Fayette/Washington Keystone Innovation Zone : Locations

What is a KIZ?

A Keystone Innovation Zone (KIZ) is an area around a college or university designed to foster innovation and create entrepreneurial opportunities. In the zones, business leaders, academic researchers and economic development officials are encouraged to blend their talents and resources to foster the success of new companies. Partnerships will involve institutions of higher education, private business, business support organizations, commercial lending, venture capital groups, angel networks and foundations. In the Fayette-Washington KIZ, the participating institutions of higher learning are: Penn State Fayette, California University of Pennsylvania and Washington & Jefferson College.

What are the eligibility criteria to be considered a KIZ company?
• In operation less than eight years
• Operating in a designated Fayette-Washington Keystone Innovation Zone
• Operating within one of the targeted industry sectors

Benefits available to companies and colleges/universities

Transferable tax credits

Preferential consideration for (DCED) PA Department of Community and Economic Development programs

Stipends for internships

Micro grants for companies

KISK and KIG grants for colleges and university partners

What are the targeted industry sectors of the FWKIZ?

Energy
Energy has become a priority for our nation and for its people. There continues to be a growing appetite here in the United States for energy and also a demand for energy alternatives. Our region is rich in natural resources such as coal, natural gas and wind. In addition there is a strong research base and a willing workforce. The state is setting the stage to achieve a goal of energy independence by 2020. There are clear environmental benefits to air and water quality with the focus on renewable and clean energy, but what appears to be less obvious is the impact that it will have on the economy. It is projected by the U.S. Department of Energy’s National Renewable Energy Laboratory, Pennsylvania’s alternative energy program alone could create an estimated 3,500 jobs and $2.5 billion in increased earnings. Additional jobs and earnings will be created with the exploration and drilling activities related to the Marcellus Shale natural gas field that is part of our region.

Defense
Defense and homeland security remain strong concerns for the United States of America. Terrorist activity is still alive in Iraq, Iran and Afghanistan. Our borders remain open and threats against our country appear to continue. Federal spending continues to remain strong in this target industry. The 2008 budget of the Department of Defense (DoD) anticipates expenditures of roughly $102 billion in procurement programs, and another $75 billion in research, development, testing, and evaluation programs. Our region has successfully worked with Pennsylvania’s congressional delegation to stimulate growth with defense-related firms planning to locate here. By supporting these companies and their projects, the DoD spending can be a significant economic driver for the region. This region has a rich history and has prospered in the past by supporting the military. From bending metal for aircraft, to steel produced for making tanks and ships, Southwestern Pennsylvania remains fueled with talent, resources and technology.

Information Technology
Information Technology was chosen as a target industry because employment in this sector has increased dramatically since 1990 and now ranks as one of the region’s top growth industries. Information technology is fundamental to virtually any industry and is a backbone to the economy. Entire industries have emerged around software development, data management, systems design and management, the internet and computer and system security. This industry often requires low capital investment which keeps the door open to entrepreneurs who need only to capture a toe-hold of customers to grow to the scale of a Microsoft or Apple. When you think of information technology crossing over into energy and defense projects, the possibilities seem endless. Much of the new weaponry that is used in war today is reliant on computers.

Why should a company/startup locate in the FWKIZ?

There are many reasons and opportunities for a company/startup to be in a FWKIZ
.
• Companies/start-ups may be eligible to receive funding to facilitate research or collaboration with the regions institutions of higher education. This type of business climate will lead to technology entrepreneurship in our immediate region.
• Companies/start-ups can strengthen their staff with young local talent by hiring a summer intern. Companies/start-ups will receive a stipend that will cover up to 50% or $3000 of their wages through a program offered by the Catalyst Connection.
• Companies/start-ups can receive a sellable tax credit up to $100,000.
• Preferential consideration for (DCED) PA Department of Community and Economic Development programs.

Additional assistance available to a company/startup within the FWKIZ?

• Pennsylvania Industrial Development Authority (PIDA) for details go to www.newpa.com
• Machinery And Equipment Loan Funds (MELF) for details go to www.newpa.com
• Job creation tax credits

Intern placement

The Catalyst Connection and Innovation Works have partnered with the Fayette-Washington KIZ to make hiring a summer intern easy and affordable. If you are a KIZ company this can be a great opportunity for students to begin professional relationships with a potential future employer. The Catalyst Connection can assist you in recruiting a qualified intern candidate for a desired position. Once a company chooses to hire an intern, Innovation Works will reimburse your company for half of the intern’s salary, up to $3,000. Many of these opportunities will be filled quickly. Please e-mail Scoot Dietz at sdietz@catalystconnection.org to register.