| DLA Piper Technology Leaders Forecast Survey – Q1 2012
DLA PiPer TechNOLOGY LeADersFOrecAsT surveY–q1 2012
In the ace o global economic headwinds and amid ahigh-stakes 2012 presidential election, technology leaders – ever ocused on the promise o the uture – are
on the economic, regulatory andpolitical landscape.This was the pervasive theme throughout DLA Piper’sith Technology Leaders Forecast survey, which wasdeveloped in conjunction with the irm’s 2012 GlobalTechnology Leaders Summit. Will greater economic certainty ollow the outcome o November’s election? What is the direction o tax policy? Will the next administration ease regulations – or increase the regulatory burden? How will China’s role in technology development and nancing evolve? Will the IPO marketcool down or heat up? What are the most promising andchallenging areas or the technology economy?These are just a sampling o the issues addressed inDLA Piper’s latest survey o the major trends, challengesand opportunities conronting the technology industry.By a 3 to 1 margin technology leaders believePresident Obama will be re-elected on Nov. 6th.However, most are very skeptical that another term under his administration would be a positive development or the industry.In act, hal o technology leaders who think PresidentObama will earn re-election think it would be a negativedevelopment or the sector. Most – 64 percent – believe that Mitt Romney’s election would be better or the technology industry. This stands in stark contrast to the2008 survey when the majority (60 percent) o technology executives signaled that a Barack Obamavictory would be a positive development or the technology industry.These executives and investors, however, have more on their minds than just politics. There are underlyingconcerns about global economic conditions – and theadded burden o growing regulation that hinder their ability to access capital and build new businesses.Economic uncertainty was listed as the most signiicantbarrier acing the IPO market and was a signiicant actor in impeding the success and ormation o technology start-ups.Despite these challenges, technology leaders’expectations or growth are cautiously optimistic, withmost expecting moderate sales and hiring growth. Mostsubscribe to a belie in a “new normal” or growth – steady, but slow.Key highlights o the survey include:
Wat wold a ond-t Pdnt Obaaan fo t t ndty?
Most respondents think voters will re-elect President Obama, but60 percent doubt that his policies will impact the technology industry in a positive way.Sixty-our percent o respondents think Mitt Romney would positively impact the technology sector, while just 41 percent o respondents think a second-termPresident Obama would positively impact it.
i pat ty dtnd fo oglaton?
A strong majority (78 percent) o respondents think the 2012 political debate has hurt the reputation o the private equity industry, andmost (65 percent) think it likely will result in moreregulation o the industry.
Wold fdal ta na t tntnt and al?
A majority (60 percent) o respondents think the expiration o the Bush-era taxcuts will hurt investments in the technology industry;