InBusiness Magazine | Partner Section | Spring 2021

Spring 2O21 • aztechcouncil.org

IN THIS ISSUE 2 Change Agents

Arizona Technology Report

Arizona Technology Council: The Voice of the Technology Industry

President’s Message

We’re fortunate when it comes to our members at the Arizona Technology Council. Beyond being our supporters through dues and sponsorships, many have become our partners in a number 4 Two Corporate Leaders Added of initiatives that ultimately benefit the entire technology community here. to Council Board But there is one member in particular that often is the first to respond when Healthy Start we have an idea or just need a hand. And 6 Reaching Out now that it has reached the milestone Steven G. Zylstra, President + CEO of marking 10 years of service to us and Arizona Technology Council the rest of the state of Arizona, I just have one thing to say: Congratulations to the Arizona Commerce Authority!

The Arizona Technology Council is Arizona’s premier trade association for Its story began in early 2011 when then-Gov. Jan Brewer signed into law the Arizona science and technology companies.

Competitiveness Package, a collection of business incentives and tax reforms designed to spur the state’s economy. Considered the centerpiece was the birth of the Arizona Phoenix Office Commerce Authority (ACA) and the retirement of predecessor Arizona Commerce 2800 N. Central Ave., Suite 1530 Department as the new agency was charged with the retention and recruitment of quality Phoenix, AZ 85004 Phone: 602-343-8324 • Fax: 602-343-8330 jobs for the state. info@aztechcouncil.org As ACA evolved, it began focusing on specific sectors, including aerospace and defense, technology and innovation, manufacturing, bioscience and health care, and Tucson Office financial services. Sound familiar? Our membership is comprised of players — both large 1215 E. Pennsylvania St. and small — from these fields.

Tucson, AZ 85714 Phone: 520-388-5760 And for ACA, nothing is too small. It has become a supporter in a number of ways tucson@aztechcouncil.org for startups. A prime example is the annual Arizona Innovation Challenge, a biannual competition for grants and enrollment into the ACA’s Venture Ready accelerator.

It is one of the many tools that it offers those who want to see their idea become MANAGEMENT AND STAFF more than just that.

Steven G. Zylstra President + CEO ACA is often called upon by Gov. Doug Ducey to help carry out his agenda for Leigh Goldstein COO + Vice President, Programs + Events Deborah Zack Vice President, Membership Services economic development. And as the state’s economy begins its recovery, look for Karla Morales Vice President, Southern Arizona Regional Office ACA to play a major role.

Jill Brownley Director, Marketing + Communications We at the Council see ACA’s enthusiasm for innovation — and our state — up Laura DeGeorge Executive Assistant to President + CEO Jamie Neilson Director, Operations, Southern Arizona close in such events as our partnering on the annual Governor’s Celebration Regional Office of Innovation. It continues with our collaborative initiative called the SciTech Laura Anne Di Meo Accounting Manager Angelica Espinoza Bookkeeper Institute. We are co-publishers of the quarterly e-magazine TechConnect. I could go Don Rodriguez Editor on and on.

Ron Schott Executive Emeritus, Phoenix I would be remiss if I neglected to point out there is one person who has been a SCITECH INSTITUTE big part of the Council’s success long before she became ACA’s leader. I’m referring Steven G. Zylstra, President + CEO Jeremy Babendure, Ph.D., Executive Director to President and CEO Sandra Watson. She has been active in the Council since its Kelly Greene, Chief Operations Officer start and has always been there for us over the years. I’m also proud to call her one Kaci Fankhauser, STEM Ecosystem Coordinator Claire Conway, STEM Ecosystem Programs Manager of my dearest friends.

Jake Lounsbury, Director of Global Partnerships So, here’s to you, Arizona Commerce Authority. After 10 years of working for Hope Parker, Curriculum & Training Specialist Michele Roy, Grants Manager Arizona, I know even better days lie ahead for all of us.

