TECNA National Survey 2012

National Survey of Technology, Policy and Strategic IssuesNovember, 2012

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© 2012 Technology Councils of North America. All rights reserved.

Research Methodology and Background

About TECNA | CompTIA | TechVoiceAbout TECNAThe 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 CompTIACompTIA 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 TechVoiceTechVoice 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.

About This ResearchThe data for this quantitative study was collected via an online survey conducted during October 2012. A total of 1,082 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 +/- 3.0 percentage points. Sampling error is larger for subgroups of the data.

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).

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 [email protected].

Profile of Survey Respondents

34% Less than 1015% 10 to 2418% 25 to 9915% 100 to 4993% 500 to 99915% 1,000 or more employees

43% Information technology (IT) or telecommunications9% Professional services (non IT)6% Healthcare/Medical6% Financial/Banking/Insurance6% Media/Publishing/Entertainment5% Education4% Advanced manufacturing (non IT sector)4% Life sciences3% Environmental or energy technology2% Retail/Wholesale1% Government (federal, state, local)1% AMTUC (Agriculture, Mining, Transportation,

Utilities, Construction)0% Hospitality/Food/Beverage

Industry Sector Number of Employees

100% C-Level or Higher or Equivalent

Job Level

Source: TECNABase: 1,082 senior U.S. technology and business executives

Geographic Segmentation Categories

Northeast (n=267) Connecticut Technology Council Mass Technology Leadership Council (MassTLC) New Hampshire High Tech Council New Jersey Technology Council New York Technology Council Philadelphia Alliance for Capital and Technologies Pittsburgh Technology Council

Midwest (n=279) Illinois Technology Association (ITA) Northeast Ohio Software Association Minnesota High Tech Association Technology Association of Iowa Wisconsin Technology Council

South (n=234) Council for Entrepreneurial Development (CED) Louisiana Technology Council Metroplex Technology Business Council (MTBC) North Carolina Technology Association Northern Virginia Technology Council Technology Association of Georgia

West (n=298) Arizona Technology Council Technology Association of Oregon Utah Technology Council Washington Technology Industry Association

This report contains a number comparisons among geographic regions. The following groupings are based on standard U.S. Census Bureau categorizations.

Section 1: Business Sentiment

U.S. Eco

nomy Rating

Tech Se

ctor R

ating

My Company R

ating

46.3

62.1 66.4

52.9

64.971.6

Rating TodayProjected Rating


Business Sentiment Expected to Improve Modestly Over the Next Six Months

Rating on a 100-point scale | 100=highest | 0=Lowest

U.S. Economy Rating

Tech Sector Rating

My Company Rating

47

6468

46

58

65

45

6265

Information Technology Sector

Other Tech Sectors

Other Sectors


Business Sentiment Segmentation: Industry Sector Ratings


U.S. Economy Rating

Tech Sector Rating

My Company Rating

46

6164

46

6266

46

6167

47

6368

Northeast

Midwest

South

West


Business Sentiment Segmentation: Regional Ratings


U.S. Economy Rating

Tech Sector Rating

My Company Rating

45

61 62

47

6369

47

6370

46

6268

Micro Firm

Small Firm

Medium Firm

Large Firm


Business Sentiment Segmentation: Company Size Ratings Ratings


<10 employees

10-99 employees

99-100 employees

500+ employees

Many Businesses Plan to Increase Investments

Cost cutting

Capital expenditures (e.g. non technology)

