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Impact Analysis Finds Virginia's CIT Surpassed 2003 Goals

January 23, 2004

The line was drawn in the sand a year ago. Some felt Virginia's Center for Innovative Technology (CIT), the Commonwealth's lead organization for science and technology, had been set up for failure in a partisan fight for limited public revenues. Like the rest of Virginia's economic development portfolio, CIT took a big hit in the budget cycle as Virginia dealt with a multibillion-dollar deficit in fiscal year 2003. CIT's budget was slashed to $7.8 million, yet its targeted total impact for the year was $266.8 million. Could it be done?

In a word, yes.

Dismissing all doubters, CIT released a report last week of its audited FY 2003 performance that shows economic impact totaling $318.6 million, a return of more than 40 times the Commonwealth's $7.8 million investment.

"These were aggressive targets, but CIT worked a sharply focused plan and the results demonstrate value that is measurable and immediate," said CIT board chairman Dr. Charles Steger, president of Virginia Polytechnic Institute and State University. "The $318.6 million is impact that the Commonwealth can count in this year, but additional value for the Commonwealth accrues for years to come."

The $318.6 million total includes $44.9 million in research and development funding to Virginia's colleges and universities, including $11.1 million to historically black colleges and universities.

The remaining $273.7 million of economic impact for CIT's business clients is comprised of $17.8 million in awards from the U.S. Small Business Administration's Small Business Innovation Research and Small Business Technology Transfer programs and the National Institute of Standards and Technology's Advanced Technology Program; $240.3 million in increased sales revenues, cost savings and private capital raised by 478 client companies throughout the Commonwealth; and, $15.6 million in new salaries created by 208 start-up technology firms in CIT's entrepreneurship programs.

"We're establishing a new track record of performance," said Peter Jobse, CIT president. "With results like these, we're showing the leaders and the citizens of the Commonwealth that the dollars entrusted to CIT achieve an outstanding rate of return."

More information is available at: http://www.cit.org/