PA Legislature's investment in Ben Franklin Tech Partners earns triple payback

February 19, 2009

Joseph Plummer, Keystone Edge

A new analysis of the economic impact of Ben Franklin Technology Partners reports that Pennsylvania's investment in technology innovation has paid for itself several times over. 

According to the Pennsylvania Economy League, which examined the impact of a state investment of $140 million for the 5-year period from 2002 through 2006, companies receiving funds through the Technology Partners generated $514 million in new taxes--paying back about 3 1/2 times the Commonwealth's expenditure.

Even better, the direct return to the Pennsylvania treasury was only a small portion of the total payback of the investment to the economy and people of Pennsylvania. The original investment, which provided early-stage capital for new technology companies as well as innovation in established manufacturers, also created jobs in Pennsylvania that accounted for 32,832 "job-years" of work (equivalent to the number of years of full-time work created by the program that would not otherwise have been present)--10,165 of those "job-years" in the firms that received the direct investment and the remainder spread throughout the state's economy.

"This latest study confirmed the wisdom of continuing to invest public dollars in creating and nurturing technology enterprises and industries," Stephen P. Brawley, president and CEO of Ben Franklin's regional Partner in University Park, said. "The Economy League study shows that since 1989, Ben Franklin has boosted the state economy by more than $17 billion."

Winner of the 2008 Excellence in Economic Development Award from the International Economic Development Council (IEDC) in the category of Technology-Based Economic Development, the Ben Franklin program has provided early-stage investment in new technology to more than 3,000 Pennsylvania companies since the Pennsylvania Legislature created the program in 1982. 

"Companies and communities across the Commonwealth have experienced real benefits from the assistance provided by Ben Franklin," said Steven T. Wray, executive director of the Economy League of Greater Philadelphia, the PEL affiliate that conducted the study.

http://www.keystoneedge.com/innovationnews/benfrank0219.aspx