Tech companies are setting up shop in Indiana
and it's attracting national attention
The recent announcement by San Francisco-based Salesforce to bring 800 high-paying sales/marketing and software developer jobs, along with $40 million of new investment to Indiana for its Midwest regional headquarters might have surprised some who haven’t been following the tech transformation of the Hoosier state. But to those in the know, it’s a natural progression that has been underway for quite some time, with tech companies gaining traction in Indiana for roughly a decade. Here are five reasons why it’s happening.
1. Indiana has generated approximately $5 billion in tech exit value in the last decade, powered by a strong local talent base. As more tech companies gravitate to Indiana’s business climate advantages, more investors and entrepreneurs are taking a closer look at new opportunities here. Indy’s recent High Alpha venture is investing millions to launch new Midwest-based tech startups. Kristian Anderson, a partner at High Alpha ventures, said that “Indianapolis is a remarkable city, a tier one city, for folks who want to launch enterprise cloud software companies.”
2. Tech companies are setting up shop here because Indiana offers the tech talent and loyalty they need in a business environment that encourages growth and rewards innovation. In a recent Forbes article, Angie’s List CEO Scott Durchslag attributes tech growth in Indiana to a talented and dedicated workforce by saying that, “unlike Silicon Valley, employees are here because they want to be here which tends to lead to much more loyal employees and a lower attrition rate.”
3. Indiana also offers incredible cost of living advantages. According to the most recent data from CBRE, the average apartment cost in Indianapolis is 87% less than New York and 72% less than San Francisco. Commercial property offers a similar value, with average office space cost in Indianapolis being 76% less than New York and 70% less than San Francisco.
4. Because Indiana has maintained its AAA bond rating and balanced budgets for nearly a decade, the state is in a position to deliver a business cost package that adds up to considerable savings. It’s offering a cost structure and promise of future fiscal stability that other tech states like California and New York simply can’t match. According to CNBC’s America’s Top States for Business rankings, Indiana leads the nation for best cost of doing business, while California ranks 49 and New York only slightly better at 44.
5. Indiana also offers a considerably more favorable tax environment than other tech states like California and New York. According to the Tax Foundation’s most recent study, Indiana ranks near the top at number 8 for State Business Tax Climate Index, while California is near the bottom at 48 and New York at 49.
What’s next? Indiana is poised to leverage its strong fiscal positioning, available and loyal tech talent, and business-friendly environment to keep making the connections between innovators and entrepreneurs and to keep nurturing the resources and conditions that drive a tech-based economy. The state is definitely leading the charge toward creating a new tech epicenter in the Midwest and it’s attracting tech companies to build and grow their operations in Indiana.
Indiana is leading a tech transformation in the Midwest, with an impressive portfolio of tech companies emerging in Central Indiana. According to a recent Techpoint survey, “since 2007, 12 tech community companies in Central Indiana have either been acquired or have gone public, generating $4.5 billion in market value and creating more than 3,700 Indiana jobs.”
Purdue University was recently ranked 15th worldwide for university-issued patents, among institutions like Harvard and Cal-Tech, and is home to more supercomputing capacity than any other U.S. campus, with three of the top 500 supercomputers in the world. With the launch of Indiana University’s Internet2 collaborative effort to bring nationwide research and education network online, Indiana is helping to power the data that will deliver the next wave of innovation to the global marketplace.