first quarter - georgia department of economic development€¦ · mhealth (mobile health) or...

Quarterly Report Mobility

Prepared for:

Georgia Department of Economic Development

Q1 2013

Q1– 2013 Report Georgia Department of Economic Development Life Science & IT - Mobility

Prepared by iP2Biz LLC P a g e | 2 Confidential & Proprietary

Problem Statement

iP2Biz will deliver a report for the Georgia Department of Economic Development on the Topic

of Mobility for the 1st Quarter of 2013. iP2Biz will review the selected topic for:

i. Identification and discussion of relevant industry trends

ii. Recent developments and breakthroughs

iii. Significant new patent issuances

iv. Identification in Georgia and other states of new startup companies focused on the technology

v. Displays of new research (related to topic) conducted in Georgia, major research, funding rewards, major investments, acquisitions and mergers.

The COILSIT topic of Mobility for Quarter 1- 2013 is defined as a high level survey

(this quarter only) of markets and companies building enterprise, business to

consumer and social media applications to run on existing iOS, Microsoft or Android

platforms.

iP2Biz Contact

John Bacon [email protected] 404.961.7660 Please do not hesitate to contact us regarding any questions you might have.

mailto:[email protected]



Executive Summary

Georgia is making good inroads in the exploding Mobility space, led by mobile application

development. The combination of a young population in metro Atlanta, our thriving universities

with their top-rated computer science and engineering programs, an outstanding cellular

communications and bandwidth infrastructure and the relatively low capital cost to launch a

mobile app company have propelled the state to a very competitive position nationally. Vigorous

growth will continue, supported by the fast-paced launch of new device platforms with better

radios, longer battery life and richer features. Though there is indication of saturation in some

classes of mobile app categories, there is still room for creative differentiation. The national

prominence that Atlanta has in information security technology is clearly becoming more

important as financial and medical information transactions move to mobile devices.

Developments to watch in this space include how emerging Mobility technologies and systems

will threaten to disrupt established companies in Georgia. For example, to what extent will an

NCR be threatened by the wave of systems which allow a sales clerk to swipe a purchase on

their personal smart phone without ever going near a cash register? Will sales staff employment

continue to fall because consumers are now controlling a Buy-cycle (as opposed to a Sell-cycle)

because they access so much information long before ever contacting sales staff about a

purchase? Demands for lower power consumption and faster processing algorithms hold the

potential for scientists at Georgia Tech and other research institutions to factor into this new

Mobility world also. Even though we do not now have (and are unlikely to get) a major device

manufacturer in the state, opportunities could emerge for new technologies to be developed

and licensed to the big players, or create startup companies which supply components to larger

companies.

As mobility continues to boom, the explosion of personalized applications will follow. Industries

will all join forces to incorporate an individual’s unique ‘signature’ or personal preferences and

social identity into products and tools. mHealth is a key area to focus on for ongoing rapid

development as medical professionals and patients alike begin relying on devices, interaction,

and collaboration.

The Mobility opportunity is growing rapidly, the rules are still being formulated, Georgia is a

player and the fact that no region has an insurmountable lead and concentration of

technologies means that our state should remain a significant force in the market.



Technology snapshot The advent of the mobile smart device is the world’s 7th

media creation since the 1500’s invention of print. After

recordings, cinema, radio, television and the internet,

mobile smart devices have become revolutionary in

uniting persons from across the globe. Mobile smart

devices have been growing at a staggering rate across

age groups, income groups, industries, geographies and

cultures. In the US alone, there are over 303 million

wireless device subscribers.

The ‘smart device’ is defined as tablets, netbooks and

wireless phones that may access the internet via

wireless or 3G/4G capabilities. These devices are

popular because they are portable, lightweight, and

connect the user to data, other users or programs.

Smart devices run on a few primary operating

systems. The US market is dominated by competing

systems such as Google, Apple, & Microsoft. The

predominant operating systems are Android and iOS.

