Nanotechnology deal creates optimism for upstate economy

Just days afterwards last month's $4.8 billion mega-deal between the state and IBM, Intel and other hi-tech firms, a innovation center in Canandaigua, Ontario County, started receiving inquiries from companies interested in locating there.

The activity signals how New York has become a leader in innovation and development of nanotechnology and could provide the backbone for growth in the stagnant upstate economy, business leaders said.

What has created optimism among business groups is that the nanotechnology technology - which aims to develop faster and cheaper computer chips - may as well spur the manufacturing of the chips in New York.

The innovation will focus on moving from existing 300mm research to the newest 450mm innovation, a less expensive and faster chip.

Paul Tolley, executive director of the Canandaigua center, said New York is building a innovation infrastructure where companies "as a matter of fact need to come to New York if they want to play in these markets."

The center's goal is private investment

Tolley said the center's goal is private investment, which has grown to 80 percent of the center's revenue and includes 35 ongoing projects. The center employs about 40 full-time staff members.

The nanotech center has expanded to the SUNY Institute of Innovation in Utica, as then, where about 450 jobs are expected to be created.

IBM, based in Armonk, Westchester County, is putting up $3.6 billion in the agreement with the state. It plans to expand its facilities and develop the computer chips to fuel new innovation, including for laptops, cell phones and medical devices. The other companies are each investing $75 million.

Alain Kaloyeros, CEO of the SUNY Albany nanotech center, said the job projections are real and based on the business plans put at the same time by the companies and the state.

The fast-moving world of research

In the fast-moving world of research, the technology should be well pursuant to this agreement way within a year or two and lead to manufacturing hubs across the state, he predicted.

"With the manufacturing technology, companies are not going to be encouraged, nevertheless required for their own business survival to locate in New York," he said.

ALBANY -- Just days afterwards last month's $4.8 billion mega-deal between the state and IBM, Intel and other hi-tech firms, a research center in Canandaigua, Ontario County, started receiving inquiries