3 10 Years — And Counting New Vice President for Southern Arizona

WHO WE ARE

Dee Quintero, Business & Office Manager Tammy Doerksen, CSO Advisor Training Destiny Madaje, Resource & Event Manager Fritz Smith, Arizona CSO - Rural Support Caillou Pena, Government Relations Specialist Amanda Rincon, Ecosystem Team Member Lisa Ristuccia, Festival Team Member

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ARIZONA TECHNOLOGY REPORT

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DECEMBER 2020

REPORT

Change Agents Shaping public policy is concerted effort of Council, committee Giving of yourself for something bigger than yourself.

That mindset is alive and well among a group of individuals working quietly behind the scenes with a single mission in mind: to ensure Arizona’s competitiveness to accelerate technology-related policy and legislation, thus affecting positively the growth and development of a vibrant technology state.

These are members of the Arizona Technology Council’s Public Policy Committee, who, outside of their regular careers, have taken on the challenge to take the state to a higher level by keeping Arizona tech-friendly, business-friendly and regulation-friendly.

The committee currently is chaired by Jason Bagley, senior director of state government relations at Intel, with Council staff support from Executive Emeritus Ron Schott. They are charged with leading the efforts of volunteer committee members whose duties range from testifying before the Legislature on a regular basis to selecting 10 Arizona legislators with track records of technology industry support for honors at the Council’s annual Governor’s Celebration of Innovation.

In between, committee members work with legislators, elected officials and policymakers at all levels of government to educate them on the value and promise of the technology industry. Through it all, they focus on four areas: technology commercialization and development, workforce development, supply-chain development, and capital formation.

They are quite open about their intent, especially when making their rounds in the halls of the state Capitol. Before the start of each legislative session, the committee helps prepare key ideas, goals and legislative initiatives that are published in the Council’s annual Public Policy Guide. For 2021, they include: • Improve the business climate for technology-based companies; • Provide sources of risk capital that encourage entrepreneurship, with a focus on minority entrepreneurship; • Create an environment that supports science- and technologyrelated job retention and creation; • Attract, train, retrain and retain the diverse talent required to compete in a global innovation economy; and • Help ensure technology businesses can recover from the effects of the COVID-19 pandemic, then thrive.

The last point is especially critical. It’s also at the heart of a unique but related public policy initiative of the Council. The group, in partnership with The Western Way, recently released a report detailing how to incorporate energy innovation into Arizona’s plan for recovering from the economic downturn caused by the pandemic.

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ARIZONA TECHNOLOGY REPORT

INNOVATION AND CLEAN ENERGY INDUSTRY RECOMMENDATIONS FOR ECONOMIC RECOVERY Policy Options from Arizona’s Business Com

munity

Titled “Innovation and Clean Energy Industry I dustry Ind t y Recommendations Recomm Rec ommend endati ations ons for Economic Recovery: Policy Options from Arizona’s Business Community,” the report outlines the economic benefit of energy innovation and specific recommendations for policymakers to integrate clean energy and clean technology initiatives into the recovery plan roadmap. The Western Way is an organization working to drive freemarket conservation policies in western states. The report is available for download at www.aztechcouncil.org/wp-content/uploads/2020/12/ TWW_AZTC_Clean-Energy-Report_FINAL12-16-20.pdf.

The Council and the committee’s ability to help shape public policy comes from years of developing relationships with elected officials, no matter which side of the aisle they call home. These connections often stem from work involved in preparing the biennial Vote TechSmart guide, which includes soliciting information from political candidates, conducting a comprehensive interview process and reviewing incumbents’ voting records — all to help determine which candidates receive the Council’s endorsement.

Beyond those endorsements, the Council’s Political Action Committee (PAC) supports pro-technology candidates for state and local offices, regardless of political affiliation. Because government leaders at state, county and local levels make decisions impacting the technology industry, the PAC offers an opportunity to support candidates and elected officials who understand the impact of their decisions on the tech ecosystem. More information on giving of yourself through a contribution is available at www.aztechcouncil.org/aztc-pac.

