mcbru insights: a survey of us technology innovators 2005

Presenting “Insight 2005: A Surveyof U.S. Technology Innovators”

November 2005

2

Study Sections

U.S. Competitiveness/Leadership in Technology Innovation Psychographic Profile of Technology Creators Addendum: Methodology and Respondent Characteristics Addendum: Women in Technology Innovation (upon request) Addendum: Under 30s in Technology Innovation (upon request)

3

U.S. Competitiveness/Leadershipin Technology Innovation

4

U.S. Technology Innovation/Leadership

Indicators of U.S. Technology Competitiveness Under Fire U.S. undergraduate S&E degrees (5.7 per 100) lag Japan (8 per 100), Taiwan and South

Korea (11 per 100), and many European nations (8 - 13 per 100)1

U.S. graduate S&E degrees only 25,000 out of 114,000 worldwide2

U.S. R&D investment as percentage of GDP in 30-year decline3

DOD funding of basic research dropped from 3.3%in 1994 to 1.9%in 20054

China intends to boost R&D funding 200 percent in next 10 years5

U.S. patent citation rate as percentage of world total dropping 52 percent in 1992; 44 percent in 20016

K-12 Education failing U.S. students in math and science7

4th grade students on par with peers worldwide 12th graders near bottom (1999)

The hidden indicator: U.S. technology creators’ view of the state of their profession Introducing the fourth psychographic study of engineers by CMP and McClenahan Bruer (prior

studies fielded in 1999, 2001 and 2003) In August 2005, 4083 electronics engineers were surveyed online In May 2005 qualitative research was conducted in the form of in-depth interviews with

8 engineers representing a spectrum of age, gender and ethnicity Presentation includes findings from CMP’s 2005 Salary & Opinion Survey

5

U.S. Technology Innovation andLeadership in Jeopardy

Scenario D: Q2. What impact does design outsourcing have on you personally?

64%

10%

I worry about thefuture of theengineering

profession in the U.S.because of the

impact ofoutsourcing

The U.S. will alwaysmaintain itstechnology

leadership position

2005 Psychographic Survey

641a. Has your company sent electronics design work offshore in the past year?41b. What type of work has your company sent overseas?

Status of Design Outsourcing

No, 54%

Yes, my company has

sent electronics design work

offshore, 46%

n = 2185

Salary Survey

Manufacturing, 39%

High-end software

development, 16%

Low-end software

development, 17%

Low-level hardware

design, 15%

High-level hardware

design, 14%

Type of work sent overseas

7

Impact on Technology Creators


D-1. There is an increasing trend in the global electronics industry towards outsourcing design anddevelopment activities to 3rd parties. Which of the following statements best describes yourview of design outsourcing?

I welcome design outsourcing, 9%

I don't necessarily welcome

outsourcing, but I'm not

concerned about it, either, 35%

I'm concerned about

outsourcing, 56%

8

Impact on Technology Creators

D-2. What impact does design outsourcing have on you personally?

39%

10%

4%

Designoutsourcingmakes our

engineeringprojects much

more complicated

I'm in danger oralready have lost

my job because ofoutsourcing

I'm too old toworry about

outsourcing nowat this stage in

my career


9

36%

27%

21%

15%

2%

Sell management on notoutsourcing

Look for a new job now

Don't worry about it

Spend time with senior designers sothat you're a survivor

Make sure others go before you


Outsourcing – What do engineers do about it? It has become clear that management at your company has decided to cut back the design staff drastically. They intend to keep only the few signal -processing experts whose skills differentiate the products and would be almost impossible to duplicate with contractors or design services. Everything else is going to be outsourced. What would you do?

1038. Do you think there’s a shortage of engineers at your company?

No, 44%

Yes, there is a shortage of engineers at my company,

56%

U.S. Engineering Shortage Seen

n = 2185

Salary Survey

11

Technology Creators Undervalued

Qualitative research indicates U.S. engineers feel they are undervalued asprofessionals

“I don’t think in our society we do value (engineering). And I think that’s why, Ibelieve, there are less and less people in the U.S. pursuing (engineering).” JimC., software development manager.