Corresponding to these operating systems are the

respective mobile applications or ‘apps.’ These

applications are associated with specific functions and

each app may be

purchased or free. The total number of smartphone and tablet

applications in Q3 2012 reached nearly three million. The iOS App

Store had 951,890 apps at the end of Q3, while Google Play had

453,719. The average paid app selling price stood at $2.82, with

revenue accrued from paid app downloads at roughly $3.4 billion

in Q3, and downloads totaling 12.4 billion. In fact, the average

iPhone user has roughly 37 apps and the average Android user

has 22 apps. A recent app entitled “App Annie” displays data for

the race to be the dominating operating system. The app reveals

trends such as the popularity of gaming apps as well as download

frequency for apps such as Google Maps and Youtube.

The majority of apps created are for gaming purposes followed by

entertainment, tools, communication, productivity and

personalization. The creation of an app takes an average of 18

weeks (at a minimum). There is now an app for virtually

anything!



Figure 1: Taxonomy for mobility as defined by

iP2Biz for GDEcD.

Mobility apps can be divided into four main

categories: Context Specific, Ever Present,

Business to Consumer and Enterprise (Figure 1).

These are defined below.

Context Specific – A set of changing

relationships that may be shaped by the history of

those relationships; this may be based on

proximity, social relationships or collaborative

tasks.

Ever Present – The idea that mobile phones and

smart devices allow the availability and

transparency of services and entertainment. Ever

Present features always available, transparent,

user convenience applications. This category

includes eCommerce, or internet commercial sales

that are conducted via websites.

Business to Consumer – Business or

transactions conducted directly between a

company and consumers who are the end-users

of its products or services. This category includes

mHealth (mobile health) or mobile health apps

from the medical industry that provides

technologies to aid physicians/patients.

Enterprise – Cross platform tools for enterprises

allowing enterprise employees to perform a

variety of functions using their smart devices.

Technology trends

The eCommerce market, a subset of the Ever Present category, is booming and will

continue to do so into the future as consumers begin to shift their purchases to

online/mobile transactions.

New business models will continue to evolve as new functions, needs and applications

are discovered and developed.



Technology conclusions

The mobile app market is one of the centers of technological evolution and will continue to

evolve rapidly in the coming years.

Mobile application Research

The current mobile application research is oriented heavily towards hardware to improve

the fundamental BYOD assumption. Sensors, algorithms and material are being developed to

enhance and create faster, slimmer, more data capable wireless devices. Wireless networks are

being studied to create faster information flow and data handling capabilities. The multi-

functional nature of smart devices allows research to be conducted in many different areas.

mHealth research projects are growing at a rapid pace as researchers aim to make medical care

more affordable and to arm doctors with the latest technologies. For example, researchers at

Georgia Tech and Emory University have developed the ‘Remotoscope’, an accessory that turns

the iPhone into an ear-inspecting otoscope so doctors can diagnose and treat ear infections.

Research is being conducted on behavioral trends as well to better understand the effects that

social media and personalized brand marketing could have. Other research focuses on the

psychological impacts social media may have on young teens.

Future looks for Mobility

As mobility continues to boom, the explosion of personalized applications will follow. Industries

will all join forces to incorporate an individual’s unique ‘signature’ or personal preferences and

social identity into products and tools. Purchasing behavior, brand placement and discovery will

all be important aspects in this space. Social media will play a very important role as people

define who they are in a digital manner.

In conjunction, collaboration will also become integral as social media effects collective thought

and crowd based data. From entertainment to civic engagement, mobile devices will

increasingly feature dynamic approaches to problems and situations with collaboration.

Algorithms, sensors, logic and hardware will continue to develop as BYOD remains an important

assumption in mobility. Technologies can be expected to become faster, user-friendly, and

increasingly interconnected to other devices, objects and people. From this, data driven insight

will become key to understanding industries.

Specifically in this space mHealth will flourish as personalization is everything in the medical

profession. New hardware will aid medical professionals and patients alike with a rise in

ancillary industries such as a personalized insurance.

Although currently an emerging industry, the mobility space will evolve rapidly over the next

few years.



