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Armed with a rejuvenated business climate, Pennsylvania has now emerged as a top contender for new facilities. Led by one of the nation's most pro-business governors, the state continues to create value-adding programs -- particularly of the high-tech ilk -- that make Pennsylvania stand out among its competitors.
If you don't think of Pennsylvania as a technology state, it's time to take a fresh look.
In fact, Gov. Tom Ridge and state economic development officials have been introducing one major new technology-based initiative after another in recent months -- all designed to help the state attract and support high-tech firms, and tap technology for the benefit of all kinds of companies.
Headlining those new moves is the Pittsburgh Digital Greenhouse, a unique partnership that brings together numerous international corporations, three leading Pennsylvania universities, the Pittsburgh Regional Alliance (www.pittsburgh-region.org) and the Commonwealth to make southwestern Pennsylvania a worldwide leader in the development of next-generation system-on-a-chip technology.
Dennis Yablonsky, president and CEO of the Pittsburgh Digital Greenhouse (www.digitalgreenhouse.com), says the initiative will focus on growing local companies, attracting new business to southwestern Pennsylvania and assisting startup companies. "This initiative responds to exactly what business leaders tell us they need for the digital economy of the 21st century," he says.
The Digital Greenhouse initiative is based in Pittsburgh because of "access to talent, access to technology and access to partners," Yablonsky says.
The Commonwealth has already committed US$3.2 million to the Digital Greenhouse project. But it's prepared to commit an additional $10 million over three years, based on the initiative's ability to create chip-design jobs in the Pittsburgh region. "We have a very realistic hope for 1,500 development engineers working in projects created by our partners," says Pennsylvania Secretary for Community and Economic Development Samuel A. McCullough (www.dced.state.pa.us).
"We like to think that Pennsylvania is a very entrepreneurial government," Ridge says. "And entrepreneurs take thoughtful, calculated risks. Sure, there are risks associated with this, but we are betting on ourselves."
The smart money's on Pennsylvania. Under Ridge's leadership, Pennsylvania's economy has soared, and the state's success rate in attracting new business investment has shot up. In fact, the state's 1999 facility-location performance earned it the No. 9 state ranking in Site Selection's annual tally of new and expanded corporate facilities. Ridge's many initiatives have helped families and employers save more than $5.6 billion through tax cuts, workers compensation reform, electric competition and reduced red tape.
"We continue to work on our business climate and create new tools," reports Steve Kohler, director of the Governor's Action Team (see SelectSites sidebar). "This administration has cut, reduced or eliminated taxes every year. We're constantly adding to our tools, while keeping an eye on the business climate."
Kohler adds that executives with technology-oriented firms are relieved to see that top officials like Gov. Ridge and Secretary McCullough understand how technology companies work. "They give us a great one-two punch," he says.
Indeed, Gov. Ridge has "done more for technology development in Pennsylvania than any other governor in my memory," Bell Atlantic President and CEO Daniel J. Whelan said in addressing the Pennsylvania Economic Development Association earlier this year.
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Pennsylvania: 
Ridge says the project truly is a new economic development model. "Unlike traditional economic development strategies, which focus on the attraction of individual companies, the Greenhouse seeks to create a competitive advantage for Pennsylvania by establishing a total environment for the 21st century electronics industry," he explains.
Electronic technology leaders Sony Corp. and Oki Electric Co., along with Cadence Design Systems (the Silicon Valley-based worldwide leader in electronic design services) will work with the Pittsburgh Digital Greenhouse and more than 10 other industry partners to help develop next-generation digital video and digital networking. As part of the initiative, Carnegie Mellon University, the University of Pittsburgh and Pennsylvania State University will develop coordinated degrees in system-on-a-chip design. This coordinated effort is designed to establish the region as the leading site for skilled design engineers.