In a significant move aimed at bolstering New York State's economy, Governor Kathy Hochul has unveiled ambitious plans to drive innovation and create job opportunities through targeted investments in high-growth industries. Announced during the 2023 State of the State address, the initiative seeks to capitalise on key sectors such as high technology, life sciences, and advanced manufacturing, emphasising the importance of a strong state supply chain.
Governor Hochul articulated the state's commitment to maintaining its legacy as an innovation hub, stating, "New York’s status as a hub of innovation is more than just a historical legacy, it charts our path to a brighter and more prosperous future.” She highlighted the critical role that high-growth industries play in not only unlocking new opportunities but also keeping the state's economy ahead of the technological curve.
The proposal builds upon New York's existing successes, noting the creation of 113,000 high-wage jobs within the tech sector from 2010 to 2021, with $53 billion in venture capital raised in 2021 alone. Furthermore, the life sciences sector has seen substantial growth, with over 580 new companies formed since 2017, resulting in the creation of 9,700 jobs. A particularly notable development is Micron's monumental $100 billion investment in semiconductor manufacturing in Central New York, which aims to generate up to 50,000 jobs and reaffirm the state’s status in advanced manufacturing.
Empire State Development (ESD) President and CEO Hope Knight spoke on the overarching strategy, stating, "Under Governor Hochul’s leadership, we are implementing a holistic approach to growing the State’s economy by promoting New York’s strengths to create jobs and provide economic opportunities for all." Knight praised the Governor's economic strategy, describing it as pivotal in targeting high-growth industries and ensuring the state's continued prosperity.
Key components of the outlined strategy include the introduction of a Technology Innovation Matching Program, designed to offer millions in matching grants for New York companies applying for federal Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs. This initiative aims to address New York's current competitive disadvantage by enhancing funding options for small businesses engaged in research and development.
Additionally, the proposal includes the establishment of two Cell and Gene Therapy (CGT) centres, one in upstate New York and another in the downstate region. These centres would focus on cutting-edge therapies, with research capabilities addressing diseases such as cancer. This initiative is aligned with the substantial private investment directed toward CGT, marking New York's potential as a leader in this burgeoning sector.
Recognising recent global supply chain disruptions, Governor Hochul also announced the "Made in New York" initiative, aimed at securing the supply chains for critical commodities within the state by attracting industries that produce essential supplies. This proactive approach is set to collaborate across state agencies to identify and incentivise industries that can bolster economic security.
Furthermore, the Excelsior Jobs Program, which has successfully awarded performance-based tax credits for job creation and investment, will be enhanced to support additional critical priorities, including assisting disadvantaged communities and fostering the green economy. Enhanced criteria will be introduced to incentivise projects achieving LEED Silver Certification or higher, aligning economic growth with sustainability goals.
The Extended Prosperity and Innovation Campuses (EPIC) initiative will replace the previous START-UP NY programme, addressing earlier challenges by streamlining support and expanding eligibility for a broader range of innovation businesses. This initiative aims to forge stronger partnerships between the private sector and leading educational institutions, thereby fostering technological advancements and high-wage job creation.
Overall, these proposals signify considerable efforts by Governor Hochul and her administration to reaffirm New York's status as a leader in technological innovation, economic growth, and sustainability. The initiatives are expected to create a conducive environment for business development, thereby fostering job creation across the state.
Source: Noah Wire Services