STATE OF ARIZONA Land of Opportunity Montreal – May 20, 2009.

STATE OF ARIZONA

Land of Opportunity

Montreal – May 20, 2009

Employment Ranking in ICT

116,842 High-Tech Jobs in 2006 AZ showed a 5% increase adding 5,200 new High-Tech jobs

$74,206 Avg. High-Tech Salary $34,680 More Than Avg. Private Sector Salary $

Arizona’s Asset: Phoenix

Top Large Metro for Recruitment and Attraction 

Top 10 Best States for Business

#3 State for Cost of Labor - Business Facilities ranked Arizona 3rd in terms of cost of

labor based on unionization rates, unemployment insurance tax rates, worker’s

compensation premium rates, average hourly pay in manufacturing, average

annual pay in the private sector, and the annual cost of health coverage.

Top 10 Megapolitans

Greater Phoenix is part of the Sun Corridor Megapolitan, one of 10 megapolitans

named by CNN Moneyexpected to see the bulk of an estimated $25 trillion

investment in the US by 2030.

Strong Electronics and Aerospace Industries

• In aerospace: Honeywell Aerospace, General Dynamics,Boeing

Helicopters

• Five large semi-conductor plants in the region: Intel, On

Semiconductor, ST Microelectronics, Microchip, Freescale

• Large printed circuit and electronics manufacturers: Sunstrand-

Hamilton, White Electronics, Avnet

• Stable climate for data storage & processing

IT Industry Highlights – Greater Phoenix Area

1,400 IT Companies in Metro Area in 2004

• 119 Software Publishers, with 3,415 employees

• 1,355 Computer systems design and related service companies, with 14,380 employee

• 295 Internet Service Providers & Data Processors, with

7,560 employees – Low risk environment for data storage centers

• 468 Telecommunications companies, including cellular and satellite, with 17,016 employees

– Example is Hypercom Corp in Phoenix which makes wireless payment terminals

Local Occupational Trends

Between 2008 and 2018, employment in Greater Phoenix is projected to grow for occupations

such as network systems and data communications analysts (59.3%), computer software

engineers, applications (44.8%), and network and computer systems administrators (44.7%).

The average wage in the IT services sector in Greater Phoenix was $50,570 in 2006.

Arizona’s Asset: Tucson

IT Industry Highlights - Tucson and Southern Arizona

1,200 local companies, 50,000 employees, $4 billion in revenues                                                                                                                                Major Employers

Citi (2,000), IBM Storage Technology Division (1,500), Afni(1,500), Intuit (1,272), Teletech (1,050), Texas Instruments (643), Convergys Corp. (600), Misys Healthcare Systems (600) , Breault Research Organization, Inc. (45).

Other FactsFor the second year in a row, Tucson ranked 3rd on a list of the most technological-advanced cities with a population above 250,000 in the 2007 Digital Cities Survey.

Arizona optics at a glance

• 68 percent of firms are in Pima County and 28 percent are in Maricopa County.

• 46 percent of optics firms have been in operation for more than 10 years.

• 56 percent of firms export to other countries.

• 25,535 people are employed in Arizona's optics industry.

• Local optics companies employ an average of 25 people each.

• The Arizona optics industry has annual revenue of more than $2 billion.

• Arizona companies have been involved in major international projects, including Composite Mirror Applications — recently honored by the European Organization for Nuclear Research for its work on the Large Hadron Collider.

Tucson: The Optics Valley

Key Optics Valley Technologies

Fiber Optics

Lasers and Semiconductors

Metrology Instrumentation

Precision Fabrication

High-Volume Plastic Optics

Modeling Software

Optics Research

Positioning Equipment

Microscopes and Telescopes

Opto-Electronic & Image Processing

Thin Film Coatings.

Tucson: The Optics Valley

A competitive fiscal environment

1. Corporate Income Tax Structure Favourable to International Firms

– No “Throw-back” Provision

2. Competitive Wages with Low Payroll Taxes

– Arizona Labor Wage Rates 14% Below National Average

– Worker’s Compensation and Unemployment Insurance Rates Lowest in Western/

Southwestern Regions of the US, Lower than 92% of US

3. Pro-Business Environment

– No Corporate Franchise Tax

– No Business Inventory Tax

– No Income Tax on dividends from Out of State subsidiaries

– No Worldwide Unitary Tax

– Progressive Tax Environment

– Access to Capital

Incentives: Arizona Innovation Accelerator Program

Angel Investment Tax Credit Program

The tax credit is 30-35% of the investment amount depending on the type of company

invested in.

The investor can begin claiming the tax credits on the tax return for the year following the

investment year.

Eligibility:

Arizona small business that has 2 full-time equivalent employees & has less than $2

million in total assets, exclusive of IP. (embryonic stem cell research are not eligible).

An Investor who makes a minimum investment of $25,000 in a business certified by

Commerce & does not own more than 30% of the voting power .

