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The United States saw a 4 percent increase in the number of startups applying for funding in the third quarter over Q2, according to investment platform Gust. Interestingly, the gap between the East and West coasts is shrinking, and much of that is due to the growth of New York's tech sector: in the Empire State, the quarterly increase was a remarkable 13 percent.

The state's IT industry has been growing for years, but 2014 has seen the launch of a number of public initiatives that are boosting the sector even more. Governor Andrew Cuomo, who was recently re-elected to a new four-year term, launched the online platform Start-Up NY to provide major tax breaks and access to college resources, along with networking opportunities to new companies.

At the local level, New York City Mayor Bill de Blasio introduced a portal, Digital.NYC, with extensive databases of startups, investors, job listings, conferences and networking events. That followed the 43North initiative in Buffalo, which recently announced the 11 winners of a total of $5 million in funding.

New York is now the second most active state in startup applications for funding, behind California, whose rate decreased by 6 percent in Q3. Rounding out the top five are Florida, Texas and Washington state. Software developing companies are at the forefront of the global startup growth, with a 52 percent quarterly increase worldwide.

Gust's data shows development in both traditional IT hotbeds and emerging markets: the top countries by startup activity are the United States, India, Canada, France and Brazil. It's an exciting time for startups everywhere, and the opportunities for expansion have never been greater.

The use of mobile apps in the business world is on the rise — nearly 5 billion enterprise apps will be downloaded by the end of this year, according to one estimate. The trend is not only expected to continue, it could see a massive increase as major IT players enter the market. The highest-profile announcement for the industry has been the partnership between Apple, Inc. and IBM, which will work together to develop about 100 B2B apps, and others could follow suit.

In a recent Mobile Helix survey, more than half of respondents estimated that their organizations' productivity could grow by about 40 percent if their existing apps were mobile. Mobile apps help improve operations by boosting collaboration among teams and workers in different locations, sales and marketing by providing real-time information, and training by delivering in-context guidance.

In an article in the Harvard Business Review, Joe Panepinto, vice president of branding agency Jack Morton Worldwide, gives his "four C's" to define the ways mobile apps help businesses:

• Consistency: Virtually all mobile apps operate on either Android or iOS, which makes life easier for IT teams and users.
• Control: Mobile solutions ensure that all employees are working with the same information, regardless of their physical location.
• Creativity: Mobile devices have unique functionality that is constantly evolving, providing plenty of opportunities for developers to experiment.
• Credibility: People use mobile devices all the time, and companies that adopt them for their business project an image of modernity.

For software developing companies, the enterprise world provides countless new opportunities to expand their operations, fulfilling the needs of businesses across all industries.

New York City is attracting a growing number of IT companies, and both public and private initiatives are in place to develop a vibrant tech scene in the city. While many have talked about the potential of one day turning New York into a hub that can compete with Silicon Valley, at least one influential investor believes that the Big Apple is already finding its own unique identity with a focus on software over hardware.

Eric Hippeau has served on the boards of directors of companies including The Huffington Post and Yahoo!, and is now a partner at a New York-based angel fund that specializes in IT investment. He recently spoke with Internet forum Big Think about the similarities and differences between the two coasts, and noted that New York, despite lagging behind California in major tech companies, still has the highest demand for consumer technology.

"The big difference is that New York focuses more on the software layer, on the application and the services layer so that we're really good at software in New York," he said. "We're good at platforms. We're good at consumer facing applications. We're good at enterprise software, software as a service. We're good at a variety of different domains."

Software developing companies can serve myriad other industries where New York is second to none. Although Hippeau believes that technology has evolved to the point that a company's physical location does not determine success, he notes that New York, because of its abundant and diverse population, is a natural target for venture capitalists.

New York may never match Silicon Valley in the hardware design sector, but its software potential is unlimited.

New York City is home to a growing number of tech and media startups, and local authorities and business leaders came together last week to discuss how they can ensure that situation continues. At the first-ever TAMI Talks event, organized by Politico subsidiary Capital New York and real estate services firm Cushman & Wakefield, topics of conversation included how to attract new talent to the city while tapping into the existing pool.

Speakers highlighted the diversity of America's largest city as a strong point, but acknowledged that they should look to Silicon Valley for tips on how best to take full advantage of that diversity. It was noted that non-tech workers in tech companies have salaries that are 45 percent higher than the city's average, but unemployment is very high among black and Latino college graduates.

