New York City Council

Committee on
Technology in Government
Council Member Gale A. Brewer, Chair

Committee on Economic Development

Council Member Thomas White Jr., Chair
OVERSIGHT: Promoting the High Technology
Business Sector in New York City
December 10, 2009
 Background
The City currently has a technology sector that
employs about 226,000 people, however, only
164,806 work directly in technology enterprises
such as technology consulting services, information
technology, and computer systems design.
According to the Deloitte 2008 Technology Fast 500
list, New York City is home to only six of the 500
fast-growing technology, media,
telecommunications and life sciences companies,
compared to Los Angeles with 50 companies.
The City’s technology sector, when compared to
other metropolitan regions throughout the nation,
ranks as the ninth largest.
 Background (cont.)
Some of the challenges of successfully
competing in the NYC market include finding
affordable office space for startup businesses
and alluring high-tech talent.
New York City colleges and Universities only
spend about $90 million in engineering research
and development compared to $337 million in
Boston and $299 million in the San Francisco
Bay area.
Raising funds for new technological firms is
another challenge. In the first half of 2008, 149
technology based firms in the New York area
raised $926 million in venture capital funds,
while 232 firms in Boston raised $2.6 billion.
 New York City Initiatives
Incubators are oftentimes multi-tenant facilities,
occupied by entrepreneurial firms that offer onsite
management and a variety of support services.
In 2002, it was estimated that 52 incubators
existed throughout New York State, while by 2006,
the number had grown to 80.
One of the major technology incubators in the City
is the Brooklyn Enterprise on Science and
Technology (BEST) that is part of the Polytechnic
Institute of New York University.
The City recently sponsored the new 160 Varick
Street Incubator that will house 42 businesses,
representing a cross-section of promising start-
ups.
New York City Initiatives (cont.)
The NYC Seed program was initiated in fall
2008 and provides funding for small high tech
companies in the startup phase and services
such as technical support, networking
opportunities, and guidance.
The NYCEDC organized a second annual
Small Business Innovative Research (SBIR)
Proposal Workshop for life science
companies in October 2009 which sought to
assist small bioscience companies seeking to
qualify for Federal grant programs.
New York City Initiatives (cont.)
NYCEDC also partnered on The Alexandria
Center for Science and Technology at East River
Science Park, a 3.7 acre site expected to be
completed in Summer 2010 that will be a leading
center for life science and technology
commercialization.
In October 2009, Mayor Bloomberg announced
the launch of the NYC BigApps Competition which
is a “contest for software developers and
members of the public to create web or mobile
applications using City data.”
 Recommendations
A 2007 report released by ITAC was based on a survey
of numerous high tech executives in the City. Some
recommendations included:
– Reducing the cost of doing business in the City
– Improving access to funding
– Improving access to skilled employees
The Center for an Urban Future also released a report in
September 2009 that provided recommendations on
ways to develop a vibrant innovation economy, including:
– Establishing an innovation intermediary
– Making science and technology a priority for the City
– Leveraging city assistance to get New York academic
institutions to support more local technology spinoffs
 Wireless Internet Access
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