“For me, we just don’t have any class or status. If you’re a doctor of medicine ora lawyer with a shingle and a license to do whatever you do (sic), but someonewith a bachelor’s or master’s in electrical engineering or software, he’s just aflunky. There is no respect for them. And so, when things get bad they keep thedoctors and the lawyers and they get rid of the engineer and farm it out tosomebody else.” Harry B., bioscience engineer

“Engineers don’t really get the direct mention, but eventually, some day,somebody might sit down and do that. We don’t really get as much recognitionas a doctor would, that’s certainly true, because we do the backstage work andnot really the front and it’s mostly the people in the marketing area (sic), so wedon’t get the recognition that we really deserve.” Raje x. etc.

“Right now, it seems like, what the heck do I want to go into this profession for?There’s no money in it; there’s nothing but layoffs and it’s all being outsourced toIndia. That concerns me. I think it concerns me not only from the standpoint ofpersonal growth of the people that are potentially next-generation engineers.Frankly, I think there are some national interests involved there too. I think that ifthis country wants to continue to be a mover and a shaker and a leader in theworld, you won’t get that by having a country that is mostly all gardeners orpeople working at Wendy’s.” Keith F., design engineer.

12

Technology Creators Undervalued

Conversely, qualitative research indicates U.S. engineers feel theircounterparts abroad are highly valued, particularly in China and India

“People over there (China) in engineering probably will be treated morerespectfully than here.” Lei C., design engineer.

“Why are there so many people coming from India that are pursing that(engineering) as a profession compared to here? Because they value that intheir society. At the birth of their country (sic), they dedicated to doingtechnologically based universities and they are seeing the benefits of that.” JimC., software development manager.

“Over there it’s more concentrated in science and math and those fields thanhere. People tend to be more respected when you become a scientist doingresearch developing and space (sic) or mechanical field. It seems to be morerespectfully (sic) over there.” Lei C., design engineer.

13

44. Please grade U.S. elementary and high schools on the following. Use an ‘A’ through ‘F’ grading scale, where ‘A’ meansthey pass with a superior grade and ‘F’ means they fail.

45. Which of the following areas in education require the greatest improvement by U.S. elementary and high schools?(Select up to two areas.)

Technology creators have grave concernsabout elementary and high school education

% % % % %U.S. Elementary & High School A B C D F

Preparing students for careers in engineering 1 19 42 26 12Preparing students for careers in engineering in comparison to other countries 1 9 29 35 25

Quality of math and science education 1 19 39 30 10

Grades

73%

73%

22%

12%

8%

3%

Science

Math

Multidisciplinarytechnology

ForeignLanguages

Language Arts

Humanities

Areas requiringimprovement in U.S.elementary/high schools 2005 (n=2185)

Salary Survey

14

46. Please grade U.S. colleges and universities on the following. Use an ‘A’ through ‘F’ grading scale, where ‘A’ meansthey pass with a superior grade and ‘F’ means they fail.

47. Which of the following areas in education require the greatest improvement by U.S. colleges and universities? (Selectup to two areas.)

Also have grave concerns aboutcollege/university education

% % % % %U.S. College / University A B C D F

Preparing students for careers in engineering 16 55 24 4 1Preparing students for careers in engineering in comparison to other countries 25 39 23 10 2

Quality of math and science education 19 53 22 5 1

Grades

56%

50%

38%

14%

11%

6%

Multidisciplinarytechnology

Science

Math

ForeignLanguages

Language Arts

Humanities

Areas requiringimprovement in UScolleges/universities2005 (n=2185)

Salary Survey

1548. Please indicate how strongly you agree or disagree with each of the following statements.

88%

86%

79%

77%

67%

36%

23%

U.S. should fund more pure research

Greater incentives should be provided forthe study of science and engineering

Greater funding should be provided toscientific and engineering programs

More favorable loans should be providedto students in scientific and engineering

programs

Greater funding should be provided to allcolleges and universities

U.S. should encourage more foreign-bornstudents to study at U.S. colleges and

universities

All U.S. colleges and universities shouldoffer the same engineering curriculum 2005 (n = 2185)

Technology creators firmly committed toeducation and basic scientific research

% Agree Strongly/Somewhat

Salary Survey

Proportion who feelthat US spends “toolittle…supportingscientific research”

Engineers – 58%US Avg – 39%

Proportion who feelthat US spends “toolittle…supportingscientific research”

Engineers – 58%US Avg – 39%

16

Lack of Faith in Future of Profession

Qualitative research indicates engineers are unlikely to recommend theprofession to today’s children in the U.S. When asked whether they wouldrecommend it, they replied:

“No. They’re living in the wrong country.” Jim C., software development manager. “I probably won’t want them (his children) to be engineers.” Lei C., design

engineer.

