ROI Overview Feb10

8/9/2019 ROI Overview Feb10

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Mission Team Pennsylvania Foundation is a unique, public/private partnership that initiates and

supports innovative opportunities to improve Pennsylvania’s economic competitiveness

and prosperity.

Vision: Team Pennsylvania Foundation is a collaboration of the highest levels of public/privateleadership to support Pennsylvania’s goal to be a national leader in education andeconomic development.

Our support results in innovation that drives entrepreneurial spirit, improves andstrengthens our workforce, and contributes to a growing and vibrant Pennsylvania

economy.

Recent Outcomes of Foundation Activity

16,931 jobs created or retained in Pennsylvania. (July 06 - Present)

$3,052,509,000 in Private capital Investment made in Pennsylvania

53 PA-focused articles published in leading business publications

70,000+ employees trained through Industry Partnerships

6,300 participating companies in 90+ Industry partnerships

1,600 STEM Education Assets mapped on pasteminitiative.org

4772 Available Properties Advertised on PAsitesearch.com

$6 Million in Angel investment made to 26 companies

$237 Million saved by taxpayers (Earned Income Tax consolidation estimatedimpact)

Strategic Focus of Foundation Funding + corresponding program examples

Business Attraction &Growth

Education/Workforce Dev. Government Efficiency

International Press Tours Science, Tech, Engineering & Math(STEM)

Municipal GovernmentEfficiency

Governor’s Action Team For the Future CEO Business Climate Group

Green Business Attraction CEO Education Competitiveness Taskforce Permitting Efficiency Group

Metro Market Missions Industry Partnership Initiative Earned Income Tax Reform

Venture CapitalDevelopment

Best Places to Work in PA Global CompetitivenessInitiative

PA Angel Network PA Young Professionals Tax Training & ProfessionalDev.

PA Site Search PA Angel Network Fellowship Research & Public PolicyDev.

High Growth Firm ResearchInit.

Global Alumni Network Energy Competitiveness



Team PA Foundation funding is often called economic development venture capitaldue to our focus on providing seed funding for innovative projects with the great potentialto leave lasting positive impacts on the Pennsylvania economy. The venture capitalmoniker also reflects our unwavering belief that each dollar we grant is an investment inthe future of Pennsylvania, with all the expectation of a solid return (for the citizens of Pennsylvania) on that investment that any wise investor should make. Below you’ll find asampling of some of recent investments.

For the Future / SmarterPA: The For the Future or SmarterPA coalition is a group of educators, teachers, Pennsylvania employers, and communityleaders who have come together to make sure today’sPennsylvania high school graduates are prepared for successboth in post secondary education, and in today’s highly competitive global economy.

70% of newly created jobs require post high school education. A PA Department of Education study shows one-third of Pa. high school grads at state-owned universities andcommunity colleges must take remedial courses, at an annual cost of $26 million.

Only 18 of Pennsylvania’s 500 school districts appropriately measure whether studentscan read and do math at the 11th grade level in order to award diplomas, and a recentsurvey of state business leaders shows two-thirds interview entry-level job applicants wholack the basic knowledge and skills to successfully enter today’s business world.

In 2009, the coalition worked to successfully implement the Keystone Exams, whichprovide for greater accountability and help ensure a high school diploma is more than justa sheet of paper.

"This is a great day for Pennsylvania's kids," said Joseph Torsella, chairman of the stateBoard of Education, which proposed the new regulation. "We've now said we're going tohold ourselves responsible for giving kids what they need to succeed" in college and the

workforce.

STEM Education Initiative: This project represents an unprecedented statewidepublic/private partnership between leaders in business,education and government working to prepare morestudents for careers in STEM while retaining, recruitingand retraining incumbent workers in these critical fields.

The STEM coalition and regional leadership teams haveset the following four long term goals to be achieved by2018:

1. GOAL 1: Increase the number and diversity of PA citizens with high qualitypost-secondary STEM education and training.2. GOAL 2: Ensure that all graduates from Pennsylvania’s high schools areproficient in STEM content areas.3. GOAL 3: Increase the number and diversity of teachers well-prepared in STEMcontent areas who are working in Pennsylvania’s p-20 educational institutions.4. GOAL 4: Increase public support for STEM education as a priority for theCommonwealth’s citizens.

Intermediate Goals



To ensure the Commonwealth stays on track to meet its 2018 goals, the STEM Initiativedeveloped a series of intermediate goals. By 2011, the Commonwealth of Pennsylvaniawill:

1. Provide Pennsylvania teachers with practical, industry-based education and trainingto enhance STEM instruction in their classrooms.

a. PROGRESS: Teacher Quality Partnerships, Externship programs, eMentoring,Asset Mapping, Residency Certification for Mid-career professionals (SB1011)

2. Provide all Pennsylvania high school students with access to STEM-content courses

and practical, field-based learning experiences.a. PROGRESS: Standards Aligned Systems in Math, and Science/Technology,Engineering standards, Real World Design Challenge, eMentoring, AssetMapping

3. Open new pathways to increase the number and quality of STEM education teachersin Pennsylvania classrooms.

a. PROGRESS: Residency Cert. for Mid-career professionals (SB1011), TeacherQuality Partnerships.

