Case Study

State of New York Division of the Budget
Evaluation of Centers of Excellence

The Laws of 2002 of the State of New York established the Centers of Excellence program for the purpose of "fostering collaboration between the academic research community and the business sector to develop and commercialize new products and technologies; to promote critical private sector investment in emerging high technology fields in New York State; and to create and expand technology related businesses and employment."

The State of New York, through the Empire State Development Corporation, has made substantial investments in these Centers, with a goal of catalyzing long-term economic growth in each targeted region and statewide. Approximately five years into this program, the State hired PFM to lead an interim Progress Review of the first five Centers of Excellence and the program overall:

• The Albany Center of Excellence in Nanoelectronics;
• The Buffalo Center of Excellence in Bioinformatics;
• The Rochester Center of Excellence in Photonics and Optoelectronics;
• The Stony Brook Center of Excellence in Wireless and Information Technology; and,
• The Syracuse University Center of Excellence in Environmental and Energy Systems.

This progress review included:

• Evaluation of progress to date toward achievement of legislatively established goals;
• Documentation of the current full capital and operating costs and budget for each Center with a projection of future operating costs;
• Assessment of the performance of each Center versus performance plans; particularly as related to the completion of facilities, securing of private and institutional funds, attainment of Center job creation, achievement of financial sustainability, and development of an economic development and marketing plan; and,
• Development of prospective recommendations at both Center-specific and program-wide levels.

PFM conducted extensive interviews and document review involving Center leadership, State officials, private partners, and other key stakeholders. The analysis included direct site visits to the Centers, review of job creation and financial investment data, and research regarding best practices and other state-level programs nationally in this area. PFM developed recommendations for state policymakers toward strengthening program metrics, Center operating plans, and long-term program direction - providing a more informed foundation for future decision-making.