Summit Presentation Draft 12atstats.gsu.edu/TaxCouncil/downloads/Summit Presentation Draft 12… ·...
Transcript of Summit Presentation Draft 12atstats.gsu.edu/TaxCouncil/downloads/Summit Presentation Draft 12… ·...
Thank you to all 2009 State of the Industry: Technology in Georgia Sponsors
Gold Sponsors
Silver Sponsors
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.
ROAD TO SUCCESSROAD TO SUCCESSPROMOTE
GOALTransform Georgia into a Top 5 State for technology.
ROAD TO SUCCESSROAD TO SUCCESSPROMOTESTIMULATESTIMULATE
GOALTransform Georgia into a Top 5 State for technology.
ROAD TO SUCCESSROAD TO SUCCESSPROMOTESTIMULATESTIMULATEFOCUSFOCUS
GOALTransform Georgia into a Top 5 State for technology.
ROAD TO SUCCESSROAD TO SUCCESSPROMOTESTIMULATESTIMULATEFOCUSFOCUS
CONNECT
GOALTransform Georgia into a Top 5 State for technology.
ROAD TO SUCCESSROAD TO SUCCESSPROMOTESTIMULATESTIMULATEFOCUSFOCUS
CONNECTCULTIVATE
GOALTransform Georgia into a Top 5 State for technology.
ROAD TO SUCCESSROAD TO SUCCESSPROMOTESTIMULATESTIMULATEFOCUSFOCUS
CONNECTCULTIVATE