Survey of 82 Northern Virginia Companies Underscores Region's Tech Opportunity and How it Is Poised for Continued Growth
MCLEAN, Va, Nov. 18, 2024 /PRNewswire-PRWeb/ -- The Northern Virginia Technology Council (NVTC) today announced the findings of a groundbreaking study of top technology executives in Northern Virginia. The findings highlight the region's position as one of the nation's leading technology hubs, while exploring the opportunities and challenges that will shape the region's future growth and innovation.
The study is based on a survey of 82 top technology organizations in the Northern Virginia (NOVA) region, as well as in-depth interviews with 30+ senior executives, and evaluates the region across five key dimensions: Talent, Innovation, Ecosystem, Business Attractiveness, and Proximity to the U.S. Federal Government.
"Northern Virginia is finally getting the recognition it deserves as a technology powerhouse," said NVTC President and CEO, Jennifer Taylor. "We have the second highest tech employment of any U.S. metro area with 11.2% of the workforce, we are the largest data center market in the world with over two-times total inventory of the next largest market, and we have 2.5 times more computer science graduates than peer-tech hubs like New York, San Francisco, and Seattle. The growth opportunity in this region is clear."
What the study found:
- Talent Access, Skills Gaps: 73% of employers consider access to talent a key advantage, with 55% ranking it as the top factor defining a leading tech hub. Tech leaders noted challenging skills gaps in AI/ML (62%), Cybersecurity (43%), and Software Development (39%). The Northern Virgina region boasts the nation's second highest net tech employment by metro area – only behind New York City -- with 376K tech industry and tech occupation workers, providing a rich and diverse talent pool. In net tech employment, the region is slightly ahead of tech hubs including San Francisco, San Jose, Los Angeles, and Dallas.
- Innovation Focus: GenAI, cybersecurity, and cloud computing are the top three emerging technologies that organizations are investing in for NOVA-specific operations over the next 2-3 years. 89% of NOVA tech leaders are investing in Generative AI, 83% in Cybersecurity and Digital Identity, and 61% in Cloud and Edge Computing. Early-stage tech like Space and Quantum are in the early stages of tech adoption.
- Ecosystem: NOVA excels in developing growth-stage companies, ranking #1 in the number of firms that scaled up (>50 employees within 10 years) and #1 in the density of high-growth companies (>$2M revenue per 1K firms), compared to peers. Northern Virginia excels at scaling growth-stage companies, and recent surges in VC funding, start-ups, and five-year survival rates highlight its potential. However, one in three tech leaders still cite investment capital and entrepreneurial ecosystem as barriers. Leaders say more support is needed, including tech accelerators and incubators.
- Business Attraction: Tech organizations are committed to Northern Virginia – 77% of surveyed organizations plan to stay in NOVA, with 29% considering expanding within the region in the next three years. NOVA boasts the nation's largest data center market (~5x capacity of Silicon Valley). Still, executives say the high cost of living and transportation issues make it harder to attract and retain key talent.
- Federal Government: Tech firms value Northern Virginia's unique access to the federal government, prompting many major technology companies to have large offices in the region to be close to the federal government to bring IT solutions that address their mission challenges. In fact, companies in Northern Virginia received 31% of federal government's IT contracting spend in 2023, totaling $24B. However, start-ups and niche firms face high barriers to entry due to contract procurement hurdles.
"This research confirms what many of us have long known - Northern Virginia is a powerhouse in the tech industry," said Bruce Caswell, chair of the NVTC Board and CEO, Maximus. "Our unique combination of world-class talent, proximity to the federal government, and our focus on cutting-edge technologies like AI and cybersecurity positions us for continued growth and innovation. As we look to the future, NVTC is committed to addressing the challenges identified in this study and further strengthening our region's tech ecosystem."
The study, in line with NVTC's mission, is intended to foster collaboration across the region to address challenges and drive future innovation. As Jennifer Taylor commented, "We see this as the start of an important conversation about the region and the path forward to address the challenges. We are enthusiastic about working with stakeholders across Northern Virginia – including both private sector leaders, university leaders and our public officials – to put these insights into strategic action.
Read the Study & Watch the Webinar
The full study, which provides a comprehensive analysis of Northern Virginia's technology ecosystem, is available for download at: https://www.nvtc.org/communities/2024-northern-virginia-tech-innovation-study/
An NVTC webinar on Tuesday, November 19, 2024 will review the study findings with a panel of local technology leaders from Amazon Web Services, GDIT, Maximus and ScienceLogic. Register to join the live webinar at: https://www.nvtc.org/event/hidden-in-plain-sight-northern-virginias-rise-as-a-us-tech-giant/
Contact:
Tarin Horan
Northern Virginia Technology Council (NVTC)
[email protected]
703.946.0319
About the Northern Virginia Technology Council:
NVTC is where the region's tech community comes together. From bold startups to Fortune 100 giants, we represent over 470 members across sectors shaping the future of technology. NVTC drives innovation, fosters connections, and advocates for policies that fuel growth and position Northern Virginia as a global leader in technology. Through its initiatives in cybersecurity, AI, cloud computing, and beyond, NVTC empowers the tech community to shape the future. Whether it's through policy advocacy, peer networks, or industry promotion, NVTC drives innovation that's transforming the world. Learn more at http://www.nvtc.org
Media Contact
Tarin Horan, NVTC, 7039460319, [email protected], www.nvtc.org
SOURCE NVTC; NVTC
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