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Report affirms Pennsylvania's position as a technology leader
For the fifth-consecutive year the AeA (the former American Electronics Association) has cited Pennsylvania as a Top 10 national leader in the creation of technology jobs. The AeA’s Cyberstates 2001 report (released June 5, 2001) found that technology employment in the Commonwealth reached 187,300 workers in 2000. The report noted that 48,600 high-tech jobs were created in Pennsylvania between 1994 and 2000.
Cyberstates 2001 is the fifth edition of the AeA’s Cyberstates reports. The report is based on the most current U.S. government data. According to the report:
·Pennsylvania ranked ninth in high-tech employment growth;
· Pennsylvania climbed to third from fourth in consumer electronics manufacturing, employing 7,900 workers;
· Pennsylvania maintained its rank as fourth in industrial electronics manufacturing, employing 15,100 workers;
· Pennsylvania maintained its rank as fifth in electronic components and accessories manufacturing, employing 18,209 workers;
· Pennsylvania’s technology workforce earned an average wage of $56,200 in 1999, up 10 percent from 1998 and 74 percent more than the state’s average private-sector wage;
· Pennsylvania ranked 13th in venture capital investments, with $2.1 billion, up from $566 million in 1999; and
· Pennsylvania climbed to 12th from 13th in high-tech exports, with $4.1
billion in electronics exports in 2000.
“The Keystone State is a cornerstone for the high-tech industry,” said Bill Kroll, Chair of the AeA’s New Jersey-Pennsylvania Council and Senior Vice President of Matheson Tri-gas. “In fact, Pennsylvania is home to some of the country’s most innovative high-tech companies.”
Technology a key component of Pennsylvania’s economic-development efforts, and includes such measures as: launching the nation's first-ever “Tax-Free PC” shopping week to encourage home computer use; enacting legislation to make Pennsylvania the first state to enact a uniform Electronic Transactions Act; eliminating the 6 percent sales tax on computer services; creating the research-and-development tax credit; leading technology trade missions abroad to increase high-tech exports and high-tech jobs for Pennsylvania; launching the Technology 21 initiative to catapult Pennsylvania into the top 10 states for high-tech business; creating the “Made-in-PA” database of Pennsylvania-made products; and expanding the Net Operating Loss carry-forward provision to give technology startups a tax deduction.
The New PA Venture Guarantee Program guarantees up to $250 million in potential losses incurred by venture capital funds investing in Pennsylvania businesses. To participate, VC funds must match every state-guaranteed collar with at least one of their own, thus leveraging aid to Pennsylvania startups to at least $500 million. A similar program, the New PA Venture Capital Investment Program, provides $60 million in loans to VC funds investing in the state, again requiring a matching investment to raise the benefit to $240 million.
In 2002, 47 companies received $249 million in VC investments. In the past five years Ben Franklin Technology Partners have provided $35.4 million to 258 IT companies and the Ben Franklin Technology Development Authority has provided over $33 million in investments which have leveraged over $579 million in capital for Pennsylvania companies.
Another important initiative sponsered by the state of Pennsylvania is The Pittsburgh Digital Greenhouse, which was established to advance System-on-Chip (SOC) technology. By bringing together leading companies, world-renowned universities and private organizations, PDG offers the best in research, talent and recruitment, electronics infusion, expansion support, and education and training.
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