Welcome to the 2013 State of the Industry: Technology in Georgia Report. TAG is a leading industry association dedicated to educating, promoting, influencing and uniting the technology industry in Georgia. This report contains information on the current state of this industry as well as results from our TAG Technology Decision-Makers Survey primary research study. In addition, our “Where Georgia Leads” maps are presented below, providing an interactive view of the state’s foremost technology fields and the companies moving these industries. We hope you find this information valuable. Please take the time to view our partner, gold and silver sponsor pages. Without their support, this initiative would not be possible.

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Georgia Department of Economic Development

The TAG State of the Industry Report would not be possible without the sponsorship of the Georgia Department of Economic Development.

Training Offered
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 - Source: 2012 Technology Decision-Makers Survey

Most respondents to the Technology Decision Makers survey explained that their businesses offer some type of employee technology training. Nearly 60 percent said they train entry-level workers to make up for skills they are lacking. And nearly two-thirds of the respondents said they offer a range of training for workers who have moved beyond entry-level status. This training was most often described as continuing education or professional development to keep workers current on new technologies. Less than one-third of the respondents offered training for older workers to transition into entry-level technology jobs.

The App Economy: Jobs Attributed to the App Economy in 2012
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 - Source: CTIA - The Wireless Association

The significant presence of such companies as Verizon and AT&T combined with media giants such as Turner and Cox have contributed to a ecosystem conducive to the emerging app economy. These large enterprises have joined forces with emerging companies such as Airwatch to create an app economy in Georgia that produced 24,000 jobs in 2012, according to a report by CTIA - The Wireless Association. This placed Georgia as a top 5 app economy state in terms of the number of jobs, the report said.

Economic Impact Attributed to the App Economy in 2012
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 - Source CTIA - The Wireless Association

The wages paid to Georgia's 24,000 app economy employees generate a statewide economic impact of more than $1 billion as they ripple through the economy, according to a report by CTIA - The Wireless Association. The study found that Georgia is among only seven states where the app economy generated an economic impact greater than $1 billion. In addition to the states listed in the benchmark comparison below, New Jersey and Washington were also on the list.

Most Important Technology Initiatives
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 - Source: Technology Decision Makers Survey

Mobility and cloud computing were again ranked as the two most important technology initiatives by a survey of Georgia's Technology Decision Makers. However, based on an aggregate ranking of responses from the Survey for 2012, a shifting in other priorities occurred. Reflecting the improving economy, talent acquisition and development ranked third, while business intelligence/analytics debuted on the list for the first time. Security remained on the list, but slipped to fifth place after appearing at the top of the list in 2010.

Entry Level Workers - Skills Assessment
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 - Source: 2012 Technology Decision-Makers Survey

In rating the readiness of Georgia's entry-level technology workers, respondents to the Decision Makers survey found that the majority of these workers either met minimum requirements or exceeded them in all categories polled. Basic Math skills and Ethics/Personal Integrity rated the highest, while Written Communication and Critical Thinking/Problem Solving rated the lowest.

Entry Level Worker Preparedness
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 - Source: 2012 Technology Decision-Makers Survey

Georgia's technology decision makers do not believe that a high school education alone is enough to prepare an entry level worker for a job in the state's technology sector. A majority of the respondents felt that a technical college could be a viable alternative to college for most students interested in the technology field. However, an overwhelming majority of the respondents said that workers are prepared for jobs in Georgia's technology sector once they have graduated college with a technology degree.

Responsibility for Technology Skills
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 - Source: 2012 Technology Decision-Makers Survey

Georgia's technology decision makers favored the state's colleges and universities as the party most responsible for preparing entry level workers for jobs in the technology sector. Nearly 45 percent of the respondents said colleges and universities were responsible, while slightly more than 20 percent cited the public education system. About 13 percent of the respondents said employers were responsible, while just 8 percent said the responsibility rested with the technical colleges.

