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Cyberstates report: Tech industry job losses declined in 2010

Wednesday, October 5th, 2011

Tech America FoundationThe U.S. high-tech industry lost 115,800 net jobs in 2010, for a total of 5.75 million workers. This two percent decline in tech industry employment was less than half of the 249,500 jobs lost in 2009, which followed several years of sustained growth, according to the TechAmerica Foundation’s 14th annual Cyberstates report.

Over the longer term of 2007 to 2010 – the span of the economic downturn – the tech industry fared better than the private sector as a whole, with a four percent decline in employment versus a seven percent decline in the private sector.

“Of the four high-tech sectors highlighted in our report, only software services added jobs in 2010 – 22,800, a one percent gain,” said Robert F. Bennett, chairman of TechAmerica Foundation.  “Of the jobs lost, 72,100 were in communications services, 53,600 were in tech manufacturing, and 12,900 were in engineering and tech services.  Fortunately, the initial numbers for 2011 look more promising in terms of job growth.”

Job growth occurred in all four tech industry sectors

TechAmerica Foundation also today released a midyear jobs report for 2011 based on a different monthly data set from the U.S. Bureau of Labor Statistics.  This report shows that between January and June 2011, the tech industry added a net 115,000 jobs, a two percent gain, not adjusted for seasonality.

During this time period, job growth occurred in all four technology industry sectors, with the fastest growth in engineering and tech services.  A 12 month review of June 2010 in comparison with June 2011 also shows growth in three of the four tech industry sectors, with job losses occurring in communication services.

“Tech jobs were down in 2010, trending with the rest of the economy, but we have fared better than the private sector as a whole over the course of the economic downturn and there are some positive signs for 2011, said Dan Varroney, acting President and CEO of TechAmerica.  “We are poised not only to grow our own industry but to support the growth of the economy as a whole.  The key to growth is to support what we call the Four T’s: technology, talent, tax, and trade.”

“Technology: We need robust federal investment in basic research to create the scientific base that companies can use to produce new products and innovations.

“Talent: We need to invest in STEM education to provide our children with the foundation in math and science that will prepare them for high paying careers while allowing highly skilled foreign nationals educated at our universities to remain in the United States and join American companies instead of returning to their home countries and competing against us.”

Tax system needs reform

“Tax: We need to reform our tax system to make capital welcome.  We are competing against countries that are aggressively implementing tax policies that lower the cost of business.  We need comprehensive tax reform that attracts investments in technology and creates a framework that encourages repatriation of profits made by foreign operations of U.S.-based corporations.

“Trade: We need to open new markets to U.S. products and services by finishing the pending Free Trade Agreements with Panama, Colombia, and South Korea and continue to pursue other opportunities to expand trade.”

Eight states added tech jobs in 2010

The state-by-state data reveal that eight states added tech jobs in 2010.  The largest gains occurred in Michigan (+2,700), the District of Columbia (+1,400), West Virginia (+400), Utah (+400), and South Carolina (+300).  On a percentage basis, the District of Columbia saw the fastest job growth in 2010 at 4.3 percent, albeit at a small base.

For the sixth straight year, Virginia led the nation with the highest concentration of tech workers – 98 of every 1,000 private sector workers in the state were employed in the tech industry.  Massachusetts and Colorado ranked second and third, respectively.

Cyberstates 2011 relies on data from the U.S. Bureau of Labor Statistics. The report provides 2010 national and state-by-state data on high-tech employment, wages, establishments, payroll, wage differential, and employment concentration. All data are the most recent available at the time of publication.

Cyberstates 2011 may be purchased for $150.  The 2011 midyear report may be freely downloaded. Both reports can be accessed at: www.techamericafoundation.org/cyberstates.

Investors rain $49M on Tower Cloud for wireless backhaul

Wednesday, October 5th, 2011

Tower cloudTower Cloud Inc., a wireless backhaul services provider, has secured $49 million in additional equity to fund its expansion into new markets throughout Florida, Georgia, South Carolina, and Alabama.