Further commentary on the future of the profession: “Like engineering schools’ enrollment now is down, because everybody thinks it’s

all subcontracted out. They couldn’t even get a job as an engineer. So they don’teven bother with it. That’s the impression you see now.” Harry B., bioscienceengineer.

“I was thinking about going into the marketing field and get another degree orsomething. You get higher pay and you’ve got a broader range of positions youcan apply for and you probably don’t have the threat of off-shoring. In marketingyou are much safer in terms of the off-shoring.” Lei C., design engineer.

“As an undergraduate in the U.C. system it’s mostly people from California, but ingraduate school it’s mostly international students. I think it’s because we don’tvalue that as much. I don’t know why that is.” Jim C., software developmentmanager.

17

Psychographic Profile ofTechnology Creators

18Q-18. Are you:

Marital Status

Married83%

Single11%Divorced

5%

Widowed/ Separated

1%

Salary Survey

n = 2165

19

36%

40%

17%

7%

0% 10% 20% 30% 40% 50%

One child

Two children

Three children

Four or morechildren

Number of children in household

Those that have children under 18 living at home n=446Those that have children under 18 living at home n=446

2001 average number of children = 22001 average number of children = 2


20

57% 33% 10%

0% 20% 40% 60% 80% 100%

2003

Very likely Somewhat likely Not likely

Sharing childcare responsibilities with yourspouse

*Among those where applicable 2003 n=479, 2001 n=446*Among those where applicable 2003 n=479, 2001 n=446


21

62% 33% 5%

0% 20% 40% 60% 80% 100%

2003

Very likely Somewhat likely Not likely

Sharing household responsibilitieswith your spouse

*Among those where applicable 2003 n=608, 2001 n=446*Among those where applicable 2003 n=608, 2001 n=446


22

83%

17%

0% 20% 40% 60% 80% 100%

A do-it yourselfperson

One who hiresothers

2003

Engineers are less likely to contract outhome projects


23

45%

36%

35%

24%

22%

22%

22%

18%

15%

12%

6%

3%

0% 10% 20% 30% 40% 50%

Science fiction

History

Action/adventure

Self-help

Humor

Biography

Mystery

Classics

Current events

Drama

Horror

Romance

2003

Preferred type of book

*Aided - Summary*Aided - Summary


24

Prefer to have dinner with…

29%

24%

15%

13%

9%

6%

3%

1%

0% 10% 20% 30%

Stephen Hawking

Condoleeza Rice

Tim Allen

Julia Roberts

Elizabeth Hurley

Michael Jordan

George Clooney

Serena Williams

*Aided - Summary*Aided - Summary


25

F-1. Which best describes the engineering colleagues you work with? (For each pair of terms, choose the term orphrase which best represents your views.)

F-2. Which best describes the non-engineering colleagues you work with? (For each pair of terms, choose the term orphrase which best represents your views.)

Personality Continuum

59%

87%

71%80%

48%

70%

92%

54%

69%

50%

15%

30%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Aboveaverage

intelligence

Introverted Modern Wide range ofinterests

Plain Socially active

Engineers' perceptions of other engineers Engineers' perceptions of non-engineers


26

74%

62%

36%

17%

49%

45%

22%

5%

My job requires thatI keep learning new

things

I get to do a numberof different things on

my job

My job requires thatI work very fast

I have too muchwork to do

everything well

Engineers US AVG*

Technology Creators Under More Pressure at Work


% Agree Strongly

*From General Social Survey (ICPSR) sample of college educated males between 21 and 65

27

39%

31%

29%

26%

23%

19%

16%

8%

7%

5%

61%

39%

37%

39%

58%

29%

51%

38%

6%

21%

I have a lot of freedom to decide how todo my work

I am proud to be working for my employer

I have a lot to say about what happens onmy job

On my job, I know exactly what isexpected of me

I have enough information to get the jobdone

I trust the management at the placewhere I work

Job security is good

I have enough time to get the job done

My main satisfaction in life comes fromwork

I am free from the conflicting demandsthat other people make of me

Engineers US AVG*

And Have a More Challenging Work Environment


% Agree Strongly


28

46%

43%

44%

22%

7%

53%

48%

27%

15%

5%

Participate withothers in helping setthe way things are

done on the job

Take part with othersin making decisions

that affect you

Not enough peopleor staff to get all the

work done

Demands of jobinterfere with family

life

Demands of familylife interfere with job

Engineers US AVG*

Technology Creators Have Less Control,Resources and Balance

% Often



29E-2. How important are these reasons why a person’s life turns out well or poorly?

