Upstate New York: Reversing Economic Decline Through Innovation

Abstract

For a half century, New York’s leaders have worked to reverse the state’s decline relative to other states and regions in manufacturing, particularly in upstate areas experiencing an erosion of companies and jobs. This effort, based on the promotion of innovation driven by the state’s universities and colleges, has been sustained by a succession of governors and legislative leaders of both political parties. In the Capital Region, New York’s developmental effort, drawing on best practices from Silicon Valley and other dynamic regions, was sufficient to enable the state to make a strong albeit unsuccessful bid to attract Sematech (1988) and to persuade IBM to reverse a decision to move its headquarters out of the state (1995). These policies provided the foundation for further growth in the decade ahead.