The latest round of funding was led by two of Tower Cloud’s existing investors, The Burton Partnership and Knology Inc. Tower Cloud’s other existing institutional investors include: Sutter Hill Ventures, El Dorado Ventures, Ballast Point Ventures, Kinetic Ventures, ITC Partners Fund and Noro-Moseley Partners.

For this round, two new investors joined the consortium, The Florida Growth Fund and CLR Investors. The funding was done in two phases with $13 million completed in January and $36 million completed in July. This funding follows a $20 million equity commitment by the same investor group in October 2009.

Corporate execs see Texas, NC, SC as best for business

Monday, September 19th, 2011

texas mapTexas, North Carolina and South Carolina are viewed as having the best business climates among the 50 states, according to a new survey of U.S. corporate executives.

The poll pinpointed California, New York and Illinois as the U.S. states with the least favorable business climates.

Conducted by Development Counsellors International (DCI) every three years, the “Winning Strategies in Economic Development Marketing” survey has tracked trends in economic development since its inception in 1996.

“With the battle for business more intense than ever, states and their economic development organizations need to pay close attention to the results of this survey,” said DCI President Andrew T. Levine. “Whether accurate or misguided, perceptions about a location’s business climate often play a crucial role in site selection decisions and where companies invest money and create jobs.”

Half the firms to make relocation decisions

Nearly half (46%) of the 322 corporate executive who responded to the survey indicated that their firm would make a location decision in the next 24 months – whether a move, expansion or consolidation of a manufacturing plant, offices, distribution center or other facilities. More than half (51%) said that they would outsource a portion of the site selection process to a real estate broker or site selection consultant.

Texas was the clear-cut favorite among the respondents to the survey, with 49.4% naming the Lone Star state as having one of the most favorable business climates in the nation. North Carolina ranked second with 27.8%; South Carolina has 14.3% of the votes.

Texas and North Carolina have consistently landed in the top spots since the survey began more than a decade ago.Texas has held the #1 ranking since 1999, while North Carolina has been #2 since 2002. South Carolina, Tennessee andFlorida have frequently traded top positions in the survey and 2011 marks the return of South Carolina to the #3 slot.

Low operating costs a top concern

When asked why they selected the states they did as being best for business, the corporate executives frequently cited low operating costs and a pro-business climate. In the 2008 survey, more executives pointed to the availability of a strong workforce than they did in 2011.

For the fourth consecutive time, California was deemed as having the least favorable business climate, with 70.5% of the responses. New York was named second most frequently with 46.5%, followed by Illinois (24.4%) Taxes, high costs and “anti-business climate/regulation” spurred most of the negative opinions.

The comprehensive survey also asked a series of questions to divine the most effective economic development marketing tools, the leading sources of information that influence executive perceptions of a community’s business climate and the most important factors in business location decisions.

DCI conducted the survey online, polling a random selection of C-level executives at U.S. companies with annual revenues of$25 million or more. The survey was augmented by 250 location advisors/consultants.

For a free copy of the full “Winning Strategies” survey report or an executive summary, see: www.aboutdci.com/winning-strategies.

SC Launch investing in 3 client companies

Monday, May 9th, 2011

SC LaunchSC Launch, an SCRA affiliate, today announced that three client companies will receive investments in undisclosed amounts for their continuing projects. Greenville-based Dannar, Columbia-based Senex Biotechnology and Charleston-based Madeira Therapeutics will each receive SC Launch funds after presentation to and subsequent approval by the SC Launch Board of Directors.

Based in Greenville, SC and developed by Gary Dannar, Dannar’s technology offers hybrid/battery-electric systems to reduce emissions in transportation vehicles. The Dannar – Mobile PowerStation (MPS) is a leading edge OEM of purpose built vehicles for the government roadside and “Right-of-Way” management market.

A company formed by recently-named USC Endowed Chair Dr. Igor Roninson and Dr. Lawrence Friedhoff, Senex Biotechnology develops novel therapeutics for the treatment of major diseases. Target technologies include the treatment of cancer, viral diseases and age-related diseases by targeting damage-inducible signal transduction pathways involved in cellular aging.

