SANTA CLARA, Calif., April 28, 2014 /PRNewswire/ -- Nearly eight in ten executives in the global innovation sector plan to grow their workforce in 2014, and more than nine in 10 say it is a challenge to find the talent they need to do so, according to a study released today by Silicon Valley Bank, the premier financial partner to technology, life science and cleantech companies and their investors worldwide.
These findings, highlighted in the 2014 Innovation Economy Outlook study, are based on Silicon Valley Bank's annual survey of more than 1,200 executives from software, hardware, cleantech and life science/healthcare companies in startup and growth stages of business in the US, UK and other global innovation hubs. In addition to the high rate of anticipated job creation, the study also reveals pervasive optimism, intent to access international markets for sales, and a struggle to obtain equity capital by some of the most innovative, high-growth companies in the world.
"Innovation is happening globally, and it is driving a rapid pace of new company formation, an international exchange of ideas and alternative sources of capital," said Greg Becker, President and CEO of Silicon Valley Bank. "We are helping to pave the way for innovation companies to succeed, and we believe that the regions that build talent pools of motivated workers with relevant skills through education and appropriate policies have the chance to become destinations of choice for rapidly growing companies and high-quality, well-paying jobs."
Summary highlights of the Global Innovation Economy:
- Performance: two out of three responding companies met or beat revenue targets in 2013
- Optimism: 82% believe business conditions will be better this year than last, which is the highest rate of optimism in five years
- Growth opportunities: 77% expect to grow their workforce; with a median growth rate of 30%
- Top 3 Challenges: scaling operations, talent acquisition and access to equity capital
- Capital: 81% who successfully raised private capital said it was challenging. Angel capital is the most commonly used source of private capital outside the US.
- Globalization: 80% of companies based outside the US are already selling overseas
- Talent: Hiring is a challenge everywhere, but more so outside the US