In October, New Jersey Governor Phil Murphy unveiled his economic development strategic plan for the State. Titled “The State of Innovation: Building a Stronger and Fairer Economy in New Jersey”, the plan is said to set New Jersey on the path to a stronger and fairer future where innovation and diversity are at the forefront of the State’s economy. It is centered on establishing New Jersey as “The State of Innovation.”
According to Governor Murphy, such a plan is necessary because despite the State’s natural advantages, including a location nestled between two of the country’s largest markets, New York City and Philadelphia, and a highly educated workforce, New Jersey has added virtually no net new private sector jobs between the years 2007 and 2017. In the past, New Jersey was an innovation-centered state with a substantial footprint from the pharmaceutical and life sciences sectors. That history of innovation created good-paying jobs, established a thriving middle class, and spurred far-reaching economic growth. But, despite its past, New Jersey’s economic growth has been lagging in recent years while other states have been progressing. Half of the typical working New Jersey residents take home less pay today than they did before the Great Recession and more than one-third of residents cannot afford everyday household needs. Additionally, New Jersey has experienced the fourth fastest growth in its poverty rate compared to all other states. The Governor has attributed this lag in economic growth to underinvestment in people, in the form of education and workforce development, and in communities, which hindered New Jersey’s ability to attract and retain new talent and to fully develop the State’s homegrown workforce.
The success of this plan hinges on the inclusivity of women, people of color, and immigrants, as well as a renewal of the State’s leadership in innovation. The plan is designed to advance these five key goals by 2025:
- Drive faster job growth than other Northeast peer states by fostering a better, more supportive business climate to add approximately 300,000 jobs.
- Achieve faster median wage growth than all Northeast peer states by achieving approximately four percent wage growth or a $1,500 increase in median wages.
- Create the most diverse innovation ecosystem in the nation and double venture capital investment in the State by bringing approximately 40,000 more women and minorities into STEM fields and attracting $625 million in new venture capital investment.
- Close the racial and gender wage and employment gaps by employing approximately 42,000 more women and minorities and increasing wages for those groups by $15,000 to $23,000.
- Encourage thriving and inclusive New Jersey urban centers and downtowns by reducing city poverty rates to today’s statewide average.
Moreover, the plan includes four strategic priorities to achieve these key goals. The first is to invest in people to help all New Jersey residents find work that supports and sustains families. The second is to invest in communities to build world-class cities, towns, and infrastructure statewide. The third is to make New Jersey the “state of innovation” and create more and better jobs across the State. And finally, the fourth strategic priority is to improve government efficiency and advance New Jersey’s competitiveness and business climate.