Market overview The overwhelming presence of smart mobile phones and devices foster the app market. Mobility

is widely expected to continue

its spectacular growth until full

market penetration.

The fundamental assumption of

the application market requires

a user to own a smart device –

and this market is expected to

continue booming into 2013.

There are over 303 million (and

growing) wireless subscribers in

the United States.

As every consumer comes into

ownership of a smart device,

the application market will dramatically increase to cater to various age groups, ethnicities,

geographies, and locations.

The emergence of smartphones is

accompanied by the dramatic growth in

tablet devices both in the professional

and home space. In 2012 experts

estimated roughly 50 million tablet

devices in the US – roughly 1 in every

6 people own a tablet!

The Rise of

Mobile



Context Specific

Business to Consumer

Ever Present

Enterprise

The market for apps varies based on the type of function. In the

Context Specific category, Google is still leading in mobile

searches. The mobile social networking market is dominated

by popular apps such as Facebook, Instagram and Pintrest.

The major groups of this context specific category of

applications are teens to young adults who predominately use

their phones for social media. This unique audience of mobile

social networkers in the US is a staggering 164 million people.

In the Ever Present category, mobile shopping constituted less than 5% of its total e-commerce

(electronic commerce) revenue. This means that online stores which

use a mobile app can expect to earn on average as much as 5% of

their e-commerce revenue through the use of mobile commerce

(m-commerce). The overwhelming predominant source of

mobile shopping electronically is done on laptops or desktops,

not mobile devices. Only a few companies generate a significant

share (> 25%) of their total e-commerce on the mobile channel

but these companies are expected to increase in number in the coming years. In this space,

Georgia has ranked in the top 10 ‘Mobile savvy shoppers’ reports for both 2011 and 2012.

In Business to Consumer category, the mobile health app (mHealth), projections are predicted

to reach $26 billion by 2017. Although the potential benefits of

mHealth solutions have been widely discussed for over a decade,

until recently the market never emerged from the trial phase.

Currently there are 97,000 mHealth applications in major app

stores. The user of these apps are not only are consumers

taking advantage of smartphones to manage and improve their

own health, but also healthcare professionals.

Enterprise mobility enables a workforce to have instant access to information through mobile

applications anywhere, anytime. The improved mobile productivity

that results from mobile access to company software and

information can mean a greater ROI for businesses investing

in mobile communications, as well as improved sales and

communication. In fact, studies indicate that mobile apps

design to help employees complete their work increases

productivity by 45%, raising operational efficiency as much as 44%.

Currently about 38% of businesses are using mobile phones and 43% plan to better incorporate

mobile devices into their corporate practices in the future. It is anticipated this market will reach

$340 billion worldwide by 2017. A major trend in Enterprise mobility is tagged BYOD (Bring

Your Own Device). App developers are being required to create secure transactional

applications for the enterprise level which can be deployed to thousands of users across a broad

array of heterogeneous devices.



The App economy

The growth and continued development of the App

market has created its own economy and job sector

cleverly dubbed the ‘app economy.’

In April of 2012 the ‘app economy’ had created an

estimated 519,000 jobs nationwide and was a

significant economic driver in many states according

to CTIA (The Wireless Association and the Application Developers Alliance).

The development of an app does not conclude with a company building a successful app, but

extends to the creation of new operating systems, adding new capabilities, and responding to

customer questions, all of which

requires paid employees. Therefore

the app economy includes non-

developers as well. A company

must hire sales representatives,

marketers, human resource

specialists, accountants, and a

myriad of workers that inevitably

make up the modern workforce.

For example, buying a gift on

Shutterfly from your smart phone

inevitably sets off a chain of events

to include the manufacturing,

creation, and transportation of

your purchase back to you.

Likewise, each app developer

supports a certain number of local

jobs, such as the pizza guys across

the street who are making a good

living delivering food to late night

software engineers.

Georgia ranks fairly high (fifth

comparatively) with an astounding

24k jobs created, an app intensity of 1.56 and $1,062 million annual economic impact.

The Georgia economy is greatly supported by the development of applications as the state

continues to foster new growth.

