Thursday, June 5, 2008

Venture Capitalists Around the Globe Identify Pockets of Technology Innovation

While venture capitalists continue to view the United States as the global leader in technology development and innovation, they also recognize specific pockets of technology innovation worldwide, according to a survey by Deloitte and the National Venture Capital Association (NVCA).

The 2008 Global Venture Capital Survey, which was conducted in March 2008 and measured the opinions of nearly 400 venture capitalists worldwide, found European countries are emerging as leaders in life sciences and clean technology, two of the fastest-growing sectors globally. Asian countries were recognized as offering a high level of innovation in the information technology (IT) fields.

Europe Shows Strength in Life Sciences and Clean Technology Sectors

According to venture capitalists surveyed, Europe is emerging as a new leader behind the United States for life sciences and clean technology sectors. Germany and the United Kingdom in particular are quickly gaining recognition for their technological savvy in these fast-growing industries.

Germany was recognized by 43 percent of all respondents as leading the rapidly growing clean technology field, just behind the United States. Other countries to receive attention in this industry included Japan and Brazil.

In the field of medical devices, 39 percent of the venture capitalists surveyed also cited Germany as being the second most recognized country for technology in medical devices and equipment, followed by the United Kingdom at 20 percent and Israel at 14 percent.
The United Kingdom was identified in the second spot by 31 percent of the respondents as having leading technology for biopharmaceuticals, followed by Switzerland at 18 percent and Germany at 15 percent.

Asian Countries Vie for Top Spots in Information Technology

While there has been great interest surrounding the promise of China and India as emerging technology centers of the world, the United States continues to be viewed by the majority of venture capitalists surveyed worldwide as the global leader in technology in all IT sectors. Yet Asian countries consistently ranked high in IT among all other nations.

Japan Leads Behind the United States in Telecom

After the United States, Japan fared well in telecommunications in the minds of venture capitalists, with 27 percent of all respondents identifying the country as having leading technology in the sector. Sixteen percent of venture capitalist respondents named Israel as a leader in telecommunications.

Taiwan Strong in Semiconductors

Taiwan captured the No. 2 spot behind the United States in the semiconductor industry with 31 percent of the respondents recognizing the country as having the top technology in the world. Twenty-six percent of venture capitalists named Japan as having top technology for semiconductors, followed by China at 16 percent.

India Ranks High in Software

In the software sector, 41 percent of the venture capitalists surveyed viewed India as having top technology, placing it second behind the United States. India was followed distantly by the United Kingdom (13 percent) and Israel (12 percent) as having strong technology in the software space.

United States Viewed as Technological Leader Among Venture Capitalists

Venture capitalists from around the world view the United States as having the best technology in all sectors surveyed. The following represents the percentage of global venture capitalists that named the United States to the No. 1 or No. 2 spot in the noted industry sectors:

-- Telecommunications — 71 percent
-- Semiconductors — 81 percent
-- Software — 91 percent
-- Biopharmaceuticals — 94 percent
-- Medical Devices — 94 percent
-- Clean Technology — 79 percent

More information on the information technology industry can be found at www.supportindustry.com

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