Located in Charleston, SC, Madeira Therapeutics was founded to develop new pharmaceutical products for unmet medical needs in the pediatric population. Currently the FDA does not run separate clinical trials for pediatric applications; doctors simply apply adult approved drugs at smaller doses for children. Madeira Therapeutics strives to ensure drug safety and efficiency for intended patients in the pediatric setting.

 

TechJournal South is a TechMedia company. TechMedia presents the annual conferences:

SoutheastVentureConference: www.seventure.org

Internet Summit: www.internetsummit.com

Digital East: www.digitaleast.com

Digital Summit: www.digitalsummit.com

SC Launch makes 2nd investment in VidiStar online clinical reporting tech

Monday, April 11th, 2011

VidiStarGREENVILLE, SC -SCRA affiliate SC Launch has made a second investment in an undisclosed amount in Greenville-based VidiStar.

VidiStar provides physicians with a solution for their clinical practice. VidiStar’s online reporting system conforms to the Digital Imaging and Communications in Medicine  structure reporting standard which auto‐populates complex data from imaging devices, such as ultrasound machines, into customized reports for efficient processing and reporting.

The technology allows physicians and health care providers to quickly review and interpret diagnostic studies, such as echocardiograms or fetal ultrasounds scans, from their office or anywhere in the world using a secure Internet connection ‐ regardless of a physician’s location.

The company has numerous customers throughout South Carolina and has also launched international operations from an office in Poland.

The VidiStar management team has more than 18 years of expertise in medical imaging technology, regulatory affairs and government regulation, and includes board‐certified medical professionals, including a practicing cardiologist with experience in echocardiography, nuclear cardiology and cardiovascular technology. The team brings more than 30 years of international and domestic sales experience.

“VidiStar’s novel technology and management expertise continue to prove that home grown knowledge-based companies can bring economic benefit to South Carolina,” said Bill Mahoney, SCRA CEO.

TechJournal South is a TechMedia company. TechMedia presents the annual conferences:

SoutheastVentureConference: www.seventure.org

Internet Summit: www.internetsummit.com

Digital East: www.digitaleast.com

Digital Summit: www.digitalsummit.com

FCC Commissioner questions state attempts to limit municipal broadband

Tuesday, April 5th, 2011

Mignon Clyburn

Mignon Clyburn

WASHINGTON, DC – Federal Communications Commissioner Mignon L. Clyburn has issued a statement saying that state efforts to limit municipal broadband deployments are new obstacles in meeting the goals of the National Broadband Plan.

In a statement issued April 4, she wrote:

“I have serious concerns that as the Federal Communications Commission continues to address broadband deployment barriers outlined in the National Broadband Plan, new obstacles are being erected that are directly contrary to the Plan’s recommendations and goals.

“I recently learned that several state legislatures are considering bills that are contrary to the deployment objectives of the Broadband Plan. For example, in North Carolina, the state legislature is currently evaluating legislation entitled ‘Level Playing Field/Local Government Competition.’ Last week the North Carolina House passed the bill, and it currently awaits consideration in the Senate.”

“This piece of legislation certainly sounds goal-worthy, an innocuous proposition, but do not let the title fool you. This measure, if enacted, will not only fail to level the playing field; it will discourage municipal governments from addressing deployment in communities where the private sector has failed to meet broadband service needs. In other words, it will be a significant barrier to broadband deployment and may impede local efforts to promote economic development.”

Seven of ten worst broadband deals in NC

Craig Settles, of Successful.com, a consulting firm with a heavy emphasis on municipal broadband and government use of mobile tech, tells us, “What we have here is a handful of corporations going into some of the most broadband-deficient states in the country, and subverting communities’ efforts to claw their way into the digital 21st Century. These entrenched incumbents are trying to pass rules that would make even Google’s support (similar to the Kansas City Gigabit City announcement) illegal. At least we’re now getting some attention from DC.”