Another area of concern as the industry welcomes more startups and small businesses is the price and availability of real estate.

"New York is tricky, New York is not easy to grow in," said BuzzFeed CFO Mark Frackt. "When you are American Express or Sony, and you are growing at a rate that is fairly predictable on an annual basis, you can plan your real estate more practically. When you are a high-growth company, it is frankly harder to do."

Some cities have helped their software developing companies by laying down optic fiber networks. A representative from the mayor's office said that possibility has not been ruled out, but that in the meantime authorities are working to ensure that broadband internet is widely available. They hope to encourage competition among providers that will improve service throughout the city.

The Commonwealth of Massachusetts is one of the largest tech hubs on the East Coast but, despite the presence of IT companies of all sizes and leading educational institutions, the state is still not producing enough computer scientists to meet the ever-growing demand. The Bay State houses offices of tech giants like Google, Microsoft and the Oracle Corporation, not to mention thousands of startups, and the sector now makes up more than one fifth of the gross domestic product.

According to non-profit Code.org, only 2.4 percent of American college graduates are majoring in computer science these days, and the sector is rife with employment opportunities. Now, business and political leaders in Massachusetts are teaming up to raise that percentage.

Governor Deval Patrick launched the Innovation Schools program in 2012 to create special centers with a focus on IT where students in the eighth grade and up have access to cutting-edge technology. The Massachusetts Department of Elementary and Secondary Education is also in talks with groups to expand tech solutions to all levels of education.

"In the past few years we have introduced an introductory course for non-majors that enrolls over 200 students," said Worcester Polytechnic Institute computer science head Craig Wills to Boston.com. "We're seeing students recognize the value and importance of learning the material, but it's certainly not required. Courses should be so good that students see the value in taking them."

Software developing companies and other businesses with IT needs are hiring at a record pace, buoyed by the recovering economy and constant technological evolution. Politicians can help their regions become IT leaders by promoting tech education among the younger generations.

A growing number of cities and states across the country are realizing the importance of expanding schools' information technology education programs. The number of businesses that don't depend to a very high degree on technology is small and shrinking fast, and in-depth IT is no longer an area that can reasonably be limited to higher education.

The latest public figure to call for expanded IT training programs is Manhattan Borough President Gale Brewer, who said this week that she has requested a meeting with New York City Schools Chancellor Carmen Fariña to discuss the creation of a specific tech high school diploma and an increase in investment for computer science classes.

Brewer estimates that the New York City Department of Education (NYCDOE) should invest $25 million over the next five years to purchase the necessary hardware and software to expand training programs throughout the city. She added that Fariña has already expressed willingness to take action.

"We are committed to using technology in our classrooms to foster and facilitate student learning and growth and provide our students with the skills for college and beyond," said NYCDOE spokeswoman Devora Kaye in a statement. "We look forward to working with Borough President Brewer and communities across the city to address the urgency of technology education, to better understand and address our schools' technology needs, and to ensure that all our students have access to quality technology curricula and supplies."

On Tuesday, voters throughout the state will decide whether to approve the Smart Schools Bond Act, another public initiative to equip schools with state-of-the-art technology. Authorities hope that computer science education today will make New York a top destination for IT and software developing companies down the road.

The unemployment rate in New York City has been falling steadily as the effects of the Great Recession have worn off, with the total number of jobs reaching its highest level since August 2008, according to the Department of Labor. Overall, the jobless rate was at 6.8 percent in September, falling below 7 percent for the first time since late 2008.

The technology sector has driven much of that growth, with IT consulting and systems design employment growing by nearly 47 percent in the last five years. Of the 75,000 IT-related jobs that the city has added since 2009, some have come from tech giants such as Google, which has expanded its New York headquarters with about 4,000 new positions, but many more are being added by startups and other small software developing companies.

In the fast-moving industry, businesses can grow exponentially in the space of a few months — Compass, which creates real estate software, tripled in size from 60 to 180 employees in just six months and is moving to a new Union Square office, and that's just one of many success stories.

"New York has gone from a standing start to comparison with Silicon Valley," said New York City Economic Development Corporation chief economist Michael Moynihan. "And it's not just a technology story, but technology used in so many other sectors."

