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September 30, 2013

The Tech Industry is Helping to Drive NYC's Economy

By Nicole Spector, Contributing Writer

It may not be terribly shocking, but it's good news for the economy, and we'll take that when we can get it, right? Right.

According to a report released by the Bloomberg (News - Alert) Technology Summit, the tech/information sector is the second-largest engine of the New York City economy, accounting for 262,000 jobs in the big apple. The report, Building a Digital City: The Growth and Impact of New York's Tech / Information Sector, shows that between 2007 and 2012 the tech/information sector grew the city's economy by 11 percent since 2007, adding 26,000 jobs and $5.8 billion in wages to the local economy.



Mayor Bloomberg himself shared the exciting news at the summit, which is the second of its kind, and is holding sessions in both New York and San Francisco. The mayor spoke to the city's historic reputation as a generator of jobs, saying: "New York has long been recognized as the capital of finance, fashion, media, and the arts - and we now have the numbers to demonstrate what has become increasingly clear: New York is the country's hottest and most dynamic tech capital. We've worked to foster the tech industry's growth here, and that's one reason why New York City has been a national leader in job creation."

The report found that San Francisco is also leading the way in the tech factor, which is also of no surprise, given that Northern California has become a renowned hub for techy innovations. Together, New York City and San Fran are the nation's leading "digital cities."

Mayor Edwin Lee of San Francisco chimed in with Bloomberg to beam at his city's strides in the tech sector. 

"The technology industry is one of the fastest growing economic sectors in our cities," he said. "There are important lessons that we can learn from the success of San Francisco and New York that can help other cities build their own tech sectors, and I am excited to join Mayor Bloomberg and leading tech innovators from both our cities at this year's Tech Summit to share lessons learned."

A companion study to the report, presented by the Boston Consulting Group (BCG), shows that NYC and San Fran have the following necessary ingredients to fostering a strident tech community: growing a strong talent pipeline; supporting a vibrant tech community,; leveraging local early stage capital; expanding tech infrastructure and office space, and engaging with existing industries.




Edited by Ryan Sartor
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