he economic outlook seems to be rosier in the Keystone State. While the state's traditional manufacturing base has eroded and more than 100,000 jobs have been lost over the last couple of years, a new administration in Harrisburg promises to put more state muscle behind economic development.
        The state has already put considerable effort into retention strategies and scored several successes in 2002 when traditional Pennsylvania companies eschewed lucrative offers to move elsewhere. On the new project front, life sciences development and an influx of large distribution centers have been among the recent highlights.
        Ed Rendell, Pennsylvania's new governor and former mayor of Philadelphia, ran on a platform of spurring economic growth. His proposals include reducing business taxes, investing government resources to spur private sector growth and a US$500-million plan to rebuild the state's infrastructure.
        "I can see Pennsylvania trying to get more aggressive," says Art M. Wegfahrt, managing director of the Philadelphia office of Julien J. Studley. Wegfahrt says neighboring New Jersey and Delaware give Pennsylvania stiff competition due to their more liberal tax structure that allows greater write-off of operating losses. He says several bills in the Pennsylvania legislature are aimed at addressing the inequity.
        Pennsylvania continues to be among the leading states in attracting life sciences development. The numbers tell the story with more than

Pennsylvania Keeps Rising Since the inception of the Phoenix Awards for Excellence in Brownfield Redevelopment in 1997, 10 different projects in Pennsylvania have garnered the prize. The reason is the state's Land Recycling Program. Speaking at the 2002 Brownfields Conference in Charlotte, N.C., David Hess, Secretary of the Pennsylvania DEP, said a blend of uniform standards and review procedures, coupled with protection for developers, lenders and economic development agencies, has resulted in the state's profound success. The state has invested $53.2 million in the program. David Hess         "This combination of factors has led to more than 1,100 sites being cleaned up since 1995 in Pennsylvania," he said, "with more than 30,000 people now working at businesses and organizations located on these sites."         The redeveloped South Side Works in Pittsburgh garnered one of the 2002 Phoenix Awards. But it is just one of many brownfield projects under way on reborn sites across the state. – Adam Bruns

66,000 life sciences-related employees and more than $1.1 billion in National Institutes of Health funding. And, Philadelphia will be the host city for the Bio 2005 convention. Pennsylvania ranks 2nd nationally in pharmaceutical employment with nearly 30,000 employees, 3rd in biotech employment and 4th in medical device employment, with 413 research and development firms employing more than 7,000 people, 454 testing laboratories employing nearly 5,000 people, and 285 research organizations employing more than 3,500.
        The state has committed nearly $2 billion in tobacco settlement money to fuel life science development. Part of this has helped create three Life Sciences Greenhouses in Pittsburgh, Philadelphia and Central Pennsylvania to promote research and development.
        Much of the state's recent development has taken place in its 12 Keystone Opportunity Zones (KOZ), which have helped create more than 10,000 jobs and retain more than 5,300 since the program's inception in 1999.