Until approximately 1950, the Tri-State Region of New York, New Jersey, and Connecticut was the undisputed national leader in industrial R&D and innovation. But after World War II, centers of commercial innovation in emerging industries, such as biotechnology, advanced materials, computer software, and Internet services, have emerged in other regions, particularly California, Massachusetts, and Texas. Nevertheless, the region still remains strong in the biotechnology and information technology industries and has a sizable stock of well-trained people with attractive skills. Better networking between industry and higher education institutions should help attract technical professionals. Additionally, the region's colleges and universities should view continuing education and training classes as an integral part of their program; and basic literacy and numeracy skills must remain an essential goal for the region's schools. Although recent incentives such as New York tax credits to emerging technology companies should encourage increased investment and job creation, the region appears more favorable to advertising, content creation, and financial new ventures than to technological ones.