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EconomicEconomic TransformationTransformation

hGeorgia ranks 10th

i th t i hi hin the country in high tech employmenttech employment. 

942 6581 000 000

Top States in High‐Tech EmploymentTech‐America's Cyberstates 2009 Report

942,658

800,000

900,000

1,000,000Georgia Ranks

10th

474,131500,000

600,000

700,000

304,231280,346

276,080

246,510

211,754210,094

209,808177,541200,000

300,000

400,000

,5

0

100,000

200,000

CA TX NY FL VA MA IL NJ PA GACA TX NY FL VA MA IL NJ PA GA

T t l Hi h T h E l t G th

2.0%

Total High‐Tech Employment GrowthU.S., GA, and Benchmark States, 2008

1.6% 1.5% 1.5%1.3%

1.1%1 0%

1.5%

0.7%

0.5%

1.0%

‐0.5%

0.0%

‐1.3%‐1.5%

‐1.0%

NC TX MA CA U.S. FL GA

T t l Hi h T h E l t G th

2.0%

Total High‐Tech Employment GrowthU.S., GA, and Benchmark States, 2008

1.6% 1.5% 1.5%1.3%

1.1%1 0%

1.5%

0.7%

0.5%

1.0%

‐0.5%

0.0%

‐1.3%‐1.5%

‐1.0%

NC TX MA CA U.S. FL GA

T t l Hi h T h E t bli h tG th

15%

Total High‐Tech Establishment Growth

U S GA

U.S. and GA, 2002‐2008

8%

10%

13%U.S. GA

0 2%

2.1%

5.3%3.9% 3.1%

5.7%

2.2% 1.6%

4.0% 3.7%

3%

5%

8%

0.2%

‐1.6% ‐0.6%‐0.5% ‐0.3%

5%

‐3%

0%

‐10%

‐8%

‐5%

2002 2003 2004 2005 2006 2007 2008

Software and IT S i l dServices led impressive gains inimpressive gains in new establishments.new establishments. 

G i Hi h T h S t Di t ib ti

eCommerce Hi h T h

Georgia High‐Tech Sector DistributionEstablishments, 2008

eCommerce292 2.2%

High Tech Equipment

233 1.7%

Multimedia and Web Search Portals

988 7.4%

Telecommunications

Software & IT Services

7,811 

Telecommunications1,78913.3%

58.3%Other Technology 

Segments         2,290 17 1%17.1%

Georgia Establishment Increase

393400

450

Georgia Establishment Increase 2008

250

300

350

28 23 18 1650

100

150

200

28 23 18 16 00

50

Georgia Establishment Increase

393400

450

Georgia Establishment Increase 2008

250

300

350

28 23 18 1650

100

150

200

28 23 18 16 00

50

In spite of the ptough economy, telecommunications put in a strong 

fperformance. 

Hi h T h E l t G th b S t

11.9%12%14%

U.S. GA

U.S. and GA, 2008High‐Tech Employment Growth by Sector

4.0%2.4%4%

6%8%10%12%

‐1.5%

0.5%

‐1.7%

0.8%1.0%

‐0.9%‐2.6%

4 4%6%‐4%‐2%0%2%

‐4.4% ‐5.3%‐8%‐6%

13%15%

U.S. GA

U.S. and GA, 2008High‐Tech Establishment Growth by Sector

10.9%

5 1%5.8% 5.3%7%9%11%13%

5.1%3.4%

0.4% 0.5%

2.9%1.3% 0.8% 0.0%

1%1%3%5%

‐0.9%‐3%‐1%

13%15%

U.S. GA

U.S. and GA, 2008High‐Tech Establishment Growth by Sector

10.9%

5 1%5.8% 5.3%7%9%11%13%

5.1%3.4%

0.4% 0.5%

2.9%1.3% 0.8% 0.0%

1%1%3%5%

‐0.9%‐3%‐1%

2009 Spotlight:Where Georgia Leads

L di G i T h l i

$42$

$45

Leading Georgia TechnologiesKey Segments by Size (Revenue)

$36$34

$25

$30

$35

$40

ns

$5$10

$15

$20

$25

Billion

$5

$0

$5

Georgia holdsGeorgia holds an impressivean impressive leadership position in p pthe FinTech industry.

T Fi i l T h l St tTop Financial Technology StatesRanked by Revenue

Georgia Ranks3rd

NY CA GA TX OH

G i Fi i l T h l I d t

7780

90

Georgia Financial Technology Industry Number of Companies by Product Category

77

60

70

80

40

50

15 14

410

20

30

4

0Financial Software      Financial Terminals      Payment Processing          Check & Cash             

Handling  EquipmentFinancial Software      Financial Terminals      Payment Processing          Check & Cash             

Handling  Equipment

FinTech Fast FactsFinTech Fast Facts• 93 Georgia Companies (HQ or Business Units)

• $34 Billion in Annual Revenue

• 13.5% Market Share (Based on Total U.S. Revenue)( )

• Ranked 3rd Among all U.S. States (Based on Revenue)

Georgia’s SecurityGeorgia s Security industry has grownindustry has grown rapidly to achieve p ynational prominence.

