Capital Region Business R&D Spending Accelerated in FY 2022

UAlbany’s new supercomputer for its AI Plus initiative

Capital Region business research and development spending increased at its fastest rate in years in fiscal year 2022, according to a Center for Economic Growth analysis of new data from the National Center for Science and Engineering statistics.

In 2022, businesses spent $1.441 billion on R&D in the five-county Albany-Schenectady-Troy metropolitan statistical area. That made the Albany metro area one of only 69 MSAs nationwide where businesses spend more than $1 billion on R&D and one of 13 metros in the Northeast. Compared to the previous year, local business R&D spending was up 9.8 – the fastest annual growth rate in six years.

Out of the $1.4 billion spent on R&D in the Albany-Schenectady-Troy MSA, $963 million was paid for by the company and $478 million was paid by other sources, such as the federal government.

Much of the Capital Region’s business R&D spending is concentrated at the Albany Nanotech Complex and the Advanced Research Centers for GE Vernova, GE Aerospace and GE Healthcare in Niskayuna. Albany Nanotech is in the running to be designated the headquarters of the National Semiconductor Technology Center. It will soon house the only publicly owned high NA lithography center, which will be part of a $10 billion partnership between New York State and the semiconductor industry, including IBM, Applied Materials, Micron and Tokyo Electron.

The University at Albany and Rensselaer Polytechnic Institute also have major R&D partnerships with industry, especially regarding artificial intelligence and quantum computing. UAlbany has partnered with IBM for a $20 million Center for Emerging Artificial Intelligence Systems. Earlier this month, UAlbany unveiled at its uptown campus the most capable AI supercomputer within SUNY. Last summer, RPI became the first university to install IBM’s Quantum System One.

In fiscal year 2022, $693.6 million in R&D spending occurred at Capital Region universities. This growth in university business R&D spending has spurred employment in the physical/engineering/biological research industry. By 2023, that industry employed 7,681 – its highest level on record, with Quarterly Census of Employment and Wages data going back to 2000.

CEG Initiatives

CEG and its Manufacturing Solutions team leverages the Capital Region’s R&D assets to do the following:

• Promote the region around the world at industry conferences;
• Improve businesses’ access to labs at facilities, such as those at NY CREATES’ Albany Nanotech Complex, Rensselaer Polytechnic Institute, in addition to others affiliated with Innovate 518, a University at Albany-led collaborative effort of Capital Region incubators, accelerators, and entrepreneurial service providers.
• Accelerate commercialization by leveraging tech scouting, gathering technology-driven market intelligence, engaging Empire State Development’s Division of Science, Technology and Innovation (NYSTAR) for testing and development;
• Develop prototypes with its Stratasys F270 3D printer at the Tech Valley Center of Gravity or provide hand-on access to it; and
• Assist in the preparation of grant applications for the National Institutes of Health (NIH), Small Business Innovation Research (SBIR) program and Small Business Technology Transfer Program.

Don’t miss these insights into the trends that are shaping the Capital Region’s economy. 

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