Transcript I Live NY Summit - Rochester Institute of Technology
NYSTAR and New York’s Growing High Tech Economy
IT Collaboratory Symposium March 2, 2009 Rochester, New York
New York State Foundation for Science, Technology and Innovation (NYSTAR)
NYSTAR supports technology development, innovation and commercialization leading to economic growth in New York State.
New York State Foundation for Science, Technology and Innovation (NYSTAR)
NYSTAR’s goals are: Help new and existing New York businesses become more competitive through use of innovative technologies; Continue to leverage public and private partnerships for technology development and commercialization; Enhance the research capabilities and expertise of New York's colleges, universities and research institutions; Support efforts to ensure a skilled workforce including exciting youth about science and technology; and Recommend policies to take greater advantage of New York's technology and academic research assets.
New York State Foundation for Science, Technology and Innovation (NYSTAR)
NYSTAR’s programs include: Capital Facility Program; Faculty Development Program; Technology Transfer Incentive Program; Centers for Advanced Technology (CAT) Program; Small Business Technology Investment Funds; and Matching Grants Leverage Program.
Through these programs and others, NYSTAR has awarded New York State research institutions over $400 million which has generated a total economic impact of over $9 billion since 2000.
Capital Facility Program
The Capital Facility Program provided $95 million to universities across New York State for the establishment six Strategically Targeted Advanced Research (STAR) Center and five Advanced Research Centers (ARCs).
Capital Facility Program
NYSTAR provided $14 million to the Rochester Institute of Technology to establish the Information Technology (IT) Collaboratory the will create key technologies and capabilities to design and integrate next-generation information technology systems. NYSTAR funds were used for construction of a new research facility and the purchase of new research equipment.
Faculty Development Program
The NYSTAR Faculty Development Program assists institutions of higher education in New York State in the recruitment and retention of leading entrepreneurial research faculty in science and technology fields with strong commercial potential. To date, NYSTAR has made 52 awards totaling $36.9 million to institutions across New York State.
Faculty Development Program
In 2005, NYSTAR award RIT a Faculty Development Program grant to help recruit Dr. Donald Figer to perform research in the area of remote sensing and imaging for the detection of personnel, environmental and biological hazards.
Technology Transfer Incentive Program
The Technology Transfer Incentive Program is specifically designed to help business make the rapid transfer of new ideas and new technology from the research lab to the marketplace. NYSTAR has made 71 awards from this program totaling over $27 million.
Technology Transfer Incentive Program
RIT has received three awards from NYSTAR’s Technology Transfer Program.
Pixel Physics, Inc to develop a prototype of a new multi-spectral acquisition system; Geospatial Systems Inc., to develop a compact airborne multi-spectral mapping system; and Corning Inc., to develop high-performance silicon-on-glass substrate material for applications in flat panel display products.
Center for Advanced Technology Program
Centers for Advanced Technology (CAT) program supports university-industry collaborative research and technology transfer in commercial relevant technologies. The CAT program was created in 1983 to facilitate the transfer of technology from New York’s top research universities into commercially viable products produced in the private sector.
Center for Advanced Technology Program
The CAT for Electronic Imaging Systems at the University of Rochester conducts applied research in the field of electronic imaging and to leverage these results for economic advantage to New York State and the nation.
Small Business Technology Investment Fund
The Small Business Technology Investment Fund (SBTIF) provides start-up high-tech companies throughout New York State with a source of venture capital to promote new job creation and economic growth. The Fund makes early stage equity investments in companies that have developed innovative technology products or services and that display significant competitive advantage.
Matching Grants Leverage Program
The goal of the Matching Grants Leverage Program is to assist New York State research institutions in attracting new federal and private foundation or industry research dollars to New York.
What Is The New Economy?
Today’s economy is knowledge-dependent.
Today’s economy is global.
Today’s economy is entrepreneurial.
Today’s economy is rooted in information technologies.
Today’s economy is driven by innovation.
2008 State New Economy Scores By Rank
OVERALL SCORES 1. Massachusetts 2. Washington 3. Maryland 4. Delaware 5. New Jersey 6.
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Connecticut Virginia California
New York
Colorado
2008 State New Economy Scores By Rank
Managerial, Professional, Technical Jobs 1.
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Massachusetts
New York
Maryland Connecticut Delaware New Jersey Minnesota Virginia Rhode Island Illinois As more routine jobs are automated or offshored and as the economy becomes more complex and knowledge-based, managers, professionals, and technicians are playing a more important role in the economy.
