South Florida - Leading Technology Hub? Latin America Silicon Valley?

SOUTH FLORIDA TECHNOLOGY

MARKET 2014

LATIN SILICON VALLEY – EL BARRIO DE SILICON?

By Heath Jones

http://www.linkedin.com/in/heathmjones

Think Globally, Act Locally!


S. Florida to become the

next leading technology

hub

2014 Florida Economic Highlights

Budget: ~ $1Billion Surplus going into 2015

Real Estate Cost: Miami/Ft. Lauderdale Average @ $163/SQF

Education: Per-Student Record Funding

Taxes: Extremely Business Favorable

Economic Growth: 5% in 3RDQ

Unemployment Rate: 6%

USA State Rankings for Florida

Tech Employment Growth: Rank # 2

Manufacturing & Services Export: Rank # 4

Job Churning: Rank # 4

Economic Dynamism: Rank # 6

Globalization: Rank # 10

Image Source: Google Images Filtered by Reuse RightsSource: Multiple Sources – See on Following Slides

REAL ESTATE

AVERAGE REAL ESTATE

0

200

400

600

800

1000

1200

1400

New York City San Francisco Boston Miami/Ft

Lauderdale

Metro

Dallas

Cost/SQF

Source: Zillow

S. Florida has low cost

real estate @ $163 /sqf

Image Source: Google Images Filtered by Reuse Rights

STATE

GOVERNMENT

SPENDING & FUNDING

Florida has almost $1 billion budget

surplus going into 2015 and has

record per-student funding

Image Source: Google Images Filtered by Reuse RightsSource: http://www.bizpacreview.com/2014/12/16/florida-five-gov-scott-gives-advice-to-

feds-state-budget-surplus-nears-1-billion-165732

2014 - S. FLORIDA 5% GROWTH IN 3Q

and 2015 could be even better, with

a national economy that continued

to boom in the final months of the

year.


Source: http://www.bizjournals.com/southflorida/print-edition/2015/01/02/business-leaders-tell-us-why-its-going-to-be-good.html?ana=e_sflo_rdup&s=newsletter&ed=2015-01-02&u=PNtjA2Zj1JuwfCm15UgM2g0a0893a8&t=1420210847

Unemployment Rate – Seasonally Adjusted

Source: U.S. Bureau of Labor Statistics

Florida has low unemployment

rate @ 6%

FLORIDA STATE

U.S.A RANKING?

TOP 10 STATES IN TECH JOB GROWTH

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

2014 Annual Growth

Source: Forbes http://www.forbes.com/pictures/mkl45egfli/1-texas/

Florida is 2nd Highest Tech

Employment Growth Rate

Nationwide

EXPORT FOCUS OF MANUFACTURING & SERVICESThe value of exports per manufacturing and service worker, adjusted for industry mix

Florida State Ranks # 4 in the USA with $85,953 per every manufacturing & server worker, almost double the national average.

States that win the race to provide high-quality services for the global marketplace will secure their position in the New Economy. The leading states are generally those that have high-value-added, technologically advanced manufacturing sectors.

Image Source: Google Images Filtered by Reuse RightsSource: 2014 ITIF State New Economy Index

JOB CHURNING

Florida State Ranks # 4

Why Is This Important? Steady growth in employment masks the constant

churning of job creation and destruction, as less innovative and efficient

companies downsize or go out of business and more


innovative and efficient companies grow or take

their place. While startups have a higher failure rate

than older, more established businesses, the ones

that survive have very high rates of growth and job

creation.

Source: 2014 ITIF State New Economy Index

ECONOMIC DYNAMISM

Florida State Ranks # 6

The old economy was driven by large companies facing limited competition in stable markets with high barriers to entry.

The New Economy is driven by economic dynamism and competition, exemplified by fast growing entrepreneurial companies and rapidly changing fortunes in many industries. Given this new economic paradigm, the ability of state economies to rejuvenate themselves through the formation of new, innovative companies is critical to economic vitality.

Dynamism and Competition Indicators

1. Degree of job churning

2. Number fast growing firms

3. Number and value of companies’ IPOs

4. Number of entrepreneurs starting new businesses

5. Number of individual inventor patents granted


GLOBALIZATION

Florida State Ranks # 10 in the USA

When the “old” economy emerged after World War II, the winners were states whose

businesses sold to national markets, as opposed to local or regional ones. In the New

Economy, the winners are the states whose businesses are best integrated into the world

economy, as a global orientation ensures expanding markets for a state’s industries.


