Report: Building a Digital City in New York
The report, “Building a Digital City: The Growth and Impact of New York’s Tech / Information Sector”, features both an in-depth, quantitative analysis of New York’s technology sector and a qualitative study of the attributes that have enabled New York and San Francisco to become the nation’s two leading “digital cities”.
The tech/information sector includes tech start-ups, established tech companies, and major information companies such as Bloomberg L.P. and the New York Times Company. Without these pillars of the information economy — serving as clients, investors, sources of talent and ideas, and major employers of tech workers in their own right — the New York City tech boom could not have occurred.
Some key findings:
- As already noted, New York City’s share of the nation’s private sector employment has reached its highest level in 20 years because of the growth of the tech/information sector.
- There are 262,000 workers in the New York tech/information sector, contributing almost $30 billion annually in wages to the local economy.
- While the financial sector, including real estate, is the most single important engine of the New York economy, the tech/information sector is now number two, surpassing the private health care sector.
- Between 2007 and 2012, the number of private sector jobs in NYC rose by about 4 percent, compared to a 3 percent decline nationally.
- Since 2007, when the Great Recession started, New York City’s tech/information sector has grown by 11 percent, or some 26,000 jobs, adding $5.8 billion in additional wages to the economy. Indeed, these wage gains accounted for two-thirds of the growth in private sector wages over that stretch.
- Using a conservative estimate, the tech/information boom was responsible for roughly one-third of the private sector job creation in New York City since 2007.
- New York City also significantly outperformed its suburbs during this period. According to the Bureau of Labor Statistics, private sector jobs actually declined by 3.8 percent from 2007-2012 in the New York metro area outside the city. Tech/information jobs also dropped by 6.9 percent in the suburbs, compared to an 11 percent gain in the city.
- The growth of Brooklyn’s tech/information sector has outpaced every other large county in the country, with the exception of San Francisco. This includes traditional tech hubs such as Austin; Seattle; Cambridge, MA; the Research Triangle; and Silicon Valley.
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,
said Mayor Michael Bloomberg.
Download the report “Building a Digital City: The Growth and Impact of New York’s Tech / Information Sector”, (PDF file).