Pittsburgh, Pennsylvania: A TBED Success Story

Pittsburgh could very well be the national poster child for successful economic transformation through intelligent, strategic investments in tech-based economic development (TBED). To see it now, one might forget in the late 1970s through mid-1980s, Pittsburgh was experiencing one of the most devastating economic jolts imaginable as U.S. steel and manufacturing adjusted to increased global competition. Within 10 years, the region’s population fell by half.

At a crossroads, Pittsburgh and Pennsylvania leaders were faced with a challenge — take aggressive action to creatively stimulate the economy, or accept defeat and watch the region continue to wither. From this challenge emerged a unique idea at the time — fund technology research and seed the economy with money for the creation of tech companies.

The primary TBED initiatives in Pittsburgh and across Pennsylvania over the past 27 years have been the Commonwealth’s Department of Community and Economic Development (DCED) and the Ben Franklin Technology Partners. In the last 10 years alone, the Ben Franklin partner for Southwestern Pennsylvania — Innovation Works — has invested $43 million in regional startups that has helped to attract more than $750 million in additional capital to these companies and the region’s economy.

At the same time, DCED has developed a number of programs furthering the TBED agenda:

• The Venture Investment Program, in spite of the economy, enabled Pennsylvania to achieve its highest VC investment level in 2009, ranking fourth nationally in venture deals.
• The Keystone Innovation Zone Program created 29 zones in partnership with 97 universities. The program has leveraged more than $100 million while creating more than 200 startup companies and assisting 1,400+ companies.
• The University Research Grant Program has helped in generating 280 patents and licenses and assisted nearly 1,500 businesses.

Pittsburgh is fortunate to have others involved in building specific industry clusters:

• The Pittsburgh Life Sciences Greenhouse has been instrumental in creating regional entrepreneurial strengths including medical devices, diagnostics, and therapeutics.
• Catalyst Connection and fellow Industrial Resource Centers have helped to ensure that Pennsylvania’s largest employment sector — manufacturing — remains a leader.
• Idea Foundry has helped dozens of entrepreneurs turn business plans into fundable technology startups.
• And, numerous others in the Pittsburgh region have created regional clusters around MEMS, green building products, robotics, healthcare, IT and electronic gaming.

Pittsburgh’s economic revitalization via TBED is nothing short of astounding; it needs to be seen to be fully believed. Join us in September to find out for yourself why Pittsburgh is one of America’s “Most Livable Cities”!

For TBED success stories and more information on the Pennsylvania Department of Community and Economic Development, visit www.newPA.com.