The University at Albany clearly plays this role in the capital area. Perhaps equally important in terms of promoting local economic growth, colleges and universities can play a key role in creating jobs for skilled workers in local businesses. Colleges and universities conduct research and development that can have “spillover effects” into the local economy. Businesses in the region can take advantage of being close to these innovative activities and facilities to develop new products and technologies. This can also help draw new companies to the region to access university resources. Thus, successful industry–higher education partnerships can provide a quite a boost for a region’s economy. The local nanotech sector provides an excellent example of this type of partnership at work. During my visit to the University’s College of Nanoscale Science and Engineering this afternoon I look forward to seeing the facilities and hearing more about the Center’s plans to lead the way in global nanotech research. More broadly, I understand that our audience today includes several members of the Regional Economic Advisory Council – including the University at Albany’s president, George Philip and Michael Castellana, the co-chair of the Council – who are working to advance such partnerships and the outlook for the region. Going forward, the industry–higher education partnerships taking place here will be increasingly important. I expect the strong foundation already in place will help maintain the economic vitality of the capital region.
Conclusion To sum up, growth has picked up modestly in the second half of 2011, but not enough to bring unemployment down. While there are some bright spots in the U.S. economy and the financial system, strong headwinds are preventing a more vigorous recovery. Inflation, which has risen in recent months, is poised to moderate soon. The Fed is doing – and will continue to do – everything within its power to promote jobs and price stability. Looking ahead, the key challenge for the Albany area will be to continue to prepare its residents for the best jobs being created here. Expanding education and skills will go a long way to broaden participation in the economy to all residents. Thank you for your kind attention. 4  See Jaison Abel and Richard Deitz, The Role of Colleges and Universities in Building Local Human Capital. Current Issues in Economics and Finance, vol. 17, No 6, 2011. 6  BIS central bankers’ speeches