Commonwealth of Pennsylvania’s Support for Life Sciences
Pennsylvania’s $2 billion-plus Life Sciences Enterprise commitment, coupled with Governor Edward G. Rendell’s $2.3 billion Economic Stimulus Package is fueling research & development, attracting venture capital, and supporting early-stage investment through the Life Sciences Greenhouses. The Life Sciences Enterprise to:
- Meet the needs of developing life sciences companies for capital
- Foster a business environment that encourages long-term risk
- Support an appropriately educated and skilled workforce, and
- Build an infrastructure that stimulates innovation in life sciences across the Commonwealth
Over the next 25 years, the Commonwealth of Pennsylvania will receive an estimated $11.3 billion as part of the national settlement with the tobacco industry. All of the tobacco settlement monies received by Pennsylvania to date have been spent on health- and life science-related initiatives.
This is the largest commitment to the life sciences made by any state from the tobacco settlement. In the words of Governor Mark Schweiker, this initiative will help the Commonwealth become “the best place in the world to build and grow life science businesses.”
The $2 billion investment is divided into four major components:
- $1.6 billion for life sciences and biomedical research, to be distributed to Pennsylvania-based research institutions, starting in 2002 (approximately $64 million per annum for 25 years)
- $100 million committed in 2002 for the initiation of three life sciences greenhouses (based in Pittsburgh and Harrisburg, and Philadelphia )
- $60 million committed in 2002 as start-up resources for a venture capital fund to support commercialization of demonstrated new life science business opportunities
- $140 million in projected matching funds for the venture capital fund
Pennsylvania ’s Department of Community and Economic Development oversees this initiative.