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222 Pitkin Street, #113East Hartford, CT 06108Phone: (860) 289-0878
www.ct.org
THE GROWTH AGENDAFor Connecticut’s Technology Business Sector
A Public Policy Initiative of:
2018-2019
THANK YOU
This document, and all associated research, were developed with the input and guidance of the Connecticut Technology Council’s Public Policy Committee. The insight provided by these technology business leaders was invaluable to the process, and we thank them for their hard work and commitment to this important project.
Frank Milone, Chair Fiondella Milone & LaSaracina LLP
Kevin Burns Precision Combustion Inc.
Patricia Fisher JANUS Associates, Inc.
Elliott Ginsberg The Connecticut Center for
Advanced Technology
Daniel Gottfried Hinckley Allen LLP
Michael Hammond Michael Hammond LLC
Nancy Hancock Pullman & Comley LLP
Rick Huebner Vistech
Alan Mendelson The Connecticut Israel Opportunity Fund
Michael Nicastro Continuity
David Parekh United Technologies Research Center
Ari Santiago IT Direct, LLC
Jackie Scheib Robinson+Cole LLP
Giovanni Tomasi RSL Fiber Systems, LLC
Ben Wiles Updike, Kelly & Spellacy, P.C.
Andrew Zehner University of Connecticut
Severine Zygmont Oxford Performance Materials
President & CEO The Connecticut Technology Council
Bruce Carlson
To Connecticut’s policymakers and tech community,
The Connecticut Technology Council has a long and notable history of working collaboratively with policymakers to advance the priorities of the tech business community. As 2018 approached, we realized that we were in a unique position to make a difference for our member companies—to begin advocating statewide on their behalf from “day one” of a new gubernatorial administration.
To make sure we addressed their most pressing concerns, we conducted research throughout the first quarter of 2018. We distributed a detailed survey to our entire tech company database, and we followed up with focus groups in Stamford, East Hartford, and North Haven. We believe we captured their top priorities in this document, The Growth Agenda.
We hope you will take the time to review these insights and proposed initiatives. We look forward to working with all of you as we strive make Connecticut a successful, growing technology business leader.
LETTER FROM THE PRESIDENT
OVERVIEW
1
15APPENDIX A - SURVEY SUMMARY
13INITIATIVE: COMMUNICATION
12INITIATIVE: INVESTMENT
11INITIATIVE: URBAN AGENDA
10INITIATIVE: WORKFORCE
9THE FOUNDATION
8OUR PROCESS
7OUR DUAL PRIORITIES
6CONNECTICUT’S ASSETS
5KEY FACTORS
4WHAT IS THE GROWTH AGENDA?
3THE PROBLEM
1LETTER FROM THE PRESIDENT
CONTENTTHE GROWTH AGENDA
17APPENDIX B - SAMPLE SURVEY
Connecticut has been in economic doldrums for too long, while some other states (both in New England and around the country) have been able to enjoy significant economic growth.
According to the U.S. Department of Commerce, Connecticut continues to have the slowest economic growth of all New England states, and it has yet to recover the jobs from its pre-recession high. All the other New England states have recovered these jobs and then some.
THE PROBLEMSUMMARY
3
KEY FACTORSWe surveyed technology business leaders from across Connecticut, and they cited the following as some of the primary reasons for the state’s economic malaise:
• FISCAL INSTABILITY OF STATE GOVERNMENT
The inability of state government to develop a revenue and expenditure plan that
both promotes business growth and balances is muting the opportunity for growth of
Connecticut companies.
• POOR INFRASTRUCTURE
Long commute times and deteriorating infrastructure have limited Connecticut’s
economic growth. Lack of mass transit opportunity leaves workers without cars
isolated from the available jobs. We need an infrastructure in Connecticut that will
help us take advantage of our strategic location between economic powerhouses
New York City and Boston.
• WORKFORCE SHORTAGE:
Although we have one of the best-educated and most productive workforces in
the world, our state is facing shortages in key areas. These shortages are leading
Connecticut companies to look elsewhere to expand.
• LACK OF COOPERATION
The state’s legacy structure of small towns and cities working independently from
each other limits Connecticut’s ability to tell a compelling story to effectively compete
in a global economy.