4. Build the network to promote Pennsylvania’s STEM education work amongpolicymakers, businesses, and educators at the state, regional, and local levels.

a. PROGRESS: Regional Leadership Teams, Regional and statewidecommunications plans & long-term strategic plans, CEO Education

Competitiveness Taskforce, Education Leadership Taskforce, Governor'sCabinet STEM taskforce, Asset Mapping, STEM Web site and social mediaintegration.

With contributions from the Departments of Education (PDE), Labor & Industry (L&I), andCommunity and Economic Development (DCED), Wall Street West, the National GirlsCollaborative Project and AT&T, the Foundation’s investment has leveraged both publicand private sector support for a cross-agency and cross-sector partnership targeted atensuring the commonwealth's students gain the necessary edge to compete and succeedin this global economy. Five regional STEM Leadership teams have been establishedthroughout the state, with an overarching statewide leadership team responsible fordirecting and aligning the policies and strategies of the entire project.

To learn more, visit the PA STEM Web site at www.pasteminitiative.org

Industry Partnership Initiative : Team Pennsylvania Foundation granted more than $210,000 in funding to developindustry partnerships throughout the commonwealth.

Pennsylvania’s Industry Partnerships (IPs) are working—connecting workforce educationand training programs to the critical needs of industry.

OUTCOMES:

• Over 6,300 companies, in 90+ active industry partnerships

• Over 70,000 employees from 6,300 companies have completed, or are currentlyengaged in, Industry Partnership Worker Training.

• Wage Data - Participants receiving training from Industry Partnerships have wage gainof 12.89%.

• 88% of businesses involved reported being very satisfied or satisfied with the IndustryPartnership program

• 75% reported that the partnerships and training have already helped increaseproductivity.

• 84% of businesses reported IP training have helped them significantly increase theirproductivity.

http://www.pasteminitiative.org/

http://www.pasteminitiative.org/



• IP funding has helped the commonwealth leveraged $9 million+ in private funds fromindustry and more than $30 million in in-kind contributions.

Governor’s Action Team:4 Year Performance Metrics (July 05 – June 09): 80,738 jobs created; 180,458

jobs retained.

Team PA Foundation supports GAT by providing critical services in 3 areas.

1.

Tax Analysis – Location specific tax comparisons, and KOZ tax implication reports(KPMG on retainer for these services)

2. Client Services – General customer service funding which supports site tours, staff training, hospitality needs, travel costs, etc.

3. Site Selection & Information Support

• PA Site Search – www.pasitesearch.com (Online Real Estate Database)

• GAT Alert Tracking System – distribution of requests for information/real estate

During FY 08/09, GAT created 17,373 jobs and retained 42,571 jobs by investing$280 Million (primarily low interest loans) to leverage projects totaling $3.9 Billion ininvestment.

Foundation Support of GAT ProjectsFY 08/09

• 14 engagements

• 9 projects are either successfully complete or in an active status• Over 3,032 jobs created

• Over 2,650 jobs retained

• $1,367,670,000 private capital investmentFY 07/08

• 15 engagements• 13 projects are either successfully complete or in an active status• Over 3,281 jobs created• Over 2,669 jobs retained• $1,052,250,000 private capital investment

FY 06/07• 12 engagements• 8 projects are either successfully complete or in an active status• Over 1,931 jobs created• Over 3,368 jobs retained• $632,589,000 private capital investment

Recent Completed GAT Projects made possible through FoundationSupport

Project Jobs Created JobsRetained Private Investment

Paris Companies 40 265 $14,000,000

RSI Silicon 43 23 $18,000,000

Equitable Resources 354 772 $325,000,000

Apprise Software 100 0 $3,039,000

Tasty Baking 0 494 $131,500,000

McLane 500 0 $53,000,000

Westinghouse 931 2,243 $400,000,000



Johnson Matthey 110 627 $40,000,000

Municipal & Local Government Efficiency: Team PA Foundation partnered with and funded 10,000 Friends of Pennsylvania and thePennsylvania Economy League to begin significant work on the issue of municipalefficiency and fiscal health. The focus of all work for the year was on developing localgovernment leadership and capacity.

Outcomes of this grant include the creation of case studies of specific municipalities thathave attempted to change their boundaries or share services and a statewide leadershipsummit to more effectively encourage efficiency measures and financial health inmunicipal governance.

