Tech Talk: Seeking Further Legislative Progress

 

Legislators returned to the Statehouse one week ago for the “short” session of the Indiana General Assembly. That means adjournment must occur no later than March 14 and there is no budget to construct as the current two-year plan was put into place in 2017.

Technology and innovation issues, however, will be on the table. This follows some early successes in 2017 (see Page 5 of the comprehensive 2017 Final Legislative Report) that included establishment of the Next Level Fund, resources for the Management and Performance Hub, enhanced broadband connectivity and more.

The Indiana Technology and Innovation Council Policy Committee, led by John McDonald of ClearObject and Bill Soards of AT&T Indiana, worked through the remainder of 2017 to craft new and revised policy positions moving forward. They were the focus of much of the discussion at the second Tech Policy Summit in early December and in meetings with legislative and executive branch leaders.

We enter the new session cautiously optimistic of continued progress. Among the key topics: clarity of tax treatment of software-as-a-service (SaaS), computer science education requirements for students and development of an autonomous vehicles policy.

Browse the following to become more informed of both key tech/innovation priorities and the Indiana Chamber’s broader focus:

Tech and Innovation Legislative Business Issues

Tech, Innovation and Indiana’s Future Economy (two-page overview of why these policy priorities are so important)

2018 Indiana Chamber Top Legislative Priorities

Indiana Chamber Top Policy Victories

Additionally, TechPoint is accepting applications for the 19th annual Mira Awards honoring ‘the best of tech in Indiana.’ The Mira Awards are like Indiana’s Oscars for technology with award categories recognizing the people, products and companies that make our community so special.

Applications are due January 19. Visit https://techpoint.org/mira/ to apply. This year’s black-tie gala celebration will be held Saturday, April 28, at the JW Marriott – Indianapolis.

You can learn more about this year’s upcoming Mira Awards from the official awards program launch press release.

FCC’s Official Net Neutrality Decision Coming This Week

On Thursday, the Federal Communications Commission (FCC) will decide whether to overturn the Obama-era net neutrality regulations that currently govern the internet. It is highly anticipated they will decide to return to the pre-2015 regulations.

Net neutrality implies an open internet environment that internet service providers should enable access to all content and applications regardless of the source, and without favoring or blocking particular products or web sites.

The 2015 net neutrality laws reclassified high-speed broadband as a public utility under Title II of the 1934 Communications Act rather than the 1996 Telecom Act. These regulations applied to both mobile and fixed broadband networks. The reclassification changed how government treats broadband service and gave the FCC increased controls over internet service providers.

The office of FCC Chairman Ajit Pai recently issued this Myth vs. Fact statement on returning to the pre-2015 regulations. One issue the public is concerned with is if internet providers would block or “throttle back” certain content to the public. Another is if content developers would pay internet providers for accelerated data transfer. The bigger issue is whether internet providers can operate their businesses as businesses rather than as a public utility. Data show that private investment in internet services has slowed under the post-2015 regulations.

The Indiana Chamber supports free-market competition in the delivery of advanced communications services. The competition in a free-market environment among industry service providers is consistent with providing choice to consumers and an adequate service of last resort in extended service areas.

The Chamber opposes any attempt to impose new regulations on broadband and other next-generation telecommunications services by the FCC, especially through the unilateral reclassification of such services under Title II of the Federal Communications Act.  The Indiana Chamber supports the U.S. Congress examining and deciding issues such as net neutrality. We believe that advanced communications and digital infrastructure are critical to long-term economic development. Since 2006, private companies have invested more than $1.5 billion in new broadband capacity in the state, expanding service to more than 100 Hoosier communities and creating 2,100 new jobs within the industry.

If the FCC rules to return to the pre-2015 regulations, it is expected that Congress will entertain legislation to promote some of the concepts of net neutrality and limit the ability to stifle content.

Tech Talk: Moving Ahead on the Policy Front

2017 Tech Policy Summit

The discussions at the second Indiana Technology & Innovation Policy Summit last Friday were so plentiful and rich with content that three stages were utilized during the five-hour event. Seven sessions and a keynote address were part of the mix.

We’ll hit a few highlights below, but an overall takeaway: Our state has momentum, there is more work to do to continue that positive pace and one way for tech and innovation business leaders to get involved and help ensure success is communicating with your legislators. It’s a critical component.