Table 1

Rank State

App

Economy

Jobs created

(thousands)

App

intensity* (US avg=1)

App Economy economic impact

(M of USD annually)

1 California 151.9 4.47 8,241

2 Washington 49.8 2.71 2,671

3 New York 39.8 1.71 2,313

4 Texas 25.0 1.70 1,183

5 Georgia 24.0 1.56 1,062

6 Massachusetts 21.4 1.9 1,143

7 Illinois 19.9 1.16 847

8 New Jersey 19.5 1.04 1,087

9 Virginia 15.0 0.93 788

10 Florida 14.6 0.90 587

Table 1: Data from the Conference Board, Bureau of Labor and Statistics;

Calculations: South Mountain Economics LLC

*App Intensity is the ratio of App Economy to total jobs in a state, indexed to the

national average. Higher app intensity means that App economy jobs make up a

larger share of jobs in a state.

The president of CTIA, John Walls,

praised Georgia’s business climate

and said good universities, such

as UGA, Georgia Tech and Emory,

make the state an attractive place

for app businesses and jobs.



Industry trends

As the industry grows, there are a few clear trends that will

occur:

Mobile devices will exceed PCs in terms of shipments and

spending.

The app economy relies on the fundamental assumption

that the user provides the device – with that in mind, the

cost of mobile devices will decrease as new technologies

create cheaper manufacturing techniques.

There may be a new shift on the horizon for cellular carriers

to increase the cost of purchasing a phone (which they

previously transferred the burden by transferring the cost to

monthly data and service plans) and instead opting for a

new system in which cost of monthly data and service plans

decrease, but the cost of phones are increased.

Mobile app integration will continue as apps are integrated

into every facet of life from commerce to medical.

Location based platforms – where you are will provide value

(similar to who you know on Facebook).

Sensors and Barcode readers – Smart tags, sensor based

geofencing and traffic alerts will continue to grow in popularity and become increasingly

more sophisticated.

As the market grows, mobile health will be a key area of growth as systems are developed

instead of simply applications.

Market conclusions

The rise of the mobile smart device will continue to grow until full market penetration is

reached in the United States in the next few years. The costs of these devices will also

decrease.

The app market relies on the ownership of a smart device in order to thrive.

Mobility is an important component of Georgia’s job market and provides significant

economic impact. Georgia remains in the top five states with most jobs created from the

App Economy.

“The mobile app

economy is still in its

infancy and it's

accelerating at an

unprecedented rate.

Mobile apps are creating

a tectonic shift in how

everyone lives their lives

and operates their

businesses. As a result,

jobs are being created

across the spectrum -

both technical and non-

technical,” said Alex

Moazed, President and

CEO of Applico and

member of the Alliance

Board.



Patent landscape

The mobile patent space is messy, with every

big competitor suing one another. The largest

competitors are Apple, Google and Microsoft.

The patents and ‘circle of suing’ mainly

revolve around mobile applications and

device/components of smart devices.

Smart device application patents are unique in

that they may be spread over various classes

for both original and cross reference classes.

Emerging technologies tend to be spread out over several closely related original classes. The

top four original classes for mobile phone app

patents are Business Methods, Database

Management, Data transfer, and Operator

Interface (Figure 2). There is about a 10–15%

overlap between these various classes.

Business methods, shown in green, are the least

technological; this class also has the most

difficulty in patent issuance and defense.

Figure 3 shows Georgia’s patents granted by

class (note, not just for mobile applications).

The trends indicate a growing patent market for

apps developed in Georgia.

All things being equal, an applicant will get a

patent faster and at substantially less cost, if the

application can qualify for more technological

classes. However, once the patent office

assigns a patent application to a technology class, there is nothing that the applicant can do.

Patent trolls

Beginning in 2011, for the first time ever, more information technology patent lawsuits were

filed by non-practicing entities (NPEs) than by practicing entities. However, more NPE’s have

turned to trolling, taking the tack of accumulating older technology patents, devising creative

and over-broad interpretations of what exactly is covered by the patent, then threatening

hundreds or thousands of practicing businesses with lawsuits if the patent is not licensed. The

license fees are always nominal when compared to the cost of a federal court defense, which is

what makes trolling such an attractive numbers game for these unscrupulous actors.

