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New York State Expands Economic Growth through Specialized Initiatives

10 Sep, 2014

By: Trade & Industry Development

For many years, New York State was an anti-business, high tax environment, and while the size of government was growing, the economy was not. While other states were building partnerships with the private sector, New York was taxing and spending more, while accomplishing less. At the start of the administration of Governor Cuomo, New Yorkers were promised that things would change, and they have, dramatically. Today, we see a different New York — one that is more efficient, maintains lower taxes and has witnessed the passage of four consecutive on-time budgets. New Yorkers have benefited greatly from the achievements of the past several years: unemployment has decreased, private sector jobs have expanded and high-tech, advanced manufacturing is altering the way the industrial sector operates. New York State has charted a clear path to economic vitality.

Regional Economic Development Councils (REDCs)

The brainchild of Governor Cuomo, the REDCs have redefined the way New York invests in jobs and economic growth by putting in place a community-based, bottom-up approach and establishing a competitive process for State resources. Over the past three years, $2 billion in State funding has been awarded to support more than 1,400 regionally significant economic development projects. New York is continuing the momentum with a fourth funding round, including $220 million to implement regional strategies.

Workforce 2.0

The State’s workforce development programs are being integrated with its economic development efforts so the state is training people for jobs that actually exist. This “demand-driven” approach is being established by close coordination and collaboration between the private sector, academia, the State’s Regional Economic Councils and governmental agencies. 

Examples include:

In Western New York, the Western New York Regional Economic Development Council (WNYREDC) is creating a new, state-of-the-art workforce training facility in Buffalo — the Regional Workforce Advancement Center — focused on the needs of manufacturers to fill employment skills gaps among area residents. In addition, WNYREDC has taken steps to accelerate advanced manufacturing by increasing access to applied research and scaled testing facilities. Initiatives include a recent partnership between New York Genome Center and IBM Watson Group to research alternative methods for Cancer Patients. Five companies focused on genomic medicine have already committed to either moving to Buffalo or expanding in the area, many at the Buffalo Niagara Medical Campus.

Long Island is focused on STEM Workforce initiatives that bridge the skills gap and attempt to prepare the region’s workforce for the challenges ahead. The Long Island Regional Economic Development Council (LIREDC) has funded groups of STEM projects at Brookhaven National Labs, New York Institute of Technology (NYIT) and Farmingdale State College. One noteworthy project is Hofstra’s Medical Scholar Pipeline program, which will increase STEM education opportunities and careers for minority students.

Excelsior Jobs Program (as of March 2014)

For the fourth year in a row, ESD made available a total of $500 million to provide enhanced tax credits over 10 years that will produce better results for New York's economy. The program is steadily growing with 248 businesses admitted and over $426 million in tax credits. These businesses have committed to capital investments of $2.3 billion, research and development expenditures of $2.7 billion and the creation of 26,013 jobs.

Roche Group (NYC):  This international leader in biosciences will invest $16 million to establish a state-of-the-art Translational Clinical Research Center in New York City, creating 235 new jobs by 2018. To support this major expansion in New York’s biosciences industry, Empire State Development (ESD) has agreed to provide Roche with $6.6 million in tax credits from the Excelsior Jobs Program.

START-UP NY

START-UP NY seeks to accelerate entrepreneurialism and job creation across the state, with a particular focus on Upstate New York. The State University of New York campus system, along with other college communities, serves as the framework of the START-UP NY program to attract high-tech, biotech, advanced manufacturers and other start-ups, venture capital, new business and investments from around the world. Under the program, businesses have the opportunity to operate completely tax-free for 10 years.

Global NY

Global NY is Governor Cuomo’s initiative to grow New York’s economy by attracting foreign investments and by equipping New York companies with the tools they need to bring their businesses to the international marketplace. The program will help transform the way New York State conducts business abroad. Highlighting the SUNY system, the Regional Economic Development Councils and various incentive programs, such as START-UP NY, Global NY is helping create more jobs in New York State.

Global NY serves as a one-stop shop for New York international trade and in the fall will host a Global NY Summit on World Trade and Investment at the Jacob K. Javits Convention Center in New York City. The Summit will convene business, political and civic leaders, federal export officials, foreign stakeholders and members of the diplomatic corps. 

Recent Success Stories

GLOBALFOUNDRIES, a global leader in the semiconductor manufacturing industry, will build a new multi-billion-dollar research and development facility at its Fab 8 Campus in Saratoga County. The Technology Development Center (TDC) is expected to result in at least 500 new, high-paying jobs at the TDC, as well as 500 additional jobs at the GLOBALFOUNDRIES Fab and administration buildings.

Regeneron Pharmaceuticals, the largest biopharmaceutical company in New York State, is investing nearly $70 million to expand its Rensselaer County production facility and create 300 high-paying, biotech jobs in the Capital Region. The project involves the construction of two facilities at Regeneron’s East Greenbush location — a new 65,000 square-foot building at 81 Columbia Turnpike that will add manufacturing capacity for Regeneron products for clinical trials and potential commercial sale, and an expansion of the company’s facility at One CSC Way.

Trudeau, a world leader in immunological research, is developing a biotech cluster in the North Country. Thanks to the Governor’s commitment of up to $35 million over the next five years, the Trudeau Institute is now working closely with Clarkson University to drive biomedical research in New York State.

Conclusion

New York State has been revitalized thanks to a superior workforce and Governor Cuomo’s groundbreaking initiatives and strategic state investments. The thriving bioscience industry employs 74,000 people in New York State and continues to grow. Advanced manufacturing is offering creative and high-tech opportunities and New York State businesses are prospering on the heels of successful economic initiatives. 

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