T S it T h l St tTop Security Technology StatesRanked by Revenue

Georgia Ranks 3rd

CA NY GA WI OH

Security Fast FactsSecurity Fast Facts• 39 Georgia Companies (HQ or Business Units)

• $4.7 Billion in Annual Revenue

• 6% Market Share (Based on Total U.S. Revenue)( )

• Ranked 3rd Among All U.S. States (Based on Revenue)

Venture capital d l i G ideals in Georgia are getting biggerare getting bigger. 

V t C it l

$12.6$14

Venture CapitalAverage Dollars per High‐Tech Venture Deal in Georgia, 1998‐2009

$12.6

$10

$12

$6.5 $6.8

$7.8

$6.5$5 5

$6.4

$8.3

$6

$8

Millions

$4.1$5.0

$3.2$4.0

$5.5

$4

$6

$0

$2

V t C it lVenture CapitalAverage Dollars per High‐Tech Venture Deal in Benchmark States

2007 ‐ 2009

$17.2

$16

$18

$202007 2008 2009

$14.0

$12

$14

$16

Millions

$5.5

$8.0 $8.4$7.1

$5.5

$7.4$6.4

$8.2 $9.1

$6.4 $6.2

$8.3$7.3

$6.2$4.7 $4 3

$6

$8

$10

$ $4.3

$0

$2

$4

$0

FL GA CA TX MA NC

Georgia’s share of VC i t t iVC investment is slowly increasingslowly increasing.

V t C it l

250$2,500

Venture CapitalTOTAL HIGH TECHNOLOGY $ TOTAL BIOSCIENCE  $TOTAL NON‐TECH $ NUMBER OF DEALS

Georgia Total Annual VC Funding, 1998‐2009

$2,243 221

200$2,000

$ ,

$

162

140150$1,500 D

ea

Millions

$1,111 

$837 

$557 $497

97

7960

7963

8475 80

44

100$1,000

alsM

$404 $557 

$288 

$497 

$241 $361  $449  $417 

$302

44

0

50

$0

$500

0$01998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

V t C it l I t t

25%30%

Venture Capital Investments Percent Change from 2008 to 2009

10%

20%

‐20%

‐10%

0%

‐28%‐33% ‐35% ‐37% ‐37%‐40%

‐30%

‐50%‐60%

‐50%

FL GA NC MA US CA TXFL GA NC MA US CA TX

Companies madeCompanies made strategic adjustments in response to the 

i deconomic downturn. 

Strate ic Responses to Economic Conditions

High Growth Not High Growth

Strategic Responses to Economic ConditionsBy High Growth and Not High Growth Companies

Improved our productivity

Introduced new products/services

Downsized workforce

Hired newly available  talent

p p y

Expanded strategic partnerships

Downsized workforce

Reduced our marketing budget

Diversified into new markets

0% 20% 40% 60% 80%

Strate ic Responses to Economic Conditions

High Growth Not High Growth

Strategic Responses to Economic ConditionsBy High Growth and Not High Growth Companies

Improved our productivity

Introduced new products/services

Downsized workforce

Hired newly available  talent

p p y

Expanded strategic partnerships

Downsized workforce

Reduced our marketing budget

Diversified into new markets

0% 20% 40% 60% 80%

Hiring strategies andHiring strategies and talent are importantin the sustainability f G i ’ h lof Georgia’s technology 

industryindustry.

Technical  talent

Importance of Factors Responsible for Growth

Innovative intellectual

Executive talent

Sales model

Innovative intellectual property

Marketing and promotions

Strategic partners

0.0 0.5 1.0 1.5 2.0 2.5 3.0

Not a Factor Slightly Moderately                      VerySignificant Significant SignificantSignificant Significant Significant        

Improved our productivity

Strategic Responses to Economic Conditions

Downsized workforce

Introduced new products/services

Expanded strategic partnerships

Downsized workforce

Diversified ‐ new markets

Hired newly available  talent

0% 10% 20% 30% 40% 50% 60%

Reduced marketing budget

Percent of Respondents Citing Strategy

Georgia can playGeorgia can play a vital role ina vital role in helping high tech p g gcompanies grow.

Importance of State Iss es

70%

Importance of State IssuesPercent Citing Moderately and More Important

55%

49% 49%47%

44%50%

60%

44% 43%

30%

40%

10%

20%

0%Nationwide 

visibility of Georgia companies 

Public‐private partnerships to retain and create 

K‐12 Educational Quality 

Development of a policy roadmap for growth of GA high 

Global visibility of Georgia companies 

Incentives to increase start‐up seed investmentp

technology jobs for GA

g gtech industry

I t f St t S t

83% 83%78%

90%

Importance of State SupportPercent Citing Moderately and More Beneficial

78% 76% 74%

61%60%

70%

80%

30%

40%

50%

0%

10%

20%

0%Promote tech 

companies in GA nationwide visibility

Facilitate connections to create more 

inter‐company s nerg

Offer tax incentives 

Incentives to increase VC investment

Economic development 

efforts to attract tech companies 

toGA

Subsidize programs for start‐up 

companiessynergy to GA

GOALTransform Georgia into a Top 5 State for technology. 

GOALTransform Georgia into a Top 5 State for technology. 

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GOALTransform Georgia into a Top 5 State for technology. 

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GOALTransform Georgia into a Top 5 State for technology. 

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GOALTransform Georgia into a Top 5 State for technology. 

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GOALTransform Georgia into a Top 5 State for technology. 

ROAD TO SUCCESSROAD TO SUCCESSPROMOTESTIMULATESTIMULATEFOCUSFOCUS

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