,763 senior U.S. technology and business executives Micro=516, Small=604, Medium=261, Large=382
  29. 29. Section 3: Public Policy Issues
  30. 30. Rating of How Government Represented the Interests of the Tech Sector Timeframe: during past two years State/Regional Government 41% 38% 30% 15% Federal Government 28% 16% 12% 9% 8% 1% Represented Tech Interests Very Poorly Poor Just Okay Well Represented Tech Interests Very Well Source: TECNA Base: 1,763 senior U.S. technology and business executives
  31. 31. How State/Regional Government Represented the Interests of the Tech Sector Segmentation 45% 45% 40% Northeast 35% 36% 36% 31% 34% Midwest 29% South 26% 24% 20% NET Well Just Okay West NET Poor Timeframe: during past two years Source: TECNA Base: 1,763 senior U.S. technology and business executives Northeast=460, Midwest=275, South=484, West=530
  32. 32. Rating of How State/Regional Government Represented the Interests of the Tech Sector YOY Timeframe: during past two years 2012 39% 38% 2013 30% 18% 28% 16% 9% 7% Represented Tech Interests Very Poorly 7% Poor Just Okay Well 8% Represented Tech Interests Very Well
  33. 33. Preferences for Policy Actions Access to capital for technology companies 46% STEM education at the K-12 level 41% STEM education at the higher ed levels 41% Taxation and/or regulation reform 40% Access to state/local grant funding for innovation/startups 37% Promotion of business between public sector & tech sector 26% Technology Infrastructure in schools 25% Government efficiency through use of technology 24% Opportunities for tech transfer to create new tech companies 21% Increased broadband deployment 20% Modernization of telecommunications laws 18% Immigration Reform (e.g. foreign STEM skilled workers) 15% Technology adoption in healthcare in rural and urban areas Access to public data 14% 10% Source: TECNA Base: 1,763 senior U.S. technology and business executives
  34. 34. Preferences for Policy Actions Segmentation Micro Firms Small Firms Medium Firms Large Firms Access to capital for technology companies 61% 51% 34% 27% STEM education at the K-12 level 35% 38% 47% 49% STEM education at the higher ed levels 31% 38% 53% 50% Taxation and/or regulation reform 34% 41% 42% 43% Access to state and local level grant funding for innovation/startups 53% 38% 20% 25% Promotion of business between public sector & tech companies 26% 30% 22% 22% Technology Infrastructure in schools 20% 23% 34% 29% Government efficiency through use of technology 20% 23% 29% 26% Opportunities for tech transfer to create new tech companies 24% 19% 19% 21% Increased broadband deployment 20% 22% 16% 21% Modernization of telecommunications laws 12% 16% 20% 27% Immigration Reform (e.g. access to foreign STEM skilled workers) 10% 17% 21% 17% Technology adoption in healthcare in rural and urban areas 13% 13% 16% 15% Access to public data 12% 10% 7% 9%
  35. 35. Perceptions of Most Negative Aspects of Tax Policies Tax code complexity and the time and burden required of businesses to manage taxes 33% Corporate tax rates that are generally too high on businesses 22% Too many tax deductions or loopholes for special interests or sophisticated taxpayers 17% Personal tax rates that are generally too high on consumers Tax policy governing the repatriation of overseas profits Don't know 9% 3% 12% Source: TECNA Base: 1,763 senior U.S. technology and business executives
  36. 36. Tax Code Perceptions Segmentation Northeast Midwest South West Tax code complexity and the time and burden required of businesses to manage taxes 37% 30% 35% 31% Too many tax deductions or loopholes for special interests or sophisticated taxpayers 19% 19% 15% 15% Corporate tax rates that are generally too high on businesses 19% 26% 23% 22% Personal tax rates that are generally too high on consumers 8% 10% 8% 10% Tax policy governing the repatriation of overseas profits 4% 2% 4% 3% Micro Firms Small Firms Medium Firms Large Firms Tax code complexity and the time and burden required of businesses to manage taxes 38% 35% 29% 28% Too many tax deductions or loopholes for special interests or sophisticated taxpayers 20% 16% 12% 17% Corporate tax rates that are generally too high on businesses 17% 25% 30% 20% Personal tax rates that are generally too high on consumers 9% 9% 11% 8% Tax policy governing the repatriation of overseas profits 2% 2% 3% 6%
