|By Business Wire||
|April 2, 2014 08:07 AM EDT||
The New York City tech ecosystem generates more than half a million jobs, $50 billion in annual compensation, nearly $125 billion in annual output, and $ 5.6 billion in tax revenues, a new study released today finds. The study, “The New York City Tech Ecosystem,” conducted by HR&A Advisors and commissioned by the Association for a Better New York, Citi, Google and NY Tech Meetup, aims to understand the comprehensive size and economic and fiscal impact of all New York City tech jobs, and reframes how tech is defined by going beyond the traditional tech and start-up sector.
The study’s author, Kate Wittels, Director at HR&A Advisors, coins the term “tech ecosystem.” This study is the first ever to look at all jobs in technology industries as well as technology jobs in non-tech industries, and the self-employed. Where prior studies have treated the tech industry as an independent silo, this study considers the entire ecosystem, and tech’s distribution and impact on the overall economy.
The study finds that 291,000 people, or 7% of New York City’s workforce, are employed in the New York City tech ecosystems. More than half of those, 150,000, work in non-tech industries. Indirectly, the ecosystem generates an additional 250,000 jobs through multiplier effects. Together they comprise 12.6% of New York City’s total workforce. The New York City tech ecosystem is a major economic driver for New York City, comparable to the retail and healthcare sector. Surprisingly, 44% of all tech ecosystem jobs do not require a Bachelor’s degree, but workers earn 45% higher than average hourly wages.
“With 7% of the New York City workforce, this study shows definitively that tech is a critical component of New York’s vibrant and diverse economy,” said Kate Wittels. “The spectrum of tech-related occupations – from programmers to sales reps – is creating well-paying and quality jobs for New Yorkers at all levels of educational attainment. Fostering the growth of the New York tech ecosystem will increase economic opportunities for all New Yorkers.”
“ABNY is proud to have coordinated this group to reimagine the way the tech sector is measured to better capture the strength and diversity of New York City’s economy and the outsized impact tech is having on our city,” said Bill Rudin, Chairman of the Association for a Better New York. “The study makes it abundantly clear that the New York City tech ecosystem is a major economic driver for the city, and that it generates opportunity for all New Yorkers. We need to continue building these opportunities for the city and its people by expanding tech educational programs, investing in tech infrastructure and spaces for startups, and promoting New York City as a tech hub to attract more workers and companies.”
"This groundbreaking study confirms once and for all that technology can no longer simply be considered just 'a slice' of the economic pie, but rather 'the pan' that is supporting the dramatic and dynamic transformation of all of New York City's core industries as they fight to compete in the hyper-connected 21st century global economy," said Andrew Rasiej, Chairman of the 38,000-member NY Tech Meetup. "We hope that the findings of this report will help policy makers understand why technologically-driven innovation and infrastructure are key to the continued growth of New York City and benefit all New Yorkers’ lives."
"As Google New York's first engineer, I have been amazed by the transformation of New York's tech ecosystem over the last decade," said Craig Nevill-Manning, Google Engineering Director. "Its growth and impact on New York's traditional industries, like finance, insurance and advertising, is a testament to the strength of the tech ecosystem. It's the main reason why Google has continued to rapidly expand in the city – a strong tech economy creates a virtuous cycle that attracts more talent and makes companies like ours grow."
“In one sense, we shouldn’t think about tech as a separate sector,” said Ed Skyler, Citi’s Executive Vice President for Global Public Affairs and a former New York City Deputy Mayor. “Tech jobs are infused throughout New York City’s diverse economy, from financial services and media to retail and fashion, enabling these sectors to reach consumers who are more digitally connected than ever before.”
The study’s findings:
- SIZE: The New York City tech ecosystem includes 291,000 jobs that are enabled by, produce, or facilitate technology. Tech industries generate 58,000 tech jobs (e.g. a programmer at Google) and 83,000 non-tech jobs (e.g. a sales rep at Etsy), while non-tech industries generate 150,000 tech jobs (e.g. a web developer at Citi). In total, New York City’s tech ecosystem employs 291,000 people or 7% of the 4.27 million people working in New York City. To put this figure into context, the retail sector employs 354,000 people or 8% of total workers, while healthcare employs 665,000 people or 16% of total workers.
