The New Jersey Economic Development Authority (NJEDA) has released an economic impact assessment of its Strategic Innovation Center (SIC) initiative, projecting that startups developed at the state’s 12 SICs will generate $17.2 billion in economic output and support 28,000 jobs over the next decade.
The independent report, conducted by Econsult Solutions Inc., evaluated the anticipated outcomes of NJEDA’s $190 million investment in SICs. The analysis found that these centers are expected to create $8.9 billion in direct economic impact from startup operations and research activities by year ten. In addition, new businesses formed at these centers are projected to contribute $427 million annually in tax revenue.
Governor Phil Murphy commented on the findings: “Since taking office, my administration has been focused on expanding resources for entrepreneurs and supporting startup development to reclaim New Jersey’s historic position as an innovation hub. The state’s growing roster of Strategic Innovation Centers will create new and long-term opportunities for startup founders, researchers, and industry stakeholders, increasing tax revenues and creating jobs across the Garden State.”
Strategic Innovation Centers provide facilities for research and development, mentorship programs, networking events, training sessions, business support services, and educational opportunities. These centers include accelerators, incubators, or research hubs designed to help entrepreneurs collaborate and drive growth among diverse innovators.
Mary Maples, Acting Chief Executive Officer of NJEDA said: “Over the past eight years, Governor Murphy and the Legislature have made historic investments into fostering a strong and equitable innovation ecosystem, ensuring all entrepreneurs have access to capital and the resources needed to build and grow in the Garden State. The NJEDA’s Strategic Innovation Center initiative is creating collaborative environments where startups can thrive, creating billions in economic output and generating thousands of jobs in the decades to come.”
The assessment used IMPLAN modeling software to project employment levels, labor income impacts, total output generated by SIC-related activities, and tax revenue contributions across three main clusters: Information and High Technology; Life Sciences; Advanced Manufacturing.
Kathleen Coviello, NJEDA Chief Economic Transformation Officer stated: “From North Jersey to South Jersey, Strategic Innovation Centers are supporting startups and technological innovation, helping drive our economy forward. New Jersey has invested robust resources into its innovation economy throughout the Murphy Administration, and this report confirms that the return on our investment will be thousands of good-paying jobs and billions of dollars in economic impact. As we continue supporting our innovation ecosystem it’ll lead to sustainable long-term economic growth across the whole state.”
NJEDA offers low-interest financing options along with various investment tools aimed at supporting businesses statewide through programs such as those detailed on its official site (https://www.njeda.gov/financing-and-incentives/). The authority also promotes diversity initiatives while focusing on job creation strategies designed for community enhancement (https://www.njeda.gov/about/). Through partnerships with international entities—and as a key player behind policy measures like the 2020 Economic Recovery Act—NJEDA seeks both domestic advancement via incentives as well as global engagement (https://www.njeda.gov/strategic-industry-support/).
To learn more about NJEDA’s Strategic Innovation Center initiative visit https://www.njeda.gov/strategic-innovation-centers/.
