Page 32  |  2009 Long Island Index  |  Economy

Economy

Goal #1—Growth and Prosperity

Our economy grows at a rate that results in an improved quality of life for all.

Indicator:
Gross Metropolitan Product/Gross Domestic Product
Long Island’s economy may be at the beginning of stagnation.
Why is this important?
The Gross Domestic Product (GDP) is a measure of the extent of economic activity within a defined geo-
graphical region or within a sector of a defined economic region. When referencing a defined metropolitan
area it is sometimes referred to as the Gross Metropolitan Product (GMP). Essentially the GDP/GMP
measures the economic output of a region and can be used to compare overall economic activities across
regions, or the contributions of various sectors.
 0
0 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 '07 '08 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08

Includes private sector, non-farm/fishing/hunting/private

household employment. Excludes government sectors.
Source: Economy.com; Hofstra University.

nomy client excel chart #2

Gross Metropolitan Product for Long Island ECONOMY CH 1_3
Growth in Long Island’s GMP Compared to U.S. GMP

8 $140 8%
US
7 120 7
In Billions, 2007 Dollars

6 100 6

Annual Growth
Long Island
5 80 5
4 4
60
3 3
40
2 2
1 20 1
0 0 0
a99 a00 a01 a02 a03 a04 ’98 ’99
a05 a06 a07 ’00a08
’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08

Long Island United States

Includes private sector, non-farm/fishing/hunting/private

household employment. Excludes government sectors.
Source: Economy.com; Hofstra University. Source: Economy.com; Hofstra University.

Economy client excel chart #3

Long Island Average Annual Employment

1,200 How are we doing? 1400

Growth in Long Island’s GMP Compared to U.S. GMP
Employment in Thousands

1,000 The total private sector GDP for Long Island in 2008 was about $129 billion. This was up only from $128
1200
billion
8%
in 2007. Overall, Long Island’s private sector1000
of the economy has grown by 32% from 1998 to 2008.
800
US
Growth
7 has averaged about 3% per year. However, there
800 was greater growth earlier in the period and slower
600 growth more recently. Growth in GDP from 2004 to600 2008 has averaged about 2%. There was almost no
6
Annual Growth

Long Island
400 change
5 between 2007 and 2008 (growth of .08%). Significantly,
400 Long Island’s growth trails the U.S.
Private sector
200 4
200
What 3 does “2007 dollars” mean? Public sector
0 0 a99 a00 a01 a02 a03 a04 a05 a06 a07 a08
The
2 ’01purchasing
’99 ’00 ’02 ’03 ’04 power’05 ’06of’07a dollar
’08 changes over time. If the items we buy generally cost more today than
1
they did ten years ago, then one dollar today is worth less than a single dollar was back then. Therefore,
Public Sector Private Sector Changes side scale value
it0 is necessary to adjust for that in order to create a common scale when we compare dollar values (e.g.,
’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08
when comparing wages) over several years. By picking a single year as the standard (say, 2007), dollars
From 1999 to 2008, Private sector employment grew by 6%.
Public from Long Island
earlier
sector employment years
grew bycan “inflated” using theUnited
be15%.
almost States Price Index in order to estimate what those ear-
Consumer
Source:lier dollars would be able to buy in 2007. Similarly, dollars from later years can be “deflated” to what
Bureau of Labor Statistics; Hofstra University.

their purchasing power would have been in 2007. By converting all values to the same scale it is much
easierSource:
to detect the presence
Economy.com; or absence of any trends over time (e.g., are wages actually rising, falling or
Hofstra University.
remaining the same?).

Economy client excel chart #3

ent Long Island Average Annual Employment

1400 1,400
Employment in Thousands

1200 1,200
1000 1,000
800 800
600 600
400 400
Private sector
200 200
Public sector
0 a99 a00 a01 a02 a03 a04 a05 a06 a07 a08 0
’08 page 33 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08

Sector Changes side scale value Public Sector Private Sector

 2 2

A
1 1
0 0
a99 a00 a01 a02 a03 a04 a05 a06 a07 a08 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08

Long Island United States

Page 34  |  2009 Long Island Index  |  Economy

Source: Economy.com; Hofstra University.

my client excel chart #4 Economy client excel chart #3

Long Island Average Annual Employment Average Pay Per Employee, U.S. and Long Island
Long Island
1,200 US 1400$55,000
Employment in Thousands

1,000 1200
50,000
1000
800

2007 Dollars
800
600 45,000
600
400
400 40,000
Private sector
200 200
Public sector
01 a02 a03 a04 a05 a06 a07 a080 0 35,000
a99 a00 a01 a02 a03 a04 a05 a06 a07 a08
’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08

Public Sector Private Sector Changes side scale value

Long Island United States

From 1999 to 2008, Private sector employment grew by 6%.

