The Power of Partnerships

Ben Franklin Technology Partners Responsible for 31,270 Jobs in Northeastern Pennsylvania

What has the Ben Franklin Technology Partnership of Northeastern Pennsylvania (BFTP/NEP) been up to lately?

"We have continued our focus on driving innovation to fuel economic development," says Chad Paul, Ben Franklin's president and chief executive officer, with energy and stamina evident in his enthusiastic voice. "We link Pennsylvania's companies with universities and other resources to help them become and remain competitive through technology. Since we all compete globally, we are building regional collaborations for American competitiveness."

Former partner in Chadwick Telephone, Paul was appointed in 2002 to head BFTP/NEP after he sold his company to Nextlink. He has been working ever since, leading this state-funded economic development organization with a strategic focus that targets three areas:

• Developing early-stage technology-oriented companies;
• Helping established manufacturers creatively apply new technology and business practices to achieve industry leadership; and
• Promoting an innovative community-wide infrastructure that fosters a favorable business environment for high-growth companies.

Since its inception in 1983, BFTP/NEP has helped to start 366 new companies, developed 698 new products and processes, created 11,648 new jobs for Pennsylvania workers and retained 19,622 existing jobs. Headquartered on the campus of Lehigh University, it has regional offices in Lewisburg, Reading and Wilkes-Barre.

"In our work, we emphasize that the pace only gets faster for PA manufacturers and inventors, and that technology is providing solutions to making things better and cheaper," Paul reflects. "Think about it: today's new generation has never seen a record album, and everything is done by email. Technology is the driver." Currently, BFTP/NEP is involved in several major initiatives:

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Action Item 1: Ben Franklin TechVentures Coming to Lehigh University's Mountaintop Campus

Ben Franklin TechVentures is a new high-tech workspace and community for early-stage companies. Formerly the Bethlehem Steel Homer Research Labs, this facility on Lehigh’s Mountaintop campus is uniquely situated to meet the needs of emerging technology-oriented businesses, including the life sciences. The 35,000-square-feet of rentable space satisfies the growing need for incubator space and affordable wet laboratory facilities in the Mid-Atlantic region. Ben Franklin Technology Partners reclaimed and renovated this original site of Bethlehem Steel innovation as an expanded business incubator and post-incubator facility for technology companies.

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Action Item 2: BF Creation of Northeastern PA Fiber Optic Connection for National Economic Security

In the wake of the September 11th attacks, the Securities and Exchange Commission recommended that financial services firms develop reliable backup operations outside New York City. With a separate power grid, water system, and transportation system from New York, and close enough for synchronous data transfer, Northeastern PA is uniquely situated to provide a complete backup of the New York financial markets in the event of another disaster. The SEC action provided the impetus for Governor Rendell to submit the "Wall Street West" proposal for northeastern Pennsylvania. The nine county, $15 million Workforce Investment for Regional Economic Development (WIRED) grant was awarded in February 2006 by the U.S. Department of Labor Education and Training Administration to the Ben Franklin Technology Partners of Northeastern Pennsylvania, which serves as the grant's fiscal agent and project manager.

The three-year federal WIRED grant provides workforce development initiatives to support business attraction in the financial services sector, as well as other technology-dependent sectors. Another part of Wall Street West, the construction and deployment of high-speed broadband connectivity, will provide the necessary infrastructure for this well-trained workforce. Ben Franklin is also leading the creation of this fiber network.

"The prerequisites led to Pennsylvania," notes Paul. "and Governor Rendell tapped Ben Franklin to provide leadership in both proposal development and implementation. Four years and one white paper later, we have selected Level 3 Communications, Denver, CO, to execute the fiber optics contract, which is a critical component of this effort."

Northampton Community College's Monroe campus dean, Matt O'Connell, is chairman of the Wall Street West Executive Committee. "This whole effort has been a tremendous opportunity for Ben Franklin and its partners," says Chad.

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Action Item 3: BF Ongoing Investment in Regional Economic Development

BFTP/NEP's goal is to help lead northeastern Pennsylvania to a better economic future by building partnerships that develop and apply technology for competitive advantage. Throughout the year, BFTP invests in companies and initiatives to accomplish this. A recent funding round, for example, included $528,500 in investment.

The early-stage company investments included:

In Silico Scientifics, Inc., Ben Franklin Business Incubator, Bethlehem
Advance ISS's drug discovery research in the area of type 2 diabetes, obesity, and metabolic syndrome.

Johnson-McCormick Technologies, LLC, Ben Franklin Business Incubator, Bethlehem
Complete beta testing and begin commercialization of proprietary "rVibe" software for the online music industry. Johnson-McCormick's patent-pending software system makes recorded music, licensed from the major record labels and individual musicians, available for a legal, user- and advertiser-paid download via an Internet-enabled peer-to-peer network.

Solid Cactus, Inc., Wilkes-Barre
Solid Cactus is developing and commercializing proprietary software for an e-commerce application directed to Yahoo! Stores as a selected partner of Yahoo! Stores.

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An established manufacturer also received support:

PennSummit Tubular, LLC, West Hazleton
PennSummit Tubular produces tubular steel poles used for electric power and telecommunications transmission and in the transportation and lighting markets. This investment will allow Lehigh University's Enterprise Systems Center to partner with the company to analyze and establish new labor standards reflective of new plant equipment and facility upgrades.

Ben Franklin will also provide financial support to the two Keystone Innovation Zones (KIZs) in northeastern Pennsylvania. KIZs were created to bring early-stage technology companies close to colleges and universities, providing significant tax credit, technology transfer activity funding, and administrative support.

Greater Susquehanna KIZ, Columbia/Montour/Union/Snyder Counties
Key participants in this KIZ, in addition to Ben Franklin, include Bloomsburg University, Bucknell University, Susquehanna University, Geisinger Health System, and the Columbia Alliance for Economic Growth.

Southside Bethlehem KIZ, Lehigh/Northampton Counties
The Southside Bethlehem KIZ is one of the first two KIZs approved in the Commonwealth and upon which the KIZ program is based. The Lehigh Valley Economic Development Corporation is the administering agency for the Southside Bethlehem KIZ, and primary partners in the program in addition to Ben Franklin include Lehigh University, Northampton Community College, the City of Bethlehem, UGI, OraSure Technologies, Good Shepherd Rehabilitation Hospital, Lehigh Valley Hospital and Health Network, and St. Luke’s Hospital and Health Network.

"We are here to support early-stage technology firms and help established manufacturers create new products and implement new processes," says Paul. "Our partnerships and investments create and retain high-paying, sustainable jobs that build northeastern Pennsylvania's economy."

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