Illinois Technology Sector: Progress and Challenges

Strategic Insights -

Illinois ranks as one of the leading technology states, with strengths in measures such as tech jobs and revenues. However, the state falls short in critical areas, including venture capital funding, according to an upcoming assessment by the Illinois Coalition. The coalition's Science and Technology Yearbook provides a comprehensive set of indicators for technology growth, highlighting both positive and negative trends.

Key Takeaways:

  • Illinois ranks fourth in the number of technology plants and facilities, with a growth rate of 9.2% since 1990, surpassing California's 7.6% rate.
  • The state's combined revenues generated by publicly traded technology companies rank fourth, with a revenue growth rate of 13% annually between 1994 and 1997.
  • Illinois ranks fourth in technology jobs and fourth in patents issued annually.
  • The state lags behind in the number of newly public technology companies, with only three initial public offerings (IPOs) in 1997.
  • Illinois ranks seventh in the number of privately owned industrial research-and-development (R&D) facilities, with 820 facilities, behind California's 1,752 facilities.
  • Venture capital funding for emerging Illinois firms received $471 million in 1998, ranking the state seventh nationally, with annual growth of 53% since 1991, lagging behind six top venture capital states.
  • Access to capital is identified as a critical area for improvement by the Illinois Coalition Director Thomas Thornton.
  • Nancy Keene, a director in the technology practice at PricewaterhouseCoopers LLP, notes that the venture capital market is growing, which bodes well for the industry.

Statistics:

  • 9.2% average annual growth rate of technology plants and facilities in Illinois since 1990.
  • 13% annual revenue growth rate for publicly traded technology companies in Illinois between 1994 and 1997.
  • 53% annual growth rate in venture capital funding for Illinois firms since 1991.
  • $471 million in venture capital funding for emerging Illinois firms in 1998.
  • 820 privately owned industrial R&D facilities in Illinois, ranking seventh nationally.
  • 1,752 privately owned industrial R&D facilities in California, leading the nation.

Sources:

  • "Illinois Coalition Science and Technology Yearbook" (draft report).
  • Thomas Thornton, Illinois Coalition Director, interview.
  • Nancy Keene, Chicago-based director in the technology practice at PricewaterhouseCoopers LLP, quote.
  • PricewaterhouseCoopers LLP, venture capital funding data.