Business travel

Staff training or professional development

Staffing levels in non-technical positions

Technology expenditures

Marketing/advertising expenditures

Investments in new products or business lines

Staffing levels in technical positions

7%

10%

11%

6%

8%

6%

8%

6%

5%

66%

57%

48%

52%

42%

42%

39%

36%

38%

27%

33%

41%

42%

51%

52%

53%

59%

57%


Planning Increases

Planning Decreases

No Change Expected

Timeframe: over next 6 months

Technology expenditures

Marketing/advertising expenditures

Staffing levels in non-technical positions

Investments in new products_x000d_ or business lines

Staffing levels in technical positions

52%

52%

48%

55%

47%

52%

45%

42%

60%

54%

53%

57%

56%

62%

69%

Information Tech Sector Other Tech Sectors Other Sectors


Business Investment Segmentation: Industry Sector Ratings

Percent indicating a planned increase in investment over next 6 months

Planned Increase North Midwest South West

Staffing levels in technical positions 59% 56% 54% 59%

Investments in new products or business lines 59% 58% 53% 64%

Marketing/advertising expenditures 57% 52% 48% 56%

Technology expenditures 53% 55% 46% 54%

Staffing levels in non-technical positions 51% 49% 47% 55%

Planned Increase Micro Firms Small Firms Medium Firms Large Firms

Staffing levels in technical positions 49% 68% 64% 47%

Investments in new products or business lines 54% 63% 65% 54%

Marketing/advertising expenditures 62% 61% 44% 30%

Technology expenditures 51% 56% 55% 44%

Staffing levels in non-technical positions 50% 60% 55% 32%


Business Investment Segmentation: Region and Company Size Ratings

Percent indicating a planned increase in investment over next 6 months

Weak export market

Input/commodity price inflation

Stock market volatility

Overseas competition

Disruptive technologies or business models

Domestic competition

Lower margins

Weak consumer demand

Weak corporate demand

Labor prices/availability of talent

Government regulation

Access to credit/capital

Unexpected shock (e.g. spike in oil price, etc.)

General lack of confidence/paralysis

Stalled recovery

4%

5%

12%

13%

16%

19%

22%

22%

32%

31%

36%

36%

36%

47%

54%


Executives Express a Range of Concerns Over Threats to Growth at Their BusinessTimeframe: over next 6 months

Section 2: Policy Positions


Support for Tech Policy Initiatives Rating Policy Proposal that May Impact Tech Sector Innovation and Growth

58% Doing more to expand access to capital for startup and high growth companies

49% Doing more to advance STEM education at the K-12 level

47% Achieving a simplified personal and corporate tax structure, including closing corporate tax loopholes

44% Making the research and development (R&D) tax credit permanent

42% Placing career, technical and vocational education on par with traditional degree programs to help expand pool of trained tech workers

34% Expanding visa categories and H1B caps to keep foreign nationals with advanced STEM skills in the U.S

24% Advancing a pro-trade agenda to expand U.S. exports of technology products

21% Creating more incentives to build out the broadband infrastructure

21% Expanding incentives and easing regulations for commercialization of academic or government applications

17% Making more spectrum available for creation of new wireless applications

16% Tax holiday for the repatriation of profits from overseas by U.S. tech companies

Policy Proposal North Midwest South WestDoing more to expand access to capital for startup and high growth companies 65% 57% 55% 54%

Doing more to advance STEM education at the K-12 level 42% 52% 50% 52%

Achieving a simplified personal and corporate tax structure, including closing corporate tax loopholes 43% 49% 46% 50%

Making the research and development (R&D) tax credit permanent 48% 43% 37% 46%

Placing career, technical and vocational education on par with traditional degree programs to help expand pool of trained tech workers

38% 44% 39% 46%

Expanding visa categories and H1B caps to keep foreign nationals with advanced STEM skills in the U.S 32% 31% 35% 38%

Advancing a pro-trade agenda to expand U.S. exports of technology products 24% 21% 24% 26%

Expanding incentives and easing regulations for commercialization of academic or government applications 20% 21% 20% 23%

Creating more incentives to build out the broadband infrastructure 19% 25% 22% 19%

Making more spectrum available for creation of new wireless applications 16% 17% 17% 16%

Tax holiday for the repatriation of profits from overseas by U.S. tech companies 14% 14% 20% 17%


Policy Perceptions Segmentation: Regional Ratings

14%

21%

40%

19%

6%


Rating of Preference for Degree of Government Involvement in Promoting

Innovation and Growth in the Tech Sector

Moderate Level of

Government Involvement

Very High Level of

Involvement

Very Low Level of

Involvement

High Level

Low Level

A NET 65% prefer a

moderate to high level of government involvement

32%

38%

30%29%

43%

27%

41% 40%

18%

37%

41%

21%

Northeast

Midwest

South

West


Preference for Government Involvement Segmentation: Regional Ratings

Preference for level of government involvement in promoting innovation and growth in the tech sector

48%

34%

18%

26%

45%

29%

21%

45%

33%

NET Negative View of U.S. Economy

NET Lukewarm View of U.S. Economy

NET Positive View of U.S. Economy


Preference for Government Involvement Segmentation: Rating of Economy

Preference for level of government involvement in promoting innovation and growth in the tech sector

Level of Government Involvement in Supporting/Promoting Tech Sector

Policy Proposal that May Impact the Tech SectorHigh or

Very High Involvement

Moderate Level of

Involvement

Low or Very Low

Involvement

Doing more to expand access to capital for startup and high growth companies 67% 59% 51%

Doing more to advance STEM education at the K-12 level 53% 56% 39%

Achieving a simplified personal and corporate tax structure, including closing corporate tax loopholes 37% 47% 55%

Making the research and development (R&D) tax credit permanent 51% 41% 43%

Placing career, technical and vocational education on par with traditional degree programs to help expand pool of trained tech workers 44% 44% 39%

