SUMMARY BACKGROUND

Summary description of the current economic development situation of the Southern Tier West region of New York State (Chautauqua, Cattaraugus, and Allegany Counties), comprised of the northern-most counties in the federally designated Appalachia region. The region’s economic situation is consistent with this designation.

Innovation Assets

The region has a lower capacity to innovate (“Innovation Index”) than the state and nation as a whole, meaning that the region is less prepared and capable to generate innovation-based economic development, which is essential for a healthy economy over the long-term. This is manifested in inadequate levels of entrepreneurship, technology transfer and adoption, and export activity.

Human capital (labor force) innovation shortcomings include a low incidence of bachelor’s degrees amongst the region’s residents, a significantly higher rate of decrease in the region’s population of younger working age persons (ages 25 to 44), a lower percentage representation of high-tech employees in the employment base, and a lower tech-based knowledge occupation cluster employment share. Economic asset innovation shortcomings include the unavailability and/or lack of use of venture capital for business ventures in the region, low broadband penetration rates, low rates of establishment churn in the region, a lower incidence of small-sized businesses establishments as compared to the state, and a higher incidence of large establishments as compared to the state.

The region does have certain significant assets (e.g., colleges, incubators, and manufacturer’s associations and consulting organizations) that could catalyze innovation, and certain specific ongoing and proposed initiatives in the region (e.g., productivity, entrepreneurship, workforce development, incubators, industrial parks, and technology transfer and commercialization centers) that are intended to enhance innovation rates.