10 Years – and Counting SciTech Festival leaves lasting impact as it reaches milestone Anyone with a 10-year-old daughter or son probably has heard this reaction when the child walks into the room: “(He/she) has grown so big — and so fast!”

Jeremy Babendure can relate. When he set out to pull together an entire state for a celebration of science and technology with the inaugural SciTech Festival in February 2012, Babendure was just hoping some people would show up to participate let alone stage the roster of events.

It turns out the festival director and the collaborators who also supported this new project needn’t have worried. More than 200 events statewide drew more than 230,000 people in that first year. Fast forward to 2020 when the ninth SciTech Festival exploded to 6,000 events attended by 600,000.

Since its launch, the festival’s more than 900 partners have engaged hundreds of thousands of attendees to participate in events in more than 80 Arizona cities and towns.

As a result, countless children have been inspired to pursue careers in science, technology, engineering and math — or STEM, the term that has become better known since the first festival. More than that, the events and activities have provided individuals of all ages the opportunity to experience STEM firsthand and see how it impacts their lives.

The festival also has grown into a convening place for the state’s STEM ecosystem. “It’s an opportunity for teachers, professionals and industry leaders to meet and strategize how to build support for STEM and attract young people into the field,” says Babendure, now executive director of the SciTech Institute.

SciTech Institute is a nonprofit organization working to enhance and promote STEM awareness and engagement in Arizona and beyond. While the festival has come to be known as a signature event and the third-largest STEM festival in the nation, the SciTech Institute

also has given birth to other well-known programs, such as the Chief Science Officers.

Helping provide support along the way have been foundation partners including the Arizona Technology Council, Arizona Commerce Authority, Arizona Science Center, Arizona State University, The University of Arizona and Arizona Board of Regents.

Such support enabled festival No. 10 to occur in February as it continued to inspire interest and build knowledge of STEM in Arizona.

“The 2021 festival season offered an incredible opportunity to both celebrate the past and embrace the future,” says Kelly Greene, chief operations officer of the SciTech Institute.

Even the effects of COVID-19 didn’t stand in the way of the state coming together, although at a distance. “Organizers took advantage of the ‘virtual’ reality that arose in response to the pandemic and worked to support the festival’s collaborators and events as a fusion of online and in-person approaches,” Greene says.

This year’s lineup included: • More than 200 free virtual events in February, • STEM professional career panels, • Virtual tours, • How-to videos featuring Q&A with experts, and • Interactive activities In addition, presentations were conducted in English, Spanish and American Sign Language. The festival also leaves a legacy marked by a recorded content library that now counts more than 5,000 resources.

While others might have put the festival on hold this year, that didn’t happen in Arizona. “We saw the silver lining in how current challenges will push us to grow as a community and work creatively together,” Babendure says.

New Vice President for Southern Arizona Karla Morales has been named the Arizona Technology Council’s new vice president to oversee all operations for the Southern Arizona regional office.

In this role, Morales will lead an expansion plan in the region, including recruiting members, securing sponsorships and supporting events through underwriting from member organizations.

She also will serve as the liaison to the Tucson Ambassadors and volunteer sub-committees, as well as develop and foster relationships with state, local, national and international government officials to advocate for and facilitate public policies that serve Council members.

Most recently, Morales served as interim director of the Office of Multicultural Advancement at The University of Arizona, where she was

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responsible for implementing and leading a range of sustained programs, initiatives and events to facilitate intercultural/ Karla Morales intergroup dialogue, promote equity and inclusion, and advance social justice.

In addition, she serves as board chairwoman of the Tucson Hispanic Chamber of Commerce, where she became a board member in September 2019. Morales also was named United Way’s Campaign Coordinator of the Year in 2018.

