Cutting Ben Franklin Technology Partners funding would hurt job creation, retention in Pennsylvania
June 12, 2009
R. Chadwick Paul Jr., Morning Call
Creating well-paid, sustainable jobs in growing technology sectors will continue to be key to a flourishing economy in Pennsylvania. The best response to our current economic challenge is to continue to invest in early-stage technology firms and in innovation at established manufacturers.
A bill in the state Senate would cut funding 60 percent for the Ben Franklin Technology Development Authority, the body that funds the Ben Franklin Technology Partners program statewide. This is an extremely challenging year for the state budget, and difficult decisions must be made. But decreasing funding for Ben Franklin would reduce Pennsylvania job creation and job retention, and result in a net revenue loss for the commonwealth.
Since 1983, the Ben Franklin Technology Partners of Northeastern Pennsylvania alone has helped companies create 13,931 jobs and helped them retain 20,772 existing jobs. These are highly paid, sustainable jobs. Ben Franklin's statewide impact has been measured and validated in an independent study by the Pennsylvania Economy League. For 2002-06, it shows:
For every $1 invested, $3.50 of additional tax revenue was returned to the state. Therefore, cutting the Ben Franklin budget would actually hurt the state budget by a factor of 3.5. Ben Franklin boosted the Pennsylvania gross state product by $9.3 billion. Jobs created by Ben Franklin clients pay 33 percent higher than the average non-farm salary here.On average, Ben Franklin clients employed five more people in each year following funding than they would have in the absence of the Ben Franklin investment.
Spreading the budget-cut pain across all the programs supported through public tax dollars may be superficially appealing. But it will not lead to the thoughtful actions necessary to focus state appropriations toward activities that directly address our most pressing problems. Citizens must ask legislators to focus on programs that create and retain highly paid sustainable jobs. As the General Assembly discusses the budget, legislators must not cut back on the very strategic investments that will lead us out of the recession. The Ben Franklin Technology Partners is one such investment.
Ben Franklin was created in 1983 to lead the transformation of Pennsylvania into a 21st century technology epicenter. Supported by every administration and the General Assembly since then, it has evolved into a dynamic resource that is developing and growing the commonwealth's technology industries and converting Pennsylvania ideas into highly paid Pennsylvania jobs.
Operating through offices in the Lehigh Valley, Philadelphia, Pittsburgh and State College, Ben Franklin services are available throughout the commonwealth. Its investments, services and access to resources help emerging companies succeed, established companies to innovate and grow, and supports the development of a vibrant entrepreneurial culture.
The Ben Franklin program has been widely praised and modeled for more than 25 years. Just this year, the International Economic Development Council named the statewide Ben Franklin program as the winner of its Excellence in Technology-Based Economic Development award. Ben Franklin has distinguished itself as the nation's premier provider of early-stage seed capital and related technical and business assistance services.
Entrepreneurship and technological innovation will drive the economic recovery and sustain long-term economic growth. History has demonstrated that innovation and business growth often hit new strides during times of economic transition. In fact, 18 of the 30 current Dow Jones industrial index companies were launched during economic downturns, according to research by Reference Capital Management, a venture capital fund.
Ben Franklin is a successful catalyst in northeastern Pennsylvania. Its work will help to cushion the downturn, hasten recovery, and position northeastern Pennsylvania for future economic success. Now is not the time to cut back on its funding.
R. Chadwick Paul Jr. is president and chief executive officer of Ben Franklin Technology Partners of Northeastern Pennsylvania, with offices in Bethlehem.