- GROWTH: From 2003 to 2013, the New York City tech ecosystem added 45,000 jobs, growing faster than both total New York City employment and total U.S. employment. The New York City tech ecosystem grew from 246,000 jobs to 291,000 jobs, an increase of 18%. In comparison, over the same period, employment increased by 12% in New York City and 4% nationally.
- ECONOMIC IMPACT: The New York City tech ecosystem generates approximately 541,000 jobs, $50.6 billion in annual compensation, and $124.7 billion in annual output. Of the 541,000 total jobs, 291,000 are direct, and 250,000 jobs are generated through multiplier effects. Together they comprise 12.6% of New York City’s total workforce.
- TAX REVENUE: The New York City tech ecosystem generates over $5.6 billion in annual tax revenues to the City, representing 12.3% of the City’s 2013 tax revenue. $2.5 billion comes from property taxes, $1.3 billion from personal income taxes, $0.9 billion from sales and use taxes, and $0.9 billion from corporation and business income taxes.
- EDUCATION: The New York City tech ecosystem includes more than just highly-educated workers – up to 44% of jobs in the New York City tech ecosystem do not require a Bachelor’s degree. 128,000 jobs in the tech ecosystem do not require a Bachelor’s degree, with 11,600 of those being tech jobs in tech industries.
- COMPENSATION: Workers in the New York City tech ecosystem earn 49% more than the average City-wide hourly wage. The hourly wage for the tech ecosystem is $39.50, while the average City-wide wage is $26.50.
- Jobs in the New York City tech ecosystem that do not require Bachelor’s degrees pay 45% more in hourly wages than jobs with the same educational requirements in other industries. Tech ecosystem jobs that do not require a Bachelor’s degree pay $27.75 per hour, while the average City-wide hourly wage for a job with the same educational attainment requirement is $19.00 per hour.
The study’s authors recommend specific public policies to foster growth:
- Education and Workforce
Create continuing education and workforce development programs that provide training for the required skills of growing tech occupations. Continue to support the technical programs of existing NYC-based universities and educational institutions. Expand efforts to incorporate computer literacy and other technical curricula into the New York City primary education system.
- Real Estate and Infrastructure
Create and expand tech hubs that centralize goods, supportive services and other resources critical to tech firms. Provide low-cost, flexible spaces for startups and business incubation, including critical step-up space to support new companies as they grow. Invest in state of the art infrastructure to enable the productivity of tech firms and workers across New York City.
- Attraction and Retention
Promote New York City as a hub of commerce and innovation and centralize and coordinate New York City’s existing and impactful tech-oriented programs and services.
About HR&A Advisors, Inc.
HR&A Advisors, Inc. is an industry leading real estate, economic development and energy-efficiency advisory firm with offices in New York City, Washington DC, and Los Angeles. We have provided strategic advisory services for some of the most complex mixed-use, neighborhood, downtown, campus, and regional development projects across North America and abroad for over thirty years. In New York, the firm has studied the economic impacts of Times Square, the High Line, the New York State Film Production Credit, and the New York State affordable housing industry.
The firm also has significant experience developing strategies to grow New York City’s tech ecosystem, having served as program manager for NYCEDC's Take the H.E.L.M. competition to attract creative economy tenants to Lower Manhattan, program manager for NYCEDC’s NYC BigApps 2014 competition to facilitate the creation of mobile and web applications that leverage City data to solve civic issues, and economic advisor for the Brooklyn Tech Triangle plan to enhance downtown Brooklyn’s tech sector.
For over 30 years, ABNY has worked as a catalyst to bring business, political, labor, and non-profit leaders together to address problems facing the economic and social well-being of the city.
With more than 300 member organizations from all sectors of New York City, ABNY incorporates a comprehensive and diverse view of the issues and challenges facing New York City. ABNY’s members work as catalysts to contribute fresh ideas and innovative plans that set a clean course for managing solutions to the city’s challenges.
ABNY provides forums and programs, conducts and commissions studies on New York City’s economy, tech sector, jobs and infrastructure, as well as makes policy recommendations to build a better New York. www.abny.org
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.
Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi
Google is a global technology leader focused on improving the ways people connect with information. Google’s innovations in web search and advertising have made its website a top internet property and its brand one of the most recognized in the world. Google has more than 3500 employees in its Chelsea office at 111 Eighth Ave. For more information, visit www.google.com/about.html.
