Summary of Results with Regional Comparisons

National Survey of Technology,

Policy and Strategic Issues

Results for: North Carolina Technology Association

November, 2012

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

Research Methodology and Background

About TECNA | CompTIA | TechVoice

About TECNA

The 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 CompTIA

CompTIA 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 TechVoice

TechVoice 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 Research

The 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. This report contains data specific to the North Carolina Technology Association. The sample size for this segment is

38.

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 research@comptia.org.

Profile of Survey Respondents

Industry Sector of Survey Respondent

Information technology (IT) or telecommunications

Professional services (non IT)

Healthcare/Medical

Media/Publishing/Entertainment

Financial/Banking/Insurance

Education

Advanced manufacturing (non IT sector)

Life sciences

Environmental or energy technology

Retail/Wholesale

Government (federal, state, local)

AMTUC (Agriculture, Mining, Transportation, Utilities, Construction)

Hospitality/Food/Beverage

Advanced materials

Other industry sector

Overall

43%

9%

6%

6%

6%

5%

1%

0%

0%

7%

4%

4%

3%

2%

1%

North Carolina

66%

3%

3%

3%

0%

0%

3%

0%

0%

8%

5%

0%

8%

3%

0%

Total Number of Employees at Firm of Survey Respondent

Less than 10

10 to 24

25 to 99

100 to 499

500 to 999

Overall

34%

15%

18%

15%

3%

North Carolina

11%

18%

21%

21%

8%

1,000 or more employees 15% 21%

Source: TECNA

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

Base: 38 North Carolina Technology Association executives

Geographic Segmentation Categories

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

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

Section 1: Business Sentiment

Business Sentiment Rating

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

61

63

61

63

61

64

66

67

68 68

46

47

46 47

48

Northeast

Midwest

South

West

North Carolina

U.S. Economy

Rating

Tech Sector

Rating

My Company

Rating

Source: TECNA

Base: 1,076 senior U.S. technology and business executives

Base: 38 North Carolina Technology Association executives

Expected Changes in Business Investments

Percent indicating a planned increase in investment over next 6 months

Planned Increase

Investments in new products or business lines

Staffing levels in technical positions (e.g. engineers, programmers, help desk, etc.)

Marketing/advertising expenditures

Technology expenditures

Staffing levels in non-technical positions

(e.g. sales, marketing, project management, etc.)

Staff training or professional development

Business travel

Capital expenditures (e.g. non technology)

Cost cutting

North

Region

59%

59%

57%

53%

51%

44%

42%

32%

25%

49%

41%

46%

36%

23%

Midwest

Region

58%

56%

52%

55%

South

Region

53%

54%

48%

46%

West

Region

64%

59%

56%

54%

North

Carolina

55%

63%

39%

53%

47% 55% 50%

36%

33%

26%

33%

45%

42%

38%

27%

32%

39%

21%

34%

Source: TECNA

Base: 1,078 senior U.S. technology and business executives

Base: 38 North Carolina Technology Association executives

Rating of Concerns that Could Inhibit Growth

Timeframe: over next 6 months

Stalled recovery

General lack of confidence/paralysis

Unexpected shock (e.g. financial crisis, spike in oil prices)

