Software

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Industry Overview
Cluster Organizations
Software by the Numbers
Cluster Strengths
Cluster Challenges
Recent Accomplishments
Key Initiatives
Cluster Contacts
 

Industry Overview 

The software industry in Oregon had its roots early in the region's semiconductor era.

Software is everywhere today and represents a signficant ($9 Billion) financial impact on the state. Skilled software workers in Oregon produce the code that makes medical equipment, websites, automotives, computer chips and a host of other products viable in today's market. Currently the software industry is composed of those that publish and sell software, those who have web-based companies ("Web 2.0"), those that embed software in their products and Information Technology (IT) professionals that support and a business' technological infrastructure, which is inclusive of both high-tech and traditional businesses. 

Cluster Organizations

The Software Association of Oregon is the leading organizations body for Oregon software companies.  There are many associations that represent sub-sectors of the industry.  Since its inception in 1989, the Software Association of Oregon has become a leading advocate for tax reform and educational funding for the area's knowledge workers and entrepreneurs.

Notable software companies in Oregon are located in Hillsboro, Portland, Beaverton, Wilsonville, Corvallis, Eugene-Springfield, Central Oregon, and the Gorge. They include Active Trak, Act-On, Elemental Technologies, Clinicient, Drupal,  Gamestop, Giftango, IBM, JanRain, Jive, Kavi, Mentor Graphics, Puppet Labs, Saber Corporation, Sage, Second Porch, Shop Igniter, WebTrends, Urban Airship, and  among many others. 

The Oregon Business Development Department ("Business Oregon"), has identified Software as a key growth industry for Oregon.  Visit the Business Oregon key industries page to learn more about what they are doing to attract, retain and help grow more software jobs across the state. 

The Portland Development Commission has also included Software as a key industry cluster in the new Portland Economic Development Strategy.  Visit the strategy website to learn more about what they are doing to boost Software jobs in the Portland region.

Software by the Numbers

Cluster Strengths

• Networking opportunities - Oregon has an active network of people that organize social events critical to progress in development.
• Significant Research & Development - HP, Intel, and other major high-tech companies do their research & development in Oregon due to our human capital and tax credits.
• Open Source - two of the greatest minds in Open Source reside in Oregon: Ward Cunningham (father of the Wiki_ and Linus Torvalds (father of Linux), as well ast eh Open Source Lab at Oregon State University and many open source start-up companies.
• Sub-clusters in collaboration, financial, education, construction, medical, automated flight, gaming, sustainability, G.I.S., insurance and talent management software development
• Progressive mentality - Software professionals value creativity, freedom, originality, education, artistic endeavors and appreciate nature/sustainability

Cluster Challenges

• Financial Capital
  • Less local capital available to entrepreneurs on a per-capita basis than in neighboring states. The result is that more companies move out of the state in order to obtain the necessary funding.
  • Oregon's nation-leading capital gains tax causes tax advisers who exercise fiscal prudence to encourage high tech entrepreneurs to leave the state before selling their business.
  • The Oregon Investment Fund, with over $150 million in capital, invests a small percentage into Oregon-based start-ups, in spite of a legislative mandate to do so.
• Human Capital
  • Qualified workers - local companies must import qualified workers
  • Few students pursuing degrees - the demand for computer science degrees lags far behind the demand for these skilled workers.  Many students and parents are still under the (incorrect) impression that outsourcing will make these jobs nonexistent.
  • Science, Technology, Engineering, and Math (STEM) education in K-12 lacks strong emphasis and funding. There is a lower rate of women and minorities in these classes as well.
  • Getting enough mentors and mentees involved in a business mentoring program

Recent Accomplishments

• On December 2, 2010 the Portland Development Commission and Software Association of Oregon held a Software Industry Strategy Summit to discuss the next steps for developing a software industry strategy. See event highlights and presentations on the Portland Development Commission-- Software Cluster or Software Association of Oregon websites.
• The Engineering Technology Industrial Council (ETIC) worked hard to receive an increase in funding for engineering programs at our state universities from the Oregon Legislature in 2007.
• With the growth of social networks (FaceBook, LinkedIn, MySpace, etc.), local companies with expertise in these applications have enjoyed large rounds of investment.
• In 2007 the Software Association of Oregon created a social networking site to help members find and create value networks.

Key Initiatives

• Create a Business Mentoring Program.
• Build a Seed Entrepreneur/ Investor Network (with PDC) to connect entrepreneurs to seed and angel funds. 
• Build an Online Meeting Solution for software companies to identify collaborative meeting space (with PSU).
• Invest in Science, Math, Engineering & Technology education in Pre-K through post-graduate educational system.  Make policy leaders, foundations, universities, teacher training programs, educators, career counselors and parents/guardians aware of and committed to encouraging the pursuit of the education required to obtain these jobs.
• Secure Workforce Development dollars to improve the skills of existing knowledge workers.
• Provide a range of economic development tools to keep companies in the region, give incentives for companies to relocate here, and decrease taxes that cause investment capital to flee.

Cluster Contacts

Skip Newberry
President
Software Association of Oregon

Jared Wiener
Portland Development Commission-- Software Cluster
Senior Project Manager and Business & Industry Liaison