Team PA Foundation sees this grant as the beginning of a long-term strategy workingtoward a future where Pennsylvania is known for collaborative, efficient, and fiscallythriving local governments. Team PA Foundation has awarded a second round of fundingto support a partnership of 10,000 Friends of Pennsylvania, the PA Economy League, and

Team PA Foundation to implement a three phase strategic plan derived from our MunicipalGovernance Summit.

The three phases identified at the summit are:

• Research –In-depth analysis of communities that have attempted municipalconsolidation or sharing services (successfully, or not). This analysis will create a roadmap for other communities to utilize as they attempt similar ventures.• Identification and Development - Communities ripe for consolidation or sharing of services. This would occur through the development of community leadership groups andproviding support to local elected officials.• Communications and Outreach – Targeted and specific outreach to communicate boththe fiscal challenges of our current local governance system and the great opportunitiesfor saving millions of taxpayer dollars in many communities through strategic action.

For a copy of the case study document or to discuss more about this initiative and ourongoing work, contact us.

Green Business in PA:It is clear that green/clean-tech related businesses are an increasingly important source of innovation and job growth for Pennsylvania. To capitalize on and advance this trend,

Team PA Foundation began supporting the business attraction efforts of the PADepartment of Environmental Protection. Since then funding has been targeted each yearinto three main areas:

• Green/Clean-tech Business Recruitment and Development – This funding allows DEP todirectly engage with business prospects based around the globe. Outcomes include

international investment missions to Japan to recruit wind turbine manufacturers, AngelInvestment meetings focused on emerging green technologies, meetings with U.K.-based private investment firms specializing in energy and environmental projects, andthe attraction of new tenants to Newbury Market, a Brownfield redevelopment projectin Allegheny County.

• Marketing Pennsylvania’s Leadership in Green and Clean Business Support – Team PAFoundation funding allowed DEP to showcase Pennsylvania’s leadership to more than60,000 attendees of many of the premier conferences and trade-shows across the U.S.

• Pennsylvania Brownfield Conference



Over 200 people attended this statewide annual Brownfield Conference in 2007, 2008and 2009. Leaders from both the public and private sectors came to learn the newestregulations, best practices and promising opportunities for brownfield redevelopmentactivity. Highlights of the program are sessions in which project leaders competitivelypitch their request for a state Industrial Sites Reuse Program grant – with one applicantbeing awarded the funds at the end of the conference. DEP strongly supports thisconference as an opportunity to increase development deal-flow, private investment inBrownfield’s and job creation in PA.

Energy Competitiveness Initiative: Team PA Foundation worked with Carnegie Mellon University’s Electricity Industry Centerto produce policy options which provided key insights to the Legislature andadministration officials as they addressed the expiration of electricity rate caps. Thereport and its lead researchers had been relied upon by the Legislature, governor, andsecretaries of DEP and DCED when they worked to address energy cost issues.

Global Competitiveness Update:Several years ago, Team PA Foundation contractedwith IBM Business Consulting Services to analyze PAfrom the investor’s perspective, and develop specificstrategies to be implemented by Pennsylvania toimprove our economy. DCED has said this initiativehas refined and focused the economic developmentdelivery system in PA. A summary of the outcomes of phase 1 of this $1 Million+ investment is listed below:

• Creation of the Regional Investment Marketing Grant Program

• $15M expansion of commonwealth trade & investment – World Trade PA

• Expansion of largest international network of any state (30+ Representativescovering 50 countries)

• International Press Tours – Read more below

• Go Global grants, Market Access grants, and other financial support for trade

support.• Targeted state marketing messages (both international & domestic)

• Creation of Pennsylvania Business Development Corps

• Targeted prospecting missions, domestic & international to attract growth industries

• 1,000+ economic development professionals trained on regional competitiveness

• Producing stronger responses to real estate and site selection consultant inquiries

• Targeted business calling visits - 9,000 annually

• Revised scoring system for state assistance applications

International Press Missions: Team PA has partnered with the Office of International

Business Development (OIBD) to develop a series of tourswhere press officials from key global markets are brought toPA to get a first-hand look at Pennsylvania’s economicleadership in important industries. An outcome of the GlobalCompetitiveness Initiative, this series has showcasedPennsylvania’s leadership in the following sectors: Life-Sciences, Alternative and Renewable Energy, Defense

Technology, Food Science & Food Manufacturing, R&DCommercialization, and Nanotechnology.



Over the last nine tours, Team PA Foundation has flown in and hosted more than 50 journalists from some of the premier business media outlets throughout 13 countries in 5continents. Previous tours have already paid great dividends in 53 positive PA-focusedarticles, and 8 TV & radio spots showcasing PA as a leader in each of these industriesthroughout the world, and have contributed to Conergy (the world's largest solar-integration company) choosing PA as the U.S. headquarters for its newest venture.