In the words of the presenters:

  • Fishers Mayor Scott Fadness: Indiana can largely check the box on enhancing its tax and business climate; today is about the innovation climate and building bridges between traditional industries and technology companies. And he says the IoT lab coming to Fishers will send a powerful message about aggregating talent.
  • Software-as-a-Service: The legislative mission is to provide “certainty and predictability to the tech community” about SaaS and tax treatment. Three states (Washington, Tennessee and Pennsylvania) have put up red lights on software development by taxing SaaS. Indiana seeks to join a similar number with a green light encouraging investment. Christopher Day of DemandJump: “It’s not just about SaaS. What it’s about is growing our wealth as a state. It’s time to transition the Crossroads of America to the Nation’s Nucleus.” SaaS panel
  • Certified Technology Parks: Fifteen of 23 tech parks in the state have met the $5 million funding cap. The proposal is to allow those parks that meet certification requirements to be eligible for additional funds to continue to provide technical assistance to companies within the facilities.
  • Larry Gigerich, Ginovus, on expanding investment capital: Twenty states have tax credits that are transferable, sellable or bondable with eight or nine more set to consider such action. Indiana is missing from that equation, its 20% tax credit is no longer competitive against many other states and the state’s cap is “middle of the pack.” Although the Next Level Fund approved in 2017 will be helpful, Gigerich gives preference to a stronger tax credit system.
  • Autonomous vehicles (AV): State Rep. Ed Soliday presented extensive data. Again, Indiana is looking to join other states (21 with legislation, five with executive orders) with some form of policy. Indiana’s goals: ensure public safety and encourage innovation/AV research and development in our state. Soliday says much work needs to be done to convince the public about the benefits.
  • Data centers: Rich Carlton of Data Realty didn’t argue with the general assertion that data centers themselves don’t create large numbers of jobs, but cited the related development and job creation that has taken place in South Bend. Tax treatment is preventing Indiana from being a participant in the national data center boom. A $2 million data center building with an additional $23 million in equipment would be taxed at the first figure in many states, but at $25 million in Indiana. Carlton: “Do we want to have part of something or all of nothing?”

Jeff Brantley, Indiana Chamber vice president of political affairs, connected the dots on legislative victories resulting from both political and policy involvement from the business community.

Micah Vincent, director of the Indiana Office of Management and Budget, shared that we can expect to see the initial Next Level Fund investments in the first quarter of 2018. And he projected that the 2018 Indiana General Assembly may very well end up being the “workforce session.”

Check out the two-page summary of how the legislative positions of the Chamber’s Tech Policy Committee can impact the state’s economic future. Look for continued coverage of these important issues through various Chamber communications.

Technology Policy Summit, Other Events on Tap

One sign of the continued growth of Indiana’s technology and innovation sectors is the plethora of meetings, conferences, summits and other events that fill the calendar.

Leading the way is the Indiana Chamber’s second Technology Policy Summit. After a successful year advocating on innovation and entrepreneurship issues at the Statehouse in 2017, the organization’s tech policy committee has identified priorities for the year ahead. Look for summit sessions on data center strategies; autonomous vehicles; Smart Cities, Smart State initiatives and more.

The December 1 event (8:00 a.m.-1:30 p.m.) will take place at the Conrad in downtown Indianapolis. We’ll share a more in-depth preview in this space in the coming weeks. Learn more and register at https://www.indianachamber.com/event/technology-policy-summit/.

Among the many other programs coming up:

  • Indy IoT 2017: The New Crossroads of IoT features a focus on making things, moving things and growing things. ClearObject is the organizer of the luncheon program on October 25 at 502 East Event Centre in Carmel.
  • The CIS-IEEE EnCon Engineering Conference highlights the cutting edge of technical innovation. The Cyberinfrastructure Building and the Innovation Center on the Indiana University campus in Bloomington will host the November 10-11 sessions.
  • Innovation, entrepreneurs and more will come together for the 2017 Indiana AgbioSciences Innovation Summit. AgriNovus Indiana presents the daylong program on November 29 at the JW Marriott in downtown Indianapolis.

Again, these are just a few of the many programs focused on advancing technology, innovation and entrepreneurship in Indiana. We encourage you and your team members to take advantage of the opportunities, get involved and benefit from the collective learning.

State Wants to Hear From You on How to Streamline Small Businesses Reporting

Cutting red tape for Indiana’s job creators is key to making our state a better place for small businesses to expand and hire more Hoosier workers. To that end, during the 2017 legislative session, the Indiana Chamber supported House Bill 1157, Small Business Duplicative Reporting, which was authored by Rep. Doug Miller (R-Elkhart). The law is simple, but hopefully effective in generating ideas to make early-stage and small business interactions with state government in Indiana even more business-friendly.