Fate, Faith or Chance?

% Very/Somewhat Important


94%

40%

32%

29%

27%

97%

54%

33%

40%

15%

Some people usetheir will power and

work harder thanothers

Society gives somepeople a head start

and holds othersback

Some people areborn with better

genes than others

Such things aredecided by God

It's just a matter ofchance

Engineers US AVG*


30E-1. During the past 12 months, how often have you done any of the following?

Compassion, Generosity and Honesty

Behavior during past 12 months


85%

82%

82%

47%

45%

43%

40%

38%

33%

28%

15%

88%

77%

72%

40%

43%

34%

29%

48%

30%

34%

10%

Given directions to a stranger

Allowed a stranger to go ahead of youin line

Given money to a charity

Offered your seat on a bus or in apublic place to a stranger who was

Looked after a person's plants, mail, orpets while they were away

Done volunteer work for a charity

Returned money to a cashier aftergetting too much change

Given food or money to a homelessperson

Let someone you didn't know wellborrow an item of some value - like

Carried a stranger's belongings, likegroceries, a suitcase, or a shopping bag

Donated blood

Engineers US AVG*


31

56%

33%

31%

31%

24%

19%

13%

12%

12%

6%

4%

3%

2%

57%

49%

40%

33%

24%

26%

32%

24%

18%

17%

12%

9%

10%

Scientific community

Medicine

US Supreme Court

Military

Banks and financial institutions

Education

Major companies

Organized religion

Executive brand of federal government

Press

Congress

Organized labor

TV

Engineers US AVG*

Technology Creators Lack Faith in PeopleRunning Institutions

% Great deal ofconfidence



32

65%

58%

57%

55%

49%

36%

35%

34%

33%

32%

29%

28%

27%

15%

13%

13%

13%

67%

39%

64%

63%

44%

58%

63%

27%

40%

50%

55%

44%

35%

20%

34%

15%

5%

Improving the nation's education system

Supporting scientific research

Improving and protecting the environment

Improving and protecting the nation's health

Mass transportation

Dealing with drug addiction

Halting the rising crime rate

Space exploration program

Highways and bridges

Solving the problems of the big cities

Assistance for childcare

Social security

Parks and recreation

The military, armaments and defense

Improving the condition of African-Americans

Welfare

Foreign aid

Engineers US AVG*

Social Views / Budget Priorities



Spending toolittle

33

In ConclusionIn Conclusion……

U.S. competitiveness and leadership in technology innovation is in decline,according to seminal psychographic research of the innovators themselves

Nine out of ten technology creators believe America will lose its leadershipposition in technology innovation

Little-considered factors such as U.S. society’s perceived lack of respect foror valuation of the engineering profession may be contributing to thisdecline

Fewer college students choosing S&E degrees Fewer people entering the profession Unsettling tolerance for poor math and science performance in K-12 schools

Technology creators are among the most stereotyped of professionals:geeks, nerds, pocket-protector-wearing.

In actual fact, they are huge contributors to our society in terms ofcontributing to the backbone of our economic well-being and enabling ourstandard of living.

34

Addendum: Methodology andRespondent Characteristics

35

Methodology Engineering Psychographic Study - 2005

Online survey Fieldwork dates August 3rd through August 5th, 2005 Email addresses provided by EE Times A total of 4,083 useable responses received (margin of error +/- 1.7% Objectives

Social, political and religious attitudes Work attitudes Psychographic and lifestyle profile

Engineering In-Depth Interviews – 2005 In person interviews Conducted April 28th, 2005 in Sunnyvale, CA Total of seven (7) interviews Objectives

Motivation Risks and rewards of engineering Collegiality, decision-making

Salary and Opinion Study - 2005 Online survey Fieldwork dates June 21st through June 29th, 2005 Email addresses provided by EE Times A total of 2,185 useable responses received (margin of error +/- 1.3%) Objectives:

