In the past, Arizona’s economy has been defined by growth.
That still holds true today, except today’s growth looks very different.
In 2021, growth means semiconductors; electric and automated vehicles; batteries; renewable energy; the internet Of things; artificial intelligence; quantum computing; smart materials; fintech; proptech; edtech; medtech; biopharma; cybersecurity and so much more.
These emerging technologies combine to make up Arizona’s innovation economy, and their rapid rise provides a window into Arizona’s future.
It’s one reason Arizona Commerce Authority is thrilled to see Phoenix Business Journal’s new focus on innovation and support AZ Inno as a proud sponsor.
There’s no denying that Arizona is one of the fastest-growing technology hubs in the nation. According to technology reporting firm CompTIA, Arizona has added more than 38,000 tech jobs since 2015, bringing total employment in the tech industry to more than 255,000. The firm predicts Arizona will be a top-five state for rate of tech growth over the next decade.
Likewise, a recent analysis from the Dice Tech Job Report put the Phoenix area in the top 10 for tech job posting growth in the second quarter of 2021. But Arizona’s technology surge extends far beyond just the Valley of the Sun.
As just a few examples, this year, Governor Ducey helped kick off the grand opening of CP Technologies’ new headquarters and manufacturing facility in Prescott. The technology company, which relocated its headquarters from California, manufactures computer hardware for military uses.
In March, UACJ Whitehall, a maker of electric vehicle (EV) parts based in Michigan, announced a 350-job expansion in Flagstaff, where it will manufacture automotive parts for partners like leading EV innovator Lucid Motors, which has a factory in Casa Grande.
In April, global medical technology company BD, which already hosts medical equipment manufacturing operations in Tempe, announced a $65 million investment to build a state-of-the-art supply hub in Tucson. The new facility adds to the rapidly expanding technology scene in Tucson, which was recently labeled No. 6 in Business Facilities’ Millennial Magnet ranking and described as having “one of the highest concentrations of startups of any U.S. city its size.”
“Even before Covid-19, Tucson was being recognized nationally as an up-and-coming hot spot for those looking for a different quality of life and lower cost of living than available in large metropolitan areas like Los Angeles and Silicon Valley,” said Liz Pocock, CEO of Startup Tucson. “Now is the time to take advantage of this national attention.”
In less than a decade, Arizona’s startup ecosystem has more than doubled in activity. Consider that in 2011, data from PitchBook-NVCA Venture Monitor tracked 63 venture capital deals totaling more than $280 million in Arizona. By 2019, Arizona had recorded more than 130 deals totaling over $940 million.
The Arizona Commerce Authority emphasizes support for local entrepreneurs through programs such as the following:
- Arizona Innovation Challenge (AIC)
- Venture Ready Accelerator
- Virtual Accelerator
- Small Business Digital Academy
- Small Business Bootcamp
- Venture Madness
All of these programs provide resources and mentorship to help early-stage ventures commercialize new technologies and scale.
As for results, since 2011, 110 companies have been selected as AIC awardees. Today, these companies have a combined portfolio value of $1.4 billion and include leading local success stories such as Paradox, CampusLogic, Trainual, Qwick and EnPower.
They are part of a dynamic technology landscape, one that has seen its share of major announcements recently as well. Industry leaders such as Intel, TSMC, Kore Power, Lucid and more have announced expansions in Arizona representing thousands of new jobs and billions in investment in recent years.
The presence of these global tech leaders fuels further growth and innovation, as in the case of Footprint, an Arizona-based company originally founded by two former Intel employees that is helping reduce the world’s dependency on single-use plastics.
Perhaps what’s most exciting is that, after a turbulent year interrupted by Covid-19, Arizona’s innovation community is as resilient and active as ever. Next month, entrepreneurs from around the state are planning to come together for events such as Arizona Bioscience Week (October 4-6), the 2021 Southern Arizona + Business Expo (October 6), Venture Madness, Arizona’s longest-running pitch competition (October 6-7), UNMET Arizona VC Conference (October 7-8), Governor’s Celebration of Innovation Awards (October 13) and the Venture Ready Accelerator Graduation (October 14).
These events highlight the core strengths of Arizona’s innovation economy: its connectivity and welcoming posture. Whether you’re a venture celebrating your first year in business or your 100th, as iconic Arizona-based Avnet is this year, there’s a place for you here, along with the resources, mentorship and community support to help guide your success.
There’s never been a more exciting time to be part of Arizona’s thriving innovation ecosystem. If recent years provide any indication for the future, the best is yet to come. So, welcome, AZ Inno. We expect you’ll have plenty to keep you busy in the days ahead.
Learn more at azcommerce.com.