Access to credit/capital

Government regulation

Weak corporate demand

Labor prices/availability of talent

Lower margins

Weak consumer demand

Domestic competition

Disruptive technologies or business models

Overseas competition

Stock market volatility

Input/commodity price inflation

Weak export market

47%

54%

58%

47%

3%

5%

0%

4%

16%

13%

16%

11%

12%

21%

22%

21%

22%

26%

19%

26%

36%

34%

36%

29%

29%

31%

36%

37%

31%

34%

North Carolina

Overall

Source: TECNA

Base: 1,078 senior U.S. technology and business executives

Base: 38 North Carolina Technology Association executives

Section 2: Policy Positions

Support for Policy Initiatives That May Spur

Growth or Innovation in the Tech Sector

Policy Proposal

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

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

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

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

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

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

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

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

Creating more incentives to build out the broadband infrastructure

Making more spectrum available for creation of new wireless applications

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

North

Region

Midwest

Region

South

Region

65% 57% 55%

42%

43%

48%

38%

32%

24%

20%

19%

16%

14%

52%

49%

43%

44%

31%

21%

21%

25%

17%

14%

50%

46%

37%

39%

35%

24%

20%

22%

17%

20%

West

Region

North

Carolina

54% 53%

52%

50%

46%

46%

38%

26%

23%

19%

16%

17%

42%

45%

32%

42%

24%

18%

5%

24%

13%

18%

Preference for Government Involvement in Promoting

Growth and Innovation in the Tech Sector

32%

29%

41%

37%

31%

38%

43%

40%

41%

55%

30%

27%

18%

21%

13%

Northeast

Midwest

South

West

North Carolina

NET Low

Government

Involvement

Moderate

Government

Involvement

NET High

Government

Involvement

Source: TECNA

Base: 1,051 senior U.S. technology and business executives

Base: 38 North Carolina Technology Association executives

Rating of How State/Local Government

Represented the Interests of the Tech Sector

Timeframe: during past two years

36%

31%

35%

42%

37%

36%

40%

43%

38%

39%

27%

30%

22%

20%

24%

Northeast

Midwest

South

West

North Carolina

NET Well Just Okay NET Poor

Source: TECNA

Base: 1,043 senior U.S. technology and business executives

Base: 38 North Carolina Technology Association executives

Rating of Quantity and Quality of Tech

Talent in State and/or Region

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

11%

22%

Moderate shortage

Equilibrium, supply roughly

equals demand

Moderate surplus

3%

10%

Significant surplus in terms of quantity and quality of tech talent

3%

2%

16%

24%

50%

61%

North Carolina

Overall

Source: TECNA

Base: 1,049 senior U.S. technology and business executives

Base:38 North Carolina Technology Association executives

Assessment of Tech Sector Potential

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

67%

70%

68%

61%

74%

25%

23% 23%

28%

24%

Northeast

Midwest

South

West

North Carolina

2% 2% 2%

4%

0%

Out-performing its potential

Performing at about its potential

Under-performing its potential

Source: TECNA

Base: 1,046 senior U.S. technology and business executives

Base: 38 North Carolina Technology Association executives

Section 3: Technology Trends

Ranking of Importance of Tech Sector Segments

Information technology or telecommunications

Life sciences or healthcare technology

Advanced manufacturing

Environmental or energy technology

Defense / military technology

Advanced materials

0%

5%

0%

1%

3%

9%

7%

11%

34%

34%

44%

53%

North Carolina

Overall

Source: TECNA

Base: 1,042 senior U.S. technology and business executives

Base: 38 North Carolina Technology Association executives

Assessment of Technologies as Contributors to

Growth in State/Region Over Next Two Years

Overall

64%

North

Carolina

73% Big Data analytics, data mining and business intelligence

38%

38%

27%

32%

27%

43%

32%

35%

51%

70%

70%

70%

30%

27%

46%

35%

19%

19%

27%

3%

5%

11%

36%

35%

34%

33%

31%

30%

29%

29%

60%

59%

59%

48%

42%

39%

38%

37%

26%

24%

23%

17%

14%

9%

Mobile apps development

Healthcare tech

Cloud-based software development (SaaS)

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

Wireless services

E-commerce or mobile commerce

Cloud implementation, integration or consulting services

Green tech

Mobile implementation, integration or consulting services

Mobile device development (Tablets, smartphones, accessories)

Biotech

Business process automation

Social solutions and technologies

Big Data storage and management

Enterprise collaboration (Video conferencing, collaboration tools)

Cloud data centers

Data visualization

Location-based services and technologies

Aggregation/Orchestration (coordination among multiple service providers)

Machine-to-machine learning or interaction

Defense tech

Telecom equipment development