Gauge satisfaction with career, job, and employer

36

Methodology Engineering Psychographic Study – 2003

Online survey Fieldwork dates March 18th to March 24th, 2003 Email addresses provided by EE Times Total of 680 usable responses received (margin of error +/- 3/6%) Objectives

Work and family Leisure activities Personal preferences

All projects managed by Beacon Technology Partners LLCBeacon Technology Partners (BTP) of Maynard, MA, is a full-service primary market research firmdedicated to the technology industry. Founded in 1996, its purpose is to provide managers and marketersin high tech firms more penetrating insights into their customers and prospects.Beacon provides its clients a full-range of primary market research tools, including:

Survey research (including telephone, Web-based, mail and hybrid methodologies)Statistical modeling (including correspondence analysis or perceptual mapping, regressio

modeling, conjoint analysis, market segmentation, and other statistical tools and methods)Qualitative research (focus groups – both in-person and on-line, in-depth interviews, small group

studies, and so on)International research capabilities

Its many clients include many of the largest technology and tech publishing firms in the world. For acomplete list of these clients, see BTP’s Web site (www.beacontech.com)

37A-1. What is your gender?

Respondent CharacteristicsGender

Male94%

Female6%

n = 4072

Psychographic Survey

38A-2. What is your age?

Respondent CharacteristicsAge

60 years or older6%

50 to 59 years23%

40 to 49 years37%

30 to 39 years24%

Younger than 30 years

10%

n = 4078Mean = 43.7 years


39

Respondent CharacteristicsGender By Age Cohort

A-1 What is your gender?


89% 95% 98%

2%11% 5%

Under 35 35 - 49 50 +

Male Female

Noticeincrease inproportion offemaleengineersamongyoungest agecohort

40

A-3. What is the zip code at your business address?

Respondent CharacteristicsGeographical Region

n = 3715

Pacific = 29%

Mountain = 10%

West SouthCentral =10%

East SouthCentral = 2%

South Atlantic = 12%

West NorthCentral = 6% East North

Central =13%

MiddleAtlantic =10%

New England = 8%


4110. What is your country of origin?

Respondent CharacteristicsCountry of Origin

North America84%

India3%

PRC3%

Other Asia3%

UK2%

ROW3%

Other Europe2%

Salary Survey

42A-4. Which of the following describes your higher-education background? (Multiple response)

Respondent CharacteristicsEducation

n = 3986

8%

25%

7%

5%

6%

12%

45%

6%

7%

5%

1%

PhD

MSEE

MA/MS

MSCS

MBA

Engineering Post Grad (no degree)

BSEE

BSCS

Associates

College (no degree)

No college


43B-3. How many people are employed by your company at all its sites and locations?

Respondent CharacteristicsCompany Size

n = 4080

Median = 2,950 employees

25,000 or more26%

10,000 to 24,999

8%5,000 to 9,999

8%

1,000 to 4,99917%

500 to 9996%

100 to 49913%

Fewer than 10022%


44B-1. Which of the following best describes your job function?

Respondent CharacteristicsJob Function

n = 4082

Corporate mgmt4%

Engineering mgmt25%

Engineering staff71%

Engineering staff includes:

-Design & development engineer-Component engineer-Engineering services-Engineering assistant/technician

Engineering management includes:

-Engineer manager-Project leader


45

References

• 1 NSF Ind. 2004, Fig. 2-34 www.nsf.gov/sbe/srs/seind04/c2/fig02-34.htm

• 2 NSF Ind. 2004, Appdx. Table 2-36 www.nsf.gov/sbe/srs/seind04/append/c2/at02-36.xls

• 3 American Association for the Advancement of Science. www.aaas.org/spp/rd/guidisc.htmCompiled by the APS Office of Public Affairs

• 4 S&E Indicators, 2004

• 5 “OECD Countries Spend More on Research and Development, Face New Challenges.”OECD, 2004www.oecd.org/document/2/0,2340,en_2649_201185_34100162_1_1_1_1,00.html and Jia,Hepeng. “Funding Boost for Basic Science in China.” SciDevNet, 2005,www.scidev.net/News/index.cfm?fuseaction=readnews&itemid=1941&language=1

• 6 NSF Ind. 2004, Appdx. Table 5-48 www.nsf.gov/sbe/srs/seind04/append/c5/at05-48.xls

• 7 Rising Above The Gathering Storm: Energizing and Employing America for a BrighterEconomic Future www.nap.edu/catalog/11463.html