Governor announces $6.4 million to support KIZs
Gov. Edward G. Rendell last month said that new investments will help build partnerships between Pennsylvania's colleges and universities, communities and companies to launch new business endeavors in the commonwealth many geared towards fast-growing area's of the advanced technology sector.
The governor announced more than $6.4 million to attract more of the world's leading academic faculty to Pennsylvania's colleges, universities and medical institutions and help launch strong companies that can develop and commercialize new products, while creating new opportunities for Pennsylvania's graduates.
"Our academic institutions are a tremendous resource, and can serve as a catalyst for creating new opportunities in advanced technology industries," Rendell said. "Working with partners in the community and area businesses, our colleges and universities can nurture start-up businesses into successful enterprises that provide exciting career opportunities for our young, talented graduates, and strengthen the state's economy.
"The investments we're making today will help expand the success we've achieved putting this practice to work. It shows how we can strategically use our resources to attract millions of dollars in private sector financing and position Pennsylvania as a leader in rapidly advancing fields that will drive tomorrow's economy," he said.
Rendell stated that the multi-million investment included two initiatives under the state's Keystone Innovation Zone (KIZ) program initiatives - the Keystone Innovation Starter Kit and Keystone Innovation Grant programs. These programs will advance the development of new products and improve the ability of Pennsylvania's technology companies to compete in the advanced technology marketplace of the 21st century.
"Pennsylvania is leveraging its resources to help move the exciting research and development work being done at our academic institutions and innovative companies from the laboratory and drawing board to the marketplace," added Rendell. The investments we're making today are another step in building a solid infrastructure that supports this commercialization work, which in turn strengthens a companies presence in Pennsylvania and it bolsters our economy."
Through the KIZ program, more than 26 zones have been established, where 1,446 jobs have been created and another 2,043 positions retained.
Seventy-eight new companies have also been established with the support of the KIZ program.
The $10 million available for Keystone Innovation Grants over the next several years is designed to help entrepreneurs working with participating KIZ colleges and universities commercialize new technologies and products.
In addition, the grants are used to provide seed capital in the form of grants or loans for faculty and students to conduct business plan and marketing analysis, prototyping, patent research and filing, intellectual property and licensing, and royalty agreements to aid in the creation of new technologies and business opportunities.
As part of Governor Rendell's job Ready Pennsylvania initiative introduced in 2005, the Keystone Innovation Starter Kits are designed to help universities recruit top faculty researchers.
The starter kits awarded during Rendell's announcement will bring approximately 17 new faculty, which will result in an additional 120 support positions to universities throughout the state within three years. It is expected that additional faculty will also be able to secure more than $12 million in additional funding during that time.
See box above for northeastern Pennsylvania KIZ grant recipients.
In addition to Rendell's announcement, the Ben Franklin Technology Development Authority (BFTCDA) also approved funding for The Columbia Alliance for Economic Growth. It was awarded $150,000 to continue operating the Greater Susquehanna KIZ program. With support from its partners including Bloomsburg, Bucknell and Susquehanna universities; the Ben Franklin Technology Partners/Northeastern Pennsylvania; and Geisinger Ventures, the Greater Susquehanna KIZ has helped create 18 companies and more than 30 jobs throughout the region since it was established in November 2005.