Business in Utah is Booming!

Utah’s ability to create and sustain highly successful and innovative high-technology and life sciences companies stems from a rich history of innovation and entrepreneurship. Some of the world’s greatest companies and technological innovations were founded by individuals with strong ties to the State of Utah and its universities. (see Technology Timeline )

Utah has fostered innovation since before 1927 when Philo Farnsworth, a Utah native, invented the first electronic television. Through its clever government programs and leadership, technologically focused and entrepreneurial promoting universities, its well educated, hard working workforce, and access to venture capital, Utah continues to grow and develop relevant technology companies. Currently, there are over 5,200 information technology and life science companies operating in Utah. These companies generate more than $3.4 billion in annual wages and employ more than 63,000 people.

Business & Government

• Utah’s government has a strong tradition of collaborating with the state’s private sector to create innovative economic development legislation.

• Programs such as the Utah Centers of Excellence are helping create compelling jobs and companies in the state.

• In 2002 collaboration between the state’s legislature and Utah’s information technology and life sciences industries resulted in the development of the “Utah Fund of Funds” or the “Venture Capital Enhancement Act”. The fund creates a series of incentives to draw funding into Utah’s economy to provide needed growth capital for promising companies in the state.

• In 2006 the State of Utah enacted the Utah Science Technology and Research economic development initiative. USTAR is meant to enhance collaboration between Utah’s tech companies and Utah’s universities, with special emphasis on areas where Utah already enjoys competitive advantage.

• In 2003, USA Today ranked Utah the best-managed state in the country.

Cost of Doing Business

• The cost of living in most Utah communities is generally well below the national average, according to the American Chamber of Commerce Researchers’ Association’s Cost of Living Index

• In a recent survey on the cost of doing business by the Boyd Company, Salt Lake City ranked 11th amongst the fifty metropolitan areas surveyed.

• Utah companies benefit from cost-effective and stable public utilities. In Utah, the Public Service Commission regulates electric power and nat­ural gas rates of investor-owned utilities, as well as telecommunications.

• Among the 50 states, Utah ranks 15th in venture capital funding, up from 35th 10 years ago

• In 2006 there was over $113 million dollars invested in high-technology and life sciences companies by venture capital and private equity firms.

• The Utah Fund of Funds is a $100 million State of Utah economic development program aimed at providing access of alternative or non-traditional capital to Utah entrepreneurs and was established in 2002

Workforce

• Utah’s workforce is one of the healthiest and most educated in the nation. CEOs of major companies that have relocated operations to Utah during the past several years report an increase in productivity of 15 to 30 percent, due to the work ethic and good health of the state’s populace.
  Utah Facts 2006

• Utah has the highest percentage of computers per household in the nation.
  Utah Facts 2008

• Utah’s workforce is one of the most multilingual in the nation greatly enhancing the readiness and ability of Utah-based companies and divisions to operate in an increasingly global economy.

• Utah has a young and vibrant workforce. Median age of the population is 28.95 years, the youngest in the nation.

• Utah is a very compact place. Ninety Five percent of the population is located within a 45 minute drive of key leaders and decision makers.

According to a 2005 survey from the Association of University Technology Managers

• BYU ranked 1st (2003-2005) and the University of Utah ranked 11th for Invention Disclosures.
• BYU is ranked 1st in Start-up Companies formed.
• BYU is ranked 1st in New Patent Applications filed.