SANTA CLARA, CA — April 28, 2014 — 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/healthcare 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 healthcare companiesin 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 the ever-present challenge 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 study:
Performance: two out of three responding companies met or beat revenue targets in 2013
Optimism: 82% believe business conditions will be even better this year than last, which is the highest rate of optimism in five years
Growth opportunities: 77% expect to grow their workforces by a median 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
Silicon Valley Bank conducted its fifth annual Innovation Economy Outlook survey (formerly Startup Outlook) in January 2014.
Follow the conversation on Twitter at @SVB_Financial and @SVB_UK #InnovationEconomy.
About Silicon Valley Bank
Banking the world's most innovative companies and exclusive wineries, SVB offers diverse financial services, knowledge, global networks, and world class service to increase our clients' probability of success. With $26 billion in assets and more than 1,700 employees, we provide commercial, international and private banking through our locations worldwide. Forbes Magazine ranks us among America's Best Banks and Fortune named SVB one of the best places to work. (Nasdaq: SIVB) www.svb.com.
Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member of the Federal Reserve System.Silicon Valley Bank is registered in England and Wales at 41 Lothbury, London, EC2R 7HF, UK under No. FC029579. Silicon Valley Bank is authorised and regulated by the Financial Services Authority, FSA reference number 577295.