Georgia's Strengths for Technology Business
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 - Source: 2012 Technology Decision-Makers Survey

Technology Decision-Makers were asked: "What are the strengths that Georgia provides as a location for conducting technology related business?" The chart below reflects the percentage of responses, which shows that the state's perceived favorable cost of living was the leading cited strength followed by Atlanta's airport and the state's universities and colleges.

Total Annual VC Funding in Georgia
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 - Source:  PriceWaterhouseCoopers  MoneyTree Report

Venture capital invested in Georgia companies sank to a low in 2012 not seen since 1996, which was just before the 1990s technology boom began. Georgia's $264.76 million in venture capital in 2012 was down 31 percent from the previous year and significantly off the pace of the best year in the past decade ($500.54 million in 2004). Venture capital investing nationally in 2012 was down about 10 percent. The number of deals funded in Georgia, 54, was down from a revised 60 deals completed in the previous year.

Strategic Investments Announced for Georgia
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 - Source:  Based on data collected from Georgia Department of Economic Development and various press reports

Technology companies have announced increasing amounts of strategic capital investments earmarked for Georgia operations including new headquarters, research centers, data centers and production facilities. In 2010, the first year that the Technology Association of Georgia tallied this data, companies announced planned investments totaling about $1 billion that would lead to an anticipated 5,000 new jobs. In 2012, announced strategic spending surged to $2.7 billion with expectations of creating 8,000 new jobs.

Market Share of Total VC Dollars: Select Benchmark States
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 - Source:  Market share analysis based on data from PricewaterhouseCoopers MoneyTree Report

Market share trends at the top and bottom of the venture capital market continued in 2012. Although overall venture capital investment declined by nearly $2 billion in 2012, companies in California increased their share of the investment pool to more than 53 percent. At the other end of the market, Georgia's share of venture capital fell to its lowest level since the investment boom of the late 1990s. Key regional benchmark states of North Carolina and Florida also had significant erosion in venture capital investment with their share of these investments falling below 1 percent.

Georgia's Total Annual Technology Payroll
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 - Source: U.S. Bureau of Labor Statistics

Georgia's technology sector saw increasing numbers of workers and higher wages which pumped $2 billion of new payroll spending into Georgia’s economy in 2012. Surging beyond pre-recession levels, the state’s technology payroll reached $22.6 billion. This growth exceeded the national average and accounted for more than a third of all 2012 payroll growth in Georgia.

Open Technology Positions
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 - Source: 2012 Technology Decision-Makers Survey

At the time of the Technology Decision-Makers Survey in the Fall of 2012, 59.3 percent of the respondents said they had open technology positions to fill. Of these, 91 percent said they were actively attempting to fill their open technology positions. In terms of filling those positions, 51.9 percent said they filled their open positions in less than three months, but 42 percent said it took between four and six months to fill their positions.

Georgia's Technology Employment
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 - Source: U.S. Bureau of Labor Statistics

Georgia's economy has been boosted by a growing technology industry. The technology sector led the state’s employment recovery generating nearly 16,000 jobs over the past two years - more than any other major sector - to reach 263,000 workers. Over this two-year period, technology jobs represented more than 20 percent of all new jobs created in the state.

Science & Engineering Degrees: Pct. of all Degrees
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 - Source:  U.S. Census Bureau; Statistical Abstract of the U.S. 2012; based on 2010 data compiled by the National Science Foundation

Science and engineering degrees represent 32.1 percent of all degrees issued by higher education institutions in the United States. At 33.5 percent, Georgia is above the national average and ranks fifth among all of the benchmark states compared for this study.

Key Findings Overview
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 - 2013 State Of The Industry

The Technology Association of Georgia is pleased to present our seventh annual State of the Industry: Technology in Georgia Report. As with last year, the 2013 report is made available in a web-based format, and will continue to be linked to TAG and sponsor websites, which collectively receive over a million unique visitors every year. Reports from previous years will be archived and accessible from our main site. This year’s report will allow visitors to customize their experience by setting which sections to highlight and it will save these selections to display for future visits. TAG’s State of the Industry Report has become an essential tool for technology industry’s decision-makers. It is our hope that this new format will continue to benefit our ever-increasing readership.

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