The economic impact study shows that technology companies funded by the Ben Franklin Technology Partners (BFTP) boosted the state economy (gross state product) by $9.3 billion from 2002 through 2006.

"The study shows that as federal and state policymakers look for proven ways to stimulate the economy, investments in new technology companies and industries should be a priority," says Rebecca Bagley, deputy secretary of the Pennsylvania Department of Community and Economic Development (DCED).

BFTP funding comes from the Ben Franklin Technology Development Authority under guidelines that target promising companies in technology-driven fields such as information technology, biotechnology, nanotechnology, electronics, communications, advanced manufacturing, advanced materials and alternative energy and green technology.

Real Benefits, Real Results
"We found that companies and communities across the Commonwealth have experienced real benefits from the assistance provided by BFTP," says Steven T. Wray, executive director of the Economy League of Greater Philadelphia, which conducted the impact study. "BFTP companies have developed new products, established production capacity and contributed new jobs and income. They've also expanded the state's tax base."

"From 2002 through 2006, the Commonwealth received more than $517 million in additional state tax revenues as a direct result of BFTP programs," says Terry Singer, BFTP director of statewide affairs. "That represents a 3.5-to-1 payback to the state on its $140 million investment during the same period."

Other Key Findings:

• From 2002 through 2006, BFTP generated an additional 10,165 job-years* in client firms, and as a result of the ripple effects of client investments, generated another 22,667 job-years in Pennsylvania beyond that. The result was that BFTP produced a total of 32,832 job-years in the state that otherwise would not have existed.
• BFTP-supported companies are in industries that pay relatively high annual salaries and wages. The weighted-average annual salary for BFTP industries is $54,509, or 33 percent higher than the average for all private nonfarm industries in Pennsylvania.

The Pennsylvania General Assembly created the BFTP network in 1982 to grow technology companies and create new high-wage industries in the state. The 2008 study was the third impact evaluation of BFTP programs, the first conducted by the Pennsylvania Economy League.

Pennsylvania received more than $517 million in additional state tax revenues as a direct result of BFTP programs from 2002 through 2006—a 3.5-to-1 payback to the state on its $140 million investment during the same period.

"This latest study confirmed the wisdom of continuing to invest public dollars in creating and nurturing technology enterprises and industries," Singer says. "The Economy League study shows that since 1989, BFTP has boosted the state's economy by more than $17 billion."

During its 25-year tenure, BFTP has invested in more than 3,000 companies. Many were at the earliest stages of development when they first sought assistance—when fundraising is most critical and hardest to obtain.

A Significant Endorsement
BFTP has often been the first institutional investor for firms, providing seed capital for initial product development and commercialization efforts. The network follows a competitive process that carefully considers a firm's potential for success and job creation before investing state funding. A BFTP investment is a recognized and significant endorsement to an early-stage firm, earning it credibility and attention from follow-on investors.

BFTP earned international and national recognition for its technology development effectiveness in 2008, including the 2008 Excellence In Economic Development Award from the International Economic Development Council (IEDC) in the category of Technology-Based Economic Development. The IEDC has more than 4,500 members across the U.S., Canada, Europe, Australia, New Zealand and other nations.

It also won the 2008 U.S. Department of Commerce Economic Development Administration Economic Development Award for Technology-led Economic Development in recognition of its recent achievements and work over the past 25 years.