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By Dennis Yablonsky
Secretary
Pennsylvania Department of Community
and Economic Development

Gov. Edward G. Rendell is blazing a path for success in the global economy and achievement in technology-based economic development, or TBED. The Commonwealth of Pennsylvania is providing the needed capital, technical assistance and infrastructure to companies at every stage of the business life cycle.

As the home to the entire continuum of TBED funding, Pennsylvania offers a unique combination of programs that support the commonwealth’s emerging and mature businesses growth strategies needed to stay competitive in today’s global marketplace.

Research & Commercialization

Bearing the name of Pittsburgh visionary Dr. Jonas Salk, the $1 billion Jonas Salk Legacy Fund will accelerate the rate of medical breakthroughs to help cure disease and ease suffering. It is expected to attract hundreds of high level researchers to Pennsylvania and create a projected 12,000 new jobs in the process. The Salk initiative will provide for the construction of research facilities and incubator space while building on the commonwealth’s strengths in biotechnology, pharmaceuticals, medical devices and research and development.

The Keystone Innovation Zone or KIZ program was a key element of Rendell’s $2.8 billion 2004 economic stimulus package. It designates zones associated with college and university communities to foster innovation and create entrepreneurial opportunities to keep young, talented graduates in Pennsylvania and encourage technology transfer and the creation of new technology-based companies.

In fact, between 2003 and 2006, the state committed more than $1.5 billion to 530 infrastructure development projects. In 2006, we awarded $5 million in grants and loans to spur the construction of the 80,000 square-foot Hershey Center for Applied Research, located in central Pennsylvania.

Capital

It is critical we continue to collaborate, share ideas and foster the growth of our technology-based businesses to solidify our status as a leader in the biosciences industry. The Commonwealth has made an unprecedented long-term commitment to creating a pipeline and launch pad for these companies.

The largest portion of TBED funding provided annually is allocated by the state’s Ben Franklin Technology Development Authority. Established in 2001, BFTDA promotes advanced technology in Pennsylvania’s traditional manufacturing and emerging industries as well as small businesses, and is one of the largest single state technology development programs in the nation.

The BFTDA also provides support for the Ben Franklin Technology Partners, a regional network of six companion organizations to foster dynamic relationships among companies, institutional and private investors, research institutions and the university community.

The New PA Venture Capital Investment Program, also a component of the Governor’s Economic Stimulus Initiative, addresses the growing needs of Pennsylvania businesses by providing $60 million in loans to venture capital managers, which leverages another $180 million in private equity, for a total investment of $240 million to aid company growth.

The commonwealth is also actively partnering with the venture capital community through the New Pennsylvania Venture Guarantee Program. The partnership will be formed by guaranteeing the combined performance of each qualifying venture capital firm’s Pennsylvania portfolio investments up to a maximum of $250 million. In return, these investment guarantees will provide an additional $250 million in investments, leveraging a total pool of $500 million in new capital available for Pennsylvania growth-stage companies.

Across the nation, Pennsylvania is a leader in driving TBED. We will continue to push the envelope in order to remain competitive. We are working to create a business environment that encourages entrepreneurship by making available the high risk capital required by all young start-up companies.

For more information regarding the Pennsylvania Department of Community and Economic Development or any of Governor Rendell’s economic stimulus programs, visit www.newPA.com or call 1-866-Go-NewPa (1-866-466-3972).