On February 8th, Pennsylvania Governor Tom Wolf presented his last budget address to the Commonwealth. While the Governor’s FY 2022-2023 budget is simply a blueprint to begin the tough negotiations that will take place this spring in the General Assembly, language was included that provides a good start towards incremental progress in advancing an innovation agenda for Pennsylvania.
Below is a statement that was shared with the General Assembly by Grow PA to express support for investment in innovation, particularly those efforts outside of our major metropolitan areas of Greater Philadelphia and Greater Pittsburgh. Please share your support with your legislator for increasing resources for innovative programs throughout the Commonwealth and share your stories of success with Grow PA to champion and echo.
BUSINESS COALITION OF CHAMBERS OF COMMERCE SUPPORT GOVERNOR WOLF’S BUDGET BLUEPRINT CALLING FOR INVESTMENT IN INNOVATION
HARRISBURG: GROW PA, a statewide coalition of local chambers of commerce throughout the Commonwealth, applauds Pennsylvania Governor Tom Wolf’s proposed FY 2022-2023 budget plan to invest in innovative programs that grow jobs and Pennsylvania’s economy.
Today, Pennsylvania’s innovation economy faces a significant set of challenges, including the absence of a comprehensive state innovation strategy, below industry R&D that has stagnated in recent years, and reduced investment in state resources for early-stage companies. While other states are advancing in innovation, Pennsylvania is missing out on job growth as it falls behind other states fostering investments in innovation.
Venango Area Chamber of Commerce President and CEO Susan Williams said, “The future of Pennsylvania is dependent on the success of our businesses, specifically those that bring new technologies to the state. The Governor’s support of programs like the Ben Franklin Technology Partners and Invent Penn State ensures that new businesses will be attracted to locate in Pennsylvania. Small businesses and entrepreneurs need support to launch or to grow existing businesses. The Chambers of Commerce witness this need every day and applaud Governor Wolf for understanding the value of these investments.”
Penn State University President Eric J. Barron stated “I am pleased that Gov. Wolf’s budget proposal includes increased investment in economic development programs across the commonwealth, including $2.35 million for Invent Penn State. It is gratifying to see that the governor recognizes the tremendous value of Invent Penn State and wants to invest state resources to expand the great work already underway to foster entrepreneurship and innovation, create new jobs, and strengthen Pennsylvania’s economy. Since 2015, Penn State has invested significant university resources to build out the successful Invent Penn State innovation hub network statewide and has partnered with individuals, corporations, and foundations to maximize our investment — resulting in 96% of Pennsylvanians living within 30 miles of one of our 21 innovation hubs.”
“We support the Governor’s proposed funding for innovation – recognizing that the Commonwealth must play a key role in a competitive environment that includes other states,” said Greater Scranton Chamber of Commerce President Robert Durkin. “Grow PA has crossed the Commonwealth, bringing together institutions focused on economic development, technology transfer, access to capital, and more. We implore the General Assembly to join us in working with the Administration to support this concept – and with that, business and job creation throughout the Commonwealth.”
Grow PA is proposing five solutions:
- Embrace an evidence-based innovation strategy – Pennsylvania should adopt a series of goals steering the state’s innovation policies for a specific timeframe. Some goals could include:
- Driving faster job growth than all Northeast peer states by fostering an improved and supportive business climate;
- Achieving faster median wage growth than all Northeast peer states;
- Creating the most diverse innovation ecosystem in the nation and doubling venture capital investment in the state.
- Strengthen Business R&D in the state – R&D investment boosts productivity and increases the likelihood that startups will survive to grow their hiring.
- Build Centers of Innovation – Pennsylvania must form innovation centers for specific economic sectors, each tethered to a research university established in that sector. The Commonwealth’s innovation engines represented by our research institutions such as CMU, Drexel, Penn State University, the University of Pittsburgh, and the University of Pennsylvania already drive tremendous economic growth. The state needs to do more to invest in and bolster these research universities in key sectors such as ag-tech, advanced manufacturing, materials; medical devices; AI, robotics, computing; vaccine development; human therapeutics, sustainable energy, data sciences, autonomous vehicles, and nanotech.
- Bolster state investment in early-stage financing – early-stage and venture capital are essential for turning academic and other research breakthroughs into commercial products with positive benefits for the economy.
- Mitigate significant spatial divergence – Large innovation centers receive a disproportionate share of state innovation inputs and produce a disparate share of state output, above and beyond their share of employment and population. Smaller areas, meanwhile, have struggled with fewer investments, which has contributed to harmful economic trends like negative real employment growth over the past decade. This extends to physical investments, including broadband, necessary to spur growth in the modern economy.
Chamber of Commerce for Greater Philadelphia President Rob Wonderling said, “Boosting support for programs like the Ben Franklin Technology Partners and Invent Penn State, which serves a geographically diverse network, will help grow free enterprise and jobs in areas outside urban centers. In fact, some 96 percent of Pennsylvanians live or work within just 30 miles of a Penn State Launchbox, making these sites truly accessible to the majority of the Commonwealth. Located in places like Dubois, Hazelton, Beaver Valley, Berks, and numerous other locations statewide, Invent Penn State provides underserved business communities with public resources, private funds, and programming to uplift small businesses and entrepreneurs to spur economic growth and accelerate our innovation economy.”
For additional information about Grow PA, visit here. To receive a copy of the innovation case statement, please email Liz Ferry at lferry@chamberphl.com or call 215-356-8252.
Grow PA’s important work could not be possible without the leadership and support of Essential Utilities, The Penn State University, Archer, First National Bank, Exelon, and Audubon Land Trust.
