National Survey of Technology, Policy and Strategic Issues

November, 2012

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

Results for: North Carolina Technology Association

Research Methodology and Background

About TECNA | CompTIA | TechVoiceAbout TECNAThe 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 CompTIACompTIA 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 TechVoiceTechVoice 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 ResearchThe 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 RespondentsIndustry Sector of Survey Respondent

Overall North CarolinaInformation technology (IT) or telecommunications 43% 66%

Professional services (non IT) 9% 3%Healthcare/Medical 6% 3%

Media/Publishing/Entertainment 6% 3%Financial/Banking/Insurance 6% 0%

Education 5% 0%Advanced manufacturing (non IT sector) 4% 5%

Life sciences 4% 0%Environmental or energy technology 3% 8%

Retail/Wholesale 2% 3%Government (federal, state, local) 1% 0%

AMTUC (Agriculture, Mining, Transportation, Utilities, Construction) 1% 3%Hospitality/Food/Beverage 0% 0%

Advanced materials 0% 0%Other industry sector 7% 8%

Total Number of Employees at Firm of Survey Respondent

Overall North CarolinaLess than 10 34% 11%

10 to 24 15% 18%25 to 99 18% 21%

100 to 499 15% 21%500 to 999 3% 8%

1,000 or more employees 15% 21%Source: TECNA

Base: 1,082 senior U.S. technology and business executivesBase: 38 North Carolina Technology Association executives

Geographic Segmentation Categories

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

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

Section 1: Business Sentiment

U.S. Economy Rating

Tech Sector Rating

My Company Rating

46

6164

47

6366

46

6167

47

6368

48

61

68

Northeast

Midwest

South

West

North Carolina

Source: TECNABase: 1,076 senior U.S. technology and business executivesBase: 38 North Carolina Technology Association executives

Business Sentiment RatingRating on a 100-point scale | 100=highest | 0=Lowest

Planned Increase North Region

Midwest Region

South Region

West Region

North Carolina

Investments in new products or business lines 59% 58% 53% 64% 55%

Staffing levels in technical positions (e.g. engineers, programmers, help desk, etc.) 59% 56% 54% 59% 63%

Marketing/advertising expenditures 57% 52% 48% 56% 39%

Technology expenditures 53% 55% 46% 54% 53%

Staffing levels in non-technical positions (e.g. sales, marketing, project management, etc.)

51% 49% 47% 55% 50%

Staff training or professional development 44% 41% 36% 45% 32%

Business travel 42% 46% 33% 42% 39%

Capital expenditures (e.g. non technology) 32% 36% 26% 38% 21%

Cost cutting 25% 23% 33% 27% 34%

Expected Changes in Business InvestmentsPercent indicating a planned increase in investment over next 6 months

Source: TECNABase: 1,078 senior U.S. technology and business executivesBase: 38 North Carolina Technology Association executives

Weak export market

Input/commodity price inflation

Stock market volatility

Overseas competition

Disruptive technologies or business models

Domestic competition

Weak consumer demand

Lower margins

Labor prices/availability of talent

Weak corporate demand

Government regulation

Access to credit/capital

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

General lack of confidence/paralysis

Stalled recovery

4%

5%

12%

13%

16%

19%

22%

22%

31%

31%

36%

36%

36%

47%

54%

0%

3%

11%

16%

34%

26%

21%

21%

37%

29%

29%

34%

26%

58%

47%

North Carolina

Overall

Rating of Concerns that Could Inhibit GrowthTimeframe: over next 6 months

Source: TECNABase: 1,078 senior U.S. technology and business executivesBase: 38 North Carolina Technology Association executives

Section 2: Policy Positions

Policy Proposal North Region

Midwest Region

South Region

West Region

North Carolina

Doing more to expand access to capital for startup and high growth companies 65% 57% 55% 54% 53%

Doing more to advance STEM education at the K-12 level 42% 52% 50% 52% 42%

Achieving a simplified personal and corporate tax structure, including closing corporate tax loopholes 43% 49% 46% 50% 45%

