Establishes the strategic network partnerships program to organize, integrate and coordinate state programs designed to assist manufacturing industries

§ 2- Adds a new § 192-a, § 192-b and § 192-c to the Economic Development Law.

New §192-a establishes the Strategic Network Partnerships Program (SNPP) which is designed to organize, coordinate and integrate the delivery of relevant services from DED, the UDC, JDA and the NY State Office of Science, Technology and Academic Research specifically tailored to help manufacturing industries and other producers of goods and services. SNPP is intended to target help and stimulate self-help activities so that such firms can improve their productivity and competitiveness.

New §192-b establishes, under SNPP, the Strategic Industries Group Services Program, designed to identify particular groups of industries important to New York State that need assistance in remaining competitive in the international marketplace and to target specialized assistance to them, including assistance in forming strategic self-help networks. The program is modeled on the successful Emilia-Romagna model, in which this region of Northern Italy has revitalized its economy through the establishment of flexible manufacturing networks and the creation of industry-specific manufacturing service centers.

A Strategic Industry is defined as an industry group that is considered to be critical to the economy of the state in terms of employment, and/or in which the state appears to have a comparative advantage which would enable such an industry group to continue to make a, significant contribution to the economic health of the state or a region of the state. Subdivision 2 of § 192-b establishes an Advisory Panel 70 designate strategic industries and a process for reviewing such designation.

New §192-c establishes, under SNPP, the Supplier Network Group Services Program, which is similar to the Strategic Industries Group,services Program except that it may encompass a group of firms in different industries that supply products to the same larger firm or firms. Again, it encourages cooperative, self-help networks on the Emilia-Romagna model.

§ 3-Amends the opening of paragraph (e) of subdivision 7 of 16-d of §1 of Chapter 174 of the Laws of 1968 to include associations representing SNPP's as those eligible to apply for support under the NYS Urban Development Corporation Act.

§ 4- Amends the opening paragraph of subdivision 1 of §16-i of §1 of Chapter 174 of the Laws of 1968 to allow the Empire State Economic Development Fund to provide financial, technical or other assistance from the fund to qualified businesses and other entities, including associations representing SNPP's.

§ 5-Amends subdivision 1 of §16-j of §1 of Chapter 174 of the Laws of 1968 by including association representing SNPP's.

§ 6- Effective date.

Justification

Manufacturing employment, and employment in related production of goods and services, in New York State has been experiencing a long-term decline, but manufacturing still remains a major employer in the State, generating high-paying jobs. Many of these remaining industries are experiencing increasingly stiff international competition and must remain innovative and productive if they are to survive. In addition, new, emerging industries in the State, producing goods and services, are engaged in similar competition at home and abroad as they seek to expand and capture a significant share of the marketplace. The bill is based on the premise that economic development policy should be focused on building cooperative linkages among groupings of firms which work together in networks or which are concentrated in regions as sectors or clusters, linked by similar products, shared technologies or common constraints. This idea of cluster-based economic development considers groups of firms as a whole and works toward developing an entire sector or cluster rather than an individual firm. This bill establishes a statutory framework for the Department of Economic Development to draw upon the existing resources of the State to help those industries that are economically viable and can compete in the international marketplace. By using existing modernization programs, devising new and innovative sell-help activities, promoting, where appropriate, the formation of flexible manufacturing networks, and by disseminating needed information, the Department can help these industries survive by becoming more productive and competitive. In addition, certain groups of industries, such as the garment industry, are major employers that are currently being threatened with major cutbacks and retrenchment. This bill establishes a Strategic Industries Group Services Program under the SNPP, which is designed to address the specific problems of such endangered industry groups. The bill also recognizes as Strategic Industries, emerging industrial groups, such as new media and software, which have the potential to grow and expand in New York State. Similarly, improvements in the productivity and efficiency and product quality among suppliers to larger firms improves the competitiveness of both the supplier and the receiver of such products. The Supplier Network Group Services Program is designed to accomplish this goal. This program is modeled on the successful networking program established in Italy's Emilia-Romagna region which has regenerated what was once a depressed economy. Regions in Germany and Denmark have been successful in replicating this concept to revitalize their economies.

Prior legislative history

2007-2008: A.2952; 2005-2006: A.3963; 2003-2004: A.6146-A, 2001-2002: A.1005/S.751, 1999-2000: A.109-A/S. 550-A, 1997-1998: A.1216/S.4349, 1995-1996: A.11300.

Fiscal implications

None. The bill calls for coordinating existing programs. EFFECTIVE DATE : This act shall take effect immediately, provided, however, that the amendments to subdivision 1 of section 16-m of section one Chapter 174 of the laws of 1968 constituting the New York State Urban Development Corporation Act made by section four shall not affect the expiration of such subdivision and shall be deemed to expire therewith.