Technology Sector

Technology Sector

Brief Excerpt from Industry Overview Chapter:

The technology sector includes telecommunications, IT services, semiconductor manufacturing, software, Internet services, biotechnology, and scientific research, including aerospace research. Major US-based companies include AT&T, IBM, Intel, and Microsoft; outside the US, leading companies include Nippon Telegraph and Telephone (Japan), Samsung Group (South Korea), and Siemens (Germany).

Global technology exports total nearly $1.6 trillion annually, according to the World Bank. Leading exporters include China ($300 billion), Germany ($140 billion), the US ($130 billion), Singapore ($95 billion), and Japan ($95 billion).

The technology sector in the US includes about 145,000 companies with combined annual revenue of more than $1 trillion. The output of US computer and electronic components manufacturing, as well as computer and data processing, is forecast to grow at a moderate rate over the next two years. Growth is driven by increased information security demands.

COMPETITIVE LANDSCAPE

Demand often depends on the income of consumers or the profitability of business customers, because many technology products and services are expensive. The profitability of individual companies is driven by their ability to develop and market new products. Large companies often have advantages in access to capital and marketing. Small companies can compete successfully if they have expertise in a particular field of knowledge. Industry concentration is high in many segments: the largest 50 participants often generate more than 50 percent of segment revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Companies in the technology sector take advantage of scientific discoveries and turn them into marketable products....