4
WHAT IS THE GROWTH AGENDA?
The Growth Agenda is the public policy statement of Connecticut’s technology
community. It provides recommendations to lawmakers to help them create an
environment where technology companies can thrive. The state’s tech sector, made
up of roughly 6,000 companies, can and should be the leaders to help Connecticut
out of these doldrums, to achieve the type of economic growth that we all want. The
key is better coordination.
The organizations that are designed to support the growth of companies are
not well-coordinated with each other, resulting in confusion. Better coordination
will result in clearer communication among, to, and about technology-based
companies. Better coordination will also help show a critical mass of tech
activity in the state, something that is lost when broken into pieces.
This Growth Agenda is designed to help policymakers understand the issues
that Connecticut’s technology companies are facing and to present some
recommendations for moving forward. Looking at what our state has in the way
of assets and identifying what Connecticut’s technology companies need to
thrive, create wealth, and add jobs to the workforce, the Growth Agenda is a set of
recommendations for our policy leaders to adopt.
5
Legacy COMPANIES &
PROFESSIONALS
Growing STARTUP COMMUNITY
Mid-size BUSINESS GROWTH
We are strategically located right in the middle of one of the most intensive high-technology regions in the world, with a regional population of well over 10 million.
Large companies in key sectors such as advanced manufacturing and finance can be a source of mentors, and they can serve as customers for new and emerging companies. It’s an ideal network to support growing and scaling businesses.
A network of support services for entrepreneurs has strengthened over the last few years, and more startups are finding reasons to stay in Connecticut.
When it comes to middle market growth, Dunn & Bradstreet ranked Connecticut 17th in the nation in 2017, and that’s up from 18th in 2016.
CONNECTICUT’S ASSETS
Globally recognized WORKFORCE
Quality of LIFE
Our workforce is among the most highly educated and skilled in the nation.
Research, including our own, indicates that people LOVE what our state has to offer its residents.
Center of a HIGH-TECH CORRIDOR
Rather than trying to be something we are not, Connecticut needs to compete by leading with our strengths.
6
OUR DUAL PRIORITIES
Connecticut must focus on supporting the companies that can and want to grow in our state. Our leaders need to under-stand what they need—and then provide that.
That is where The Growth Agenda comes in. It provides a roadmap of support based on the needs of tech companies, as they expressed in our research. And the two things they said they need the most are:
FISCAL STABILITY and a
STRATEGIC PLAN FOR GROWTH
In order for any company to grow in Connecticut, it needs the predictability that state financial stability will bring. Without it, companies will either continue to grow in other jurisdictions or move out of Connecticut completely.
Difficult choices need to be made. The Connecticut Technology Council applauds and supports the work of the Commission on Fiscal Stability and Economic Growth. While others may find problems in specific recommendations, this represents the only plan on the table for discussion. We will address this in our first recommendation.
7
OUR PROCESS
The Connecticut Technology Council keeps its finger on the pulse of the tech community throughout the year, so we went into this project with some idea of the kinds of concerns being expressed. We wanted to collect more hard data, though, in order to create a detailed, meaningful agenda to present to the incoming administration.
Throughout the first quarter of 2018, we compiled input from members of our ecosystem.
Our Public Policy Committee, made up of a subset of CTC Board Members, issued a survey to the tech community in order get more detailed information about the issues that sector is facing and what might be impeding its growth.
More than 600 people responded to the survey, and nearly half of those who completed it were C-level executives in technology companies.
More than 120 of those respondents said they would be interested in participating in a focus group to expand on their input.
We then conducted three in-person focus groups (in Stamford, East Hartford, and North Haven), with more than 40 participants.
With that input, CTC’s Public Policy Committee developed The Growth Agenda.
Survey questions and response data summary are included in the appendix of this document.
8
THE FOUNDATION
FISCAL STABILITYThe State should take the work of the Commission on Fiscal Stability and Economic Growth and use it as a blue-print.
Growth will not happen without fiscal stability. Either the General Assembly should adopt what is presented in this blueprint or create a plan that achieves the same results.