Public sector employment grew by almost 15%.
Source: Bureau of Labor Statistics; Hofstra University. Source: Bureau of Labor Statistics; Hofstra University.

my client excel chart #5

Indicator: Indicator:
Household Income Distribution of Long Island Residents
Employment Trends Growth inRepresenting
Wages over theof P
a Household Four
ast
$250,000
Overall employment growth decreased in the 10 Years
Top 10% of LI Households 200,000
last twelve months. Long Island wages stagnate, while U.S. wages
LI Median
2007 Dollars

Why is this Bottom

important?
increase.
150,000
10% of LI Households
Job gains or losses measure regional economic Why 100,000
is this important?
US Median
vitality. This chart shows annual average private Average pay per employee is a basic measure of
50,000
non-farm employment, government and military, the economy’s health. Increasing or decreasing
and total employment on Long Island during the inflation-adjusted
0 pay per employee reflects the
00 A01 A02 A03 A04 A05 A06 A07
past ten years. ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07
relative economic vitality of Long Island. It does
How are we doing? not, however, assess
Long whether Longthe returns
Long of eco- U.S.
Long Island’s overall private sector employment nomic activityIsland Island
are being distributed Island
equally Median
Top 10% Median Bottom 10%
grew by about 6% between 1999 and 2008. That throughout the workforce.
reflects an average annual increase of .7% and How are we doing ? Census Bureau’s Current Population Survey; Hofstra University.
Source: 2007
an absolute increase of about 55,000 jobs. More Average pay per employee on Long Island
recently, between 2007 and 2008, private sector increased 3% from 1999 to 2007, compared to
employment fell by 3% (about 28,000 jobs). the U.S.Major
which roseClusters
Industrial 7%. Between 2007
in Long Island’s and 2008
Economy,
2008 Long Island wages per employee actually
my client excel chart #6
Employment Concentration, 2008 (Relative to U.S.)

fell 2.00
5%, while the U.S. figure rose 3%. In con-
stant 2007 dollars, average pay Retailper employeeBiomedical
Manufacturing
was1.50
$834 lower in 2008 than it was in 1999. Education
Finance and
Insurance

1.00
Information/Communication Construction
Services & Building Health
Regional Recreation Materials Services
0.50
Business Services
Transportation &
Freight Services
0
-30% -20% -10% 0% 10% 20% 30%

Change in Employment, 2003-2008

 35,000
’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08

Long Island United States

Source: Bureau of Labor Statistics; Hofstra University.

5 Household Income Distribution of Long Island Residents

Representing a Household of Four
$250,000

Top 10% of LI Households 200,000

LI Median
2007 Dollars 150,000
Bottom 10% of LI Households
100,000
US Median
50,000

0
’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07

Long Long Long U.S.

Island Island Island Median
Top 10% Median Bottom 10%

Source: 2007 Census Bureau’s Current Population Survey; Hofstra University.

Major Industrial Clusters in Long Island’s Economy, 2008

6
Employment Concentration, 2008 (Relative to U.S.)

2.00
Indicator: Retail
• Real incomes for households at the top 10%
Biomedical How to Read Thi
Manufacturing rose by 9%. Education
Household Income Distribution
1.50
Finance and
Higher concentration but decreasing Highe
number of employees numb
Household income for the top 10% continues Insurance • Median household income has been relatively QUA
and ex
1.00
to grow while the middle stagnatesInformation/Communication
and the stagnant. Lower concentration and decreasing Lower
Construction
Services & Building number of employees—“Worst” growin
bottom 10% declines. Regional Recreation Median household
Materials
Health
incomeServices
has declined relatively
Quadrant reflecting decline
0.50
steadily since 2003.
Business In constant 2007 dollars, the
Services
Why is this important? Transportation &
typical household of four earned 6% less in 2007
This measure shows how Long 0Island’s standard Freight Services
as compared to 2003.
of living among households at different
-30% income
-20% -10% 0% 10% 20% 30%

levels has changed from year to year. It tracks Change in

These patterns indicate a widening of income
Employment, 2003-2008

the income of a representative four-person house-

Bubble size represents cluster’s employment concentration in Long Island’s economy.
inequality on Long Island and an increased eco-
Source: Bureau of Labor Statistics; Hofstra University.
hold. The chart plots the family-of-four house- nomic burden on Long Island households.
hold income of the top 10%, the median and the
bottom 10% of the income distribution.
How are we doing?
Looking at the long-term trend from 1998 to 2007:
• Real incomes for households in the bottom 10%
actually dropped 4%.