Making the research and development (R&D) tax credit permanent 48% 43% 37% 46% 32%

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

38% 44% 39% 46% 42%

Expanding visa categories and H1B caps to keep foreign nationals with advanced STEM skills in the U.S. 32% 31% 35% 38% 24%

Advancing a pro-trade agenda to expand U.S. exports of technology products 24% 21% 24% 26% 18%

Expanding incentives and easing regulations for commercialization of academic or government applications 20% 21% 20% 23% 5%

Creating more incentives to build out the broadband infrastructure 19% 25% 22% 19% 24%

Making more spectrum available for creation of new wireless applications 16% 17% 17% 16% 13%

Tax holiday for the repatriation of profits from overseas by U.S. tech companies 14% 14% 20% 17% 18%

Support for Policy Initiatives That May Spur Growth or Innovation in the Tech Sector

32%

38%

30%29%

43%

27%

41% 40%

18%

37%

41%

21%

31%

55%

13%

Northeast

Midwest

South

West

North Carolina

Preference for Government Involvement in Promoting Growth and Innovation in the Tech Sector

Source: TECNABase: 1,051 senior U.S. technology and business executivesBase: 38 North Carolina Technology Association executives

NET Well Just Okay NET Poor

36% 36%

27%

31%

40%

30%

35%

43%

22%

42%

38%

20%

37%39%

24%

Northeast

Midwest

South

West

North Carolina

Rating of How State/Local Government Represented the Interests of the Tech Sector Timeframe: during past two years

Source: TECNABase: 1,043 senior U.S. technology and business executivesBase: 38 North Carolina Technology Association executives

Significant surplus in terms of quantity and quality of tech talent

Moderate surplus

Equilibrium, supply roughly_x000d_ equals demand

Moderate shortage

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

2%

10%

16%

50%

22%

3%

3%

24%

61%

11%

North Carolina

Overall

Rating of Quantity and Quality of Tech Talent in State and/or Region

Source: TECNABase: 1,049 senior U.S. technology and business executivesBase:38 North Carolina Technology Association executives

Out-performing its potential

Performing at about its potential

Under-performing its potential

2%

25%

67%

2%

23%

70%

2%

23%

68%

4%

28%

61%

0%

24%

74%

Northeast

Midwest

South

West

North Carolina

Assessment of Tech Sector PotentialRating of the respondent’s belief of the degree to which the tech sector

in respondent’s state/region is reaching its potential, or not

Source: TECNABase: 1,046 senior U.S. technology and business executivesBase: 38 North Carolina Technology Association executives

Section 3: Technology Trends

Advanced materials

Defense / military technology

Environmental or energy technology

Advanced manufacturing

Life sciences or healthcare technology

Information technology or telecommunications

1%

5%

7%

9%

34%

44%

0%

0%

11%

3%

34%

53%

North Carolina

Overall

Ranking of Importance of Tech Sector Segments

Source: TECNABase: 1,042 senior U.S. technology and business executivesBase: 38 North Carolina Technology Association executives

Assessment of Technologies as Contributors to Growth in State/Region Over Next Two Years

OverallNorth

Carolina64% 73% Big Data analytics, data mining and business intelligence60% 51% Mobile apps development59% 70% Healthcare tech59% 70% Cloud-based software development (SaaS)48% 70% Everything-as-a-service (e.g. managed help desk, networks, security, etc.)42% 30% Wireless services39% 27% E-commerce or mobile commerce38% 46% Cloud implementation, integration or consulting services37% 35% Green tech36% 38% Mobile implementation, integration or consulting services35% 38% Mobile device development (Tablets, smartphones, accessories)34% 27% Biotech33% 32% Business process automation31% 27% Social solutions and technologies30% 43% Big Data storage and management29% 32% Enterprise collaboration (Video conferencing, collaboration tools)29% 35% Cloud data centers26% 19% Data visualization24% 19% Location-based services and technologies23% 27% Aggregation/Orchestration (coordination among multiple service providers)17% 3% Machine-to-machine learning or interaction14% 5% Defense tech9% 11% Telecom equipment development