Indeed, professional and technical jobs grew 68 percent faster than overall employment between 1999 and 2005. These include engineers and scientists, health professionals, lawyers, teachers, accountants, bankers, consultants, and engineering technicians.
Managerial jobs, although they have declined by a quarter since 1999, perhaps in part due to the slowdown after 2000, are still key drivers of growth and innovation.
2008 State New Economy Scores By Rank
High-Wage Traded Services 1.
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Delaware Connecticut
New York
Minnesota New Jersey California Illinois Virginia Massachusetts Nebraska The service sector consists of more than just local-serving, low-wage industries, like fast-food establishments. From insurance and financial services to publishing and goods transportation, traded services—those that are not primarily consumed locally—accounted for 18 percent of private-sector employment in 2005. And many of these, like investment services, publishing, legal services, advertising, and shipping, pay wages above the national average. Moreover, in the New Economy, services are increasingly the only part of a region’s economic base (firms that sell most of their output outside the region) that is growing in employment.
2008 State New Economy Scores By Rank
Export Focus of Manufacturing & Services 1.
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Texas Washington Delaware Nevada
New York
Louisiana Arizona Vermont Florida California Trade has become an integral part of the United States and world economies. The combined total of U.S. exports and imports has increased from just 11 percent of GDP in 1970 to 20 percent in 1990, reaching 25 percent in 2004. Service exports are growing even faster than goods exports, accounting for 30 percent of total exports in 2004, up from 20 percent in 1980. Moreover, export industries are a source of higher incomes. On average, workers employed at export-oriented manufacturing firms earn 9.1 percent more than workers at comparable non-exporting firms. In business services, workers at exporting firms earn an even larger premium—12.9 percent more than their counterparts at comparable non-exporting firms.
2008 State New Economy Scores By Rank
“Gazelle Jobs” 1.
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Nebraska
New York
New Jersey Washington Minnesota Delaware Maryland Kansas California North Carolina The prevalence of new, rapidly growing firms—gazelles—is the sign of a dynamic and adaptive state economy. States that offer fertile ground for the entrepreneurial activity that spawns gazelles reap the harvest of robust job creation.
In fact, it is the relatively small number of fast-growing firms of all sizes that accounted for the lion’s share of new jobs created in the 1990s.
Between 1993 and 1999, the number of gazelles grew almost 40 percent, to more than 350,000. One study estimates that such gazelles (termed “high-expectations entrepreneurs”) are responsible for 80 percent of the jobs created by entrepreneurs.
2008 State New Economy Scores By Rank
IPOs 1.
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Oklahoma Massachusetts Nevada Colorado Texas Utah Connecticut California South Dakota
New York
In the last two decades, financial markets have embraced entrepreneurial dynamism. One measure of this is the number of initial public offerings (first rounds of companies’ stock sold when they make their debut in public markets). After growing by 50 percent since the 1960s, IPOs peaked in the 1990s. The Internet slump and economic recession reduced the number of offerings in 2001-2003 to just 20 percent of 2000 numbers. However, 2004-2007 have seen a strong rebound, with the number of IPOs more than doubling those of the previous three years. In fact, the number of IPOs in 2007 was at its highest level since 2000. However, some evidence suggests a slowdown of IPOs in the next several years.
2008 State New Economy Scores By Rank
Broadband Telecommunications 1.
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New Jersey Rhode Island Delaware Massachusetts Maryland Nevada
New York
Virginia Connecticut Florida Over computer networks, bandwidth measures the “size of the pipes” between the sender and receiver of the data. Greater bandwidth allows faster transmission of larger amounts of data, which is critical for the increasing number of businesses that use the Internet to communicate with customers, suppliers, and other parts of the company. Broadband access for households also is important, not only allowing a state’s residents to more robustly engage in e commerce, but also enabling telecommuting, distance education, tele-medicine, and a host of other applications that can boost productivity and quality of life.
2008 State New Economy Scores By Rank
Scientists and Engineers 1.
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Massachusetts Maryland New Mexico Delaware Rhode Island Connecticut Washington California
New York
Colorado In the New Economy, the key engines of growth, technology, and research-based companies are fueled by a large and high caliber scientific and engineering workforce. In addition, in spite of the concern about “brain drain” of newly minted scientists and engineers to other states, the correlation between the number of employed PhD scientists and engineers, and PhD degrees in science and engineering from universities in the state is remarkably high (0.97). So growing or attracting a high-quality scientific workforce is critical to continued economic growth. These workers enable more innovation in state economies (in both new products and production processes) and, in so doing, lead to higher value added and higher-wage jobs.