page 35
 ’98 ’99 Island
’00 ’01 Island
’02 ’03 Island
’04 ’05 ’06Median
’07
Top 10% Median Bottom 10%

Long Long Long U.S.

Source: 2007 Census Bureau’s Current Population Survey; Hofstra University.
Island Island Island Median
Top 10% Median
Page 36  |  2009 Long Island Index  |  Economy Bottom 10%
Major Industrial Clusters in Long Island’s Economy, 2008

Employment Concentration, 2008 (Relative to U.S.) Source: 2007 Census Bureau’s Current Population Survey; Hofstra University.
2.00
Retail Biomedical How to Read This Chart
Manufacturing Education
1.50
Higher concentration but decreasing Higher concentration and growing
Finance and number of employees number of employees—“BEST”
Insurance QUADRANT reflecting growth
and expansion
Major1.00
Industrial Clusters in Long Island’s Economy, 2008 Lower concentration and decreasing Lower concentration but
Information/Communication Construction
Services & Building number of employees—“Worst” growing number of employees
Health Quadrant reflecting decline
Regional Recreation Materials Services
Employment Concentration, 2008 (Relative to U.S.)

0.50
2.00 Business Services
Transportation &

0
Freight Services
Retail Biomedical How to
-30% -20% -10% 0% 10% 20% 30%
Manufacturing Education
1.50 Change in Employment, 2003-2008
Higher concentration but decrea
Finance and
Bubble size represents cluster’s employment concentration in Long Island’s economy.
number of employees
Source: Bureau of Labor Statistics; Hofstra University.
Insurance

1.00
Information/Communication Construction Lower concentration and decrea
Services & Building number of employees—“Worst”
Health Quadrant reflecting decline
Regional Recreation Materials Services
0.50
Business Services
Transportation &
Freight Services
0
-30% -20% -10% 0% 10% 20% 30%

Change in Employment, 2003-2008

7
Bubble size represents cluster’s
Wages, Employment employment
Growth concentration
and Employment Concentration in Long Island’s economy.
ECONOMY 7-9
Source: BureaubyofClusters,
Labor Statistics; Hofstra
Long Island, 2008 University.
40%
Health Services Education
30 How to Read This Chart
Change in Employment, 2003-2008

Biomedical
Business Services
20
Increasing number of employees but Increasing number of employees
Construction & Building Materials lower wages and higher wages—“BEST”

Wages,0 Employment Growth and Employment Concentration

10
Retail
Finance and
Insurance
QUADRANT reflecting growth
and expansion EC
Declining number of employees and Declining number of employees
Regional lower wages—“Worst” Quadrant but higher wages
by Clusters,
-10 Long Island, 2008
Recreation Manufacturing reflecting decline
Median Pay Information/
-20
Transportation & Communication
40% Freight Services Services
-30
Health Services Education
30 How to R
Change in Employment, 2003-2008

-40
$0 $10 $20 $30 $40 $50 $60 Biomedical
$70 $80 $90

2008 Average Annual Wage in Thousands (2007 Dollars)

Business Services
20
Bubble size reflects 2007 employment concentration.
Increasing number of employees b
Construction
Source: Bureau of& Building
Labor Materials
Statistics; Hofstra University. lower wages
10 Finance and
Retail Insurance
0
Declining number of employees an
Regional lower wages—“Worst” Quadrant
-10
Recreation Manufacturing reflecting decline
Median Pay Information/
-20
Transportation & Communication
t #8 Freight Services Services
-30

-40
$0 $10 $20 $30 Comparison
$40 of Average
$50 Salary$60
and Change in Employment,
$70 $80 Long$90
Island