Figure 2: Primary patent classes for mobile phones.



Patents for Mobility

Patents for Universities

Patents filed at universities (Figure 4) have also been steadily growing in number, although

there is some fluctuation. Patents for class 705, 707, 709 and 715 continue to increase as time

progresses.

Figure 3: Chart of Georgia patents and total patents granted by class from 2007-2011. These classes

encompass potential mobile phone app developments. The classes are as follows: 705 is Financial,

Business Practice, Management or cost/price determination (data processing), Class 707 is Database and

file management or Data Structures (data processing), Class 709 is Multicomputer Transferring

(Electrical and Computers and Digital Processing Systems), and Class 715 is Presentation Processing of

Document, Operator Interface Processing and Screen Saver display processing (Data processing).

Figure 4: University utility patents granted from 2000-2008. The classes are as follows: 705 is Financial,

Business Practice, Management or cost/price determination (data processing), Class 707 is Database and

file management or Data Structures (data processing), Class 709 is Multicomputer Transferring (Electrical

and Computers and Digital Processing Systems), and Class 715 is Presentation Processing of Document,

Operator Interface Processing and Screen Saver display processing (Data processing).



The values graphed in Figure 4 correspond to Table 2 below. These values demonstrate that

university filing for patents in the mobility space are few and far between. The data for Georgia

is unavailable. Based on the values of the table however, it can be assumed that Georgia

university patents will account for less than 1% of these ~200 patents spanning 8 years

because of the difficulty in acquiring such patents and the irrelevant nature of patents in the

mobility space.

Table 2: University utility patents granted from 2000-2008.

University utility patents granted from 2000-2008

Year

Class 705 Class 707 Class 709 Class 715

DP: Financial, Business Practice, Management, or

Cost/Price Determination

(Data Processing)

DP: Database and File Management or Data

Structures (Data Processing)

Multicomputer Data Transferring

(Electrical Computers and

Digital Processing Systems)

DP: Presentation Processing of Document,

Operator Interface Processing, and Screen

Saver Display Processing (Data Processing)

2000 4 3 8 3

2001 3 11 3 3

2002 1 10 4 1

2003 1 7 5 4

2004 1 14 4 1

2005 2 13 11 2

2006 4 16 10 7

2007 5 10 8 3

2008 5 8 4 3

Although patents are important to business growth and development, this is far less true for the

mobility space. Not only are most patents in this space void (software or computer programs

are not explicitly covered but the business process may be) but patents in this space are subject

to the ever changing nature of technology. Creation of an app takes a mere few weeks at most

whereas the time to acquire a patent may take upwards of years. Furthermore, most apps earn

a few dollars per download while the cost of acquiring a patent is tens of thousands. The sheer

timeframe and cost involved with acquiring patents causes developers (most of whom lack the

capital) to avoid the messy patent scene.



Significant new patents

Google, located in California, is granted a patent (US20130009867 A1) for facial

recognition unlock feature on the Android system.

United Kingdom mobile research technology provider Lumi Mobile has been granted

three patents by the USPTO protecting the core technologies it uses in its audience

engagement products. These patents cover cross-platform distribution, synchronization

and, dynamic content.

AT&T Intellectual Property I, located in Georgia, has been assigned a patent (8,392,173)

developed by four co-inventors for message translations.

Finsphere Corporation, located in Washington, a provider of identity authentication

analytics, was issued US Patent Number 8,374,634 for system and method for

automated analysis comparing a wireless device location with another geographic

location. This is their sixth issued patent.

OneHealth Solutions, Inc., a behavior change platform company who aims to improve

health outcomes and the cost of care for patients, providers, payers, and employers,

announced the launch of its OnTheGo mobile application, available now to members on

the iOS and Android operating systems. The mobile app connects securely to

OneHealth’s patent-pending behavior change platform, which leverages social

networking technology, clinical principles, and game mechanics to engage participants

and provide continuous interactive support to measurably improve health outcomes.