STATE TAX

BENEFITS

Florida’s stable and highly favorable tax climate

NO corporate income tax on limited partnerships

NO corporate income tax on subchapter S-corporations

NO state personal income tax guaranteed by constitutional provision

NO corporate franchise tax on capital stock

NO state-level property tax assessed

Image Source: Google Images Filtered by Reuse RightsSource: http://www.enterpriseflorida.com/why-florida/business-climate/tax-advantages/

continued…

NO property tax on business inventories

NO property tax on goods-in-transit for up to 180 days

NO sales and use tax on goods manufactured or produced in Florida for export outside

the state

NO sales tax on purchases of raw materials incorporated in a final product for resale,

including non-reusable containers or packaging

NO sales/use tax on co-generation of electricity

Image Source: Google Images Filtered by Reuse RightsSource: http://www.enterpriseflorida.com/why-florida/business-climate/tax-advantages/

GEOGRAPHIC

BENEFITS

FLORIDA GEOGRAPHIC BENEFITS

Florida is the jumping off point for North American businesses looking to engage in Latin America markets

Florida represents a prime location for Latin American businesses looking to expand operations into North America


South Florida

has

3 International

AirportsImage Source: Google Images Filtered by Reuse Rights

Prime Cities you can reach in under 6 hours

Miami to San Francisco = 5h 50 m

Miami to Boston = 3h 15m

Miami to New York = 3h 10m

Miami to Dallas = 2h 55m

Miami to Mexico City, Mexico = 3h 20m

Miami to Lima, Peru = 5h 40m

Miami to Quito, Ecuador = 4h 15m

Miami to Panama City, Panama = 3h 0m

Miami to Bogota, Colombia = 3h 35m

Miami to Santo Domingo, Dominican Rep. = 2h 20m

Miami to San Juan, Puerto Rico = 2h 35m

EASY AIR-COMMUTE TIMES

Florida shares same time zone with Boston

New York

Washington D.C.

Atlanta

Bahamas

Cuba

Jamaica

Panama

Colombia

Ecuador

Peru

LIMITED JET LAG

4 IMPORTANT

TECHNOLOGY

DRIVERS

Manny Medina a premier technology leader in S.

Florida, who sold his company Terremark to Verizon in

2011, remarks, “4 things South Florida needs to be a

technology hub”


Written Source: Celia Ampel, Reporter- South Florida Business Journal

http://www.bizjournals.com/southflorida/news/2014/10/22/manny-medina-4-things-south-florida-needs-to-be-a.html?page=all/

4 things South Florida needs to be a tech hub

1. Technology Education

2. Accelerators & Incubators

3. Funding Mechanism

4. Strong Employment Base

1. Technology Education


Tech hubs develop around great technological

training, Medina said: Think Silicon Valley's

relationship with Stanford University or Boston vis-

à-vis the Massachusetts Institute of Technology.

Nova Southeastern University and Florida Atlantic

University (FAU) will join the largest technology

event eMerge America to promote this need




Technology Education

2. Accelerators & Incubators


South Florida needs to focus its efforts on

accelerators and incubators to create local tech

jobs, Medina said.

Two Examples:

• Florida Atlantic University's Tech Runway

• Fort Lauderdale's just-launched Thesis Ventures




Accelerators & Incubators

The goal of Tech Runway is to establish a

formal program for mentoring entrepreneurs

and their ventures based on the

Massachusetts Institute of Technology’s (MIT)

Venture Mentoring System (VMS).Image Source: Google Images Filtered by Reuse Rights

Written Source: http://business.fau.edu/centers/adams-center/tech-runway/index.aspx#.VKLFN14DcA

FAU’s Tech Runway

3. Funding Mechanism


A successful tech ecosystem needs venture

capital and angel investors, Medina said.

• Through Medina Capital, Manny invests in

cybersecurity and Big Data platforms that

might not be "sexy" enough for Silicon Valley.Image Source: Google Images Filtered by Reuse Rights

Source: Celia Ampel, Reporter- South Florida Business Journal


• "I have not seen a good business plan that has not been

funded… So I do believe the money is there," he said.

Funding Mechanism

4. A Strong Employment Base


• There's no shortage of demand for programmers in South

Florida — for instance, Miami coding school Wyncode placed

all of its graduates in programming jobs, Medina said.

• But he said the region doesn't have enough large companies

that can attract tech talent from Silicon Valley or New York.

• "What we're missing the most is an employment base… that

ability to say 'I've got my degree now, people are going to

compete for me'," Medina said.


Source: Celia Ampel, Reporter- South Florida Business Journal


A Strong Employment Base

http://www.bizjournals.com/southflorida/blog/2014/08/wynwood-code-schools-first-graduates-all-working.html

The Premier Events Promoting

The South Florida Technology

Community

emerge americas

6,000 Attendees

400 Participating Companies

115 Startups

105 Sponsors

150 Speakers

31 Countries

Held Annually in May

2,000 IT Professionals Attendees

400 Participating Companies

60 of South Florida’s Top IT Professionals presenting on technology topics and trends covering multiple tracks

100+ Sponsors, Exhibitors and User Groups in a celebration of South Florida’s Technology community.

Hiring Fair

Community Support raising over $75,000 in cash & toys over the past 2 years

Urban Dictionary – Palooza: an

all-out crazy party; partying at

one place with a ton of people

like there's no tomorrow

Held Annually in December

How does all of

this benefit you?

Benefit

Increases in the S. Florida technology economy means more employers, leading to

increased employment opportunities

Increases in employment opportunities, means more competing employment, leading

to pay increases

Increases in technology employment opportunities leads to a stronger economy, and

an economy that’s not dependent on tourism

Increases in a stronger economy leads to increased real estate values

If you are a S. Florida resident or looking to move to

here this can benefit you in the following ways:

Learn something about S. Florida?

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South Florida - Leading Technology Hub? Latin America Silicon Valley?

Technology

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