As this blog has reported, developers are benefiting from increasingly accessible and affordable technology, which makes it easier for creative entrepreneurs to carve out a niche in a very competitive industry. With the financial recovery, startups also have readier access to accelerators and a growing number of networking events to help them thrive.

The Connecticut Technology Council has announced its list of "Companies to Watch" in 2014. The companies, most of which are in the startup phase, were chosen for their potential for future growth. The Council will recognize them at its Innovation Summit, which will take place at the Oakdale Theatre in Wallingford on November 12. There, they will have the chance to make pitches to angel investors and venture capitalists and meet one-on-one with successful entrepreneurs.

Among the "mentors" who will be in attendance will be Michael Boccardi, CEO of managed IT services company Cervalis, and Devon Brady, a senior manager at Ernst & Young. They will provide guidance to up-and-coming entrepreneurs in a variety of business areas: financial, human resources, legal, marketing, sales and technical. Most of the selected companies are in the life sciences, software development or telecommunications industries, with a handful in other sectors such as advanced manufacturing and energy.

The Innovation Summit is Connecticut's largest IT networking event, bringing together new players with established companies and potential investors to drive the state's science and tech sectors forward. In addition to an expo and showcase, there will be a "Pitch Fest," an increasingly popular event where entrepreneurs have three minutes to deliver a pitch and are graded by a panel of judges, who also provide tips for improvement.

Connecticut has seen a number of public and private initiatives in recent times that aim to keep the state competitive and even make it a leader in these dynamic industries. Local managed IT services software developers can help the region's companies with their IT needs, providing custom software to help them streamline their business processes.

The Department of Labor has awarded a four-year, $5.5 million grant to the Eastern Connecticut Workforce Investment Board (EWIB) and the Workforce Alliance to train 567 unemployed workers and help them find jobs in high-tech fields. The grant was awarded after Connecticut exceeded the aims of an earlier phase of training as part of the Labor Department's Ready to Work program.

The initiative's aim is to give American workers the necessary training to take specialized jobs that would otherwise go to immigrants. The program is funded by H-1B visa fees, which are paid by companies that hire foreign nationals for jobs that require at least a bachelor's degree, especially those in STEM fields.

"This grant does more than put people back to work," said Workforce Alliance president William P. Villano. "It builds Connecticut's competitive advantage in high-skilled industries by targeting the skills gap in important sectors of the regional economy. All participants will be trained for and placed in career-path positions in one of the targeted fields."

Among the participating organizations are the Universities of Connecticut and New Haven, Connecticut's four state universities and 12 community colleges and over 100 private firms, including Meriden biotech company Protein Sciences. Connecticut's first round of Ready to Work training resulted in jobs for 454 people, well over the original goal of 361. Overall, the Labor Department has awarded nearly $170 million to nearly every state in Ready to Work grants.

As this blog has reported, Connecticut has launched initiatives of its own in recent times to help its engineering, life sciences and software developing companies remain competitive. Local authorities and private companies are working together to make the state a technology leader.

On November 4, New York state electors will face some major decisions, including whether to re-elect Governor Andrew Cuomo to a second term. Also on the ballot will be a proposal to approve the Smart Schools Bond Act, which would allow the State to sell $2 billion worth of bonds to fund adoption of technological upgrades in classrooms.

Per the question's official text, the funding would "provide access to classroom technology and high-speed Internet connectivity to equalize opportunities for children to learn, add classroom space to expand high-quality pre-kindergarten programs, replace classroom trailers with permanent instructional space and install high-tech smart security features in schools."

Cuomo introduced the Smart Schools Bond Act, which would distribute money based on the school aid formula, with community leaders, parents, school districts and students coming together to decide how exactly to allocate it. According to the New York State Broadband Program Office, 56 percent of the state's schools have insufficient broadband access, and 31 schools have none at all.

Google chairman Eric Schmidt has joined forces with local leaders, including Geoffrey Canada, the president of the non-profit Harlem Children's Zone, to stress the importance of technology in education in a series of public forums. Proponents say that investment like this is crucial, especially for the development of the STEM fields, and can lead to economic benefits for the region down the road.

Long a leader in a myriad other areas, New York is an emerging technological hotspot, thanks in part to public programs, such as the launch of startup portal Digital.NYC, which this blog reported on recently. Leaders hope that investment in tech education now will make the region attractive to software developing companies in the future.