SecureAuth, a provider of identity enforcement technology for the enterprise, has been

issued two patents by the US Patent and Trademark Office. Patent 8,301,877 is for

configuring a valid duration period for a digital certificate, and patent 8,327,142 is for

facilitating secure online transactions.

Local Corporation, located in California and an online local media company, has been

granted patent number 8,359,049, which covers mobile, pay-per-call Enhanced Directory

Assistance method and/or system. This is the company’s third issued Enhanced

Directory Assistance (EDA)-related patent that expands its reach into this high-growth

area.

Mimvi Inc, located a California and a pure-play mobile search technology company,

announced today that it filed a provisional patent application with the USPTO. U.S.

Patent Application 61754993 opens up new dimensions in search and recommendation

technology ("Advanced SRT") for the purpose of expanding mobile app adoption and

monetization.



Future patent outlook

The new Leahy-Smith America Invents Act (AIA) passed in September of 2011 will have an

impact on the patent filings for new inventors, companies, and universities alike. The act affects

patent applications filed on or after March 16, 2013 and switches the U.S. patent system from a

"first to invent" to a "first inventor to file" system. In the “first to invent” system the right to the

grant of a patent for a given invention lies with the first person to invent. In the new “first

inventor to file” system, the right to the grant of a patent for a given invention lies with the first

person to file a patent application for protection of that invention, regardless of the date of

actual invention. Currently all countries use the “first inventor to file” system.

The new Act detrimentally impacts university research and development. The primary mission

of academia is to publish research early, which is not the mission of companies. Universities do

not have the resources that large corporations have when it comes to getting technologies

patented quickly and efficiently, causing a serious barrier to technological growth.

Patent conclusions

Until now, the mHealth industry has experienced relatively few patent infringement

conflicts, and little or no litigation instituted by non-practicing entities. But these trends

may be disrupted within the next few years. Many companies are patenting in the

mHealth space, and the likely result will be a thicket of overlapping patents on mHealth

products and their components. As the patent thicket grows, patent infringement

conflicts likely will increase—especially as mHealth technologies mature and winners

within the industry emerge.

With the growing focus on mobile apps, there will be opportunities and subsequently

patents on enterprise technologies and business models that can be transformed by new

approaches in the future.

The new AIA hinders universities because their primary mission of academia is to

publish research early.



Companies

Georgia Representative Sample

Smart Device App Companies Company Location Category Service

Context specific (location based serv, Mobile search, Mobile social networking, personal health data)

1 Scoutmob Atlanta Location based service, mobile

search

Provides marketing solutions to customers

2 Badgy Atlanta Mobile social networking

SEO solutions for social media

3 Egos Ventures Atlanta Location based

service Develops platforms based on location

and behavioral data

4 Sports Challenge

Network Atlanta

Mobile social networking

Social mobile technology for recreational sports

5 PlacePunch Atlanta Location based

service Location based marketing platform

Ever present (IM/Widget, payment, marketing, entertainment)

1 Cardyltics Atlanta Marketing Provides marketing solutions to

customers

2 First Data Atlanta Payment Electronic payment processing

3 ShopVisible Atlanta Payment B2B and B2C eCommerce solutions

4 Triplingo Atlanta Entertainment Creates phrases for learning

5 Cloud Sherpas Atlanta Entertainment Intelligent music applications

Business to consumer (general industry, medical)

1 Health Discovery

Corporation Savannah Medical

An app that analyzes skin lesions like freckles and moles for melanoma risk

2 Parkmobile USA Atlanta General Parking on the go

3 Mobile Active

Defense Atlanta

Mobile enterprise compliance and

security server

4 Sharecare Atlanta Medical Home for data app

5 Proximus Mobility Atlanta General Brands to track customer behavior

Enterprise (Management, services)

