Innovation Economy Outlook

NEW YORK REPORT

2014
91%

Is New York officially the new Silicon Valley?

ilicon Valley Banks annual Innovation Economy Outlook study takes the pulse of the global innovation economy. In our survey, we ask executives from various technology and life science sectors about hiring, the market, their performance, specific government policies and their outlook for the year ahead. This year, leaders at innovative companies across the United States continue to be optimistic and have plans to grow their workforces, creating new jobs nationally. Nearly all consider it an ongoing challenge to find workers with the skills necessary to grow their businesses. Things are going well for the innovation sector in New York, and in some cases, even better than in Silicon Valley, according to the states tech executives. While 2013 performance was on par with the national average, New York respondents were some of the more optimistic in the nation. A larger percentage successfully raised capital in 2013, and more companies plan to hire, relative to other U.S. regions.

Creating jobs
Innovation companies planning on hiring
85%

Performing well

Optimistic

Accessing global markets

44% 39% 36%

82%
80%

79%

82%
77% 77% 77% 76% National average

65%
of companies were at or above their revenue targets for 2013

65%

85%
say business conditions will improve in 2014

82%

29%

29%

27%

30%

35%

SALES

PRODUCTION

SERVICE

R&D

75%

76%

Companies in New York were much less likely than most U.S. regions to leverage international markets for sales, production, service and R&D in 2013.

70%

70%

New York National average

69% 66%

New York National average

New York National average

65%

53%

Successfully raising capital

raised private capital in 2013
(48% nationally)

Looking to venture capital as next source of funding

Northern California 54% 47%

60%
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Most common sources of capital raised in region

Venture capital Angel 62%

New York National average Southern California Northwest Southwest Mid-Atlantic Texas Midwest

47%
43% 36% 35% 34% 32% 32% 30% 26%

Of those hiring...

94%
say hiring is a challenge.

median workforce growth is 30%

66%
need workers with STEM skills

48%

Private equity

44%

Government Corporate Crowdfunding Other

91%

50%
11% 7% 4%

New York National average

4%

11%

Southeast

New York n=53 National n=1,004. See the full Innovation Economy Outlook report at www.svb.com/innovation-economy-outlook. 2014 SVB Financial Group. All rights reserved. Silicon Valley Bank is a member of FDIC and Federal Reserve System. SVB>, SVB>Find a way, SVB Financial Group, and Silicon Valley Bank are registered trademarks.