New York looks to position itself in the ‘new economy’

New York Governor David Paterson unveiled a statewide economic strategy to capitalize on federal stimulus dollars Monday.

As part of the Governor’s New Economy Leadership Tour, Gov. Paterson highlighted the emergence of a New Economy based on knowledge, technology and innovation. Gov. Patterson released “A Jobs Plan for the People of New York” that looks to drive the New York economic recovery by tapping funds available to the fields of clean energy, environmental sustainability, technology and health care.

The Governor estimates that 50,000 jobs could be created by converting 45 percent of the state’s electricity needs to renewable energy sources by 2015.

“A new economy is emerging: an economy based on knowledge, technology and innovation,” Gov. Patterson said in a statement.

In addition to the Jobs Plan, Governor Paterson also announced the creation of an Innovation Economy Matching Grants program. The Grants program will provide a 10 percent match for every stimulus dollar the federal government awards through competitive grants to research facilities in New York State. According to the Governor’s statements, New York will allocate $100 million in matching grants over the next several years, which is expected to leverage one billion dollars in federal research funding.

“When I took office, I knew an economic crisis was coming. I knew it wouldn’t be enough to respond with just a few tweaks. Instead, we responded to this crisis with dramatic emergency measures which are now largely in place and which have begun to lead us down a path towards recovery,” said Governor Paterson.

In addition to the creation of the Innovation Economy Matching Grants program, Gov. Paterson announced new initiatives in renewable energy, smart grid technology, and life science research.

New York State will work with the Public Service Commission to release $100 million from the state’s Renewable Portfolio Standard program by the end of summer to help keep a steady pipeline of “shovel ready” projects competing for stimulus funding for renewable energy programs. The Governor also called on the Public Service Commission to review New York’s utility proposals for smart grid deployment to provide matching funds for programs whose applications are in by July 29. And finally, the Governor wants to push a life science innovation cluster will be created that brings together venture capital companies, medical schools, academic health centers, and research institution partners to develop the health care products of the future.

“The time for bold thinking is now. This is the time for encouraging businesses that are thriving and for investing in the industries that hold promise for the future,” Gov. Patterson said.

Last November, the Ewing Marion Kauffman Foundation and the Information Technology and Innovation Foundation, released “2008 State New Economy Index,” a report detailing the 50 states’ progress in the “new economy.” New York finished ninth overall, but boasted second place rankings for the number of “Gazelle Jobs” it had. According to the report, jobs in gazelle companies are jobs with firms who’ve had “annual sales revenue growth of 20 percent or more, for four straight years.” This is a strong indicator of an entrepreneurial and innovative climate, “the sign of a dynamic and adaptive state economy.”

During his announcement, Governor Patterson also promoted his administration’s accomplishments in

• Universal access to high-speed broadband Internet coverage in all corners of the state,
• Federal R&D funds for small business to develop and commercialize innovative technology, administered by NYSTAR,
• The six NIH National Cancer Institute Centers in New York State, and
• NYSERDA’s work to take advantage of the federal tax credit and ARRA funding for clean energy projects

“Through coordination among our innovation-promoting state agencies and the new programs we announced today, we will put our greatest resources to work for the people of New York,” said Governor Paterson.