Penn State President Graham Spanier: Creating a Technology and Innovation Corridor

I am truly delighted to be here this morning to talk with you, the leaders in Altoona and Blair County, about Penn State's role in the future growth and development of this region.

I-99

As most everyone in this room can attest, the drive from Centre County to Blair County or vice versa became increasingly easier within the last 10 years because of the tremendous improvements to I99 travel will continue to get easier. Along with those improvements have come more growth, and a promise of economic development. By effectively working together, it is my belief, as well as the belief of many in this room, that we can go well beyond the sporadic growth we have seen. We can establish this region as a nationally recognized innovation, technology and research corridor.

This region is blessed with many assets and I am not ashamed to admit -- in fact, I think it's in my contract to say this as many times a day as possible -- that one tremendously valuable asset to our area is Penn State. I'll admit, I am somewhat biased on this point.

In a recent report, legislators from all 50 states said they viewed higher education as the key to boosting the economy. Not only does higher education play an essential role in sustaining and improving our labor pool, but the scientific research and development achieved at our public universities is key to fostering technological innovation and economic growth. University research has laid the foundation for industries such as biotechnology, computers, telecommunications, and more.

Research aspect

Penn State, one of the nation's largest research universities, is in your backyard, both in Altoona and in State College.
Penn State ranks 11^th nationally in total research expenditures among all universities, and 8^th among public universities.
In fiscal year 2001, Penn State's budget for organized research topped $472 million.
Part of those research dollars -- $82 million to be exact -- was in the form of industry-sponsored research.
According to a report by the Association of University Technology Managers, the commercialization of academic research in 1999 resulted in more than $40 billion in economic activity that supported more than 270,000 jobs.
Research infuses significant dollars into the state's economy, stimulates technological innovation and new businesses, and creates thousands of jobs for an educated workforce. In addition, research improves the education of students exposed to the most current ideas in their academic fields.
Penn State is working in emerging fields in information technology as well as biotechnology and nanotechnology.

Workforce Development

In addition to our vast research enterprise, Penn State continues to play an essential role in sustaining and improving our labor pool.

A recent analysis done by the Employment Policy Foundation shows that earning a professional or doctorate degree could be worth $2.8 million in added income over a 40-year span on average.

Increasing the education levels of workers by one year can increase productivity levels by more than 8 percent in manufacturing industries and nearly 13 percent in nonmanufacturing industries.

A 1 percent increase in the number of people having a college degree is associated with a .31 percent increase in the rate of new firm formation.

A well-educated and skilled labor force is central to our region's ability to foster new firm development and Penn State continues to work collaboratively with business and industry to determine what the needs are and to respond accordingly.

One recent response, which I believe many of you are all familiar with, is the Entrepreneurship Program at Penn State Altoona. This program is geared toward helping students develop the insight and innovation needed to be our forward-thinking leaders of tomorrow. Of course, we have close ties with ABCD and its new Devorris Center for Business Development. The center will offer a practical complement to the entrepreneurship program by hosting student lectures, workshops, internships, independent case-studies, business plan evaluations and writing competitions.

As part of the I-99 Technology and Innovation Corridor, Blair County and the Devorris Center also will serve as a partner with Penn State in matching important academic research with practical business applications.

Another response to industry by Penn State was the 1999 creation of the School of Information Sciences and Technology (IST).

The school is helping to prepare job-ready information sciences professionals for an industry that desperately needs trained workers.

Within the School of IST is the Solutions Institute, specifically designed to encourage cooperation among higher education institutions across the Commonwealth. Through the institute, faculty and students from other public and private institutions can access the school's state-of-the-art research, facilities and curriculum.

Our World Campus also provides an opportunity for individuals in many professions to earn advanced degrees or certification.

Clusters of Innovation

Building a strong, regional economy takes decades, but successful regions are the ones that leverage their unique mix of assets to build specialized "clusters of innovation."

In a recent report by the Council on Competitiveness about these clusters of innovation, five areas of the country were studied. In each of these five areas, universities and specialized research centers were the driving force behind innovation.

The relationship between industry and higher education cannot be understated and broad-based collaboration among industry, education, local and state government, and everyone who has an interest in the growth of this region is critical to its competitiveness and success.

I am pleased that Penn State is playing such an active and vital role in the advancement of this region. We are an area ripe for incubating high-tech industries and a place where innovation can thrive. But we need to work together to maximize our opportunities, while still maintaining our quality of life.

The completion of Interstate 99 will provide the critical north-south connection between I-76 and Interstate 80. But this is not just a connection between the Turnpike and I-80. It also will link Central Pennsylvania to a larger hub of activity that stretches from Canada to Norfolk, Virginia.

As you know, this interstate connection will bring with it many demographic changes, travel pattern enhancements and business growth opportunities.

The designation of this corridor as the I-99 Technology and Innovation Corridor and the formation of the I-99 Corridor Alliance -- in which Penn State is involved -- are key elements in the strategic plans to transform the 80-mile stretch that links Centre, Blair, and Bedford counties into a nationally recognized innovation, technology and research region.

The Research Park

Penn State's 118-acre Research Park -- known as Innovation Park -- is already home to a number of high-tech firms and is poised for significant growth.

An expansion is planned for the Technology Center, which houses a business incubator.

The Materials Research Institute also has future expansion plans.

Broke ground earlier this month for a new facility for our Public Broadcasting Station and World Campus. Construction will begin this fall.

Currently working with a private development group that is planning a 75,000-square-foot multi-tenant building. Anticipate construction to start in the fall, but already have a number of tenants interested.

Also located at Innovation Park is Penn State's Research and Technology Transfer Organization, our Industrial Research Office and several other offices that help provide technical consultation, public and private funding access, commercialization of technology, intellectual property services -- including patent and licensing assistance, marketing consultation, business and strategic planning assistance, and collaborative research opportunities.

Innovation Park encourages a close working relationship between the University and the business community, allowing the University's creative and scholarly works to be put to public use or commercial applications.

In Closing

Innovation fuels the economy. The prosperity of this three-county region will greatly depend on our ability to bring together new research, specialized talent, and the private and public sectors to create an 80-mile hub of innovation.

Penn State is thrilled to continue its longstanding mission as an engine for discovery, a catalyst for economic development and an educator of tomorrow's leaders -- not just for this region, but for all of Pennsylvania.

By working together, we can aggressively position the I-99 Technology and Innovation Corridor as a region that is highly supportive of new industry and can add significantly to our quality of life.