JULY 2008

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Start-Up Hotbed: Pittsburgh Region Boasts Fertile Ground for Innovation

World-renowned universities and a robust business assistance network combine to support regional strengths - from robots to medical devices to green building materials.

Pittsburgh is ranked No. 1 in the country for venture capital investment growth over the last decade. This can be attributed to a unique regional synergy among world-class universities - which offer entrepreneurs access to multidisciplinary R&D environments to create new technologies - and a critical network of support organizations that help high-growth potential start-ups transform innovations into commercially viable products. Often, as these projects flourish, they draw the attention of smart venture capitalists - and national publications like InformationWeek.

Historically known as a heavy industrial center, the Pittsburgh region today is transformed; it was recently named one of Forbes.com’s Top 10 "up-and-coming" U.S. tech cities. This transformation isn’t lost on InformationWeek’s STARTUP CITY program. Watch clips and read Editor John Foley’s article, “Penguins, Pirates, Steelers and Start-Ups.”

Read the rest of the PRA feature story exploring some of the region’s most promising start-ups and the unique regional resources available to them. (PDF file)

Obama Dubbs Pittsburgh’s Transformation a Model for the Nation
“Presumptive Democratic presidential nominee Barack Obama recently told invited guests and a panel of business leaders at Carnegie Mellon University that the reinvention of Pittsburgh's industry could serve as a model for changes to the American economy. ‘This American city has found new opportunity through health care, and IT; through finance and universities,’ Obama said. ‘Now, we must connect that local innovation and ingenuity to a national strategy.’” Read more

100+ New Jobs: Bank of New York Mellon
“The Bank of New York Mellon Corp.’s Treasury Services group said it expects to add 135 new positions to its operations area in Pittsburgh this year. That would bring the number of Pittsburgh-based jobs the company has announced since January 2007 to 755.” The company projected it would create 1,000 to 2,000 positions in the Pittsburgh region following its December 2006 announcement of the Bank of New York Co./Mellon Financial Corp. merger. Read more

German-bred Medical Devices Firm Mesotec Opens Headquarters in the Pittsburgh Region
Medical Sensors Technologies, Inc. (Mesotec) has opened an office in Greentree, Pa. for development of a new ophthalmic device for improved glaucoma management. Its founders have relocated from Hannover, Germany, to the Pittsburgh region, where they will oversee clinical trials of the new device, raise funding for ongoing development and production, and work with others in the Pittsburgh life sciences community to explore new medical applications for its technology. The company met with business, civic and community leaders from the Pittsburgh region when the Pittsburgh Regional Alliance traveled to Europe with the Pittsburgh Symphony Orchestra in both 2006 and 2008.  Those meetings ultimately led to the decision to bring the company and its new glaucoma treatment device to Pittsburgh. Read more (PDF file)

Industrial Scientific Expands, Hiring 70
Industrial Scientific Corp., a global leader in gas detection technologies … that protect human life in the most demanding work environments … is looking for a new home in the Parkway West corridor and plans to hire 70 additional employees in the next three years … With sales growing on average between 15 and 20 percent the last five years, the company hopes to bring the operation together in a 200,000 SF, state-of-the-art, architecturally significant space. About 225 employees currently work at the Oakdale headquarters; worldwide the company employs 865. Read more

$60M Local Expansion: Allegheny Technologies
Allegheny Technologies Inc. recently completed a $60 million expansion in Washington County. “Construction on the 70,000 SF expansion in the 550,000 SF facility began in November 2006 … The investment is part of a $950 million capital investment program on which ATI has embarked, and it is not yet finished” Read more

Expansion & New Jobs at Pittsburgh International Airport
LSG Sky Chefs, the world’s largest airline caterer, recently announced the opening of its its first North American deep-frozen food manufacturing facility at Pittsburgh International Airport (PIT). Located in 20,000 SF of LSG Sky Chefs’ existing customer service center on airport property, it is expected to create 21 new jobs in 2008 and an additional 37 new jobs by 2010. “Our location offers access to 63 percent of the national industrial output by overnight truck or one-hour flight. This is just one of Pittsburgh International’s great advantages for cargo and aviation-related industries.” Read more

Voyager Jet’s Private Plane Business Booms
Pittsburgh-based Voyager Jet Center, with operations at Allegheny County Airport in West Mifflin, has added five new aircraft to its fleet and reports that aircraft charter customers have risen dramatically, doubling in the last year. Another boon to business is Voyager’s service as a 24-hour fueling station for the private plane industry. Allegheny County Airport has become the private aviation hub of western Pa.” Read more

Region Attractive to Filmmakers: New Studio to Support Out-of-this-World Set Construction
Local start-up Island Studios is transforming a vacant manufacturing facility located in McKees Rocks, Pa. into a sound-proof stage to accommodate the construction of sets and the filming of environments that do not exist in this area or this world. The digitally-enabled environment allows for sweeping camera movement thanks to ample space, zero internal structural beams and 25-foot ceilings. Allegheny County Economic Development offered assistance to this venture in complement the County and the Commonwealth’s ongoing support of the burgeoning Pennsylvania film industry.