  37. 37. Self Assessment of Desirability of Local Area for Tech Startups 53% 47% 44% 42% 42% 41% Northeast Midwest South 32% West 23% 20% 19% 12% 8% Lower-tier location for tech startups Mid-tier location for tech startups Top tier location for tech startups Source: TECNA Base: 1,763 senior U.S. technology and business executives Northeast=460, Midwest=275, South=484, West=530
  38. 38. Most Executives Believe the Tech Sector Is Under-performing Its Potential 69% 70% 62% Northeast 58% Midwest South 29% West 32% 24% 23% 2% Performing at about its potential Under-performing its potential 4% 4% 6% Out-performing its potential Source: TECNA Base: 1,763 senior U.S. technology and business executives Northeast=460, Midwest=275, South=484, West=530
  39. 39. Perception of Tech Sector Performance YOY 2012 2013 Believe Tech Sector performing at about its potential Don’t know 7% 3% 5% 4% 25% Believe Tech Sector outperforming its potential 28% 64% 66% Believe Tech Sector underperforming its potential Source: TECNA Base: 1,763 senior U.S. technology and business executives
  40. 40. Perceptions of Factors Contributing to a Healthy Tech Sector in Region Quality of life 56% Skilled workforce 49% Entrepreneurship / innovation ecosystem 45% Research universities / R&D capacity 35% Cost advantages 25% Business friendly environment 23% General infrastructure capacity / quality 15% Early, mid and late-stage financing capacity Commercial sector ecosystem Transportation capacity / quality 11% 10% 6% Source: TECNA Base: 1,763 senior U.S. technology and business executives
  41. 41. Perceptions of Factors Contributing to a Healthy Tech Sector Segmentation Northeast Midwest South West Quality of life 47% 54% 51% 70% Skilled workforce 52% 50% 45% 49% Entrepreneurship / innovation ecosystem 42% 41% 40% 55% Research universities / R&D capacity 47% 41% 38% 21% Cost advantages 12% 29% 35% 25% Business friendly environment 14% 19% 28% 28% General infrastructure capacity / quality 15% 14% 17% 12% Early, mid and late-stage financing capacity 18% 9% 9% 8% Commercial sector ecosystem 14% 9% 11% 7% Transportation capacity / quality 8% 8% 7% 3%
  42. 42. Perceptions of Factors that can Inhibit Tech Sector Growth / Performance Early, mid and late-stage financing capacity 44% Costs basis (inclusive of various business costs) 36% Workforce 34% Transportation capacity/quality 28% Business environment 26% Entrepreneurship / innovation ecosystem 17% Research universities / R&D capacity 12% General infrastructure capacity / quality 11% Commercial sector ecosystem 11% Quality of life 8% Source: TECNA Base: 1,583 senior U.S. technology and business executives
  43. 43. Perceptions of Factors that can Inhibit Tech Sector Growth / Performance Segmentation Northeast Midwest South West Early, mid and late-stage financing capacity 37% 58% 43% 44% Costs basis (inclusive of various business costs) 62% 28% 24% 28% Workforce 27% 32% 34% 40% Transportation capacity / quality 23% 16% 46% 22% Business environment 27% 31% 21% 25% Entrepreneurship / innovation ecosystem 16% 25% 20% 11% Research universities / R&D capacity 10% 10% 8% 18% General infrastructure capacity / quality 12% 6% 13% 11% Commercial sector ecosystem 8% 9% 10% 14% Quality of life 11% 7% 8% 4%
  44. 44. Expectations of Sectors’ Ability to Drive innovation/startups/job growth 44% Information technology or telecommunications 35% 34% Life sciences or healthcare technology 38% 7% Environmental or energy technology Defense / military technology Broadcasting / media and entertainment technology Advanced manufacturing Advanced materials 12% 5% 3% 5% 4% Today 2-Year Projection 5% 6% 1% 2% Source: TECNA Base: 1,583 senior U.S. technology and business executives

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