IT-oLogy Summit on Information Technology: KEYNOTE: Matt Gardner

Matt GardnerApril 23, 2014

Consider the Source Recap Tech Works Investment Capital Human Capital 30,000-foot View Comparables Considerations Synthesis

About your correspondent Senior Fellow, Innovation, BACEI CEO of new CTC Former Engine, TechAmerica Former BayBio, Tech Council of Maryland

BORING

ACCESSIBLE

Insurance Guy

Sees Risk

NASCAR Driver

Sees Opportunity

Entrepreneur

Let me code you a nav system!

Economic Developer

That will take 20 years…

Policymaker

Our road isn’t like your road

NAICSCode Industry

3254 Pharmaceuticalandmedicinemanufacturing

3341 Computerandperipheralequipmentmanufacturing

3342 Communicationsequipmentmanufacturing

3344 Semiconductorandotherelectroniccomponentmanufacturing

3345 Navigational,measuring,electromedical,andcontrolinstrumentsmanufacturing

3364 Aerospaceproductandpartsmanufacturing

5112 Softwarepublishers

5161 Internetpublishingandbroadcasting

5179 Othertelecommunications

5181 InternetserviceprovidersandWebsearchportals

5182 Dataprocessing,hosting,andrelatedservices

5415 Computersystemsdesignandrelatedservices

5417 Scientificresearch-and-developmentservices

Source: Bureau of Labor Statistics

High-Tech Sector Drives Productivity, Income Growth

3.2%

2.4%

1.6%

0.8%

0.0% 1.0% 2.0% 3.0% 4.0%

2012-22*

2002-12

Compound Annual Growth Rate

Total

High-Tech

Source: Bureau of Labor Statistics; BACEI

Annualized Real Output per Worker Growth (2002-12) and Projections (2012-22)

Top 15 Metros for High-Tech Employment Growth, 2006-2011

Metro Area Change (%)

1. Boise City-Nampa, ID 82.9

2. Augusta-Richmond County, GA-SC 81.9

3. Peoria, IL 41.0

4. Columbia, SC 40.1

5. Charleston-North Charleston-Summerville, SC 39.2

8. SF-San Mateo-Redwood City, CA 27.8

11. Madison, WI 25.4

13. San Antonio, TX 23.6

14. Sacramento, CA 23.4

15. Charlotte-Gastonia-Concord, NC-SC 22.3

Source: Bureau of Labor Statistics; BACEI

Metro Area High Tech Share (%)

High Tech Jobs (000)

One Year Change (%)

Five Year Change (%)

Average Wage ($)

Augusta-Richmond County, GA-SC

2.7 4.4 11.7 81.9 77,566

Columbia, SC 2.5 6.4 28.2 40.1 74,500

Charleston-North Charleston-Summerville, SC

4.7 10.4 5.2 39.2 76,599

Charlotte-Gastonia-Concord, NC-SC

4.0 28.7 3.9 22.3 84,584

South Carolina 3.7 53.3 8.6 22.7 72,142

United States 5.6 6,133.5 2.6 1.4 95,832

Source: Bureau of Labor Statistics; BACEI

Is this growth representative of new companies?

Metro Area High Tech Startup Density (1990)

High Tech StartupDensity (2010)

Augusta-Richmond County, GA-SC 0.4 0.4

Columbia, SC 0.6 0.5

Charleston-North Charleston-Summerville, SC 0.8 0.6

Charlotte-Gastonia-Concord, NC-SC 0.9 1.2

Austin-Round Rock, TX 2.3 1.7

San Jose-Sunnyvale, CA 3.0 2.6

United States 1.0 1.0

Source: Bureau of Economic Analysis, NETS, Kauffman Foundation

Source: PWC MoneyTree

RegionTotal $

InvestedDeals

All $9,468,943,000 951

Amount % of Total DealsSilicon Valley $4698M 49.62% 321New England $1013M 10.70% 98