While a student at the university, she earned an MBA at the Eller College of Management and a Bachelor of Science in Education.

ARIZONA TECHNOLOGY REPORT

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Two T w Corporate Leaders Added to Council Board A Mike Stewart, vice president of Advanced Technology Engineering, Honeywell Aerospace, and Amit Bhandari, vice president of Strategic Relationships, Solugenix, are the newest members of the Arizona Technology Council’s board of directors after being elected to three-year terms at the Council’s quarterly board meeting in January.

At Honeywell Aerospace, Stewart uses his experience to drive new technologies into products and services that best meet customer needs. He leads a team of scientists and technologists who define the future technologies and products to be implemented in markets ranging from avionics to space and defense.

Stewart also is a member of the Arizona Chamber of Commerce & Industry Defense, Aerospace and Aviation Committee, and West Valley Defense Alliance. He obtained a Bachelor of Science in electrical engineering from Utah State University in Logan, Utah.

Bhandari is a business leader with experience in sales, digital transformation, client advisory, marketing, service delivery and operations. He is deeply passionate about next-gen tech and adoption across industries, and his specific focus is on the Arizona market and Solugenix’s growth in the state.

In his current role, Bhandari helps clients navigate the shift in the technology landscape with wider adoption of digital and social paradigms, and building strategies and capabilities based on business insights and artificial intelligence. He obtained a Master of Science in computer science from SCSIT, DAVV and an MBA from the Institute of Management Studies in India.

The Council’s board of directors serves an advisory and fiduciary role by representing the interests of the state’s technology industries in the Council’s strategic planning and ongoing operations. The current board consists of 32 members representing a diverse set of organizations.

Mike Stewart

Amit Bhandari

Healthy Start Association health plan catches on among members in its debut year As the rebuilding of the Arizona economy begins, small businesses and startups likely are looking for ways to provide more generous overall compensation packages to their employees, a critical factor in helping technology companies attract and retain top talent.

The Arizona Technology Council’s association health plan (AHP) formed in partnership with Blue Cross Blue Shield can help.

Consider what has happened since the AHP’s launched in January 2020: • Growth of 200% in employers and 130% in employees by February 2021.

• The health plan’s current gross annualized premium is nearly $3 million.

• The average group size of an employer participant is 10 employees.

Technology industry employers with as few as two employees have access to a benefits package that includes medical, dental and vision coverage; life insurance and AD&D; employee assistance; and health savings account (HSA)/flexible spending account (FSA) administration. The AHP also provides members with relief from COBRA administration, bill paying, compliance filings and managing participant eligibility and benefits enrollment.

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ARIZONA TECHNOLOGY REPORT

Features for participating companies include: • Access to a statewide network, including the Mayo Clinic, with exclusive network options in Maricopa and Pima counties; • Choice of a wide selection of primary care providers and specialists; • Local customer service for care and claims support; • Telehealth visits with doctors, counselors and psychiatrists anytime and anywhere from a smartphone, computer or tablet; and • Tools and resources to help members make educated decisions about health care choices. Members can shop and compare costs for more than 1,600 procedures, find a doctor or speak to nurse on call 24/7, access health plan information via mobile app, and much more.

These are among the reasons the AHP has helped more than two dozen technology industry employers with 232 employees across the state find lower-cost and richer benefits for their companies. All have expressed their intent to renew for another year.

For more information about the Council’s association health plan, visit aztechcouncil.org/AHP.

Reaching R e Out M Multimedia approach keeps Council connected to vast membership Staying in touch with members whose operations stretch across the state has been critical to the Arizona Technology Council since its start. Through a series of communication methods, including April’s release of the annual report, members and others have been informed about developments not only of the Council but issues affecting the state’s technology industry as a whole. The Council’s multimedia suite includes:

Annual Report The Council releases its annual report to detail the previous year’s activities, successes, initiatives and industry and member accomplishments.

