New York Metro Area Found to Be Nation’s Largest Center of High-Tech
The New York metropolitan area is the nation’s largest center of high-technology employment, employing close to 620,000 people in tech jobs according to a new study released by the Industrial and Technology Assistance Corporation (ITAC www.itac.org).
The ITAC study, titled Buried Treasure: New York City’s Hidden Technology Sector, was conducted by Mt. Auburn Associates and Bayer Consulting and relies on a comprehensive analysis of economic and occupational data related to the technology industry and in-depth interviews with a selected number of research and development executives. Based on the results, ITAC has also determined a number of policy recommendations to help New York City’s technology economy maximize its potential, including better incorporation of high-tech companies, more financial opportunities, and increased efforts to make New York City a technological epicenter. In response to the report, the Committee on Economic Development jointly with the Committee on Technology in Government will hold a Council Hearing on Wednesday, October 10, 1:00 pm at 250 Broadway, 14th floor regarding promoting the high technology business sector in New York City.
“New York’s hidden strengths in the technology sector present significant opportunity for growth,” said Sara Garretson, ITAC’s president. “The tech sector here is large, but also highly complex and it will take a concerted and collaborative effort by local government and businesses to build upon these strengths so that the city is recognized as a center for high-tech jobs and innovation.”
The study found that New York City had an estimated 226,000 high-technology jobs, a substantial employment group. Many of these high-technology jobs in fields such as financial services, higher education, media and healthcare, were previously not counted in the same manner such as jobs in sectors such as biotechnology, information and computer technologies and services, new media, manufacturing technologies, and scientific research and development. Overall, the New York City technology sector generated above-average earnings then, $12.5 billion in earnings with average annual salaries of $75,458, 21% above average private employer earnings of $62,545.
Addressing the comparisons between New York City and San Francisco’s Bay Area or Boston, the study found that in 2004 (the last year that complete data were available from all sources) the New York metropolitan statistical area had 2.47 times as many jobs in high-technology industries as the definitive technology center of Silicon Valley and almost twice as many as the Boston metropolitan statistical area. In that year, New York City also led the country in students enrolled in graduate sciences programs with over 18,000 students, significantly more than the Boston and San Francisco areas.
The ITAC study recommends several solutions for the New York City public sector to make the city more appealing to technology businesses. Solutions include better organization and dissemination of information about existing assistance programs. Another suggested improvement is the creation of a one-stop assistance center that focuses on technology firms’ needs. The study addresses the need for better access to pre-seed funding for entrepreneurs through the creation of “recoverable grants” and also recommends the creation of a mechanism for connecting technology users with technology developers to put innovative firms in touch with companies that need new technology to compete.
ITAC also recommends additional steps that the public sector can take to promote New York City as an industry leader in the technology sector, including a technology district, the creation of new government office focused on technology, and increasing communication between universities and the private sector. A Mayor’s Office of Science and Technology Enterprises could serve the technology sector’s interests much like the Mayor’s Office of Industrial and Manufacturing Businesses. Lastly, the report recommends furthering the growing relationships between universities and industries based in New York City and helping universities shape their curriculums to better prepare students for the demanding world of technology.
Methodology
Like traditional studies, this study counts “wage” employment in enterprises that are considered “technology intensive.” These data are from employers that operate in commonly defined technology industries. Utilizing a broader occupational categorization, as defined by Patrick Kilcoyne, an economist in the Division of Occupational and Administrative Statistics in the Bureau of Labor Statistics, this study also includes those “consisting of workers who typically or necessarily utilize new technologies–those that are changing the ways in which people live and work–in order to perform their duties.” Therefore, it also counts self-employment in sole-proprietor enterprises as well as technology workers “embedded” in non-technology industries. This is particularly important in New York City where a relatively large proportion of its technology activity is embedded in industries such as education, financial services and healthcare.
About ITAC:
Industrial and Technology Assistance Corporation (ITAC) is a not-for-profit economic development organization dedicated to creating and retaining jobs for New Yorkers. ITAC provides in-depth technical assistance to New York City manufacturers and technology firms so that they can compete effectively and grow in today’s marketplace. ITAC offers a unique combination of business acumen and an extensive expert resource network, which enable us to provide a wide range of services to New York City companies that wish to develop, change and thrive.
ITAC receives significant financial support from the New York State Foundation for Science, Technology and Innovation (NYSTAR®), New York’s high-technology economic development agency and the National Institute of Standards and Technology (NIST) Manufacturing Extension Partnership (MEP). ITAC serves as NYSTAR®’s designated Regional Technology Development Center for New York City and one of nearly 350 MEP locations across the country and works directly with regional companies to increase their competitiveness and profitability.
About Mt. Auburn Associates:
Mt. Auburn is a consulting firm that provides a full range of services in the field of economic development analysis and strategy. Working with a variety of public and private organizations, the firm creates effective economic development policies and programs that promote economic growth and stability, job generation, and the improved functioning of capital markets.
About Bayer Consulting:
Bayer Consulting is a research firm that helps companies and nonprofit organizations improve their strategies and gain greater insight into their customers and clients.