2008 State New Economy Scores By Rank
Patents 1.
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Idaho Washington California Colorado Delaware Oregon Massachusetts Vermont New Jersey
New York
The capacity of firms to develop new products will determine their competitive advantage and ability to pay higher wages. One indicator of the rate of new product innovation is the number of patents issued.
As technological innovation has become more important, patents issued per year have grown from 40,000 in 1985 to 79,000 in 2007.
Other Increases In Ranking
New York State 2007 vs. 2008
Manufacturing Value Added
(#27 to #20)
Job Churning
(#18 to #14)
Fastest Growing Firms
(#19 to #15)
Entrepreneurial Activity
(#22 to #14)
High-Tech Jobs
(#23 to #22)
American Recovery and Reinvestment Act of 2009
American Recovery and Reinvestment Act of 2009
(a) STATEMENT OF PURPOSES. – The purposes of this Act include the following: (1) To preserve and create jobs and promote economic recovery.
(2) To assist those most impacted by the recession.
(3) To provide investments needed to increase economic efficiency by spurring technological advances in science and health.
(4) To invest in transportation, environmental protection, and other infrastructure that will provide long-term economic benefits.
(5) To stabilize State and local government budgets, in order to minimize and avoid reductions in essential services and counterproductive state and local tax increases.
New York State 2005 Federal Research Funding
FEDERAL RESEARCH SOURCE All Agencies Department of Homeland Security Department of Commerce Department of Defense Department of Energy Department of the Interior Department of Transportation Environmental Protection Agency Department of Health and Human Services (NIH) National Aeronautics and Space Administration National Science Foundation Department of Agriculture NEW YORK TOTAL FUNDING RECEIVED $4,955,670,000 $38,302,000 $25,314,000 $1,795,593,000 $656,508,000 $4,862,000 $4,518,000 $8,530,000 $1,969,368,000 $111,501,000 $295,353,000 $45,821,000 NEW YORK AS PERCENT OF TOTAL 4.6% 2.8% 2.5% 3.4% 8.5% 0.8% 1.1% 1.3% 6.9% 1.5% 7.9% 2.1% NEW YORK RANK 6 th 12 th 9 th 9 th 3 rd 23 rd 14 th 12 th 4 th 10 th 2 nd 16 th
New York State 2005 Federal Research Funding
FEDERAL RESEARCH SOURCE All Agencies Department of Homeland Security Department of Commerce Department of Defense
Department of Energy
Department of the Interior Department of Transportation Environmental Protection Agency
Department of Health and Human Services (NIH)
National Aeronautics and Space Administration
National Science Foundation
Department of Agriculture NEW YORK TOTAL FUNDING RECEIVED $4,955,670,000 $38,302,000 $25,314,000 $1,795,593,000
$656,508,000
$4,862,000 $4,518,000 $8,530,000
$1,969,368,000
$111,501,000
$295,353,000
$45,821,000 NEW YORK AS PERCENT OF TOTAL 4.6% 2.8% 2.5% 3.4%
8.5%
0.8% 1.1% 1.3%
6.9%
1.5%
7.9%
2.1% NEW YORK RANK 6 th 12 th 9 th 9 th
3 rd
23 rd 14 th 12 th
4 th
10 th
2 nd
16 th
Projected Increase in Federal Research Funds for New York State
FEDERAL RESEARCH AGENCY National Science Foundation National Institutes of Health Department of Energy National Aeronautics and Space Administration National Institute of Standards and Technology
Total
AMERICAN RECOVERY AND REINVESTMENT ACT $3,000,000,000 $10,400,000,000 $2,000,000,000 $1,000,000,000 $600,000,000 NEW YORK FUNDING PERCENTAGE FROM AGENCY 7.9% 6.9% 8.5% 1.5% 2.5% PROJECTED NEW YORK STATE INCREASE $237,000,000 $717,600,000 $170,000,000 $15,000,000 $15,000,000
$1,154,600,000
Other Major Stimulus Components
Broadband
Modernization, renovation, and repair of higher education facilities
Grid infrastructure
Additional Information
Additional information on the stimulus package can be found at: New York State: www.economicrecovery.ny.gov
Federal Government: www.recovery.gov
NYSTAR: www.nystar.state.ny.us/stimulus.htm