Guest Commentary: John Sider, Deputy Secretary of Technology Investment for PA DCED
John Sider |
Thursday, December 17, 2009
It might be a bit of an understatement to say 2009 was a challenging year. I imagine there are a few who will be celebrating less that a new year is coming and more that this one is ending.
But the truth is, despite the recession and all its attendant trials, a lot of good things happened in Pennsylvania in the past year--the kinds of things that highlight the unique strengths of our state and our ability to position it for a competitive future when the economy recovers.
To be sure, Pennsylvania has fared better than many other large, industrial states during this recession. In fact, the state's unemployment rate has equaled or been lower than the national average for 81 of the past 82 months. We've been able to weather this unprecedented downturn better because of Governor Rendell's commitment to investing in Pennsylvania's citizens, communities and employers. That same philosophy inspired the state's 2004 economic stimulus package which aimed at creating jobs, bolstering business growth and revitalizing communities. To date the economic stimulus package has committed $3.6 billion and leveraged an additional $9 billion to the state. The efforts of the economic stimulus package can be seen statewide.
The Governor's commitment continued in 2008 when he and the legislature positioned the state to continue to be competitive with the enactment of the Alternative Energy Investment Act and its $650 million of fresh, exquisitely-timed capital for projects that will help consumers and businesses benefit from the rapidly expanding clean, renewable and alternative energy sector.
This year, the Alternative Energy Investment Fund began making a real impact in Pennsylvania. The investments made through it are generating more PA-based clean, renewable and alternative energy business and jobs, and re-tooling our industrial capacity to supply this sector.
Counting the solar programs alone, the fund supported 36 megawatts of new, clean and renewable energy produced right here in Pennsylvania--enough power for 18,000 homes. Further, the department watched as the requested subsidy for these solar generation projects fell from $2.25 per watt to an average of $1.33, signaling that 2009 was a year of greater efficiency in financing and constructing these projects.
It was also a year for innovation. Lancaster-based Illuminex Corporation received a $185,910 solar energy program grant to further its efforts to apply nanotechnology to solar-generated electricity. Illuminex began in a $150-per-month storage closet at Millersville University, which founder and Millersville professor Dr. Youssef "Joe" Habib used as research and lab space. The promise of Joe's technology is attracting significant private investment as he gets closer to full commercialization.
In late 2009, a Greece-based manufacturer of thin-film solar-panel modules announced it would bring 400 high-paying jobs to PA and invest $500 million to build its U.S.-based manufacturing facility in the state. The unique flexibility, responsiveness and professionalism of our Governor's Action Team were instrumental in landing this high-impact project.
These examples from Pennsylvania's solar sector are just the tip of the 2009 iceberg. Not to be forgotten are the stories of generation, expansion and innovation that happened this year across the state and in many sectors, such as the life sciences, healthcare, high technology and advanced manufacturing.
In the 1980s, the internationally recognized Ben Franklin Technology Partners emerged to help transition Pennsylvania from heavy industry to high technology. Then, in the 1990s, the state earned national acclaim for devoting its share of the tobacco settlement agreement to a massive investment in our life sciences industry. These initiatives, as bold in their day as the Alternative Energy Investment Act, continued to reap benefits throughout Pennsylvania in 2009.
Perhaps the proudest moment of 2009, and the biggest testament to the work Pennsylvania has done to transform its economy, was when the world focused on Pittsburgh for the G-20 summit. President Barack Obama offered a theme for G-20 that hit the "reset button" on outdated perceptions of Pittsburgh as a rust-belt backwater:
"Pittsburgh …is making the transition to job-creating industries of the future, from biotechnology to clean energy. It serves as a model for turning the page to a 21st century economy."
Global news outlets from CNN to The Economist testified to the very real transformation that has taken place in western Pennsylvania and they rightfully credited it to the hard work of the region's citizens over the past two decades.
Pittsburgh's story is one that can be told about the whole state in 2009. We are a state that was forced to adjust and transition to a new reality. We leaned on our unique strengths of foresight, innovation and industrial expertise to keep us whole.
And while these examples were not enough to overcome the very real pain inflicted by the macro environment, they do offer a glimpse of the potential and tools Pennsylvania has to ensure that we can take full advantage of the coming recovery.
Few believe that 2010 will bring a roaring recovery that suddenly balances the economic ledger. Instead, 2010 will be a period of more moderate growth.
But this steady progression out of recession may be a better long-term route, as the last two years exposed "boom-times" that proved, for many states, as not just unsustainable, but highly destructive. While the growth in 2010 may be more incremental than transformative, Pennsylvania will continue to play on our strengths and rebuild our economy.
We have to continue to lead in alternative energy as the seismic demand for change in this sector will reward only those with globally competitive abilities to supply it.
We must leverage our knowledge and technology advantages to become more productive across government and private industry. Growth fueled by easy consumer credit is a thing of the past and the adjustment may make every new revenue dollar harder to come by.
With all that we've been through this year, I am fully prepared to celebrate the departure of 2009, yet I am mindful that throughout this difficult year, Pennsylvania's unique strengths were on full display.
John Sider is the deputy secretary for technology investment for the Pennsylvania Department of Community and Economic Development. Send feedback here.To receive Keystone Edge free every week, click here.