2008 Average Annual Wage in Thousands (2007 Dollars)

In Thousands, 2007 Dollars

Finance & Insurance

Business Services
Bubble size reflects 2007 employment concentration.
Information/Communication Services
Source: Bureau of Labor Statistics; Hofstra University.
Manufacturing
Transportation & Freight Services
Biomedical
Education
Construction & Building Materials
Health Services
Retail
Indicator: How are we doing?
Reading the two charts in relationship to each
Industry Clusters
other, a critically important trend becomes appar-
Retail, which pays below-average wages, is the ent. Overall, employment in these strategic clusters
most concentrated industrial sector. Health is relatively stagnant. We are not growing high
Services and Education, which pay near- wage opportunities; rather, low wage jobs are
average wages, continue to be the sectors expanding in our region. Employment opportu­
with the greatest employment growth. nities tend to be increasing in sectors of the
economy that pay wages close to or somewhat
Why is this important? below the median, and declining in those sectors
Long Island’s industry clusters make up approxi- that generally offer higher wages and salaries.
mately 70% of Long Island’s employment base. How do these bubble charts show us that?
An industry cluster is a geographic concentration
of interdependent firms in related industries and • The first chart shows that the most concen-
includes a significant number of companies that trated cluster relative to the U.S. economy is
sell their products and services outside the region. Biomedical. The least concentrated is Transpor­
tation and Freight Services. The second chart
The first bubble chart illustrates three key dimen- indicates that these two clusters are close to
sions of Long Island’s industry cluster: the median wage divide. Overall, Long Island’s
• The cluster’s employment concentration relative economy reflects a similar pattern to the U.S.
to the nation (vertical axis). as a whole with respect to the relative presence
of these clusters.
Employment concentration measures the
percentage of employment on Long Island • The clusters experiencing the greatest employ-
compared to the same cluster, nationally. ment growth have been Education (15% in
the past five years) and Health Services (26%).
A concentration greater than one indicates Both are among the three most concentrated
that Long Island has relatively more employ- clusters (each representing about 11% of employ­
ment in that sector as compared to the national ment). The second chart indicates that both
economy as a whole. pay close to median level wages.
• Change in employment from 2003 to 2008 • For Long Island, those clusters yielding the
(horizontal axis). highest average pay tend to be both the smaller
• Concentration in 2008 (size of circle). Concen­ sectors and those that have experienced employ­
tration shows the size of the cluster relative to ment declines between 2003 and 2008 (Infor­
the Long Island economy as a whole. mation and Communication Services fell 3%,
Manufacturing fell 6%, Finance and Insurance
The second bubble chart illustrates key dimensions fell 6%).
of Long Island’s industry clusters in relationship
to wages and employment growth from 2003
to 2008.
On each chart, the upper right hand quadrant
represents those clusters with the most positive
indicators in concentration and employment (first
chart) or employment and wages (second chart).

page 37
 -40
$0 $10 $20 $30 $40 $50 $60 $70 $80 $90

2008 Average Annual Wage in Thousands (2007 Dollars)

Bubble size reflects 2007 employment concentration.
Source: Bureau of Labor Statistics; Hofstra University.

Page 38  |  2009 Long Island Index  |  Economy

chart #8

Comparison of Average Salary and Change in Employment, Long Island

In Thousands, 2007 Dollars

Finance & Insurance

Business Services
Information/Communication Services
Manufacturing
Transportation & Freight Services
Biomedical
Education
Construction & Building Materials
Health Services
Retail
Regional Recreation
0 25 30 $0 $10 $20 $30 $40 $50 $60 $70 $80 -10% -5% 0% 5% 10% 15% 20% 25% 30%

02-2007 Average Pay Per Cluster, Change in Employment,

2008, in Thousands 2003-2008

Average Wage, Long Island Average Change in Employment, Long Island

Source: Bureau of Labor Statistics; Hofstra University.

chart #9
Total Venture Capital Investment in Long Island Firms,
Another way to view this data is to compare the average growth in wages with the average change in
1998-2007
employment. Again we see that growth is occurring in those industries where salaries are near the average
Investment in Millions, 2007 Dollars

$350 1.4%
Investment as Percent of U.S.

rms %
rather than in the higher paying clusters.
ADDITIONAL 1-3 300 1.2
For more 250
information on employment by occupations, see 1.0
Economy Indicators, at www.longislandindex.org.
VC Investment

ollars Invested
200 0.8
150 0.6
100 0.4

What People in the Region Are Saying 50 0.2

0 0
Overall, what do you think is the MOST important
’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07
problem facing residents of Nassau/Suffolk
1 County today? Dollars Invested % of All U.S. Investment

nts?
80% Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™.
DABLE HOUSING
Report based on data from Thomson Reuters; Hofstra University.
OMY 60

40

20

0
’04 ’05 ’06 ’07 ’08

Taxes Economy Affordable

Housing

Local residents have been deeply concerned about high local taxes in all recent
Long Island Index polls, but the level of concern about taxes and the economy
has risen in response to the bleak national economic outlook.