That’s not just talk. Bandwidth.com, which does broadband mapping, shows that seven of the ten U.S. cities with the worst broadband connections at price per Mbps are in North Carolina. They include Greensboro, Winston-Salem, Raleigh, Cary, Durham, Wilmington, and Charlotte. Columbia, SC, is also on the list. South Carolina is also considering a bill to restrict municipal broadband.

Congressional action needed?

Clyburn points out hat the National Broadband Plan recommends that Congress make it clear that “local governments should not be restricted from building their own broadband networks.”

“Unfortunately, ” she wrote, “this National Broadband Plan recommendation continues to be ignored by some broadband industry members that are encouraging these misguided efforts.”

She added, “Regrettably, North Carolina isn’t the only state considering such legislation. My home state of South Carolina has similar legislation pending, and the state of Arkansas is contemplating a complete ban on publicly-owned broadband facilities. I fear that preventing local governments from investing in broadband is counter-productive and will impede the nation from accomplishing the Plan’s goal of providing broadband access to every American and community anchor institution.”

Nationally, 130 communities own wireless broadband networks.

We have reported previously that the fastest and cheapest broadband networks are city run in the south.

A group called the Institute for Local Self-Reliance says that restricting municipal broadband would hurt job creation in NC.

Additional resources:

The municipal broadband battles rages on

Here’s an excellent resource with extensive links on municipal broadband efforts:
Baller Herbst Law Group: Herbst Law

States that have already passed laws limiting municipal broadband:
State Barriers to Community Broadband Services

Wikipedia entry on municipal broadband

Municipal Wireless Snapshot report:

Fast Company: Time Warner’s Antics in Wilson, NC Give another reason to snip the cable

List of municipal broadband network organizations.

An older, but contrary view from the Reason Foundation:
Municipal broadband fails again

Fastest and cheapest US broadband systems are city run in the South

For more on the commercial providers positions:

www.techjournalsouth.com/news/article.html?item_id=7334

Georgia tops in entrepreneurial activity in 2010

Tuesday, March 15th, 2011

Atlanta map

Atlanta

ATLANTA – Georgia and Nevada tied for the top spot for the highest rate of entrepreneurial activity in 2010, according to a report by The Kauffman Foundation. Both came in at a .51 percent rank, meaning 510 people per 100,000 created businesses each month during the year in the two states.

We have noted in numerous stories that the Atlanta entrepreneurial ecosystem has ramped up noticeably over the last year, with startup focused groups and events popping up almost monthly.

Tennessee’s high .41 rank and Florida’s at .40, both first tier performances topping North Carolina’s .35, were a bit surprising, although Tennessee, like Georgia, has seen increasing private and public efforts to boost entrepreneurial activity.

Southeast ranks

In the Southeast, North Carolina weighed in at .35 percent, putting in the second highest tier of entrepreneurial activity. South Carolina posted .23 percent, Florida .40, Virginia and Maryland at .24, Tennessee at a high .41 and Kentucky at .29. See: Entrepreneurial Activity by State.

The Kauffman Foundation report, however, points out that “While the economy and its high unemployment rates may have pressed more individuals into business ownership, most of them are going it alone, rather than starting companies that employ others.”

Nationally, according to the “Kauffman Index of Entrepreneurial Activity,” a leading indicator of new business creation in the United States, 0.34 percent of American adults created a business per month in 2010, or 565,000 new businesses, a rate that remained consistent with 2009 and represents the highest level of entrepreneurship over the past decade and a half.

In contrast, however, the quarterly employer firm rate has dropped from 0.13 percent in 2007 to 0.10 percent in 2010.

Too many founders go it alone

“Since it began, the recession has triggered annual declines in the rate of employer enterprise births,” said Carl Schramm, president and CEO of the Kauffman Foundation.

“Far too many founders are choosing jobless entrepreneurship, preferring to remain self-employed or to avoid assuming the economic responsibility of hiring employees. This trend, if it continues, could have both short- and long-term impacts on economic growth and job creation.”

Capturing new business owners in their first month of significant business activity, the Kauffman Index of Entrepreneurial Activityprovides the earliest documentation of new-business development across the country.