Expanding visa categories and H1B caps to keep foreign nationals with advanced STEM skills in the U.S 42% 37% 25%

Advancing a pro-trade agenda to expand U.S. exports of technology products 23% 24% 25%

Expanding incentives and easing regulations for commercialization of academic or government applications 29% 17% 20%

Creating more incentives to build out the broadband infrastructure 26% 22% 17%

Making more spectrum available for creation of new wireless applications 21% 14% 16%

Tax holiday for the repatriation of profits from overseas by U.S. tech companies 13% 14% 20%

Policy Perceptions Segmentation: Preference for Government Involvement

Policy Perceptions: Additional Notes

Doing more to expand access to capital for startup and high growth companies- Rated most important to micro-size firms (72%) and small firms (60%)

Doing more to advance STEM education at the K-12 level- Rated most important to large firms (63%)

Achieving a simplified personal and corporate tax structure, including closing corporate tax loopholes

- Rated most important to small firms (51%), micro-size firms (48%) and medium-size firms (47%)

Placing career, technical and vocational education on par with traditional degree programs to help expand pool of trained tech workers

- Rated most important to large firms (45%)

7%

18%

39%

30%

7%


Rating of How State/Local Government Represented the Interests of the Tech Sector

Just Okay

Represented Tech Interests

Very Well


Very Poorly

WellPoor

A NET 37% rated state/local

government as representing the interests of the tech sector well

Timeframe: during past two years

NET Well Just Okay NET Poor

36% 36%

27%

31%

40%

30%

35%

43%

22%

42%

38%

20%

Northeast

Midwest

South

West


How State/Local Government Represented the Interests of the Tech Sector

Segmentation: Regional Ratings


NET Well Just Okay NET Poor

52%

35%

13%

29%

41%

31%

Believe Tech Sector Performing At or Above Potential

Believe Tech Under-Performing Potential

Source: TECNABase: 974 senior U.S. technology and business executives

How State/Local Government Represented the Interests of the Tech Sector Segmentation:

Tech Sector Performance Ratings


15%

29%

37%

17%

2%

Source: TECNABase: 512 senior U.S. technology and business executives

Rating of How Federal Government Represented the Interests of the Tech Sector


Just Okay


Very Well


Very Poorly

WellPoorly


A NET 19% rated the federal

government as representing the interests of the tech sector well

Definitely do not recommend

Probably do not recommend

May or may not recommend

Probably recommend

Definitely recommend

3%

13%

21%

31%

32%


Most Executives Recommend Their State/Region as a Good Environment for Tech Startups

Significant surplus in terms of quantity and quality of tech talent

Moderate surplus

Equilibrium, supply roughly_x000d_ equals demand

Moderate shortage

Significant shortage in terms of the quantity and quality of tech talent

2%

10%

16%

50%

22%


Most Executives See a Shortage of Tech Talent

Significant shortage

Moderate shortage

NET shortage

25%

50%

75%

16%

40%

56%

20%

52%

72%

Information Technology Sector

Other Tech Sectors

Other Sectors


Tech Talent Availability Segmentation: Industry Sector Ratings

Rating of degree to which there is a shortage of quantity and quality of tech talent in respondent’s state/region

Significant shortage

Moderate shortage

NET shortage

21%

47%

68%

21%

48%

69%

14%

59%

73%

30%

46%

76%

Northeast

Midwest

South

West


Tech Talent Availability Segmentation: Regional Ratings

3%

25%

66%

7%


Most Executives Believe the Tech Sector in Their State/Region Is Not Reaching Its Potential

Believe Tech Sector in state/region performing at its potential

Believe Tech Sector in state/region

under-performing its potential

Don’t knowBelieve Tech Sector in state/region out-performing its potential

Out-performing_x000d

_ its potential

Performing at about its potential

Under-performing its potential

3%

19%

70%

1%

21%

70%

1%

33%

61%

4%

34%

56% Micro Firm

Small Firm

Medium Firm

Large Firm


Assessment of Tech Sector Potential Segmentation: Company Size Ratings

Rating of the respondent’s belief of the degree to which the tech sector in respondent’s state/region is reaching its potential, or not

<10 employees

10-99 employees

99-100 employees

500+ employees

Level of Government Involvement in Supporting/Promoting Tech Sector

Policy Proposal that May Impact the Tech SectorHigh or

Very High Involvement

Moderate Level of

Involvement

Low or Very Low

Involvement

Doing more to expand access to capital for startup and high growth companies 67% 59% 51%

Doing more to advance STEM education at the K-12 level 53% 56% 39%

Achieving a simplified personal and corporate tax structure, including closing corporate tax loopholes 37% 47% 55%

