Targeted Investments Will Develop High-Growth Industries and Strengthen State’s Supply Chain
Plan Will Expand Signature Business Attraction Programs to Bring More World-Class Companies to New York State and Spur Job Growth
Governor Kathy Hochul today announced plans to expand economic opportunity and innovation across New York State through targeted investments, business support, and other programming aimed at high-growth industries as part of the 2023 State of the State. The proposal, which focuses on rapidly growing industry sectors like high technology, life sciences, and advanced manufacturing, includes measures to strengthen the State’s supply chain and expand well-established business attraction programs already proven to drive growth. These collective efforts will boost New York’s innovation economy and encourage business development and job creation throughout the State.
“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,” Governor Hochul said. “By focusing on high-growth industries like high technology, life sciences, and advanced manufacturing, we will continue to unlock new opportunities, keep New York's economy one step ahead of the technological curve and remain a leader in creating the jobs of tomorrow.”
New York is already leading the way in creating the jobs of the future. Between 2010 and 2021, 113,000 high-wage jobs were created in the tech sector, encompassing everything from scientific research to software development, and New York businesses raised $53 billion in venture capital in 2021. New York is one of the top states in the nation for life sciences venture capital funding and has welcomed more than 580 new life sciences companies since 2017, adding 9,700 new jobs. Additionally, Micron’s historic $100 billion investment in semiconductor manufacturing in Central New York, which will create up to 50,000 new jobs, has reestablished the State as a hub for advanced manufacturing. The continued development of these and other high-growth sectors is key to advancing New York’s economy.
Empire State Development President, CEO and Commissioner Hope Knight said, “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. Governor Hochul’s sound economic strategy will build the State’s economy by targeting high growth industries and promoting sustainability, while creating an economy that uplifts all New Yorkers and ensures the future success of our state.”
Technology Innovation Matching Program
Governor Hochul has proposed a Technology Innovation Matching Program, which will provide millions of dollars in matching grants for New York companies applying for the Small Business Innovation Research and Small Business Technology Transfer programs, two competitive federal programs – known as “America’s Seed Fund” – that incentivize small businesses to engage in research and development with the potential for commercialization. Currently, more than half of states in the nation have a matching grant program for their SBIR/STTR applicants. New York does not — placing New York at a competitive disadvantage in attracting and generating innovation investments. This matching investment will support the growth of small businesses and the development of new scientific advancements, while simultaneously creating jobs and keeping New York competitive with other states for these investments.
Investment in Cell and Gene Therapy
Building on New York’s position as a leader in the fast-growing life science sector, Governor Hochul proposed the creation of two Cell and Gene Therapy (CGT) centers – one upstate and one downstate. CGT treats diseases, like cancer, by manufacturing reprogrammed patient cells to either repair those that cause disease or kill tumors. With one third of all private investment in 2021 going towards CGT, New York is uniquely positioned to help develop this new, high-growth sub-sector of the life sciences industry. The upstate hub will leverage existing institutions that conduct research and development of cell and gene therapies, and the downstate center will provide direct access to CGT for large patient populations. Each center will engage in cutting-edge clinical research as well as co-locate vital CGT infrastructure, technology, and services.
Strengthening New York’s Supply Chain
As recent global economic market supply shortages have demonstrated, securing the state’s supply chain is not just critical to ensuring the health and welfare of New Yorkers, but also to avoiding disruption of our economy. Governor Hochul announced a new Made in New York initiative to proactively secure supply chains for critical commodities and products by attracting and supporting those industries that provide essential supplies to manufacture in New York. State agencies will collaborate on identifying key industries to attract that would enhance the State’s economic security and prosperity by providing vital products. ESD will then work with those industries and offer targeted incentives to relocate to New York.
Expanding Signature Business Attraction Programs
Governor Hochul is directing Empire State Development to improve and expand existing business attraction programming to incentivize innovation investments and continue growing the jobs and businesses of the future.
Improved Excelsior Jobs Program
The Excelsior Jobs Program awards performance-based tax credits for job creation, investment, and research-and-development projects to businesses in targeted industries that are relocating to or growing in New York State. To build on this successful program, Governor Hochul will enhance Excelsior to support additional critical State priorities like assisting disadvantaged communities and populations and advancing the green economy.
Through Excelsior, additional support will be awarded to projects with LEED Silver Certification or higher or that are located within disadvantaged communities. These changes will enhance and expand New York State’s efforts to attract businesses and create jobs, while promoting sustainability and making New York a more equitable place to live and work. Excelsior will better reflect the State's priorities surrounding sustainability and generating investments in disadvantaged communities.
Extended Prosperity and Innovation Campuses (EPIC)
ESD will launch the Extended Prosperity and Innovation Campuses (EPIC) initiative, to support the growth of new businesses and help form strong partnerships between the private sector and the State's leading educational centers. Technology-related innovations have been strong growth engines for the State, leading to millions of dollars in investments and the creation of high-wage jobs. Governor Hochul knows that with additional support for our existing innovation engines, New York can lead the nation in developing new technologies and reap the benefits of unparalleled economic growth.
EPIC replaces the START-UP NY program, which was hamstrung by its design. Critically, EPIC will: have the same requirements, benefits, and eligibility criteria upstate and downstate; support a wider range of innovation businesses; be streamlined to remove barriers; and increase the amount of space in the State dedicated to growing innovation and creating jobs.