GOVERNOR PATERSON ACCEPTS FINAL REPORT FROM THE TASK FORCE ON DIVERSIFYING THE NEW YORK STATE ECONOMY THROUGH INDUSTRY-HIGHER ED

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Mon, 12/14/2009 - 11:12am

State of New York | Executive Chamber
David A. Paterson | Governor

For Immediate Release: December 14, 2009
Contact: Marissa Shorenstein | Marissa.Shorenstein@chamber.state.ny.us | 212.681.4640 | 518.474.8418

GOVERNOR PATERSON ACCEPTS FINAL REPORT FROM THE TASK FORCE ON DIVERSIFYING THE NEW YORK STATE ECONOMY THROUGH INDUSTRY-HIGHER EDUCATION PARTNERSHIPS

Report Makes Recommendations for Increased Economic Development in the Innovation Sectors; Outlines Steps that Will Further Position New York as Leader in the New Economy

Governor David A. Paterson today accepted the final report from the Task Force on Diversifying the New York State Economy through Industry-Higher Education Partnerships. The Governor created the Task Force last May to examine how the State can better utilize its university-based research and development resources to drive economic growth. David Skorton, Task Force Chair and President of Cornell University, joined fellow Task Force members to present the Governor with their findings at the New York Stock Exchange in lower Manhattan.

“A New Economy is emerging in this country – an economy based on knowledge, technology and innovation. If we are to take advantage of the New Economy’s opportunities, like quality jobs for people from diverse backgrounds and with diverse skill sets, we must provide an environment for innovation entrepreneurship and technology commercialization. We have all the pieces. But we have failed to put the pieces together,” Governor Paterson said. “That’s why I created this Task Force – to learn how we can build on a strong foundation of cutting edge research and capital development. With this report and these recommendations, we have the blueprint for how to move forward.

“I want to thank David Skorton for his commitment to this work and his leadership, as well as all the Task Force members and staff who produced this report with such diligence,” Governor Paterson added. “New York can, will, and must lead this New Economy. The report and recommendations I am receiving today will help get us there.”

New York already possesses many of the fundamentals required to become a universally recognized center of innovation. On top of the $4 billion in university-based research, New York is home to world-leading companies whose research and development is bringing innovative products to market. However, New York still lacks a statewide culture that prioritizes commercialization activities and promotes university-industry collaboration on a variety of levels. The proposals and recommendations of this report outline the development of an ‘innovation ecosystem,’ which streamlines the State’s assets to promote development.

Task Force Chair and President of Cornell University David Skorton said: “We know that New York has all the right ingredients to get our State moving to where we should be – as a national leader in innovation. But there are challenges we need to meet. Our Task Force has identified areas in which we can improve our practices and target investments so that we can foster an ‘innovation ecosystem’ to achieve sustainable economic growth in New York for the future.”

Key recommendations to create this “innovation ecosystem” consist of:

University practices that raise awareness of entrepreneurship and industry-collaboration opportunities on and off campus; achieve world class expertise through faculty recruitment and retention;

Industry practices that leverage open innovation principles and university expertise to stay on the cutting edge; pursue long-term umbrella agreements with universities for access to a portfolio of intellectual property; and generate support for the adoption of a research and development tax credit;

Access to Capital, which provides critical access to capital for university –based start-ups through the creation of a seed fund and the reduction or elimination of capital gains taxes for founding investors to bridge the “valley of death;”

Business Services that include business plan counseling, entrepreneurial mentorship. Access to capital, incubator space and regional hubs;

Critical Mass in Strategic Areas that invests in fields where New York can be a world-leader-health care and life sciences, energy, nanotechnology, and agriculture and the food industry;

State Practices which create an Innovation Advisory Council consisting of leaders from government, academia, industry and the investment community to advise the Governor and Legislature on promoting New York’s innovation economy; and collect and publish data relating to innovation capacity, activity and impact;

Communication Networks that facilitate collaboration between institutions of higher education and industry and the venture capital community; and

Metrics that measure statewide and university-level performance on innovation capacity, activity and outcome.

The final report of the Task Force on Diversifying the New York State Economy through Industry-Higher Education Partnerships is available online at: http://www.ny.gov/governor/reports/pdf/IHETF_Report_FINAL.pdf.

Edward Reinfurt, Executive Director of the New York State Foundation for Science Technology and Innovation (NYSTAR) and Task Force member said: “As part of the Governor’s Task Force, NYSTAR recognizes the importance of creating an ‘innovation ecosystem.’ By promoting industry-higher education partnerships, the State will have significantly greater opportunities for sustainable economic growth. The findings and recommendations both point to the immense opportunity that exists in the state as well as the urgency of action.”

Assembly Speaker Sheldon Silver said: “The Empire State is home to some of the finest colleges and universities and most innovative minds in the nation. By bringing together our institutions of higher education, business and private investment, we will restore New York State as a leader in research, economic development and job creation.”

Senator Toby Ann Stavisky, Chairwoman of the Senate Committee on Higher Education, said: “Higher education can be the economic engine that revives many communities, whether it’s Troy’s tech valley, Albany’s nanotechnology center, or in Buffalo.”

Assemblywoman Deborah Glick, Chair of the Assembly’s Higher Education Committee, said: “Establishing the Task Force was a crucial step in analyzing New York’s potential for growing our economy in a future that will be driven by research based innovation. New York has an incredible resource in its institutions of Higher Education – both public and private – and our businesses increasingly will emanate from collaboration with the higher education sector.”

Linda Sanford, Senior Vice President, Enterprise Transformation, IBM, and a member of the Task Force, said: “Access to the world-class institutions of higher education is a great attraction for the business community in New York State. This report provides actionable recommendations that will promote collaboration, innovation and further economic growth. I look forward to working with the Governor, the Legislature, and my colleagues in the academic and investment communities to implement the ideas of the Task Force.”
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