RESEARCH APPROACH: SOURCES AND METHODOLOGY
Porter Research employed the following methodology and sources to develop the 2018 State of the Industry Report: Technology in Georgia research report. This analysis represents our best efforts to obtain insight to the key factors impacting the technology sectors within the state of Georgia during 2017.
1. SET STUDY KEY THEMES:
Conducted key stakeholder interviews (10) to determine key themes: Interviews were conducted with selected GA technology stakeholders and TAG Board Members to determine what topics would be of most interest to tell the GA technology story. Representing key business, academic, and public policy leaders, the consensus was that Talent, Capital, and Innovation continue to be the most relevant topics for the 2017 Study.
2. EVALUATING THE KEY DRIVERS OF TECHNOLOGY SECTOR:
Defining the “technology” sector”: Relevant 6-digit NAISC codes were used to define the “technology” industry sector and size technology talent analysis; these codes used were consistent with previous study. To request a list of the specific NAICS codes used in defining the technology industry for this report, please send an email to Joseph Santoro at Joseph@tagonline.org.
- Employment and wages: Used Bureau of Labor Statistics "Quarterly Census of Employment and Wages"; historical series based on 2Q data (month 2), using data provided at 6-the digit NAISC code level for defined technology sectors. No forecasting was employed for the 3rd and 4th quarters. This approach is consistent with that used to produce the “Silicon Industry Index”. Variations from past historical series are largely attributable to changes and restatements from the BLS over the past year and no forecasting for the 3rd and 4th quarters. Only used private employment data series ("Own_code" = 5); Wages were not adjusted for cost of living regional differences.
- MSA Employment Data and Sector Analysis: For smaller MSA’s, BLS data is often not available at the 6 digit NAISC level due to lack of reporting or to protect confidentiality. Therefore, the MSA-level employment analysis required that we look at technology occupations within key technology sectors (4-digit NAICS code level). Data was obtained from the Bureau of Labor Statistics, Occupational Employment Statistics (OES) data series (May, 2015, May, 2016). May, 2017 data will not be available till March, 2018. We applied similar approach provided in past years: determined the level of technical occupations within given industries. Technical occupation codes were provided. Industries were defined by relevant NAICS codes.
- Venture capital Invested: PwCMoneyTree. The MoneyTree Report is a quarterly study of venture capital investment activity in the United States. Historical data series for each state, stage, and industry were obtained to determine deal activities and total venture capital funding.
- Total Funding: CB Insights data provided total capital investment within GA, by year and stage.
- Innovation Index Comparison by State (Index 1.0): Source: "Innovation in American Regions”, U.S. Commerce Department, Economic Development Administration; Work conducted by Purdue Center for Regional Development, Indiana Business Research Center at Indiana University's Kelley School of Business, 2017. The Innovation Index 1.0 compares regional performance to the United States and is calculated from 4 component indexes. The weight for each variable is listed below. Variables in the Innovation Index are derived from both official government statistical agencies and several private, proprietary sources, including Moody’s economy.com, Decision Data Resources, Economic Modeling Specialists, Inc. and VentureDeal. The Innovation Index 1.0 is based on a weighted average of various measures: Human Capital (30%), Economic Dynamics (30%), Productivity and Employment (30%), and Economic Well-being (10%). All indexes are set to the national average, i.e, national average = 100)
- Innovation Index Comparison at MSA and County Level (Index 2.0) The Innovation 2.0 project provides insight into the innovation capacity and innovative output of a region.
- This version contains more than 50 new measures: Innovation 2.0 expands on the previous index by adding more than 50 new measures. These measures reflect contemporary research on understanding and measuring innovation. For example, the new version of the Innovation Index includes measures that take into account regional knowledge spillovers, technology diffusion and foreign direct investment. The index and its many components and building blocks have a significantly longer time series of data items than the previous index. With the new longitudinal data, there are several new measures of change over time.
- How index calculated: Five major index categories -- 3 based Innovation inputs (Human Capital/ Knowledge Creation, Business Dynamics, and Business Profile) and 2 innovation outputs (Employment and Productivity, and Economic Well-being). All are given equal weights of 20% each.
- The Innovation Index 2.0 is not related to Index 1.0. Index 2.0 is on a continuous scale from 0 to 200. County data should only be benchmarked to other counties; same for MSA's. Relevant measures of ranking and median comparisons are extremely helpful.
3. 2017 TECHNOLOGY DECISION MAKERS STUDY
(PROPRIETARY MARKET RESEARCH OF KEY GEORGIA DECISION-MAKERS):
- Porter Research launched the primary research survey on October 31st and closed on November 20, 2017
- Screener was employed to only allow key decision-makers to participate in study
- Study population was all TAG members
- Received over 300 completes
- Good mix of respondents – particularly at the executive level: 48% of respondents were Executive level; 39% Mid-level Directors/ Managers
- 79% Georgia – Headquarterd Companies