Incentives: Arizona Innovation Accelerator Program

AZFAST Grants: Market & Technology Assessment Grants

Arizona Innovation Connection ~ 4,000 subscribers

Business Development Coaching ~ 150 clients

Partnerships & Networking Opportunities

Eligibility:

Arizona Presence

Less than 100 employees OR less than $4M annual revenue

Seeking to submit Small Business Innovation Research (SBIR) or

Small Business Technolgy Transfer (STTR) Federal funding Proposals

Technology in Targeted Industries

Incentives: Arizona Innovation Accelerator Program

Technology & Market Assessment Grants

Go/No Go© Assessment - Foresight Science & Technology

–Identifies ‘showstoppers’ to commercialization before resources are spent

–$2,000 Value -$300 Match Required

Assessment – RTI (Research Triangle Institute)

–Examines Commercial Potential, Identifies Viable Disposition Strategies for Technology Allowing Informed Decisions to be Made

–$ 3,500 Value -$500 Match Required

Incentives: Arizona Innovation Accelerator Program

Technology & Market Assessment Grants

Market Assessments: Quicklook© -Foresight

–Commercialization Feasibility Study; $4,500 Value -$700 Match Required

Assessment -RTI

–Characterizes the Market Forces that Effect Potential Commercialization; $ 7,500 Value -$1,000 Match Required

Who’s Eligible?Technology & Market Assessment Grants

A physical presence in Arizona

Less than 100 employees OR

Less than $4 Million Annual Revenue

Primary Business Must Be in a Target Technology Industry

University of Arizona Science & Technology Center

Arizona’s First University: 37,000 students, 346 degrees; 7,782 degrees awarded

Ranked 13 by National Science Foundation 

2007 gifts and grants totalled more than $463 million

Top 10 NASA grant recipient; #1 in space science research

1,345 acres; 345 acres developed in “Project”

2 million square feet of office, laboratory and production space

Extensive infrastructure and tenant services

Located in the fastest growing region of the Tucson metropolitan area

15 minutes to Tucson International Airport

Arizona’s Incubators

University of Arizona Science & Technology Center

Emphasis on companies in these industry clusters: Information Systems, Optics/Photonics, Aerospace,

Border Technology

$2.4 billion economic impact in 2007

Contributes 13,247 jobs in regional economy

Fostering technology development from the laboratory to the marketplace:

– Strengthen and enhance the educational, research and outreach missions of the UA

– Contribute to the discovery and development of new technologies

– Assist in the development and growth of high technology companies

– Contribute to the economic development of the community and state

32 companies, 7000 + employees

5 Fortune 500 anchor companies: Canon, Citigroup, General Dynamics, IBM, Raytheon

Established technology companies: Dilas, Cognis.

Arizona’s Incubators

Arizona State University

ASU helps your company take advantage of the possibilities SkySong creates, a number of

business services and programs are offered or facilitated by Arizona State University.

Access to New Clients and Technologies: A dedicated global business development director who

works with businesses engaged with and located at SkySong to generate business leads in the

U.S. market.

SkySong Corporate Liaison: ASU SkySong offers a dedicated corporate liaison to help companies

located at SkySong find and connect with the proper resources of the University, which may

include partnership opportunities with ASU researchers, educational opportunities, computing/IT

resources, libraries and intellectual capital and amenities such as Karsten Golf Course.

Arizona’s Incubators

Arizona State University

Business Education: ASU Technopolis offers training, mentoring and networking services for

innovation-based early-stage U.S. companies and global companies seeking to enter the U.S.

market.

Capital Networks: ASU Technopolis organizes Invest Southwest, the largest capital conference in

the U.S. Southwest. It also has an extensive venture capital and angel network.

Product Development: InnovationSpace, an ASU program, provides sponsored project

development services in its on-site space.

Research, Intellectual Property & Licensing: ASU has a research enterprise of over $238 million in

diverse areas applicable to commercial exploitation.

Workforce: ASU has over 67,000 students and produces 14,000 graduates annually.

Arizona’s Incubators

Venture Capital Opportunities

Invest Southwest is the premier capital conference in Arizona and the Southwest. This event connects the region’s most promising ventures with knowledgeable investors.

Presenting companies have received more than a quarter billion in investment dollars since inception of the conference in 1992.

On December 9-11, 2009, investors and venture capitalists from across the country will gather at the Four Seasons Resort Scottsdale at Troon North in Scottsdale to see the “Best of the Southwest” present their business plans and investment opportunities. The event also includes an investor seminar, a nationally-known keynote speaker, and a presenting company forum.

Partnerships among Public-Private Organizations

Regional Partners:

Phoenix: GPEC – Greater Phoenix Economic Council | www.gpec.org

Tucson: TREO – Tucson Regional Economic Opportunities | www.treoaz.org

National Science Foundation / Semiconductor Research Corporation Engineering Research Center at

UA develops the science, technology and educational methods needed to lead the semiconductor

industry on environmental issues.

The Center for Solid State Electronics Research provides a wide range of laboratory facilities for materials

synthesis, processing and analysis. It is a national leader in the crucial area of solid state electronics.

Come Visit Arizona

1. Golf courses you say, well you have 400 plus course to choose from.

2. 300 + days of sunshine.

3. Major Professional Sports Teams

Arizona Department of Commerce – Office in Canada

Jason Rose

Authorized investment representative

State of Arizona - Arizona Department of Commerce

Tel.: (514) 664-4772 - Cell.: (514) 910-1331 - Fax: (514) 336-5086

4055-105, Sainte-Catherine West

Montreal, QC H3Z 3J8 CANADA

 [email protected] |  www.azcommerce.com