NY Metro $961M 10.14% 105LA/Orange County $520M 5.49% 62

Midwest $420M 4.44% 84Texas $349M 3.68% 41

SouthWest $261M 2.76% 22Southeast $260M 2.74% 44San Diego $243M 2.57% 23

DC/Metroplex $217M 2.30% 43Northwest $186M 1.97% 30

Colorado $113M 1.19% 22North Central $108M 1.14% 23

Philadelphia Metro $101M 1.07% 19South Central $18M 0.19% 6

Upstate NY $2M 0.02% 6AK/HI/PR $0M 0.00% 2

Q1 2014 Venture Capital Investments by US Region

Source: NSF Science & Engineering Indicators 2014

Institution 2010 2011 2012

All institutions 58,360,05661,996,23

562,266,083

1 Johns Hopkins U., The (private)a 1,997,252 2,135,547 2,092,9997 Duke U. (private) 980,514 1,018,241 1,004,7599 U. of North Carolina, Chapel Hill (public) 746,828 846,499 864,74810 Stanford U. (private) 810,300 868,393 854,58024 Georgia Institute of Technology (public) 611,226 650,588 683,89437 Emory U. (private) 498,309 479,678 474,53752 North Carolina State U. (public) 357,802 374,446 400,04668 U. of GA (public) 274,380 300,388 311,49886 Medical U. of South Carolina (public) 224,632 213,346 236,58699 Wake Forest U. (private) 192,034 208,460 203,730

Top 100 (select) academic institutions in S&E R&D expendituresRanked by FY 2012 R&D expenditures: FYs 2010–12 (000)

Source: NSF Science & Engineering Indicators 2014

Top 300 (select) organizations granted patens in 2012

Rank Organization Patents Change from 2011 (%)

1 IBM 6,457 5.0

2 Samsung 5,043 3.6

90 U California (System) 357 10.5

138 MIT 216 35.0

157 Stanford 182 19.0

197 U Texas 141 12.8

205 Cal Tech 136 22.5

Don’t create the next Silicon Valley

Be the first Belle Lab

Industry 2012 GDP ($bn)

% of Total

Transportation & Warehousing 4.06 2.3

Prof, Sci &Tech Services 9.49 5.4

Management of Companies 1.68 1.0

Administrative & Waste Mgmt 7.32 4.2

Ed Services (excl public schools) 1.25 0.7

Healthcare & Social Assistance 11.50 6.5

Arts, Entertainment & Recreation 1.16 0.7

Accommodation and Food Service 6.78 3.8

Other Services 4.64 2.6

Government 29.96 17.0

Industry 2012 GDP ($bn)

% of Total

Ag and Forestry 1.04 0.6

Mining 0.22 0.1

Utilities 5.57 3.2

Construction 7.23 4.1

Manufacturing 28.71 16.3

Wholesale Trade 9.69 5.5

Retail Trade 12.78 7.3

Information 4.33 2.5

Finance & Insurance

9.04 5.1

Real Estate 19.76 11.2

Source: South Carolina Department of Commerce

Similar States by TQ, including change 2006-2011

Metro Area High Tech Share (%)

High Tech Jobs (000)

One Year Change (%)

Five Year Change (%)

Average Wage ($)

South Carolina 3.7 53.3 8.6 22.7 72,142

Florida 4.0 250.8 0.9 -7.5 79,828

Illinois 4.3 208.9 2.2 -2.9 91,559

Indiana 3.5 83.1 -1.0 -2.2 80,433

Missouri 4.4 95.6 2.9 -2.3 88,698

Nebraska 4.1 30.6 2.7 -1.6 67,660

Wisconsin 3.6 83.7 4.1 6.3 74,010

United States 5.6 6,133.5 2.6 1.4 95,832

Source: Bureau of Labor Statistics; BACEI

Management Changes What is General Assembly and why should I

care? How does that relate to “kid comfort” with tech? Where is investment in tech going?

Energy

Ed Tech

Enterprise

IoT▪ Smart Grid, Efficiency, Buildings

▪ Transportation

Public Sector

Test beds

Procurement

Challenges KBA MdBio Biomass-to-energy

Federally flat R&D drivers Clearer picture with financial

disintermediation Democratization and availability of education

tools

Additional resources

BACEI www.bayareaeconomy.org

Kauffman Foundation

MoneyTree www.pwcmoneytree.com

Startup Genome

Startup America/UPglobal

Matthew M. Gardner, Tech-led Economic GrowthTw: @TechCitizenEmail: [email protected]