New York’s High-Tech Boom

May 10, 2012 Updated: May 10, 2012

NEW YORK CITY—New York has seen an explosive growth—of over 1,000—high-tech startup firms in the last five years, a new report shows.

The Center for an Urban Future, a New York-based think tank, demonstrated how the city has become the fastest-growing web-based and digital tech sector in the nation. While many other industries have been in decline, thousands of high-tech jobs have been created. 

“Most of the nation’s largest tech companies are now planting roots in New York, something that didn’t seem likely five or six years ago but has lent legitimacy to the city’s upstart tech industry,” the report states.

Fueled by a rise in investor capital, popular startups such as Tumblr, Etsy, and Foursquare have all opened offices in Manhattan recently.

The main obstacles identified in the report for New York to expand its reach in the technology sector are a shortage of top-tier engineers, high housing costs, and laborious and difficult immigration procedures for retaining top talent from overseas.