The percentage of the adult, non-business-owner population that starts a business each month is measured using data from the monthly Current Population Survey (CPS), conducted by the U.S. Bureau of the Census and the Bureau of Labor Statistics.

Demographic breakdowns

In addition to this overall rate of entrepreneurial activity, the Kauffman Index presents separate estimates for specific demographic groups, states and select metropolitan statistical areas (MSAs). It provides the only national measure of business creation by specific demographic groups.

activity increase between 2009 and 2010. The Latino business-creation rate rose from 0.46 percent in 2009 to 0.56 percent in 2010, the highest rate over the 15 years of Index data. The Asian entrepreneurial activity rate increased from 0.31 percent in 2009 to 0.37 percent in 2010, also the highest rate in the past decade and a half. Both African-Americans and non-Latino whites, on the other hand, experienced declines in entrepreneurial activity rates.

Entrepreneurship growth was highest among 35- to 44-year-olds, rising from 0.35 in 2008 to 0.40 in 2009. The oldest age group in the study (55-64 years) also experienced a large increase in business-creation rates from 2008 to 2009, contributing to a two-year upward trend to 0.40.

Among states, Nevada and Georgia had the highest entrepreneurial activity rates, with 510 per 100,000 adults creating businesses each month. Rounding out the top five highest rates were California (470 per 100,000 adults), Louisiana (460 per 100,000 adults) and Colorado, with 450 businesses started per 100,000 adults.

The five states with the lowest rates of entrepreneurial activity were West Virginia (170 per 100,000 adults), Pennsylvania (180 per 100,000 adults), Wisconsin (180 per 100,000 adults), South Dakota (190 per 100,000 adults) and Indiana (190 per 100,000 adults).

“Regional patterns have a significant effect on entrepreneurial activity rates,” said Robert W. Fairlie, the studys author and director of the masters program in applied economics and finance at the University of California, Santa Cruz. “From 2009 to 2010, entrepreneurial activity rates increased in the West, further widening the gap between the West and other regions. Rates in the South remained steady, but declined in the Northeast and Midwest.”

Other key findings for 2010 include:

  • The immigrant rate of entrepreneurial activity increased substantially – from 0.51 percent in 2009 to 0.62 percent in 2010 – and declined slightly for the native-born. This increase expanded the large positive gap that already existed between immigrant and native-born entrepreneurial activity rates.
  • A growing immigrant population and rising entrepreneurship rate contributed to a rise in the share of new entrepreneurs that are immigrant, from 13.4 percent in 1996 to 29.5 percent in 2010.
  • Entrepreneurial activity increased slightly for men and decreased slightly for women. For men, the entrepreneurial activity rate increased from 0.43 percent in 2009 to 0.44 percent in 2010. The female entrepreneurship rate decreased from 0.25 percent to 0.24 percent.
  • The African-American entrepreneurial activity rate decreased from 0.27 percent in 2009 to 0.24 percent in 2010. The white entrepreneurial activity rate decreased from 0.33 percent to 0.31 percent.
  • The entrepreneurship index was highest among the least-educated group, moving from 0.49 percent in 2009 to 0.59 percent in 2010, suggesting an increased number of people entering entrepreneurship out of necessity. The largest decrease in entrepreneurial activity occurred for high school graduates.
  • Among the United States fifteen largest metropolitan statistical areas, Los Angeles had the highest entrepreneurial rate (0.62 percent) in 2010. Philadelphia had the lowest rate (0.15 percent)

Trend Data

Demographic Data

 

TechJournal South is a TechMedia company. TechMedia presents the annual conferences:

SoutheastVentureConference: www.seventure.org

Internet Summit: www.internetsummit.com

Digital East: www.digitaleast.com

Digital Summit: www.digitalsummit.com

Perceptis opening Greenville, SC facility, creating 220 jobs

Wednesday, January 12th, 2011

PerceptisGREENVILLE, SC - Perceptis, which sells help desk and support services to the higher education market, is investing $1.2 million and creating at least 220 new jobs in a new support service center in Greenville.

