OP-ED: New York City Continues to Lead the Next Generation of Technology and Innovation

Crain's New York Business recently published commentary by Empire State Development President, CEO and Commissioner Hope Knight about New York City's importance in driving the innovation economy.

Text of the commentary is available below and can be viewed online here.

When American Express announced plans earlier this year to establish its new global headquarters at 2 World Trade Center- alongside other major investments such as JPMorganChase's new Park Avenue headquarters - it reinforced what we are seeing across New York City: the world's leading companies are continuing to invest and grow here.

As head of New York State's economic development agency, I am seeing tremendous momentum across New York City. Firms of all sizes are choosing to grow here, looking to leverage our world-class talent, capital access, and overall innovation ecosystem. Under Governor Hochul's leadership, New York State is making unprecedented investments to ensure that the City and State remain at the cutting edge.

Companies at the forefront of innovation are expanding across New York City, creating thousands of new jobs and driving more than $250 million in research and development activity in the process. Since 2024, fintech industry leaders like PayPal and iCapital have committed to creating thousands of jobs and expanding their presence in New York City in exchange for State incentives. At the same time, a range of high-growth technology firms have continued to expand their footprint in Manhattan, underscoring sustained confidence in the city's future.

The momentum has continued across the city. The London-based AI voice startup ElevenLabs announced plans to create 230 jobs in Downtown Manhattan, while Radical AI announced it would transform an office into an advanced materials science lab and add 115 new jobs in Brooklyn. These announcements reflect a broader trend: companies across sectors are choosing New York not just as a place to operate, but as a place to scale.

Recent announcements across the technology sector reinforce what leaders across the industry already recognize: New York is helping shape the future of technology and innovation.

The data backs up what we're seeing: New York City's tech sector continues to be one of the fastest growing in the nation, adding tens of thousands of jobs and securing billions in venture investment each year. These investments create pathways to good-paying jobs and long-term career opportunities across skill levels. Since the pandemic, the number of technology businesses in the state has increased by 27% to 31,000 businesses, and the New York City technology sector has added jobs at nearly 10 times the rate of the city's overall economy. Meanwhile VC fundraising in New York City totaled nearly $30 billion in 2025, up 17% compared to the previous year.

New York's competitive edge is not just its scale. With an in-state tech workforce of over 588,000, it is the concentration of diverse, creative talent, capital, customers, and research institutions in close proximity, creating an environment that is hard to replicate.

But we're not resting on our laurels. Under Governor Hochul's leadership, artificial intelligence has become a central pillar of New York State's innovation agenda. The Governor launched the Empire AI Consortium, backed by over $500 million in public and private funding, to create the first-of-its-kind initiative to advance AI for the public good. The Empire AI supercomputer, housed at SUNY Buffalo, enables researchers across the State's 10 member institutions to access high-performance computing power. The Governor also recently launched the FutureWorks AI Commission to ensure New Yorkers are prepared for the jobs and opportunities created by emerging technologies.

Governor Hochul is advancing new initiatives to drive growth in New York's innovation sector, including a new Semiconductor Chip Design Center for Downstate to complement the robust manufacturing base Upstate, as well as new quantum technology commercialization hubs to ensure New York remains competitive as these technologies mature.

Initiatives like these will ensure New York State, including New York City, leads the next era of innovation. We recently announced Clay's expansion in New York City, further strengthening the city's position as a hub for next-generation technology companies. Like so many firms choosing to grow here, Clay recognized the unique advantages New York offers, from talent and capital to a dynamic and collaborative business environment. If we keep this momentum going and continue to invest, build, and compete, we will not just participate in the next generation of innovation. We will lead it.

Hope Knight is Empire State Development's President, CEO and Commissioner.

Contact:
ESD Press Office | [email protected] | (800) 260-7313