Since the Commission’s plan is in-terconnected, a substitute that will achieve the same savings or revenue should be made for any element that is removed.
STRATEGIC PLAN FOR GROWTH
Connecticut has no statewide strategic plan for economic growth. This needs to be a co-priority to fiscal stability.
A statewide Strategic Plan for Economic Growth should be created by a group that represents all the stakeholders: government, business, academia, and labor. This plan needs to clearly express a vision for the state’s economic growth, identifying the way Connecticut will achieve that vision.
Make implementation of this strategic plan for economic growth a priority of ALL of state government (not just the Department of Economic & Community Development), and establish a cabinet position as the Governor’s Economic Growth Coordinator.
9
SHORT TERM
• Make better connections between companies(demand) and academic institutions (supply).
• Create statewide tech job board that highlights all ofthe currently available tech jobs.
• Invest in urban areas.
• Encourage people from out-of-state and out of thecountry to come to Connecticut to work.
• Continue to make Connecticut welcoming forimmigrants.
LONG TERM
• Build pipeline for jobs, both today’s and tomorrow’s.
• Encourage well-rounded STEM education, so we willhave a workforce with necessary business and writ-ing skills.
• Integrate STEM curriculum in K-12, with an empha-sis on computer science.
• Create alternative ways for people to get the skillsthey need for the 21st century workforce (e.g., Cod-ing Bootcamps), particularly for Connecticut resi-dents that are post high school.
INITIATIVE: WORKFORCEFO
CU
SP
LAN
10
INITIATIVE: URBAN AGENDA
SHORT TERM
• Focus investment in one urban area at a time toexpedite success in making that city attractive formillennial workforce. Building on current strength,Stamford can pull workforce from NY, and NewHaven has a vibrant live-work-play buzz.
• Infill along MetroNorth line.
• Invest in MetroNorth line to make it a one-hour tripfrom New Haven to New York City*.
• Increase mass transit options intra- and inter-cities.
• Develop universal, affordable access to highestinternet speeds available.
LONG TERM
• Use lessons learned to invest appropriately in otherurban areas.
• Create rail connection for one-hour trip betweenHartford and Boston*.
FOC
US
PLA
N
*One-hour train from Boston to Worcester exploded Worcester jobgrowth (link).
11
INITIATIVE: INVESTMENT
SHORT TERM
• Fund incubators in urban areas to allow companiesfree to low cost space as they develop.
• Create effective funding mechanisms to supportscaling companies.
• Develop a “Buy Connecticut” program for stategovernment and large companies.
• Create a virtual statewide network of support.
• Eliminate nuisance paperwork for companies andmodernize state agencies like the Secretary of Stateand Department of Labor.
• Provide tax credit for investing in Connecticutcompanies or funds that invest in Connecticutcompanies (beyond angel tax credits).
• Identify ways to make it easier to invest inConnecticut, such as changing laws concerningfiduciary duties of Family Offices.
• Create tax policy that rewards success inConnecticut.
LONG TERM
• Develop a strategic plan for signifcant infrastructureinvestment and improvement: need to reduce traveltime to Boston and New York (see Urban Agendainitiative).
FOC
US
PLA
N
12
INITIATIVE: COMMUNICATION
• Enhance coordination and collaboration of all theentities providing support to growing companies.
• Streamline communication about what is currentlyavailable in the way of resources for businesses.Programs need to be marketed to companies thatcan take advantage of them.
• Develop intentional marketing strategy to combatincreasing negative perception of Connecticut,especially by its residents. Position Connecticutas a “tech state” both internally and externally.
• Demonstrate critical mass of tech activity throughgreater coordination/collaboration. Such activity iscurrently hidden, with entities working in silos andnot being connected.
FOC
US
13
The Connecticut Technology Council is the voice of
Connecticut’s tech sector. As an organization, we are
committed to supporting, advocating for, and working
toward the goals expressed in this Growth Agenda. We
look forward to doing our part in achieving these
objectives for the benefit of our member companies, the
technology ecosystem, and the state as a whole.
PUBLIC POLICY NEEDS AND PRIORITIES OF THE CT TECHNOLOGY COMMUNITY, 2018
Survey Summary
There were 607 total respondents to the survey. Of those, 341 completed all the required questions, so only those respondents were used in the final data analysis.