The company expects to start operations at the new facility by March 31. Founded in 2004, Perceptis has grown rapidly to service more than 100 institutions and 1.5 million end users.

“Perceptis sought out a competitive advantage in their next location and what they found in the Upstate of South Carolina is a pro-business trifecta: a top-ranked business climate, a world-class research environment and a superb quality of life,” said Hal Johnson, president and CEO of the Upstate SC Alliance.

Frontier Capital, a private equity firm providing growth equity to technology enabled business services companies, provided $6 million in expansion funding to Perceptis in September 2010. Frontier Capital is one of the four funds involved in the SC Venture Capital Authority/InvestSC program and initiated the recruitment effort to bring the company to South Carolina.

SC Launch invests in Columbia-based emergency med developer Vitasol

Friday, November 19th, 2010

VitasolCOLUMBIA, SC - SC Launch has invested an undisclosed amount in Vitasol, a life science company focused on improving therapies in emergency medicine and critical care.

SC Launch typically invests $250,000 or less in South Carolina start-ups.

Vitasol’s first product, Resuscinex, a patented multi-component IV fluid for the treatment of hypovolemia (blood and/or fluid loss from the vascular system). Resuscinex works by drawing fluid out of the microscopic spaces between cells and into the vascular system. This restores blood pressure, which often drops sharply in shock victims who have lost blood, and also restores normal heart rate.

In addition, the formula provides anti-oxidants, anti-inflammatory agents and intermediate energy to cells while increasing blood flow in capillaries, the tiny vessels that are critical for supplying oxygen and nutrients to tissue.

The company was founded and advanced by several researchers at the University of South Carolina (USC) School of Medicine. Trauma surgeon Stephen Fann, MD, FACS is the Chief Medical Officer of Vitasol. Fann, a School of Medicine faculty member, has long wanted a better alternative to the IV fluids traditionally used to stabilize victims of severe blood loss.

Together with his colleagues, Michael Yost and John Propst, he soon might have it. Michael Yost, PhD is Director of Research in the Department of Surgery at the USC School of Medicine and Chief Operating Officer of Vitasol. John Propst, PhD, MBA, the company’s President and CEO, earned his doctorate from the USC School of Medicine while researching biomedical science with Fann and Yost. Passionate about the business implications of cutting edge biotechnology, he also earned his MBA from the USC Darla Moore School of Business.

“We started this company hoping to solve a major problem for trauma victims and improve treatment outcomes in critical care situations,” stated Vitasol CEO John Propst. “The domestic market is quite large and the global implications are significant. Our initial test results are very encouraging, and with this investment from SC Launch we will be able to secure follow on investments and move our research discoveries that much closer toward improving patient care.”

Vitasol plans to begin human trials in coming months and is currently seeking FDA approval. The company hopes to ultimately establish manufacturing of its Resuscinex product in the South Carolina.

SC Launch, an SCRA collaboration, assists entrepreneurial start-up companies with up-front counseling, seed-funding, and access to a powerful resource network.

Greenville, SC-based Acumen names Stansell president, COO

Wednesday, November 10th, 2010

AcumenGREENVILLE, SC – Acumen has named G.T. “Toby” Stansell president and COO. Acumen is one of the largest technology companies in the Carolinas, providing industry-leading IT managed services, data storage solutions and business applications for companies of all sizes.

Prior to joining Acumen, Stansell was the president of Oobe, where he helped the company grow over 700 percent and achieve unprecedented levels of profitability during his five years there.

Stansell has an extensive technology background. He began with IBM in the role of key account executive in the 80s and has held more recent executive roles with aerospace and automotive ERP software companies that were sold to industry leaders Manugistics and SAP, respectively.

In addition, he established the first international office of Right Source Inc. in Maastricht, Holland, where he served as managing director for all of Right Source’s operations outside of North America. In that role, Stansell hired and led multi-national teams that produced and executed executive-level technology briefings and seminars across Europe and Asia on behalf of IBM, Computer Associates and PTC, among others.