DLA PIPER LAUNCH EUROPEAN TECHNOLOGY INDEX
Positive outlook for the European technology sector
DLA Piper today launches the first ever European Technology Index at the DLA Piper European Technology Leaders Summit. The survey of senior technology leaders aims to measure attitudes to the challenges and opportunities for growth within the industry across Europe and is focused on the key areas of finance, talent, regulation, tax and intellectual property.
Perhaps surprisingly in the current economic environment the overall index score was 64 The index is based on a diffusion index which weights the percentage of answers that are positive, negative and neutral. The results were collated to demonstrate degrees of positive feedback, where 100 represents a very high positive score and 0 a highly negative response, and thus offer an overall view of the sentiment of the index.. This demonstrates a broadly optimistic view of the market and opportunities for growth, specifically respondents were positive about the current credit/finance environment and its ability to support future growth. In fact, 36% felt that the financing environment encourages growth, given liquidity, financing and covenant requirements, this is a surprisingly upbeat finding. Furthermore, there is also no shortage of talent, in what is an industry reliant on the quality of its people, only 8% felt that they struggled to find the right candidates.
Overall the survey found that respondents chose the UK (21%) as the best place to do business in Europe. Respondents then favoured Switzerland (16%) and Germany (14%). The Netherlands came in fourth with 12%.
Half of respondents felt that their own country’s regulatory regimes had no effect on growth in the sector, but 33% claim that it is improving it. The survey also found that respondents saw the UK as offering the best tax and regulatory regimes for business (26%), closely followed by Switzerland (15%), France (12%) and Germany (11%).
Across Europe attitudes toward the current Intellectual Property environment are broadly neutral with 30% of respondents seeing the environment as positive and just 8% claiming that it is negatively affecting growth, this gives a positive technology index score of 58 and perhaps reflects the efforts made in recent years to align IP laws both internationally and within the EU.
Additionally, respondents were asked to choose which areas they expect to see most growth in the coming months and rank the top three in order of importance. The areas identified as having the greatest opportunities for growth within the technology industry were emerging markets (77%), cloud computing (70%) and renewables and green technology (67%). Converged communications came fourth with 33% and social media and online channels came in fifth with only 23% rating it as a top three priority.
Simon Levine, DLA Piper’s International Head of Intellectual Property & Technology said: “The mood amongst senior decision makers within Europe’s technology sector is overwhelmingly optimistic. Despite the challenges the industry has faced in recent years we are hearing positive noises from across Europe as companies seek to invest in markets such as Central and Eastern Europe, India and the Middle East. With the help of increased research and development, rising incomes and increased business to business opportunities, I don’t doubt we will see further growth within the sector.
Turning to the UK, it is not surprising that it ranks number one as the best place to do business in Europe, with the best tax and regulatory regime. Despite pressure to tighten financial services regulation, the Government and regulatory authorities will want to ensure the UK remains one of the most highly developed and competitive financial services markets in Europe. We have seen in recent days announcements from major leading technology companies in Europe stating their desire to remain within the UK that, in addition to this survey, indicates that the European technology sector is alive, well and looking to grow.”
Richard Boucher, Deputy Secretary General of the OECD added: “Against the backdrop of a difficult economic climate it is refreshing to see such positivity around an industry. There is both consumer and business demand for the technology sector, which will allow it to grow and develop into new markets in the coming months and years.”
You can download a copy of the report at http://europe.dlapipertechleaderssummit.com/
The index is based on a diffusion index which weights the percentage of answers that are positive, negative and neutral. The results were collated to demonstrate degrees of positive feedback, where 100 represents a very high positive score and 0 a highly negative response, and thus offer an overall view of the sentiment of the index.