‘State of Technology’ report shows NC’s numerous strengths, also weaknesses

North Carolina, the nation’s ninth largest state, meets or tops that rank in six of 22 statistical categories for technology, according to a report from the North Carolina Technology Association. But the data is a mixed bag with the state ranking lower than No. 10 in 10 categories.

The data in the second “State of technology” report from NCTA is thus encouraging in some areas and sobering in others.

In many ways, the report’s findings reflect those contained in a North Carolina Department of Commerce report published in January. The North Carolina Innovation Index found that the state is “beset with challenges” yet “rich with opportunities.”

Growth in information technology jobs is strong, for example, as is the number of startups being spun out of universities.

The state also ranks highly in the percentage of women in the IT work force and in university licensed technology to the private sector.

However, there is plenty of room for improvement since in 10 categories the state ranks 21st or lower. Weaknesses include industry research and development along with federal R&D dollars plus venture capital for startup and emerging businesses.

The state also ranks low in work force diversity.

Economic Leadership of Raleigh prepared the 59-page report, which is packed with statistics, analysis of trends, and recommendations for improvements.

“This review found that North Carolina’s technology sector scores high in measures of growth, women in the tech workforce, and university R&D and tech transfer,” the report says..

“With a five-year growth trend of 13.7 percent and an expected 7.9 percent in growth till 2020, the state is poised to capitalize on this growth and become a strong emerging tech market, particularly across the IT [“Tech Core,” or tech specific jobs]) where it had the 2nd fastest growth rate.”

Weak areas are described as “opportunities for improvement.”

“These metrics are venture capital funding, small business survival, and industry focused R&D where the state scored below a top 15th ranking,” the report notes.

“For example, North Carolina has some the best publicly funded research universities in the country with high rates of science and engineering funding, but new companies and startups may have a harder time accesses funding and support in their early years.

“Opportunities also exist to continue encouraging STEM education and careers to minority communities in the state to help diversify the industry.”

What follows is a chart listing where North Carolina ranks in each of the categories. Most data is from 2014.

Technology Infrastructure (years for data and specific numbers in parenthesis), State Rank

Federal Obligations For R&D As Percentage of GDP (2013), 24
Industry Focused Federal R&D Obligations as a Percentage of Private Industry Output (2013), 37
Higher Education R&D in S&E Fields as a Percentage of GDP (2013), 4
Patents Issued (2010-2014), 13
Venture Capital Funding Per $1 Million of GDP (2012-2014) $560, 24
Technology Licenses and Options Executed from Universities (2014) 342, 4
Start-Ups from Universities (2014) 32, 8
SBIR and STTR Funding Per $1 Million of GDP (2012-2015) $120, 19
Kauffman Index – Average Number of Entrepreneurs, 21
Establishment 1-year Survival Rate (2014), 25
Completed Tech & STEM Education Programs (2014) 14,402, 11
Percent Change in Tech & STEM Education Program Completions (2009-2014), 16
Average In-State Tuition Cost (2014-2015) $6,677,10
Percentage of Population Without Access to Fixed Broadband (2014), 22
Technology Sector as a Percentage of Total Employment (2014), 28
Technology Sector Location Quotients (2014), 28
Technology Sector Employment Growth (2009-2014), 6
IT (Tech Core) Employment Growth (2009-2014), 2
Average Annual Wage for Technology Sector Employees with Purchasing Power (2014) $115,239, 14
Expected Technology Sector Employment Growth (2015-2020) 7.9%, 23
Percentage of Women in the Technology Workforce 36.4%, 2
Tech Industry Diversity Index, 23