Deloitte/Cleantech Group Survey: Clean Tech Executives Believe Stimulus Package Will Foster Innovation, Stimulate Economic Growth and Create Jobs
Despite Optimism and Positive Overall Interaction with the Government, Majority of Clean Tech Companies Do Not Plan to Apply for Government Funding
NEW YORK, April 15 /PRNewswire/ -- Deloitte today released results of a survey of 70 clean tech, high tech and energy industry executives which finds that a majority of industry leaders believe President Obama's $787 billion stimulus bill (American Recovery and Reinvestment Act) will foster technology and innovation, stimulate economic growth and create jobs. However, the survey also shows that the majority of respondents have not or do not plan to apply for stimulus funding in the foreseeable future.
The survey, conducted in conjunction with Cleantech Group on the eve of the one-year anniversary of President Obama's stimulus package, targeted key leaders in the clean tech sector to get insights on how the stimulus bill has impacted the economy and what the future might hold for the clean tech industry.
Seventy percent of survey respondents believe the bill will be successful in fostering technology and innovation, while a majority of participants also believe it will help stimulate economic growth (55 percent) and create jobs (51 percent). Among clean tech executives who said their company applied for stimulus funding, most (67 percent) applied for a grant, 21 percent applied for tax credits/incentives and 13 percent applied for loan guarantees.
However, almost two-thirds (59 percent) of the executives participating in the survey indicated their companies are not applying for stimulus funding in the foreseeable future. Moreover, 73 percent of respondents said that they were somewhat to very concerned that the government was influencing the competitive landscape of the industry.
"While overall interaction with the government has been positive during the application process, it may be that companies, especially those that were already seeking private financing, were comfortable with their existing financing and development plans," said Scott Smith, partner, Deloitte & Touche LLP and clean tech leader for the United States. "However, the positive experience being reported by current applicants is encouraging for those who have not yet applied since much of the available funding has been largely unspent and the Department of Energy (DOE) recently announced plans to distribute an additional $100 million to accelerate innovation in clean tech."
When asked about their interactions with the government during the application process, most had an overall positive experience (63 percent) and said that the government offered adequate assistance to help complete the application. Half of the applicants agreed that the instructions for applying for funding were clear, and the government communicated throughout the application process and responded to questions in a timely manner.
"The continued availability of stimulus dollars means companies can continue to consider government funding to sustain growth," says Sheeraz Haji, president of Cleantech Group LLC. "Between the stimulus funding and increased confidence in private sector financing, we expect to see companies increase investments in clean tech projects."
Furthermore, utilities and corporations continue to invest in the clean tech sector. "Major utilities are focusing on increasing direct investment in alternative energy generation and smart grid projects due to favorable government incentives and improved market conditions as they work to reduce their carbon exposure and comply with renewable portfolio standards," added Smith. "From a corporate perspective, companies continue to invest and integrate clean tech into their operations to improve energy efficiency and reduce carbon emissions in order to reduce costs, mitigate energy price volatility risk, and comply with existing and pending regulations around carbon and climate change risk disclosure."
As used in this document, "Deloitte" means Deloitte LLP and Deloitte Services LP, a separate subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.
About Cleantech Group
The Cleantech Group, the leading global research and advisory firm focused on cleantech innovation, pioneered the clean technology category in 2002. Today, it helps its clients make critical business decisions by providing market intelligence through subscription-based research, advisory services, and global networking events. The company's portfolio of global corporations, investors, entrepreneurs, governments, and service providers -- representing trillions of dollars in assets -- benefits from timely market research and data, global business relationships, and strategic insights into cleantech innovations. The Cleantech Group's advisory practice leverages the firm's core insights into cleantech ventures and deep industry relationships to provide client-specific analyses of market sectors, technology trends, and competition. The company also publishes leading cleantech sector industry news coverage and produces the premier Cleantech Forum® and Focus™ events worldwide. Details are available at http://www.cleantech.com.
Contact: Cory Ziskind Saskia Stegeman Public Relations Hill & Knowlton Deloitte +1 202 944 1975 +1 212 492 4408 firstname.lastname@example.org email@example.com
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