SSTI Digest

Convincing politicians to make a multi-year investment in a state's economic future is challenging, particularly when commitments made in one budget cycle or administration can be forgotten or ignored so easily in the next legislative session. The FY 2003-04 funding struggle for Michigan's $50 million-per-year-for-20-years life science initiative provides ample evidence: $50 million dropped to $45 million and eroded to $32.5 million because of budget problems. For FY04, the governor has requested only $20 million for the line item and added several other demands on the shrinking pot of funds. Getting a state's General Assembly to stick to it for 20 years, as Pennsylvania's Ben Franklin Technology Partners (BFTP) has seen since 1982, takes strong gubernatorial and legislative leadership across terms, administrations and parties — and results worthy of the increased public funds. And BFTP has delivered, according to an independent impact analysis. The analysis reported that  $311 million in public investments, resulted in 23 to 1 return on the public investment, or a $7.9 billion…

Pennsylvania Governor Edward Rendell recently unveiled an economic stimulus program that will invest nearly $2 billion in bonds and loan guarantees. The stimulus program is intended to leverage at least $5 billion in private investment in economic development projects, creating jobs in Pennsylvania's small and mid-size cities and towns. Key provisions of Plan for a New Pennsylvania include: $500 million for the Pennsylvania Opportunity Fund, a program to provide high demand financing to the state's young companies. Keystone Innovation Zones (KIZs) to improve and encourage Pennsylvania’s research and development (R&D) efforts and technology commercialization apparatus. KIZs would be geographically designated zones of opportunity and innovation designed to harness resources made available through partnerships among institutions of higher education, private businesses, business support organizations, commercial lending institutions, venture capital networks including angel investors, and foundations. There would be no limit on the number of KIZs created, but the zones must be…

Congratulations to Steve Zylstra, his staff and the 1,500-plus members of the Pittsburgh Technology Council as they celebrate the organization's 20th anniversary.

Dr. Donald Smith has been named interim chief executive officer of the Pittsburgh Life Sciences Greenhouse.

Dennis Yablonsky, chief executive officer for the Pittsburgh Life Sciences Greenhouse, is Governor Ed Rendell's pick to serve as Secretary of the Department of Community and Economic Development.

Ben Franklin Technology Partners of Southeastern Pennsylvania (BFTP/SEP), an independent nonprofit economic development organization, has announced the Commonwealth of Pennsylvania's $2 million commitment to establish the Ben Franklin Investment Partners venture guarantee revolving fund. The fund is the first such development financing vehicle of its kind in the U.S. The multifaceted fund provides a guarantee of up to 25 percent of any loss experienced by a group of qualified private investors – angels – in seed investments made in technology companies located in southeastern Pennsylvania. The goal is to respond to the capital needs of these early-stage companies, most of which have experienced difficulties raising early stage risk financing and other challenges as a result of the economy's downturn. Over time, the Ben Franklin Investment Partners guarantee fund is expected to leverage up to $10 million of seed-stage investments from angel investors along with approximately $8 million of companion BFTP/SEP investments. Both BFTP/SEP and non-BFTP/SEP enterprises will have access to…

Kevin Harter is leaving his position as president of the Central Pennsylvania Technology Council to become senior vice president of the new Life Sciences Greenhouse of Central Pennsylvania.

Pennsylvania Governor Mark Schweiker has been named President and CEO of the Greater Philadelphia Chamber of Commerce. The Governor will assume his new position on Feb. 1.

Fritz Bittenbender will become president of the Pennsylvania Biotechnology Association in December.

Innovation Philadelphia, the public-private partnership dedicated to enhancing the global innovation economy of Philadelphia, has unveiled the first Innovation and Entrepreneurial Index, a comprehensive study examining where Philadelphia stands in relation to key competitors in the Innovation Economy. The Index was compiled by measuring the Philadelphia region against seven other competitor regions: Baltimore, Boston, New York City, Pittsburgh, Research Triangle (Raleigh-Durham-Chapel Hill), San Diego, and Washington, D.C./Northern Virginia. The Philadelphia region scored in the second half of this group. Philadelphia is strongest in terms of a desirable location, due to its proximity to the Washington, D.C. — and its public investment dollars — and New York City, with its private investment capital, according to the Index. Philadelphia also scored well in patent productivity, ranking only behind Boston in number of patents produced between 1992 and 1996 and behind Boston and New York in patents between 1997 and 2001. Twenty-nine indicators were used to compare the regions in the…

Dennis Yablonsky, who has been serving as CEO for both the Pittsburgh Digital Greenhouse and the Pittsburgh Life Sciences Greenhouse for most of the past year, has decided to focus exclusively on the biotech initiative. His replacement as president and CEO at the Pittsburgh Digital Greenhouse is David Ruppersberger.

Dr. Melvyn Schiavelli, senior program officer for the Harrisburg Polytechnic Development Corporation, has been named acting president and CEO, succeeding Dr. Charles Clevenger.