As a result of the successful legislation, the Indiana Economic Development Corporation has set up an online survey to gather feedback from employers and government officials on instances of duplicative reporting.

The Indiana Chamber is encouraging small business owners and local governments to take part in the survey. It only takes about five minutes to complete and asks participants to identify situations where they are required by state law, rule or guideline to submit similar information to at least two state agencies. Duplicative information can include notifications, tax reports, employment information and other statistical data.

By helping to identify these issues, the state can work to streamline reporting processes or even eliminate some – which should save business owners time and money.

Tech Talk: Breaking Down the H-1B Visa Numbers

U.S. employers planned to pay high-skilled foreign workers with H-1B visas a median salary of $80,000 a year in fiscal year 2016, up from about $69,000 a decade earlier, according to a Pew Research Center analysis of new U.S. Citizenship and Immigration Services data. This is the first time the U.S. government has made salary information about H-1B applicants publicly available.

The 2016 median salary reported for H-1B visa applicants was higher than the median salary paid to some U.S. workers in similar high-skill occupations. For example, U.S. workers in computer and mathematical occupations had a median salary of $75,036 in fiscal 2016, a slight increase from 2007, when the median salary was $73,979 (adjusted to 2016 dollars), according to U.S. Bureau of Labor Statistics data on all U.S. workers. The majority (60%) of all H-1B applicants from fiscal 2007 to 2016 were seeking employment in computer and mathematical occupations.

Several bills have been proposed in Congress this year to change the H-1B program, and the Trump administration has said it backs a plan that would reverse decades of U.S. immigration policy by admitting more high-skilled immigrants and fewer low-skilled immigrants.

The USCIS data show that overall demand for H-1B visas has increased sharply over the past decade. The number of total H-1B visa applications filed by employers on behalf of foreign workers increased from 246,126 in fiscal 2009 to 399,349 in 2016, and is on pace to reach a new high in 2017. Overall, U.S. employers filed more than 3.4 million H-1B visa applications from fiscal 2007 through the end of June 2017 (the first nine months of fiscal 2017).

The U.S. government also released H-1B visa salaries that individual employers plan to pay foreign workers, as indicated on applications approved by USCIS (and still subject to State Department review).

The biggest names in technology planned to pay the highest average salary to H-1B visa holders in fiscal 2016. But they also expected to hire fewer workers than other companies, according to data on applications approved by USCIS. Facebook planned to pay an average salary of $140,758 on 1,107 H-1B visa applications (a total that includes both first-time and renewal applications), the highest average salary paid among the 30 companies with the most visa approvals. Apple planned to pay a $138,563 average salary on 1,992 applications, while Google paid a $131,882 average salary on 2,517 applications.

The top prospective employers of foreign workers on H-1B visas provide information technology and other business services. Cognizant Tech Solutions, an IT consulting company based in New Jersey, had 21,459 applications approved in fiscal 2016, the most of any company. The next two top H-1B employers are companies based in India with offices in the U.S.: Infosys (12,780 applications approved) and Tata Consultancy (11,295).

Management Performance Hub Picks Up Speed

The Indiana Chamber has been a key advocate for Indiana’s Management and Performance Hub (MPH) by recently supporting legislation to codify and fund it so it can achieve more.

MPH is a data hub that can link and aggregate state agency datasets with other data to help improve the performance and outcomes on many issues, including education/workforce, the opioid crisis and traffic safety. Think of it as a depot, where data can be assembled and studied to further outcomes and make better data-driven decisions.

Beyond improving state government performance and enhancing transparency, there is the ability to provide useful information to external partners including researchers, the business community and not-for-profit organizations. There will be an external-facing component of MPH to determine protocol on how this information can be utilized for maximum benefit.

The Indiana Chamber is a member of an advisory group to review guidelines and policies being established by MPH. We are also part of the Indiana Open Data Council to provide advice and guidance as MPH evolves; this includes the state and researcher and community advisors to help further MPH’s goals, scale innovation and increase utilization of the MPH.

For more information about the latest with the MPH, read its newsletter.

Tech Talk: Federal Tech Team Still in Place

The following is excerpted from NextGov:

An Obama-era technology troubleshooting team has continued under President Donald Trump, maintaining projects some experts suspected would be shuttered in the new administration.

The U.S. Digital Service, a task force of professionals recruited from the private sector, was established to tackle some of the federal government’s highest profile and highest risk technology challenges. Today, it has satellite operations in seven federal agencies, including Defense, Veterans Affairs, Homeland Security, and Health and Human Services.

