HARRISBURG – Gov. Edward G. Rendell has stressed the importance of supporting promising new Pennsylvania companies as he announced recent state investments that will advance cutting-edge alternative energy technologies, bring new products to the marketplace, and provide crucial seed money that will fuel future economic growth and create new jobs.
“Technology-based industry is a huge economic driver for Pennsylvania,” Gov. Rendell said. “By using our resources wisely, we are equipping our universities, venture capital firms, and economic development partners with the tools they need to bring new ideas to the marketplace and support young companies. These investments will help solidify our reputation as a leader in technology investment.”
The Ben Franklin Technology Development Authority, or BFTDA, approved the investments totaling $6 million last week during its quarterly meeting. BFTDA has leveraged more than $2 billion since 2003, resulting in 14,000 high-value jobs, Gov. Rendell said. The newly approved projects include:
Technology Development Grant Program
Philadelphia-based University City Science Center received a $200,000 technology development grant to support a program that bridges gaps between university scientists, technology transfer offices and the commercial and investment worlds. The program helps reduce business risk and increase the attractiveness of investment in intellectual property within its member universities.
University Research Grant Program
Lehigh University received $1 million through the university research grant program to support the final round of funding of the Center for Optical Technologies. The funding will be used to implement initiatives from a partnership between Lehigh University, Penn State University, and Northampton and Lehigh Carbon community colleges.
Other University Research Grants supporting Pennsylvania Initiatives for Energy are:
The Energy Commercialization Institute received $1.2 million to support the first regional partnership in southeast Pennsylvania for advancing alternative and clean energy technologies. The funding will focus on high-impact energy areas of transportation and generation with the founding partners of the Ben Franklin Technology Partners of Southeastern PA, the University of Pennsylvania, and Drexel University.
Lehigh University received $700,000 to support the university’s energy and environmental research initiative. The funding will be used to support energy and environmental research projects, with a focus on electric power generation, alternative fuels, and to investigate related energy reduction strategies and environmental impacts. In addition, the funding will support creating the Energy Systems Institute and a partnership with Northampton Community College’s Electrotechnology Applications Center to recommend energy efficiencies for Pennsylvania businesses.
Penn State received $700,000 to pursue commercially viable distributed power management products in partnership with Drexel University at the Philadelphia Navy Yard.
The University of Pittsburgh received $700,000 to support an initiative to advance technologies in nuclear, mining and electrical power and advanced materials.
Venture Capital Investment Program
DreamIt Ventures II & III L.P., Philadelphia, received $250,000 to make investments in 20 to 30 “pre-seed” companies that are developing new-generation technology companies in the Philadelphia region.
Philadelphia-based Mid-Atlantic Angel Group Fund II L.P. (MAG II) received $1 million to invest in seed and early stage technology and life science companies in Pennsylvania. MAG II ultimately will invest at least $4 million in Pennsylvania companies and has teamed with leaders in northeastern Pennsylvania as part of a special initiative to increase investment in the Scranton/Wilkes-Barre/Hazelton areas.
Keystone Innovation Zone (KIZ) Program
Huntingdon County Business and Industry Inc. was allocated $100,000 in round-three funding for the Huntingdon County Keystone Innovation Zone. Administered by HCB&I and operated out of the Juniata College Center for Entrepreneurial Leadership, the KIZ will continue to focus on supporting its existing KIZ companies and encouraging the creation of new enterprises. The Huntingdon County zone will also continue to support its companies through the micro-grant program, offering much-needed funds to entrepreneurs.
The Centre County Industrial Development Corp. was awarded $62,500 in round-four funding for the I-99 Corridor Keystone Innovation Zone that will be used to create 35 new jobs while retaining another 125. The KIZ has committed to identifying and supporting at least 156 new start-up companies and early stage companies interested in locating in the I-99 Corridor KIZ. In 2009, the KIZ, through a formal relationship with the Chamber Foundation of Centre County, will launch a new initiative to fund and conduct workforce assessments and specialized training for companies located in the zone.
Great Valley Technology Institute was allocated of $200,000 for the continued operations of the Lackawanna County and Luzerne County Keystone Innovation Zones. Fifth-year funding for the two KIZs is being provided through the technology development grant program and will assist the zones in creating new jobs, supporting new KIZ companies, and placing college-level interns in highly skilled positions with local KIZ companies.
The Lehigh Valley Economic Development Corp. was allocated $100,000 for the continued operations of the Southside Bethlehem Keystone Innovation Zone. Fifth-year funding is being provided through the technology development grant program. The Southside Bethlehem KIZ, in partnership with Lehigh University and the Northampton Community College, has proposed to continue funding the technology transfer program, assisting 10 new or early stage ventures, and creating at least 15 new jobs within the zone. In conjunction with the City of Bethlehem, the KIZ will help develop a new commercialization center inside the zone during this funding cycle.