Geisinger teams with universities, economic growth organizations to create 12th Keystone Innovation Zone

July 12, DANVILLE - Geisinger Ventures, an initiative to create profitable businesses that can help to sustain not-for-profit Geisinger Health System, has teamed up with Bucknell, Susquehanna and Bloomsburg universities, Columbia Alliance for Economic Growth, and Ben Franklin Technology Partners to create the Greater Susquehanna Keystone Innovation Zone (GSKIZ).

The GSKIZ is the 12th in the state, and the first to be located in a rural region. The KIZ program, created through Act 12 of 2004, was developed to create ?knowledge neighborhoods? close to Pennsylvania?s colleges, universities and training institutions to keep new graduates and budding entrepreneurs in Pennsylvania, since they play a key role in the state's economic future.

The state Department of Community and Economic Development approved the zone and the Ben Franklin Technology Development Authority awarded a $200,000 grant to cover start-up costs. The Columbia Alliance for Economic Growth is managing the grant funds.

Health systems and universities have always provided good jobs, but the KIZ program aims to use their economic development potential to the fullest, and make Pennsylvania a more attractive place for bright young college graduates and entrepreneurs, said Denise Prince, Ventures? Chief Operating Officer.

KIZs are "knowledge neighborhoods," where researchers from health systems, colleges and universities can find the resources they need to bring their ideas to the marketplace - resources such as peer support, growth capital and workforce assistance.

Prince explained that if someone has an idea for a new business or product - say, to create a new piece of medical equipment - as part of the KIZ, that person would have access to researchers who can evaluate the idea, develop a business plan and make connections with local banks and economic development groups.

It is hoped that the budding entrepreneur will decide Pennsylvania is a good place to do business, and hire Pennsylvania workers to manufacture the product.

If that entrepreneur does open a plant, the state will help with tax credits. A pool of $25 million is available to companies less than eight years old that are in a priority industry segment and locate within the designated GSKIZ areas in Bloomsburg, Danville, Lewisburg and Selinsgrove.

In the GSKIZ, those priority segments are information technology, health care services, life sciences, wood products and diversified manufacturing. The GSKIZ's first-year goals are to create three new companies providing 18 new jobs, create internships, and help five budding companies examine new product ideas.