Advertisement

Economic Impact of New York’s Nanotechnology Investments

  • Charles W. Wessner
  • Thomas R. Howell
Chapter
Part of the International Studies in Entrepreneurship book series (ISEN, volume 42)

Abstract

Despite ongoing skepticism in some quarters, the economic payoffs for the Capital Region from New York’s investments in nanotechnology have been substantial, particularly in regard to employment. Indeed, the benefits for the region in terms of jobs, investment, and growth have exceeded all forecasts. The substantial investments required to attract GlobalFoundries to the region have resulted in a great many more jobs than were either anticipated or required. Instead of 1200 jobs, GlobalFoundries actually created over 3500 direct jobs at the Luther Forest site, while preserving some 2000 jobs at IBM’s former operation in East FishKill. GlobalFoundries’ presence reflects roughly $17 billion in private and public investments in facilities and equipment. Moreover, the state and private investments in CNSE created another 4000 jobs within CNSE and its industrial partners in Albany, although this number has recently declined to closer to 3400.

Direct employment gains of over 9000 jobs have been complemented by large numbers of indirect jobs, that is, those within the GlobalFoundries supply chain. In an unanticipated development, construction jobs have ranged as high as 3500 at some points, and hundreds of construction workers are still active at the GlobalFoundries site in Malta/Stillwater. The high salaries associated with high-tech employment have also had major ramifications for the growth of the regional economy, thereby creating thousands of induced jobs in sectors as diverse as hotels, restaurants, banking, and retail sales. Depending on the multipliers used, the indirect and induced jobs range from 20,000 to nearly 50,000 with the higher numbers more accurate. Total direct, indirect, induced, and construction jobs attributable to nanotechnology are in the 60,000–80,000 range. In short, the dynamic effects of the initial investments have resulted in massive private-sector investment, thousands of high-quality, high-tech related jobs, while also providing major reputational gains for the region.

Bibliography111

  1. 500 Housing Units in Malta are Planned by Developers from Florida, Western NY. (2015, May 7). Saratoga Business Journal.Google Scholar
  2. Albany Medical Center. (2010, September 15). Albany Med and Saratoga Hospital Announce Joint Venture. Press Release.Google Scholar
  3. Arnoff Moving & Storage. (2017, June 17). Arnoff Company Opens to $11.6 Million Logistics Hub in Saratoga County. http://www.arnoff.com/blog.
  4. Axcelis Technologies Lands in Clifton Park Aided by National Grid Infrastructure Grant. (2013, June 5). Saratoga Business Journal.Google Scholar
  5. Beard Integrated Systems Moves Into Malta Offices Working With GlobalFoundries Plant. (2015, September 9). Saratoga Business Journal.Google Scholar
  6. Building Permits in Serious Decline—Construction Firms Must Adapt or Go Out of Business. (2008 January 14). Fort Wayne News Sentinel.Google Scholar
  7. Can American Manufacturing Really Be Cornerstone of Economic Revival? (2012, February 8). The Christian Science Monitor.Google Scholar
  8. College of Nanoscale Science and Engineering. Quick Facts. http://www.sunycnse.com/AboutUs/QuickFacts.aspx.
  9. Construction Recovery will be Slow. (2009, December 9). The Grand Rapids Press.Google Scholar
  10. Cryogenics Group Opens Facility in Malta, is Air Pump Supplier for GlobalFoundries. (2014, January 8). Saratoga Business Journal.Google Scholar
  11. Development in Malta Prompts Delmar Optician to Open Saratoga County Office. (2013, August 6). Saratoga Business Journal.Google Scholar
  12. Dudley, W. C. (2014, October 7). The National and Regional Economy. Remarks at RPI, Troy, New York.Google Scholar
  13. Ehrlich, E. M. (2008). Manufacturing, Competitiveness, and Technological Leadership in the Semiconductor Industry.Google Scholar
  14. From Pigs to Nanochips. (2013, August 19). The Journal of Commerce. http://www.techhistoryworks.com/silicon-valley-history/2016/9/21/the-father-of-silicon-valley.
  15. GlobalFoundries: E. Fishkill Site Key to Overall Strategy. (2015, November 12). Poughkeepsie Journal.Google Scholar
  16. Made in America: Global Companies Expand in US Towns. (2012, April 30). ABC News.Google Scholar
  17. Moretti, E. (2013). The New Geography of Jobs. Boston and New York: Mariner Books.Google Scholar
  18. National Research Council. (2013). New York’s Nanotechnology Model: Building the Innovation Economy. C. W. Wessner (rapporteur). Washington, DC: The National Academies Press.Google Scholar
  19. New York’s Big Subsidies Bolster Upstate’s Winning Bid for AMD’s $3.2 Billion 300-MM Fab. (2006, June 10). Site Selection.Google Scholar
  20. Pawning Tools of the Trade: Construction Workers in Hock, Others Sell Gold. (2008, March 9). Riverside, The Press-Enterprise.Google Scholar
  21. Scott, E., and Wial, H. (2013, May). Multiplying Jobs: How Manufacturing Contributes to Employment Growth in Chicago and the Nation. Chicago: University of Illinois at Chicago.Google Scholar
  22. Semico Research Corporation. (2008a, February). Economic Impact of the Semiconductor Industry on Upstate New York.Google Scholar
  23. Semico Research Corporation. (2008b, March). Upstate New York: Assessing the Economic Impact of Attracting Semiconductor Industry.Google Scholar

Copyright information

© Springer Nature Switzerland AG 2020

Authors and Affiliations

  • Charles W. Wessner
    • 1
  • Thomas R. Howell
    • 2
  1. 1.Georgetown UniversityWashington, DCUSA
  2. 2.Dentons, LLPWashington, DCUSA

Personalised recommendations