• 45.4% of respondents are C-level executives from tech companies.• Responses came from Hartford, New Haven, and Fairfield counties almost equally.• Three out of four respondents were men.• The “most agreed with” statements (with a weighted average of 3.9 or more) were:
o (Q6) Filling positions that require engineering and/or technology skills isexpensive and time consuming.
o (Q8) I feel that the skills I possess (e.g., engineering, software development,coding) are in demand in Connecticut.
o (Q11) Attracting employees to Connecticut is difficult.
o (Q26) Connecticut is an expensive place to do business.
o (Q27) Connecticut is a state with a good quality of life.
o (Q32) Connecticut has a great educational system (including public and privateas well as primary, secondary, and post-secondary institutions).
• 121 respondents indicated that they wanted to participate in a focus group. All wereinvited participate in their choice of three sessions (held in East Hartford, North Haven,and Stamford), and 40 did participate.
Viewpoints expressed in additional comments:
• Workforce:o Companies are concerned about current capabilities and very concerned about
future workforce needs.o Many companies are filling talent needs through virtual employees and opening
offices in other locations.o Competition with other jurisdictions drive the "price point" beyond what some
companies can pay.o Still evidence of need to fill mid-level positions, but also a strong demand for
entry level.o Attracting employees is difficult mostly based on cost of living, which is why a
number of companies are going the virtual employee route.
15
• Capital Needs:o Not as much concern regarding financing needs as we might expect. Seems to be
a sense that when financing is needed, it will be available.o Lack of recognition of what financing programs the state has to offer, and would
like more info.o Most interest was in public financing to assist in the hiring process.o Not a strong connection between lowering taxes and increasing employment.
• Infrastructure Needs:o Two strong areas of interest:
§ Traffic in Fairfield County§ Revitalizing urban cores to make them attractive to workforce
• Perception of CT:o Expensive place to do businesso High quality of life, but feels like it is slippingo People don't want to move to CTo Regulations and personal taxes were not believed to cause much negative
perception
16
Demographic Information
Public Policy Needs and Prioritiesof the CT Technology Community(2018)
Which of the following BEST describes your professional role?1
Technology Company C-Level Executive
Technology Company Mid- to Senior-Level Manager
Technology Company Employee (other)
Technology Services Consultant (e.g., information technology, coder, engineer)
Investor or Investment Firm Employee
Business Services Provider (e.g., attorney, accountant, marketing consultant, other contracted consultant)
Member of the Academic Community (e.g. faculty, tech transfer executive, graduate or doctoral student)
Something else (please describe)
In what county is your business/employer based?2
Fairfield
Hartford
Litchfield
Middlesex
New Haven
New London
Tolland
Windham
17
What is your gender?3
Male
Female
Prefer not to answer
What is your age?4
Under 21
21 - 35
36 - 55
56 - 70
Over 70
These questions relate to the ability of companies in our state to find, hire, and retain the right people.Please read the statements and rate them based on how much you agree or disagree with them. If you'dlike to provide more input on any topic, we encourage you to use the space provided for additionalcomments.
Workforce Issues
Public Policy Needs and Prioritiesof the CT Technology Community(2018)
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
My company has enough employees to meet our technical needs (i.e. engineering,product design, coding, information technology, tech sales and support) andcustomer demands.
5
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Filling positions that require engineering and/or technology skills is expensive andtime consuming.
6
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Tech job applicants expect and/or demand a higher salary than I can pay.7
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
I feel that the skills I possess (e.g., engineering, software development, coding) arein demand in Connecticut.
8
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
My company needs more candidates to fill mid- to senior-level managementpositions.
9
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
My company offers to pay relocation expenses for tech employees from out-of-state.
10
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Attracting employees to Connecticut is difficult.11
Strongly Disagree Disagree Neutral Agree Strongly Agree N/A
Additional Comments
Retaining employees after three to five years in Connecticut is difficult.12
These questions relate to your company's ability to get the funding you need, and also to your opinions onConnecticut's fiscal policies. Please read the statements and rate them based on how much you agree ordisagree with them. If you'd like to provide more input on any topic, we encourage you to use the spaceprovided for additional comments.