From public policy successes and SciTech Institute goals to events and communications stats, the report features the programs and services Council staff works delivers, as well as opportunities for member involvement, such as committees and peer groups.

AZTechBase The platform AZTechBase was launched in conjunction with the Arizona Commerce Authority and IT services firm AccountabilIT. The goal of AZTechBase is to further elevate Arizona’s technology ecosystem by providing accurate, current datasets that are easily accessible. But even more important is the platform helps support communication and interaction limited in the midst of the pandemic.

AZTechCast Co-hosted by Phoenix Business RadioX and Council President and CEO Steven G. Zylstra, the monthly AZTechCast’s guests share success stories, news and analysis about the region’s leading startups, companies and emerging technologies, as well as industry trends and critical issues propelling Arizona’s growing technology ecosystem.

TechFocus Member Spotlight In partnership with Tucson-based firm Michael Beach Consulting, the monthly TechFocus Member Spotlight podcast highlights Arizona’s growing prominence as a world-class technology hub. Each episode features innovative entrepreneurs, transformative leaders and technology titans who are reshaping the state’s evolving technology ecosystem in existing and emerging sectors.

TechConnect TechConnect is the only magazine that has covered Arizona’s science and technology community for almost two decades. Launched by the Council in 2005 and produced in partnership with the Arizona Commerce Authority, the digital e-magazine is produced quarterly and provides news about the state’s industry trends and critical issues that drive Arizona’s technology ecosystem.

TechTalk The Council’s monthly TechTalk e-newsletter provides featured segments on member news, content from the Council’s blog, member discounts and services by the Council’s Preferred Business Partners, sustainability and renewable energy, R&D, innovation, technological advancements, emerging technology sectors, industry news and more.

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ARIZONA TECHNOLOGY REPORT

Yes, Some Good News STEM job postings up, technology firms increase in Q4 2020 At the end of a year seemingly filled with bad news from various sectors, there was some good news to report in the fourth quarter of 2020 by Arizona’s technology ecosystem.

Data in the latest quarterly Arizona Technology Industry Impact Report from the Arizona Technology Council revealed a 29% jump in STEM job postings in December 2020 vs.

December 2019 and a 4.3% growth in technology companies here year-over-year.

“Despite a challenging year caused by the spread of the COVID-19 virus, Arizona’s technology sector was able to rebound quickly and even outpace Q4 2019 in several significant growth metrics,” says Steven G. Zylstra, the Council’s president and CEO. Positive data points in the latest report include a 6.2% employment growth in technology — higher than other states in the region — and a 1.02% increase in technology wages.

Additional findings of the fourth quarter report included: • Total technology industry wages – $22,665,834,342 • Total technology firms – 10,093 • Technology jobs multiplier – 3.76, meaning that for every 100 technology jobs added, 376 new jobs were created in other industries.

• Arizona’s African American technology workforce – 3.61% year-over-year increase The Council also supplemented the data with published works highlighting Arizona leaders and organizations across a range of sectors. Featured leaders include: • Lea Márquez Peterson, chairwoman, Arizona Corporation Commission • Eric Miller, co-founder and principal, PADT • Calline Sanchez, vice president of IBM Systems Lab Services and IBM Systems Technical University, and Arizona and New Mexico state leader for IBM • Dr. Sunil Sharma, physician-in-chief, TGen On the Council’s behalf, the quarterly report is compiled by eImpact, an organization that creates web-based, datareporting solutions designed to help cities, industries and planners drive effective policy, create new growth and engage stakeholders. The report is based on eImpact’s analysis of data from Emsi, Brookings Institution, CompTIA, AngelList, National Science Board and others.

Molly Castelazo, CEO and chief content strategist of Castelazo Content, also partnered with the Council to organize and develop the supplemental content and update the report design.

The complete report is available on the Council website at aztc.eimpactv2.report/reports/ view/5f08e79ae2cca70033382657.