Costly NY Startup Program Created… 76 Jobs

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Last year, the New York state government launched Start-Up NY, a program designed to boost employment by creating tax-free zones for technology and manufacturing firms that partner with academic institutions.

In theory, those tax-free zones on university campuses would give companies access to the best young talent and cutting-edge research. But only a few firms are actually taking the bait: According to a report from the state’s Department of Economic Development, the program only created 76 jobs last year, despite spending millions of dollars on advertising and other costs. If that wasn’t eyebrow-raising enough, the companies involved in the program have only invested a collective $1.7 million so far.

Check out the latest tech jobs in New York.

The low numbers didn’t stop some state officials from defending the initiative. “Given the program was only up and running for basically one quarter of a year,” Andrew Kennedy, a senior economic development aide to Governor Cuomo, told Capital New York, “I think 80 jobs is a good number that we can stand behind.”

Governor Cuomo evidently hopes that he can transform some of the most economically depressed parts of the state into bustling tech hubs, even if many of those areas lack the factors—such as “innovation cultivators” and networking assets—that helped New York City make a major push for tech companies’ residency and business over the past few years.

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3 Responses to “Costly NY Startup Program Created… 76 Jobs”

  1. Are you math challenged?

    1.7 million over three months for 76 jobs is $21,000 per job. Taking into account the nominal 30% overhead for things like office space and insurance, and you’re looking at an average $50k salary.

    This is actually a very high quality result.

    • @John The state of New York spent $53 million DOLLARS to promote Startup New York and for it’s efforts only 76 jobs were created a classic case of the tax payer(s) being scammed again.

  2. Real Businessperson

    What reasonable person would want to relocate to New York anyway? Even if you ignore the insane taxes, the crushing regulatory burden of operating in New York makes moving or starting a new business seem like a bad idea. I laugh every time I see the commercials on television.