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: SunstrandHamilton, 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 Facts
For 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.
Tucson: The Optics Valley
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.
A competitive fiscal environment
1.
Corporate Income Tax Structure Favourable to International Firms
–
2.
No “Throw-back” Provision
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
Arizona’s Incubators
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.
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
arizona@cidep.ca | www.azcommerce.com