Competitive Services Initiative: Team PA Foundation has partnered with the Office of Trade Policy to conduct preliminaryresearch to develop a more accurate profile of the PA services sector, and PA servicesexports that DCED/OIBD/and other departments can use to better position the state forfuture export growth. Although PA periodically assists service companies to sell abroad,most of the state’s export resources are devoted to promoting merchandise exports.Pennsylvania lacks the needed research to maintain a sustained effort to assist PA basedcompanies that export services. It is estimated that in 2004 PA-based service companiesexported goods valued at nearly $13 billion.

Other ongoing initiatives:

PA SiteSearchPA SiteSearch is the premier statewide online commercial real estate database establishedby Team PA Foundation to support the site selection efforts of economic developers andexpanding or relocating businesses throughout PA. This site is the chief real estate searchtool used by the Governor’s Action Teamand many local economic developmentorganizations to locate buildings and sites forbusinesses relocating or expanding in thecommonwealth.

Active Properties – 4,510Buildings – 2,848Sites – 1,662

Active Registered Users – 611

GAT Project Alerts - Our communicationpipeline connecting emerging GATprojects to local economic developersacross the commonwealth.

Total since 2005 – 225 Best Places to Work in PA – Initiative modeled after the Fortune list focusing onawarding and celebrating exceptional PA employers. The Best Places to Work initiative is

more than just a survey, study or award program to identify the best places of employment in Pennsylvania. Since a large percentage of the survey data is gleanedanonymously from the employees of each firm, the data becomes an invaluablequalification of business practices from the perspective of the employees. It also servesthroughout the year as a valuable marketing tool and a prominent display of thebusinesses enviable corporate climate. For a minimal entrance fee, businesses andorganizations completing the review process save thousands of dollars in operating costs.

Special congratulations to winning companies who also are Team Pennsylvania Foundationboard members or financial contributors: 1st Summit Bank, Concurrent TechnologiesCorporation, DVL Incorporated, Graystone Bank, Lobar Construction Services, McNees,

Average Monthly Site Visits Per Year

0

500

1000

1500

2000

2500

2004 2005 2006 2007 2008



Wallace & Nurick, Memorial Health Systems, Parente Randolph, Pennoni Associates andSheetz Inc. A complete listing of the 100 Best Place to Work in PA can be found at:www.bestplacestoworkinpa.com

Pennsylvania Angel Network At present, there are about 20 angel groups in our state with 13 currently dues-payingmembers of the Pennsylvania Angel Network (PAN). The development of PAN into astatewide network represents the logical progression of Pennsylvania's angel investmentactivity. PAN is statewide Network of Angel Investment Groups focused on developing thecapacity and efficiency of these investors who are integral to supporting innovation andentrepreneurship. Team PA has funded the PAN Fellowship Program, which is aneducational opportunity for PA college students who produce initial due diligence oncompanies of interest from angels, while providing them exposure to business start-ups,angel investing, and entrepreneurship. All of which increase the chance of them staying inPA upon graduation. Angels benefit from an additional due diligence resource.

2007–2008 State Angel Investment Activity for PA:• Number of student fellowships – 6• Number of new investments made – 26• Number of follow-on investments – 19• Number of co-investments with other angel groups – 14• Number of investments made with KIZ companies – 2• Portfolio companies who received Venture Capital funding – 10• Average Investment – $250,000• Total Investments – over $6,000,000

PA Young Professionals (PAYP) – Representing more than 40 YP groups with nearly10,000 members.

Service Sector Support ResearchAt the national level the service sector accounts for approximately 83% of GDP and 85% of employment (USITC 2007). It is estimated that in 2004 PA-based service companiesexported goods valued at nearly $13 billion.

In light of these numbers, Team PA Foundation partnered with the Commonwealth’s Officeof Trade Policy to conduct preliminary research to develop a more accurate profile of thePA services sector and PA services exports that the Department of Community andEconomic Development and other departments can use to better position the state forfuture export growth. Although Pennsylvania has periodically assisted service companiesto sell abroad, most of the state’s export resources are devoted to promoting export of manufactured goods. Pennsylvania now has the needed research to maintain a sustainedeffort to assist Pennsylvania-based companies that export services.

High Growth Firm Study Team PA Foundation, in partnership with DCED, has undertaken a research study into thegrowth challenges and service needs of high-growth firms in Pennsylvania. The study,when complete, will make recommendations to DCED on how they can modify the existingservice menu to support the rapid expansion and retention of high-growth firms. Thestudy, which is in its final stages, includes detailed analysis of the growth of Pennsylvania-based businesses, a wealth of data received from field interviews, focus groups, surveys of identified high-growth firms, and policy recommendations for DCED. The study andrecommendations have been finalized and implementation began in mid-2009.

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http://www.bestplacestoworkinpa.com/

http://www.bestplacestoworkinpa.com/



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ROI Overview Feb10

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