About NY Tech Meetup (NYTM)
Founded in 2004 by meetup.com founder Scott Heiferman and co-founded by Dawn Barber, and now led by Executive Director Jessica Lawrence, the NY Tech Meetup is the world’s largest meetup group with over 38,000 members, and is a non-profit organization representing professionals from all parts of the New York technology community. NYTM builds programs and partnerships to support the growth and diversification of the city’s technology industry and hosts a perennially sold-out monthly event where members gather to watch emerging companies demo new ideas, hear leading-edge thinking on technology topics, and build their networks to develop their businesses. NYTM has been integral in the birth of New York’s new Silicon Alley, with nearly every notable new company, including Foursquare and Tumblr, making their debut at a NYTM demo. NYTM is a not-for-profit, community-led organization. Its Board President is Nate Westheimer and Chair of the Board is Andrew Rasiej. www.nytm.org.
To read the report, go to www.nyctecheconomy.com
To join the conversation, use #nyctecheconomy
DevOps at Cloud Expo – being held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real results. Am...
Sep. 25, 2016 10:15 AM EDT Reads: 4,266
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.
Sep. 25, 2016 10:15 AM EDT Reads: 807
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
Sep. 25, 2016 10:00 AM EDT Reads: 832
In his session at @DevOpsSummit at 19th Cloud Expo, Robert Doyle, lead architect at eCube Systems, will examine the issues and need for an agile infrastructure and show the advantages of capturing developer knowledge in an exportable file for migration into production. He will introduce the use of NXTmonitor, a next-generation DevOps tool that captures application environments, dependencies and start/stop procedures in a portable configuration file with an easy-to-use GUI. In addition to captu...
Sep. 25, 2016 10:00 AM EDT Reads: 986
All clouds are not equal. To succeed in a DevOps context, organizations should plan to develop/deploy apps across a choice of on-premise and public clouds simultaneously depending on the business needs. This is where the concept of the Lean Cloud comes in - resting on the idea that you often need to relocate your app modules over their life cycles for both innovation and operational efficiency in the cloud. In his session at @DevOpsSummit at19th Cloud Expo, Valentin (Val) Bercovici, CTO of So...
Sep. 25, 2016 10:00 AM EDT Reads: 1,331
Big Data has been changing the world. IoT fuels the further transformation recently. How are Big Data and IoT related? In his session at @BigDataExpo, Tony Shan, a renowned visionary and thought leader, will explore the interplay of Big Data and IoT. He will anatomize Big Data and IoT separately in terms of what, which, why, where, when, who, how and how much. He will then analyze the relationship between IoT and Big Data, specifically the drilldown of how the 4Vs of Big Data (Volume, Variety,...
Sep. 25, 2016 10:00 AM EDT Reads: 937
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
Sep. 25, 2016 09:45 AM EDT Reads: 1,760
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 25, 2016 09:00 AM EDT Reads: 1,537
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
Sep. 25, 2016 08:15 AM EDT Reads: 1,463
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Sep. 25, 2016 08:00 AM EDT Reads: 1,667
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
Sep. 25, 2016 08:00 AM EDT Reads: 1,485
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Sep. 25, 2016 08:00 AM EDT Reads: 1,497
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Sep. 25, 2016 06:30 AM EDT Reads: 2,807
Most of us already know that adopting new cloud applications can boost a business’s productivity by enabling organizations to be more agile and ready to change course in our fast-moving and connected digital world. But the rapid adoption of cloud apps and services also brings with it profound security threats, including visibility and control challenges that aren’t present in traditional on-premises environments. At the same time, the cloud – because of its interconnected, flexible and adaptable...
Sep. 25, 2016 05:45 AM EDT Reads: 1,612
Technology vendors and analysts are eager to paint a rosy picture of how wonderful IoT is and why your deployment will be great with the use of their products and services. While it is easy to showcase successful IoT solutions, identifying IoT systems that missed the mark or failed can often provide more in the way of key lessons learned. In his session at @ThingsExpo, Peter Vanderminden, Principal Industry Analyst for IoT & Digital Supply Chain to Flatiron Strategies, will focus on how IoT de...
Sep. 25, 2016 05:30 AM EDT Reads: 993