Capital Needs
Public Policy Needs and Prioritiesof the CT Technology Community(2018)
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
My company is actively seeking investment or other funding for additional hires,new product development, and/or expanded facilities right now.
13
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
I have had difficulty obtaining credit or loans that would help my business grow.14
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
I have found the financing programs of the state of Connecticut to be helpful ingrowing my company.
15
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
The state of Connecticut should provide funding for training tech workers.16
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Connecticut has a thriving private investment/angel investment network.17
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
The state of Connecticut should provide monetary incentives to keep largecompanies/major employers in the state.
18
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
I would expand my business and hire more people if my business taxes were lower.19
These questions relate to your requirements regarding logistics, transportation, and technologyinfrastructure. Please read the statements and rate them based on how much you agree or disagree withthem. If you'd like to provide more input on any topic, we encourage you to use the space provided foradditional comments.
Infrastructure Needs
Public Policy Needs and Prioritiesof the CT Technology Community(2018)
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Commute time and/or distance to my job is a problem for me or for my employees.20
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
My business needs more physical space (e.g., offices, manufacturing orwarehousing facilities).
21
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Problems with shipping and logistics have negatively affected my company. 22
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Connecticut should offer more public transportation options.23
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Access to advanced internet technology in Connecticut (e.g., greater availablebandwidth, expanded public wi-fi) would help my business.
24
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Greater public investment to make our urban areas more attractive to tech workerswould help my business.
25
How do you see our state? How do you think people outside our state see it? Please read the statementsand rate them based on how much you agree or disagree with them. If you'd like to provide more input onany topic, we encourage you to use the space provided for additional comments.
Perception of Connecticut
Public Policy Needs and Prioritiesof the CT Technology Community(2018)
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Connecticut is an expensive place to do business.26
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Connecticut is a state with a good quality of life. 27
Strongly Disagree DIsagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
It is more expensive to do business in Connecticut than it is in New York, NewJersey, or Massachusetts.
28
Strongly Disagree Disagree Neutral Agree Strongly Agree N/A
Additional Comments
I have lost the opportunity to hire good potential employees because they didn'twant to live in Connecticut.
29
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Connecticut has too many environmental regulations.30
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Connecticut has a vibrant, supportive startup and innovation community. 31
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
Connecticut has a great educational system (including public and private as wellas primary, secondary, and post-secondary institutions).
32
Strongly Disagree Disagree Neutral Agree Strongly Agree Not Applicable
Additional Comments
The cost of living in Connecticut is too high as it relates to my standard of living. 33
Think about your "wish list for success" -- things that, if they were accomplished in Connecticut, wouldhave a positive impact on your ability to do business here.
Then rate each of the following goals from 0 - 10 in terms of how much they would help you if achieved. Arating of "0" means the item would have no impact on you. A rating of "10" means it would have immediate,substantial positive impact.
Industry Priorities
Public Policy Needs and Prioritiesof the CT Technology Community(2018)
Expanded STEM programs in state colleges and universities.34
Additional Research and Development tax credits.35
Funding for technical training of employees.36
More tech incubators and accelerators. 37
More public transportation options.38
Increased internet broadband accessibility. 39
Reduced environmental regulations.40
State-funded incentives for keeping businesses in Connecticut.41
Reduced business taxes.42
Funding and/or tax credits for recruiting tech talent from out-of-state.43
Conclusion
Public Policy Needs and Prioritiesof the CT Technology Community(2018)
If you could ask Connecticut's gubernatorial candidates one question (on thetopics in this survey or anything else), what would it be?
44
Check all that apply.45
I would be interested in participating in a focus group on these topics.
You may contact me to follow up on this survey.
I would like to receive a summary of this study when it is completed.
Full Name
Company
Title
Email Address
Phone Number
If you indicated that you would like to participate in a focus group or wouldotherwise be interested in follow-up, please provide your contact information.
46
This concludes our survey. Thank you very much for participating!
Thank you!
Public Policy Needs and Prioritiesof the CT Technology Community(2018)