1 Airwatch Atlanta Management Mobile device management and content

management

2 Catavolt Alpharetta Services Enterprise mobility services

3 Sourcebits Atlanta Services Custom development services

4 Rigor Atlanta Services Mobile web/app monitoring

5 StarMobile Atlanta Services Allowing companies to mobilize their

enterprise apps cloud-based



Georgia Representative Startups, NuCos and Universities University New developments

Context specific (location based service, Mobile search, Mobile social networking, personal health

data)

1 n/a n/a

2 n/a n/a

Ever present (IM/Widget, payment, marketing, entertainment)

1 BeSmart Ventures gift card optimization solution

2 Buzztastic Facilitates more efficient partner marketing

Business to consumer (general industry, medical)

1 Georgia Institute of Technology Braille Touch, this new app enables people to type on an Android or iOS touch screen without having to look down

2 Georgia Health Sciences

University

App that allows a virtual roller coaster ride through the upper respiratory system to help enhance what patients see in

textbooks

3 Georgia Health Sciences

University

App to educated educate not only students but also providers, staff and health care consumers, including patients and their

families, about patient- and family-centered care fundamentals

4 Emory University mobile app to help HIV patients in rural areas improve

adherence to antiretroviral therapy and increase access to such care

5 Dwellio Helps landlords and apartment complexes retain tenants

Enterprise

1 n/a n/a

2 n/a n/a

Notable industry news for Georgia

Big Nerd Ranch, an app developer company with headquarters based in Atlanta,

will invest $2 million to expand its space. The company provides app

development and training. The company was founded by Aaron Hillegass.

Govathon, the city of Atlanta’s first hackathon, was held in the historic old City

Hall building.



Georgia Strengths

Georgia’s strengths lie in its ability to attract startups and large companies alike with its

technology focus. The prominence of a leading research institution, the Georgia Institute of

Technology, and its major influence are among the leading strategic advantages Georgia has.

The support of a strong cellular infrastructure is another influence as two of the largest fiber

routes interconnect in metro Atlanta, resulting in a built-in, high-tech ecosystem for data

centers. Finally, the concentration of a young, eager population in Atlanta contributes to the

high tech-atmosphere.

Furthermore, the relative scarcity of local capital when compared to cities such as Palo Alto is

actually not a disadvantage – the ratio of applicants to capital in Georgia is significantly less

than that of Palo Alto, allowing a higher percentage of applicants to obtain capital for startups

in the mobile app space. The state continues to be in a strong position for the further

development of mobile applications.

Conclusions

On a national level Atlanta has strength in eCommerce positions, especially in the B2B

commerce and should continue building around this sector. Atlanta has the opportunity

to carve a unique niche for itself in this disruptive eCommerce space by leveraging its

B2B strengths and looking at innovative enterprise web and mobile app solutions.

2012 was a good year for Atlanta’s digital marketing community with a number of

Atlanta based successes. This area has demonstrated much competency in Atlanta, and

is an attractive institutional investor destination.

There are many Atlanta companies playing in the mHealth space. The problems that

need solving are limitless, but the opportunity lies in linking technologies together with

healthcare problems and creating systems.



“The app industry is a borderless economic force, providing opportunity across the country--even in places

we might not expect. In a challenging economic environment, the app industry has created more than a

half million jobs in the five years since Apple’s iPhone launched. This new industry is propelling innovation

and jobs in urban centers and rural states. And this is just the beginning,”

--Jon Potter, President of the Application Developers Alliance

Thoughts for Georgia

As the app economy develops, it is interesting to note the effects it may have on Georgia

companies and residents. The app economy is an integral component of Georgia business and

technological developments as it contributes $1,062 million annually in economic impact in the

state alone.

Much careful attention should be given to this growing market as industries and companies

continue to flourish in this space. This market may have tremendous impact on current

technologies – such as the cash register which has been virtually eliminated at Nordstrom

stores; clerks swipe tablets or mobile devices to help customers checkout quickly. The rise of

the mobile device will begin to change all facets of daily life and business in unimaginable ways

in the near future.

first quarter - georgia department of economic development€¦ · mhealth (mobile health) or...

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