In a nutshell, the state of Utah’s technology industry is white hot. Through the year, Utah has garnered national recognition in numerous categories that represent the incredible state of the technology industry’s growth.

In the October issue of Forbes Salt Lake City topped the ranking of Best Cities for Jobs. The rating was based equally on unemployment rate, job growth, income growth, median household income and cost of living for 2006. “…An economy that has been predominantly driven by the mining and steel industries has developed into a service-based city and has become the tech sector hub for digerati migrating from Silicon Valley.”

Recently the Utah Technology Council (UTC) examined data from the Utah Department of Workforce Services and the U.S. Bureau of Labor Statistics and determined the following:

- There are currently more than 4,300 Information Technology and Life Science companies in Utah, an increase of 404 over last year’s data, and comprising more than 62,000 high-paying jobs (an increase of 5.1 percent, comprising some 3,000 new technology jobs).

- The average technology salary continues to be 66 percent higher than the statewide average annual nonagricultural wage.

Overall, Utah’s technology and life science industry grew by over 10 percent in net new companies created (from 2005 to 2006)! The greatest one-year growth occurred for Electronic Shopping/Auctions and Internet Publishing and Broadcasting (a 34.3 percent and 35.9 percent increase in the number of companies, respectively).

In April of 2007 Forbes magazine highlighted Utah as one of the top 10 states in terms of numbers of tech jobs added.

Additionally, Fast Company magazine recently acknowledged Salt Lake City as one of its 30 “Fast Cities” for 2007. Leading the list of Utah companies Fast Company admires is a bio-technology company: Alzheimer’s drugmaker - Myraid Genetics.

Richard R. Nelson, president of the Utah Technology Council and chairman and CEO of the national Council of Regional Information Technology Associations (CRITA), notes “It’s truly exciting to represent the nation’s hottest economy as well as the state’s hottest industry. Consider the recent statistics:

- Utah was ranked 5th in Top Ten Pro-Business States.
- The Kauffman Foundation’s 2007 State New Economy Index listed Utah in the top five in nine categories, including #1 in Economic Dynamism; #2 in Inventor Patents (929 awarded patents in 2006); #4 in Fastest-Growing Firms; #5 in Venture Capital.
- Utah's current unemployment rate is 2.7%.

“Utah’s technology and life science industries are clearly growing,” Nelson adds. “And even more exciting is that our growth continues to set new milestones within the U.S. as a whole. Utah is rapidly advancing its prevalence and presence on a national scale.”

The Utah Fund of Funds: Driving Utah’s Entrepreneurial Economic Development

Created by the Utah Legislature in 2003 and launched in 2005, the Utah Fund of Funds (Utah FoF) has quickly become a highly successful fixture in Utah’s current entrepreneurial economy. Anchored by Utah’s dynamic local venture capital community, the model fund is fulfilling its core mission of driving economic development in the BeehiveState by increasing the amount and diversity of capital available to the state’s growth companies.

Historical Background

The Utah Fund of Funds was established with the passage of Utah House Bill 240 (“HB 240, the Venture Capital Enhancement Act). Led by Utah technology leaders and entrepreneurs under the direction of UTC (then called the Utah Information Technology Association), an unfunded legislative workgroup crafted the legislation, based on best practices from other states and adapted to the needs of Utah. Sponsored by then-State Representative Peggy Wallace, with support from leaders on both sides of the aisle, HB240 passed overwhelmingly through both the Senate and the House in its first attempt, and the Utah Fund of Funds was born.

Highlights

Economic Impact

The Utah Fund of Funds is bringing powerful economic impact to the state. As of October 31, 2007, the program’s portfolio funds had invested in 25 Utah companies. In aggregate, these companies had received $138 million from the program’s portfolio of investment firms, and a total of $340 million from all investors. These companies employed 1,211 combined Utahns, with an average annual salary of $64,165 – almost double the state’s average 2006 non-agricultural income of $34,600, as reported by the Utah Department of Workforce Services.

In addition to these tangible economic benefits, the Utah Fund of Funds is making equally important intangible contributions, including:

- Forging and strengthening relationships with many leaders in the larger national investment and business communities, on behalf of Utah companies and entrepreneurs
- Increasing awareness and credibility of Utah companies and entrepreneurs among key influencers in the national and global investment community
- Boosting confidence among Utah’s entrepreneurial community in the present and future of the state’s companies and economy

As the Utah FoF progresses alongside with the state’s entrepreneurial community and economy, the program will continue to broaden the depth and breadth of its influence, and to empower a growing number of Utah entrepreneurs and companies to propel Utah’s economic development for the foreseeable future.

USTAR: Furthering Innovation in Utah

Innovation is one of the key reasons Utah has become one of the hottest economies in the U.S.

To further Utah’s rich legacy in innovation, entrepreneurship, and technology development the Utah State Legislature passed Senate Bill 75 in early 2006 creating the Utah Science Technology and Research initiative (USTAR) due to the efforts of the Salt Lake Chamber, the Utah Technology Council and the Economic Development Corporation of Utah. This measure provides funding for strategic investments at the University of Utah and UtahStateUniversity to recruit world-class researchers, build state-of-the-art interdisciplinary research and development facilities, and to form first-rate science, innovation, and commercialization teams across the State. This initiative focuses on leveraging the proven success of Utah’s research universities in creating and commercializing innovative technologies to generate more technology-based start-up firms, higher paying jobs, and additional business activity leading to a state-wide expansion of the Utah’s tax base.

To achieve these measures, world-class research teams are being recruited to Utah to develop strategic innovation focus areas that are based on existing University strengths, have vast commercialization opportunities, address large and/or strategic global markets, and leverage Utah industry strengths. Investment areas include fossil energy, biofuels, biomedical innovation, imaging technology, nanotech biosensors, advanced nutrition and personalized medicine among others.

USTAR funding will help support construction of a state-of-the-art research facility at the University of Utah and UtahStateUniversity. The facilities will be available for and encourage industry collaboration. They will be equipped with core facilities including a nanofab, microscopy lab and other unique infrastructure that will provide research teams with the necessary resources needed to advance innovation and commercialization in their respective focus areas.

Additionally, USTAR created the Technology Outreach Innovation Program (TOIP) to drive its commercialization activities. The TOIP’s mission is to support the accomplishment of USTAR’s financial, employment, and research objectives by lending experienced leadership, deep business understanding, and functional expertise to the most promising opportunities and focus areas. The program is led by five directors deployed across Utah with a regional focus. Each director heads a Technology Outreach Center (TOC) located at one of the State’s higher educational institutions: UtahStateUniversity-UintahBasin, WeberStateUniversity, SaltLake Community College, UtahValleyUniversity, and DixieCollege.

Utah’s rich networks of social, intellectual, professional, and commercial relationships create a unique ecosystem that enhances university technology’s ability to crossover to the public domain. University of Utah and BrighamYoungUniversity are consistently ranked in the Top 20 of U.S. universities for commercialization productivity. USTAR also partners with a host of other organizations including the Governor’s Office of Economic Development (GOED), the Centers of Excellence program, EDCUtah, MEP and the Fund of Funds. In partnership with USTAR, Utah thought leaders are continuing to work together to unify efforts and make available resources more accessible to innovators.

Ultimately, the Fund of Funds and USTAR programs stand as innovative, visionary, and far-reaching initiatives to further bolster Utah’s high-technology economy. Better yet, the tech economy in Utah is just warming up.