While venture capitalists continue to view the United States as the global leader in technology development and innovation, they also recognize the U.S. has lost some of its dominance–particularly in cleantech, according to a new industry survey.
The survey, released by Deloitte and the National Venture Capital Association (NVCA), measured the opinions of nearly 400 venture capitalists worldwide and found European countries are emerging as leaders in clean technology, one of the fastest-growing sectors globally.
"The United States maintains the top spot as the global technology leader in innovation," said Mark Jensen, national managing partner of Deloitte LLP’s Venture Capital Services. "While the United States isn’t losing ground, the globalization of innovation is under way. The rest of the world is finding out what they’re good at, and venture capitalists recognize where those strengths lie."
According to venture capitalists surveyed, Germany was recognized by 43% of all respondents as leading the rapidly growing clean technology field, just behind the United States. Other countries to receive attention in the clean technology industry included Japan and Brazil.
"Germany is the beneficiary of a well-conceived, stable public policy that has ensured attractive markets for alternative energy technologies. This, combined with a strong general technology base, has fostered substantial innovation in the space," said David Prend, partner, Rockport Capital. "As a result, for example, Germany, a country with marginal sun, is a leader in solar photovoltaic technology that they export to the rest of the world. Venture capital follows quality technology and innovation," he added.
Other results of the survey showed Germany, the United Kingdom and Israel with strong innovation in medical devices and equipment, and China and India vying with the U.S. for top recognition in Information Technology.
Taiwan captured the No. 2 spot behind the United States in the semiconductor industry with 31% of the respondents recognizing the country as having the top technology in the world. 26% of venture capitalists named Japan as having top technology for semiconductors, followed by China at 16%.
"Taiwan has executed tremendously well and has earned its leadership position in the manufacturing of semiconductors. In addition to excelling in the area of outsourced manufacturing, Taiwan has been very smart in attracting and growing talent and partnering with leading edge companies in the semiconductor space," said Wayne Cantwell, general partner, Crescendo Ventures. He added, "Venture capitalists generally select Taiwan as the country of choice for manufacturing their portfolio companies’ semiconductors."
In the software sector, 41% of the venture capitalists surveyed viewed India as having top technology, placing it second behind the United States.
The following represents the percentage of global venture capitalists that named the United States to the No. 1 or No. 2 spot in the noted industry sectors:
- Telecommunications – 71%
- Semiconductors – 81%
- Software – 91%
- Biopharmaceuticals – 94%
- Medical Devices – 94%
- Clean Technology – 79%
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