The team reports to the Office of Management and Budget and is now part of the American Technology Council, a group of business leaders that President Trump taps for advice on federal problems. The Digital Service (USDS) also works with the White House Office of American Innovation, which is led by Trump son-in-law Jared Kushner and is aiming to modernize government technology.

Among the recent USDS priorities, according to its report to Congress:

  • A variety of projects for Veterans Affairs – building and deploying a system to process claims for disability compensation; piloting a tool to allow lawyers and judges to review evidence from those claims; and launching Vets.gov, an online portal consolidating thousands of federal benefit sites for veterans.
  • Collaborating with U.S. Citizenship and Innovation Services to digitize the immigration paperwork processing system.
  • Shoring up the federal purchasing process, including an education program to train contracting officers on buying digital IT services.

The USDS web site notes that in support of its goals, “We recruit top technologists for term-limited tours of duty with the federal government. We hope to encourage a tradition of public service in the technology industry that will support the ongoing improvement of government digital services.”

Bottom line: There’s no doubt that there are plenty of opportunities for improvement when it comes to government and technology. Let’s hope USDS can play a positive role in that mission.

Going On the Co-Working Road

The Fish Tank co-working space in Columbus is leading to a variety of business community collaborations.

Business dreams come in many shapes and sizes. A common denominator is having the resources available to help those dreams come true. And the places to make that happen, like the entrepreneurs themselves, are unique in many ways.Business dreams come in many shapes and sizes. A common denominator is having the resources available to help those dreams come true. And the places to make that happen, like the entrepreneurs themselves, are unique in many ways.

The Indiana Chamber’s BizVoice® magazine, in its yearlong series on innovation and entrepreneurship, hits the road in the current issue to learn about the people and places in four communities. They are:

While they vary in size and activity, these and other co-working space share the common bond of bringing people together. I’m confident you will enjoy learning about some of the entrepreneurs who are starting and growing their businesses.

The July-August issue also offers:

  • A continuation of the developing success story at Recovery Force. Three external advisors with varying backgrounds share their insights
  • A guest column that focuses on the green Internet of Things
  • Quick Hits that include a business attraction effort in Anderson; another unique space for entrepreneurs in Wabash; and a successful remote relationship for an ExactTarget alum who didn’t want to leave central Indiana

If you don’t receive each of the six bimonthly issues of BizVoice®, you can subscribe online. If you want to reach an audience of 15,000-plus decision-makers with your products and services, contact Tim Brewer (tbrewer@indianachamber.com) for advertising specials and packages.

Tech Talk: Lessons Learned From inX3

For those in attendance at the first inX3 tech/innovation showcase in Indianapolis, I’m certain you have your own takeaways. If you missed out on the opportunity to inspire, innovate and invest – you knew that inX3 had to stand for something – allow me to offer a few nuggets from some of the presenters:For those in attendance at the first inX3 tech/innovation showcase in Indianapolis last week, I’m certain you have your own takeaways. If you missed out on the opportunity to inspire, innovate and invest – you knew that inX3 had to stand for something – allow me to offer a few nuggets from some of the presenters:

From the Almost Fail Reception:

  • Kevin Bailey, former CEO of Slingshot SEO, on what a $60 million valuation of the company resulted in. “That didn’t embolden us. It made us fearful, scared. It was a choice of fight or flight – I chose flight.”
  • Don Aquilano, Allos Ventures, after breaking down the largest failed investment of his career. “Two things I would do differently. Stand up and use your voice and do the right thing. It’s all about the people.”
  • Jim Brown, former CEO of Haven, discussing the business that raised $1 million in less than two months. “The ease of raising money gave us false confidence.” On his eventual choices: “I lost that money. I needed to go home or I needed to do something bigger.”

Keynote session panelists were David Becker (First Internet Bank and numerous other organizations that he created or helped fund) and Canadian entrepreneur David Breukelman, who offered this gem (while speaking in The Gem at The Union 525): “Almost all great companies are 10- to 15-year overnight successes.”

Becker, who took First Internet Bank public in 2013, says the only advantage of that status is access to capital. For entrepreneurs, he noted “yesterday is ancient history; you learn from it and move on.”

His five keys to success:

  • Be flexible
  • Be opportunistic – when the markets are crazy is the best time to invest
  • Hire great people – try to hire in advance, not when under pressure
  • Have great customer service
  • Take advantage of the experience of advisors – legal, accounting, etc.

One final takeaway from Becker on the liberal arts. “Get people with great communications skills and cut them loose.”