Making the research and development (R&D) tax credit permanent 51% 41% 43%

Placing career, technical and vocational education on par with traditional degree programs to help expand pool of trained tech workers 44% 44% 39%

Expanding visa categories and H1B caps to keep foreign nationals with advanced STEM skills in the U.S 42% 37% 25%

Advancing a pro-trade agenda to expand U.S. exports of technology products 23% 24% 25%

Expanding incentives and easing regulations for commercialization of academic or government applications 29% 17% 20%

Creating more incentives to build out the broadband infrastructure 26% 22% 17%

Making more spectrum available for creation of new wireless applications 21% 14% 16%

Tax holiday for the repatriation of profits from overseas by U.S. tech companies 13% 14% 20%

Policy Perceptions Segmentation: Preference for Government Involvement

Section 3: Technology Trends

Defense / military technology

Environmental or energy technology

Advanced manufacturing

Life sciences or healthcare technology

Information technology (IT), _x000d_including telecom

3%

13%

10%

35%

37%

5%

7%

9%

34%

44%

Importance to State/Region Today

Change in Importance Over Next 2 Years


Ranking of Growth Potential for Segments Within the Tech Sector

Sector within Tech North Midwest South West

Information technology or telecommunications 30% 33% 57% 57%

Life sciences or healthcare technology 45% 46% 27% 19%

Advanced manufacturing 11% 13% 3% 8%

Environmental or energy technology 7% 6% 6% 9%

Defense / military technology 6% 1% 6% 7%

Sector within Tech Info Tech Sector

Other Tech Sectors

Other Sectors

Information technology or telecommunications 57% 18% 38%

Life sciences or healthcare technology 28% 42% 38%

Advanced manufacturing 6% 18% 9%

Environmental or energy technology 5% 14% 7%

Defense / military technology 4% 7% 6%

Growth Potential Areas Within Tech Sector Segmentation: Region and Sector Ratings


Assessment of Technologies as Contributors to Growth in State/Region Over Next Two Years

64% Big Data analytics, data mining and business intelligence

59% Mobile apps development

59% Cloud-based software development (SaaS)

59% Healthcare tech

48% Everything-as-a-service (e.g. managed help desk, networks, communications, security, etc.)

42% Wireless services

39% E-commerce or mobile commerce

38% Cloud implementation, integration or consulting services

37% Green tech

36% Mobile implementation, integration or consulting services

35% Mobile device development (Tablets, smartphones, accessories)

34% Biotech

33% Business process automation

31% Social solutions and technologies

30% Big Data storage and management

29% Cloud data centers

29% Enterprise collaboration (Video conferencing, collaboration tools)

26% Data visualization

24% Location-based services and technologies

23% Aggregation/Orchestration (bringing multiple service providers into a single point of contact)

17% Machine-to-machine learning or interaction

14% Defense tech

9% Telecom equipment

Rating of Technology Growth DriversMicro-Size Firms Top 51. Healthcare tech2. Mobile apps development3. Big Data analytics, data mining and business intelligence4. Cloud-based software development (SaaS)5. Everything-as-a-service (e.g. managed help desk, networks, communications, security, etc.)

Small Firms Top 51. Cloud-based software development (SaaS)2. Big Data analytics, data mining and business intelligence3. Mobile apps development4. Healthcare tech5. Everything-as-a-service (e.g. managed help desk, networks, communications, security, etc.)

Medium-Size Firms Top 51. Big Data analytics, data mining and business intelligence2. Mobile apps development3. Healthcare tech4. Cloud-based software development (SaaS)5. Everything-as-a-service (e.g. managed help desk, networks, communications, security, etc.)

Large Firms Top 51. Big Data analytics, data mining and business intelligence2. Healthcare tech3. Cloud-based software development (SaaS)4. Mobile apps development5. Everything-as-a-service (e.g. managed help desk, networks, communications, security, etc.)

Rating of Technology Growth DriversNortheast Top 51. Healthcare tech2. Big Data analytics, data mining and business intelligence3. Mobile apps development4. Cloud-based software development (SaaS)5. Everything-as-a-service (e.g. managed help desk, networks, communications, security, etc.)

Midwest Top 51. Big Data analytics, data mining and business intelligence2. Cloud-based software development (SaaS)3. Healthcare tech4. Mobile apps development5. Wireless services

South Top 51. Big Data analytics, data mining and business intelligence2. Healthcare tech3. Mobile apps development4. Cloud-based software development (SaaS)5. Everything-as-a-service (e.g. managed help desk, networks, communications, security, etc.)

West Top 51. Big Data analytics, data mining and business intelligence2. Mobile apps development3. Cloud-based software development (SaaS)4. Healthcare tech5. Everything-as-a-service (e.g. managed help desk, networks, communications, security, etc.)

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