What People in the Region Are Saying

Goal #2—Supportive Business Environment
Long Island provides a business friendly environment for companies to grow.

Indicator: How are we doing?

Public Work Projects and Purchase of Goods and
Local Bidder Preference Laws
Services: Both Nassau and Suffolk have equiva-
Nassau and Suffolk counties both enacted lent language stating that the county may award
local laws in the early 1990’s which provide the bid to a bidder “other than the lowest bidder”
a 10% pricing preference to local bidders. who “maintains a place of business in or sells sup-
plies, materials or equipment manufactured in the
Why is this important?
county…or an adjoining municipality and submits
The intent of local preference laws is to give local
a sealed bid not exceeding ten percent more than
businesses a competitive advantage for winning
the other lowest bidder… .” These statutes refer
awards for local government work. However, many
specifically to public works projects and purchases
companies and governments perceive local pref­
of goods and services. In a telephone survey of
erence laws to be anti-competitive. Thus, while
the 36 most populous counties in New York State
local preference laws may benefit specific local
(out of a total of 62 counties), only three were
companies, these laws also may drive up the costs
found to contain local preference statutes: Nassau
of goods and services to all taxpayers, which get
and Suffolk counties each have a defined upper
reflected in the form of higher taxes. For this
limit of 10% for a vendor to receive a preference,
reason, local preference laws are not widely utilized
and Erie County has an upper limit of 5% and
across the state and country.

page 39
Page 40  |  2009 Long Island Index  |  Economy

can only invoke the statute for projects larger proposals and making awards for professional
than $100,000. services allow local governments to take into
account factors other than price in awarding con-
A series of additional phone calls made to other
tracts. Thus, for professional service contracts,
comparable suburban counties—Fairfax, VA,
localities are allowed to develop their own solici-
Fairfield, CT, Santa Clara, CA, Bergen, NJ—
tation and award criteria, which often incorporate
indicates that none of these regions use local
either an implicit or explicit local preference.
bidder preference laws. Further, a review of state
Typically this gives local professional service con-
laws using the Lexis-Nexis database found that 43
tractors, including architects and engineers, a
states do not provide for local preference for state-
competitive advantage over outside companies.
awarded contracts (New York State is included in
Since pricing is typically only one of the criteria
this group). Seven states allow local contractors to
considered in a professional services contract
have preference if they fall within certain guide-
award process, a specific local preference price
lines. The rationale for the types of local bidder
advantage threshold is not required, nor does it
preferences and the specific preference thresholds
appear to be commonly described in law. Hence,
vary widely across these states. Percentages vary
it is not possible to measure the impact of local
from 1% to 15% with the most common threshold
vendor preferences on these types of services.
being in the range of 5%.
Professional Services: Large contracts are also For more information on local bidder
awarded for professional services which are sub­ preference laws, see Economy Indicators, at
ject to competitive requirements set forth by each www.longislandindex.org.
local government. In general, the rules for soliciting
 Regional Recreation
-5 0 15 20 25 30 $0 $10 $20 $30 $40 $50 $60 $70 $80 -10% -5% 0% 5% 10% 15% 20% 25% 30%
5 10
Change in Employment, 2002-2007 Average Pay Per Cluster, Change in Employment,
2008, in Thousands 2003-2008

Average Wage, Long Island Average Change in Employment, Long Island

Source: Bureau of Labor Statistics; Hofstra University.

yeary client excel chart #9

Total Venture Capital Investment in Long Island Firms,
1998-2007

Investment in Millions, 2007 Dollars

1.4 $350 1.4%

Investment as Percent of U.S.

Firms %
1.2 300 1.2

VC Investment
1.0 Dollars Invested 250 1.0
0.8 200 0.8
0.6 150 0.6
0.4 100 0.4
0.2 50 0.2
0.0 0 0
06 a07 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07

Dollars Invested % of All U.S. Investment

keep scales at even increments?

Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™.

Report based on data from Thomson Reuters; Hofstra University.

Goal #3—Innovative Economy

Our economy incubates, supports and retains companies.

Indicator: Typically, only firms with potential for exception-

ally high rates of growth over a 5- to 10-year
Venture Capital Financing
period will attract venture capital. Thus, a high
Long Island’s venture capital investment sunk rate of venture capitalist investment suggests a
to its lowest level in more than ten years. changing and dynamic economy with relatively
Why is this important? new enterprises entering the scene. A lower rate
New venture capital investment is an indicator of of venture capitalist investment suggests a less
innovation and dynamism within the economy. dynamic mix of economic enterprises in the
Venture capitalists generally seek to invest in new regional economy.
enterprises that have a potential for strong growth.

page 41
 Page 42  |  2009 Long Island Index  |  Economy

0
ECONOMY 10-11

Total Venture Capital Investment by Industry

on Long Island, 1998-2007
Biotechnology
Business Products and Services
Computers and Peripherals
Consumer Products and Services
Electronics/Instrumentation
Financial Services
Healthcare Services
Industrial/Energy
IT Services
Media and Entertainment
Medical Devices and Equipment
Networking and Equipment
Retailing/Distribution
Semiconductors
Software
Telecommunications
300
$0 $50 $100 $150 $200 $250 $300
Investment in Millions (2007 Dollars)
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™.
Report based on data from Thomson Reuters; Hofstra University.

nt excel chart #11

How are we doing? and 2007 (from $47 million down to $5 million).
Since 2002, venture capitalist investment in As a percent of total U.S. investment, the 2007
Long Island firms has ranged between a high amount represented only .02%.
NYSTAR Funds Awarded to Long Island, 2000-2007
of $47 million and a low of $5 million in 2007
Funds Awarded, in Millions (2007 Dollars)

The four industries receiving the largest investments

dollars. As a percentage
$25 of total venture capital
over100%
the past ten years are Telecommuni­cations,
investment in U.S. firms, there was a slight 90
Long Island as a % of Total
NYSTAR Funds Awarded

20 Industrial/Energy,
80 Media and Entertainment, and
increase over the three years prior to 2007 (from
Software.
70
.08% to .17% of15total U.S. investment). However, 60
venture capital investment fell 89% between 2006 50
10 40
30
5 20
10
0 0
’00-’01 ’01-’02 ’02-’03 ’03-’04 ’04-’05 ’05-’06 ’06-’07

Funds Awarded % of Total NYSTAR

Funds Awarded

Source: NYSTAR; Hofstra University.

 Telecommunications
0 250 300
$0 $50 $100 $150 $200 $250 $300
Investment in Millions (2007 Dollars)
Source: PricewaterhouseCoopers/National Venture Capital Association MoneyTree™.
Report based on data from Thomson Reuters; Hofstra University.

st yeary client excel chart #11

NYSTAR Funds Awarded to Long Island, 2000-2007

Funds Awarded, in Millions (2007 Dollars)

100 $25 100%
90 90

Long Island as a % of Total

NYSTAR Funds Awarded
80 20 80
70 70
60 15 60
50 50
40 10 40
30 30
20 5 20
10 10
0 0 0
A07 ’00-’01 ’01-’02 ’02-’03 ’03-’04 ’04-’05 ’05-’06 ’06-’07

Funds Awarded % of Total NYSTAR

Funds Awarded

Source: NYSTAR; Hofstra University.

Indicator: How are we doing?

New York State provides funds to firms through
Research and Development
the NYSTAR program of the New York State
Investment Foundation for Science, Technology and Inno­
Long Island’s funding from NYS increased vative Leadership. In 2006–07, Long Island firms
last year but it was a smaller share of the received almost $10 million in NYSTAR funding.
overall available funds. That represents an 88% increase in funding dollars
from the prior year. However, that dollar amount
Why is this important?
was actually a smaller percentage of total state
R&D (Research and Development) investment in
funding than in prior years. Between 2000 and
Long Island’s universities, labs and private sector
2006, Long Island averaged 12% of total state
helps to drive regional innovation. R&D dollars
funding under the NYSTAR program. In 2007,
support the development of technologies that cre-
the percentage fell to about 6%.
ate economic benefits for the regions in which
they are developed and for the nation as a whole.

page 43