1	"Keystone Innovation Zones" Keystone Innovation Zones June 2007
2	Keystone Innovation Zone Overview Program was established as part of the Rendell Administration’s Stimulus Package At its basic level our KIZ will Access the knowledge base of our communities allowing for the development of entrepreneurial business incubators that will focus on five primary areas: Encourages the creation of new businesses Grows and expands the entrepreneurial (R&D) sector of economy Maximizes the “knowledge zones”– access to R&D, workforce, tech transfer, capital, and business services Facilitate technology transfer to existing companies Improves the economy and attractiveness of communities (ie, Main Street & Elm Street programs)
3	Keystone Innovation Zone Overview Keystone Innovation Zones Twenty Six Zones approved by the Ben Franklin Technology Development Authority to date. Visit www.NewPA.com for complete list of Zones Over 30 institutions of higher education have signed on as KIZ partners Opportunity to leverage almost 200 institutions of higher education Several of these institutions of higher education have embraced economic development as a priority while others are beginning to
4	"Zone Structure" Zone Structure Geographic zones that relate to research and entrepreneurial based institutions of higher education Zones must identify a strategy, target industries and boundaries Establish a partnership to include: institutions of higher education, business, economic/workforce development organizations, financial institutions, venture capital and angel investors, foundations and local government Partnership identifies a KIZ coordinator to administer the zone. Institutions of higher education are prohibited from being the KIZ Coordinator DCED’s Technology Investment Office certifies zone geography and seeks approval for funding from the Ben Franklin Technology Development Authority
5	"Benefits to KIZ Companies" Benefits to KIZ Companies $25 million per year in tax credits will be available to eligible companies located in a zone. Guidelines are being developed. Applications accepted starting September 15, 2006 $100,000 max per year 50% of the increase of gross revenues over two years (2004 and 2005) Carry forward or transfer for CASH A continuum of coordinated services is created to build new and expand existing college and university R&D facilities, provide venture capital, offer traditional financing, and workforce development benefits Builds partnerships with colleges and universities for technology transfer, joint R&D, curriculum development and access to a skilled workforce DCED is a committed partner and will provide support to the zones by providing access to programs, services and facilitating priority reviews by other DCED program areas
6	"Benefits to Institutions of Higher..." Benefits to Institutions of Higher Education $10 million over three years will be available for Innovation Grants designed to provide institutions of higher education with the resources to jump start the transfer of technology into new companies. Targeted to KIZ colleges and universities located in a certified Zone Potential eligibility includes tech transfer offices, subsidized services, collaborative efforts between colleges and/or universities Commonwealth provides infrastructure assistance through financing programs – includes incubators, lab space, design centers and research facilities Improves the local economy and the campus community – allows universities to increase enrollment, attract top faculty/researchers Assistance with the development of curriculum, integration of programs, and workforce development
7	Keystone Innovation Zone Overview Benefits to Communities Development of a joint economic growth plan between educational institutions, economic developers and the communities around these institutions Provides access to Main Street and Elm Street programs to upgrade the community’s business and retail corridors Developers working with KIZs would receive priority review of applications for stimulus package-related programs administered by DCED Promotes and stimulates the economic growth and appeal of communities where zones are located – job creation, new companies, additional amenities that improve the quality of life and attractiveness in the community.
8	Tri-County KIZ Round One Proposed Deliverables Visit 20 – 25 companies with R&D potential and provide business assistance Identify and facilitate at a minimum 5 viable projects between academia and industry Collaborate and submit 2 – 4 patent applications Collaborate and submit 2 – 4 SBIR/STTR federal grand applications Hold at least 2 IP-related workshops for KIZ partners Participate in at least 3 career events within the Tri-County Area, linking students & industry Attend at least 2 industry trade shows Provide research and business plan competition grants Provide 2 undergraduate scholarships in KIZ targeted industries ($5,000 each) Place 5 student interns at KIZ-participating companies Assist at a minimum 2 new business start-ups Create 8 - 10 new jobs Retain 8 - 10 new jobs Collaborate with PSU DuBois on the submission of a Keystone Innovation Grant, if appropriate Utilize existing monies for incumbent worker training (ie, CJT, WED-Net), when appropriate and necessary
9	Target Industry Strengths Advanced/Diversified Manufacturing Precision and Performance in Sintered Components; Full-Density, High-Precision, High-Value Products and Processes; Tailored and Functionally Designed Hard Materials; Rapid Fabrication of Prototype Components and Tooling; Computer Simulation and Process Control; Designer Materials; Micro-miniature Device Fabrication and Biomedical Devices Information Technology There are four federally recognized components of Information Technology: Network Systems, Program/Software Development, Interactive Media, and Information Support Services/Management Information System. Given that IT knows virtually no boundaries or limitations with regard to the marketplace, the Tri-County Area, with its educated IT workforce and low cost of living is rich for IT recruitment opportunities. The Tri-County KIZ proposes to take a different approach with the IT industry cluster: support the current local initiatives and bolster awareness in both the quality of the workforce and the ability of schools to offer customized IT training to incoming investors and businesses. Energy (includes energy efficiencies) The inclusion of Biomass/Energy as a target industry is based on the regions existing industry resources and potential for growth in this sector. Several companies in the Tri-County Area are presently exploring the potential for use of various fuel sources for conversion into biomass energy while others are conducting on-going product development in the field of industrial air quality.
10	Tri-County KIZ Academic Programs R&D Facilities, Equipment Research Personnel Undergrad opportunities Internships Scholarships Undergrad research Technology Transfer, Commercialization Continuing Education K-12 Initiatives, Tech Prep
11	Tri-County KIZ Community Benefits Stop the Brain Drain! Capitalize on existing resources Marketability Technology investment Job creation