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Über dieses Buch

This book examines ways in which formerly prosperous regions can renew their economy during and after a period of industrial and economic recession. Using New York’s Capital Region (i.e., Albany, Troy, Schenectady, etc.) as a case study, the authors show how entrepreneurship, innovation, investment in education, research and political collaboration are critical to achieving regional success. In this way, the book provides other regions and nations with a real-life model for successful economic development.

In the past half century, the United States and other nations have seen an economic decline of formerly prosperous regions as a result of new technology and globalization. One of the hardest-hit United States regions is Upstate New York or “the Capital Region”; it experienced a demoralizing hemorrhage of manufacturing companies, jobs and people to other regions and countries. To combat this, the region, with the help of state leaders, mounted a decades-long effort to renew and restore the region’s economy with a particular focus on nanotechnology. As a result, New York’s Capital Region successfully added thousands of well-paying, skill-intensive manufacturing jobs. New York’s success story serves as a model for economic development for policy makers that includes major public investments in educational institutions and research infrastructure; partnerships between academia, industry and government; and creation of frameworks for intra-regional collaboration by business, government, and academic actors.

Featuring recommendations for best practices in regional development policy, this book is appropriate for scholars, students, researchers and policy makers in regional development, innovation, R&D policy, economic development and economic growth.

Inhaltsverzeichnis

Frontmatter

Chapter 1. Introduction

Abstract
In the past half century, fundamentally new technologies—microelectronics, digital computing and communications, biotechnology—have revolutionized human economic endeavor and everyday life, spawning entirely new industries, and, in the United States, bringing unprecedented prosperity to regions in which those industries have become concentrated. But the same era has coincided with the erosion or disappearance of vast swaths of the US manufacturing base, the displacement of millions of workers, and the economic decline of formerly prosperous regions. The epicenter of this phenomenon, the old industrial regions of the Northeast and Upper Midwest, long ago became known colloquially as the “Rust Belt.” In these hard-hit areas, the loss of manufacturing jobs has meant fewer opportunities that offer “good wages for workers who lack advanced education,” steeply declining population, and an array of social maladies including rising crime, broken families, substance abuse, and declining educational attainment. The disappearance of well-paying manufacturing jobs underlies much of the increase in income inequality that emerged during the latter half of the twentieth century. In the 2016 presidential election, the economic and social pain felt in these regions and the sense that they have been left behind moved to the center of the national political discussion.
Charles W. Wessner, Thomas R. Howell

Chapter 2. 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.
Charles W. Wessner, Thomas R. Howell

Chapter 3. Nanotechnology Research in Albany, 1980–2016

Abstract
Large state investments in universities in the Capital Region, most notably in the University at Albany (SUNY Albany) and Rensselaer Polytechnic Institute, transformed the region into one of the most formidable centers of nanotechnology in the world. Most notably, the state underwrote expansion of the nanotechnology research infrastructure at SUNY Albany, culminating in the creation in 2004 of the College of Nanoscale Science and Engineering (CNSE). In 2002, Sematech began a process of relocation from Austin to Albany which was completed a decade later, followed by an influx of other semiconductor companies seeking joint research projects at the NanoCollege.
Charles W. Wessner, Thomas R. Howell

Chapter 4. Establishing a Foundation for Nanotechnology Manufacturing

Abstract
New York State and Capital Region policymakers’ long-range objective for their public investments in nanotechnology was to attract private investment in nanotechnology manufacturing, which would offset the employment effects of the decline of traditional manufacturing in the region. A large, sustained, well-informed, and well-executed team effort by state and regional leaders succeeded in persuading one of the world’s leading semiconductor manufacturers to establish a manufacturing presence in Saratoga County.
Charles W. Wessner, Thomas R. Howell

Chapter 5. The Infrastructure Buildout: A Detailed Look

Abstract
The transportation, water, and electric power infrastructure necessary to support semiconductor manufacturing in Saratoga County did not exist at the time the corporate predecessor of GlobalFoundries committed to build a wafer fabrication plant at a local site. A wide-ranging effort to secure regulatory approvals and build new infrastructure was required. Although this process encountered delays and setbacks, by the time the fab was built and became operational, the necessary infrastructure was in place.
Charles W. Wessner, Thomas R. Howell

Chapter 6. The Launch of GlobalFoundries

Abstract
The construction of the GlobalFoundries wafer fabrication plant in Luther Forest was one of the largest building projects ever undertaken in the United States. The original plans were revised on a number of occasions to expand their scope. Construction was completed on time, notwithstanding numerous challenges, and was characterized by labor peace and the amicable resolution of disputes with local governmental units and residents.
Charles W. Wessner, Thomas R. Howell

Chapter 7. Economic Impact of New York’s Nanotechnology Investments

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.
Charles W. Wessner, Thomas R. Howell

Chapter 8. Educating and Training a High-Tech Workforce

Abstract
The Capital Region was able to attract major inward investments by high-technology companies largely because its educational institutions ensured the availability of skilled and educated manpower. However, the growth of the region’s technology-intensive industries has exceeded forecasts, and tech firms are warning of a “skills gap” (e.g., a major shortfall in available workers with the requisite knowledge and skill sets). Across the region, educational institutions are scrambling to respond with new investments, programs, and initiatives. This effort is Tech Valley’s single most important, and complex, challenge.
Charles W. Wessner, Thomas R. Howell

Chapter 9. The Changing Landscape of Tech Valley

Abstract
The decade-long alignment of top state political leadership that supported the creation of Tech Valley has passed, and many of the original regional and local leaders that spearheaded the development effort are no longer engaged. The institutional disarray that followed one player’s indictment and conviction, the shift in focus by state policymakers toward development of other upstate regions, and the continuing regulatory, financial, and operational travails of the Luther Forest Technology Campus underscore the fact that to be sustained, the successes achieved in the Capital Region will require a significant ongoing commitment by business, academic, and political leaders.
Charles W. Wessner, Thomas R. Howell

Chapter 10. Conclusion

Abstract
New York’s Tech Valley demonstrates that it is possible to reverse long-term economic decline in an old industrial region through the right mix of public policies and private-sector engagement. Tech Valley’s success should dispel the notion that regional efforts to foster high-tech industry will necessarily fail because of embedded regional disadvantage. The experience has shown that regional competitive advantage can actually be grown and that public investments in research infrastructure can lead to a resurgence in well-compensated manufacturing jobs.
Charles W. Wessner, Thomas R. Howell

Backmatter

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