PENNSYLVANIA Budget Situation and Policy Priorities projected at over $4 billion, incoming Governor Tom Corbett called on the general assembly to hold the line on taxes and to enact spending cuts in order to help close the gap. The governor also called for a renewed focus on free enterprise and reform in laying out his vision for the commonwealth. In addition to his “no new taxes” pledge, the governor and his administration entered this year’s session with a variety of agenda items and proposals focused on job creation. In order to spur development of the commonwealth’s oil and gas resources, the administration created a task force to identify growth strategies and review regulatory standards. The governor has called for cuts to taxes on business inventories, and has made a commitment to continuing support for job-creating tax credit programs. Privatization of state-run functions is also on the table, with the governor backing a study on what functions might be successfully spun off to private interests, potentially cutting costs and creating privatesector business opportunities.
Encourage Commercialization, Support Startups Pennsylvania has made a focus on trade a key part of its economic development activities, and continues to be a solid performer in trade measures. The commonwealth’s network of Pennsylvania Trade Representatives is located in over 20 countries around the globe, offering liaison services for Pennsylvania companies interested in accessing new markets and for foreign companies interested in doing business in the commonwealth. Pennsylvania’s Center for Direct Investment offers foreign companies support services for accessing the Pennsylvania market and identifying promising business opportunities. The Center is focused on creating a friendly environment for foreign investment by helping foreign companies to set up U.S. subsidiaries, deal with labor issues, identify sites for development and expansion, act as a point of access to business incentive programs, and connect investors with Pennsylvania-based partners. The Center for Trade Development was created to help the commonwealth’s exporters expand their reach and trade capacity, offering services including market research, connections to potential trade partners, and access to trade shows and trade missions. Pennsylvania also offers Market 102
Pennsylvania’s Place in the Rankings 4th
Growth in Share of National Exports
8th
Short-term Job Growth
9th
Higher-ed Degree Output
11th
Export Intensity Growth
12th
High Speed Broadband Intensity
13th
High Speed Broadband Availability
14th
Median Family Income
16th
Export Growth
18th
Educational Attainment
21st
Economic Output Per Job
21st
STEM Job Concentration
24th
Per Capita Income Growth
25th
Long-term Job Growth
Access Grants to small and mid-sized companies in the commonwealth that are interested in accessing global markets. The grants are offered on a matching basis, and can be used to pay for expenses incurred in attending trade shows, participating trade missions, and conducting marketing trips abroad. Pennsylvania also offers an online “virtual trade advisor” which allows small companies to explore potential trade options and examine market information before approaching other commonwealth The Ben Franklin Technology Partners is one Pennsylvania’s longest running innovation-based economic development programs. Active for over 25 years, the program works to encourage technology commercialization, support entrepreneurial technology
for technology development in the commonwealth. The Financing is a key part of the program, which makes direct seed investments in technology start-ups, supports technology investor groups, and helps entrepreneurs gain The program also offers mentoring and business support services to new technology entrepreneurs, and connects start-up companies to university research facilities around the state.
Pennsylvania has also looked to use university resources to help drive modernization of its manufacturing sector, thereby protecting and creating jobs. The commonwealth’s Agile Manufacturing program, offered in partnership with Lehigh University, works to support manufacturing provided by the program are used to pay for support services from Lehigh faculty and staff, purchase needed equipment for upgrades, and hire outside consultants to drive adoption of advanced manufacturing techniques. A variety of small business job creation supports also
The Pennsylvania Innovation Partnership (IPart) is another program focused on helping technology start-ups thrive and create high-quality jobs in the commonwealth. The program works to connect entrepreneurs in clean tech, energy, life sciences, and other target industries to access federal research funding in support of technology commercialization activities. The program offers companies on the hunt for federal grant opportunities support in creating effective proposals, with proposal writing assistance and draft review services. As a supplement to the Keystone Innovation Zone program, the commonwealth offers Innovation Grants to build out research infrastructure in support of technology transfer and commercialization efforts. The grants are provided promotion organizations, and academic medical centers, and they must be matched by funding not sourced from the commonwealth. In order to assure that communities throughout the state maintain a strong inventory of development-ready sites for potential business creation and expansion, Pennsylvania created a Business in Our Sites grant and loan program. The program offers communities support “shovel ready” for business use and job creation. Private developers may also qualify for support. Backed by a $300 million loan pool, the program offers developing agencies up to $5 million in support of a project, with a matching is also supported through Pennsylvania’s Infrastructure Development Program. The program is designed to
agenda. The Small Business First Program provides small entrepreneurs with low-interest loans of up to $200,000 for use in acquiring land, equipment, or facilities and for working capital. Loan availability is tied to the number of jobs created by a company and the Business Opportunities Fund to small entrepreneurs, with a particular focus on women- and minority-owned enterprises. Businesses used as working capital and for equipment and property acquisition.
Clusters in Pennsylvania Largest Cluster: Business & Financial Services, 793,462 jobs Largest Growth Cluster: Business & Financial Services, 101,328 new jobs since 2002 Most Competitive Cluster: Defense & Security, 16,600 new or retained jobs due to state competitive advantage Most Concentrated Cluster: Primary Metal Manufacturing, 2.38 times the national concentration level
private infrastructure development. Low-interest loans are used to back the building of infrastructure in support of economic development, including transportation, rail and port, and telecommunication installations. 103