Published: April 15, 2008 09:50 am      

Innovation zone draws on creativity

Jim White’s Ebensburg-based software company, Folx, fits every qualifying parameter to enjoy the benefits of the Greater Johnstown Keystone Innovation Zone.

The only problem was, White didn’t realize it.

“My sister is a banker, and she has an accountant who knew about the KIZ,” said White, an Ebensburg resident for 17 years. “That’s how I found out about it.”

After learning about the benefits, White moved his company’s headquarters from State College to Ebensburg last month.

Pennsylvania’s KIZ program aims to boost business development and job creation by bringing together universities, early-stage companies, entrepreneurs and communities.

The Greater Johnstown KIZ includes four colleges and universities, six research-and-development-oriented organizations and several other community partners. With offices at 245 Market St. in downtown Johnstown, it serves portions of Cambria and Somerset counties.

Attracting and developing new, high-technology business is part of the reason the state developed the KIZ program. The Greater Johnstown KIZ has had some success with companies such as White’s as well as In-Shore Technologies Inc. and Conference Archives, both based in downtown Johnstown. In-Shore provides services including IT consulting and management, and Conference Archives offers marketing, sales and media services to companies and organizations.

But the main thrust of the KIZ program is to encourage research and innovation at the college and university level. The next step is to help use those innovations to spin off viable businesses.

One example is the Center of Excellence for Remote and Medically Under-Served Areas, or CERMUSA, at St. Francis University, Loretto. It focuses on developing innovative ways to use existing technologies to create new products and services that fill voids in the commercial world.

Its RF to IP Bridge System, for instance, was developed to improve radio frequency connectivity between emergency responders in buildings and other areas where “dead spots” hamper their ability to communicate. The product is patent pending thanks to a KIZ grant.

“The KIZ has been a tremendous benefit to CERMUSA,” said Jay Roberts, the center’s director. “We have been able to use their dedicated funding toward patents and research work for which we otherwise didn’t have the funding. That’s allowed us in turn to do more research into potential commercialization.”

But the KIZ benefit that garners the most attention is the tax credits available to qualifying businesses. Companies in the Greater Johnstown KIZ for more than two years can qualify for up to $100,000 in state tax credits. If a company has no tax liability, the credits can be sold for cash.

That could afford a great source of funding to keep a company going, said Amy Noon, Greater Johnstown KIZ coordinator.

“This funding could allow them to expand their business, product line or make needed improvements or upgrades to their building, machinery or technology, hire additional staff or even market themselves to a wider audience,” Noon said.

Other benefits include access to a wider range of information and a network of business connections provided through the local KIZ and its host organization, Johnstown Area Regional Industries.

In the past, KIZ money also was used to fund programs such as collegiate business-plan competitions and business internships.

“The internship program was another way the KIZ helped us to enhance our organization,” Roberts said. “We were able to bring in two St. Francis students who worked very well for us.”

But the internships and some other programs were discontinued as money from the state decreased. KIZ funding was to decrease annually and then cease after four years, by which time it was expected that the individual zones would be self-sustaining.

While the state has decided to provide minimal funding to the program for four more years, Noon said she is seeking alternative sources of income.

The Greater Johnstown KIZ is trying to offer more substance at little or no cost. For instance, it is a co-sponsor with The Tribune-Democrat of the monthly Upstarts & Innovators Series, which brings entrepreneurs from the region into college and university classrooms to talk about career opportunities.

For more information on the Greater Johnstown KIZ, visit its Web site at www.gjkiz.com or call 535-6675.