Targeted Clusters

Target Cluster: Software

This profile is an overview of the Software cluster within the Portland-Vancouver-Beaverton MSA. It provides summary details such as: the current definition for the cluster, the cluster’s impact in the community, firms within the cluster and PDC’s strategy for developing the cluster.

Notable Regional Firms

Jive Software, Webtrends, Inc., Survey Monkey, Vidoop, Tripwire, Inc., OpenSourcery, Sage Software, eRoi, AboutUs, Coaxis, Inc., Imagebuilder, Inc., i‐OP

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Software Snapshot

Why Software?

Average high‐tech wages in the state are 101% higher than average private sector wages
Oregon ranks 16thin the nation for R&D spending per capita and 16thin venture capital investments
The growing reputation of the Silicon Forest attracts entrepreneursWhy

Software Cluster Snapshot
Total Regional Employment (2006)	16,612
Average Annual Wages	$80,000
Employment Growth (2001-06)	-11.8%
Portland Share of Regional Employment (2006)	31%

What defines the software cluster?

This cluster includes companies that design, develop, market, and support systems and application software used in personal computers, servers, embedded systems, and mobile devices.

NAICS: 5112, 518, 5415

What does this cluster contribute to the economy?

Even in times of economic uncertainty, software remains a significant component of the global economy. The drive for greater efficiency and the increasing globalization of business markets spurs much spending as companies invest in the hardware and software infrastructure that enables them to operate in increasingly competitive markets.
The Portland region is home to the Silicon Forest of the high tech industry. The region has a significant amount of silicon chip manufacturing capacity and is now seeing a rise in the software development component of the high tech sector.

Niches within the software industry that are especially strong in Portland include:
GIS/mapping software, open source, identity, medical informatics, and wiki technology, Open Source development, Financial Services, Social Networking, Wifi/WiMAX-related applications, Mobile Applications, OpenID, Business Intelligence and CleanTech Software/IT

In 2005, Oregon’s software industry generated $3.2 billion in aggregate wages, produced more than 51,000 jobs, generated more than $833 million in state and local tax revenue and provided $9.20 billion in aggregate economic impact.
60 of every 1,000 private sector workers in Oregon are employed by high tech firms. Oregon’s average high tech wage is $75,616,¹ 101% higher than average private sector wages.
Oregon ranks 16th in the nation for R&D spending per capita and 16th in venture capital investments.²

¹“Cyberstates 2008,” American Electronics Association
²“Cyberstates 2008,” American Electronics Association

Top PDC Initiatives

Top PDC Initiatives	Why
Sponsor SAO Human Mash Up series	Synergy between industries will inspire innovation. Professionals from different clusters will be asked to solve mutually important challenges using solutions from their respective backgrounds. Winning ideas will blend technology from different clusters.
Sponsor professional development opportunities	Being current on technological advances in this cluster is key to remaining open for business. SAO’s Oregon Training Network provides IT training led by industry leaders.
Recruit firms	This cluster is an emerging clusterand its health requires an increased number of firms in the region.

Strengths & Opportunities

OSU Open Source Lab
Trade shows located in Portland
Oregon Entrepreneurs Network
Portland State University Computer Science Dept
Increasing critical mass
Quality of Life

Challenges

OSCON moving to San Jose in 1009
Workforce development needs to be aligned
Tech transfer needs to be improved
Lack of available below market space makes it difficult for start‐ up companies to find affordable space
Lack of local venture capital