General Motors and Carnegie Mellon To Develop Driverless Vehicles
General Motors Corp. and Carnegie Mellon University recently announced the GM-Carnegie Mellon Autonomous Driving Collaborative Research Lab (CRL), established under the terms of a five-year, $5 million agreement and a renewed commitment to work jointly to accelerate the emerging field of autonomous driving. GM teamed with Carnegie Mellon last November to win first place (and $2 million) in the 2007 DARPA Urban Challenge, a competition between driverless vehicles over a 55-mile course of urban and suburban roadways held in Victorville, Calif. The race was emphatic proof that cars can drive themselves. Read more

General Electric and UPMC’s $40M Partnership
“The University of Pittsburgh Medical Center (UPMC) and General Electric Co.'s Healthcare division each are putting $20 million into a partnership to bring pathology, the study of diseases and their causes, into the 21st century. The new company, Omnyx LLC, will be based in Pittsburgh and is projected to employ at least 40 people within three years. The state is providing $180,000 to help with job creation. The first product to be developed will be a ‘virtual microscope’ that would allow clinicians to analyze slides from computer monitors, interpret results and share information instantly with experts anywhere in the world.” Read more

Accipiter Rethinks the Internet Paradigm
“Wexford-based Accipiter Systems, Inc., a leading developer of innovative data networking solutions and an Innovation Works company … recently received $1 million from the U.S. Army … to develop a prototype for an exceedingly energy efficient network implementation that will rethink the original assumptions about a major connection in our lives – our link to the Internet … [This] latest, leanest, lightest solution that will consume less energy and cost less.” Read more

Canada-Based Axela & UPMC Partner to Advance Childhood Brain Injury Research
A prime example of the mutually-beneficial relationship between Canadian and Pittsburgh regional business, scientific and academic communities, Toronto-based Axela Inc. recently announced plans to use its dotLab® System in a study of childhood brain injury at Children’s Hospital of Pittsburgh of UPMC. The dotLab System will be used as a research tool to screen high-risk infants for unsuspected brain injury in an emergency department (ED) setting. The project will study candidate biomarkers for shaken baby syndrome (SBS) and other types of brain injury. Axela’s technology is not only uniquely positioned to screen for these types of childhood neurotramas, but is also quicker and easier to perform than other methods. Read more

Enhancing Arthritis Technology
“Years of research and fine-tuning are coming to a close for Pittsburgh-based Cartesia Dx, a company on the cusp of final product development for its state-of-the-art technology for arthritis diagnosis and management. Formerly Arthritis Imaging, Cartesia Dx hopes to raise $1.5 million this year … move through two phases of clinical trial … [and] have a commercial product out by the third quarter of next year.” Read more

Lightfoot’s Discerning Robots Replace Overnight Shift Labor
“[Ambridge-based company Lightfoot Inc. combines] track-base robots with sophisticated software that enables the bots to pick and choose cases of product stacked on large palettes in the warehouse and send them out for delivery. It’s work typically done by hand on an overnight shift, so the savings to companies is significant in terms of employee turnover, workplace injuries and breakage.” Read more

Creating a Credit Card Fraud Solution
“Dynamics LLC, a startup emerging from Project Olympus, is positioning itself to be the next-generation payment solution for a $4 trillion domestic industry that has suffered massive losses due to credit card fraud. [An estimated] $25 billion is lost annually by card companies through fraudulent card purchases and theft. Dynamic’s answer is the Dynamic Credit Card, an innovative, wafer-thin card with an electronic display that periodically changes several digits of the card number, making it impossible for anyone to capture or copy the number and reuse it.” Read more

Local Top 10 Children’s Hospital Furthers Diabetes Treatment
U.S. News & World Report ranked Children's Hospital of Pittsburgh of UPMC No. 10 out of 113 hospitals on its "America's Best Children's Hospitals" list, improving from last year’s standing at No. 13. It nabbed No. 6 for treatment of Digestive Disorders as well as Respiratory Disorders, No. 10 for Neurology/Neurosurgery and No. 16 for Heart/Heart Surgery.

“[Children’s Hospital also recently] identified a key protein that regulates the glucose and triglyceride metabolism, a major finding that may lead to drug therapies that could significantly improve the lives of those suffering from heart disease and type 2 diabetes.” Read more

Start-Up Investments by Innovation Works; New AlphaLab Supports Business Growth
Recent investments from Innovations Works - which invests capital, business expertise, and other resources into high-growth potential companies with the greatest likelihood for regional economic impact – are:

• Health Monitoring Systems, Inc. ($200,000) – a pioneer in community health surveillance, it maintains online networks to collect data from hospitals and other health care providers, and then offers analytics of the aggregated information to detect, pinpoint and understand real-time and emerging health and safety issues. Having reported 50 percent revenue growth in 2007, the company plans to hire 10 people this year. Read more

• My Payment Network (MPN) ($200,000) – a developer of electronic payment solutions for schools and small to medium-sized businesses, which are delivered through its self-service, easy-to-use Web applications, SchoolPay© and MyPayNet®.

• Penthera Partners, Inc. ($250,000) – a provider of commercial grade, end-to-end software products designed to enable the efficient delivery of video over wireless broadcast and unicast networks and their display on mobile devices including mobile phones, laptops and in-vehicle systems.

Innovation Works also recently selected the first companies to participate in AlphaLab, a new program to spur the growth of companies developing software, interactive games, and Web and mobile applications. The following companies will participate in the initial AlphaLab program: BlenderHouse, Chogger, crono, GameHuddle, Skill-Life and Sonya Labs. Read more

Three Innovative Businesses Win Phase 2 of Business Plan Competition
Presenting cash awards totaling $22,500, the Pittsburgh Technology Council recently announced the winners of the second phase of this year’s EnterPrize Business Plan Competition. They are:

• JoinSources LLC – provider of affordable Web data management solutions for individuals, small businesses and design professionals.

• TuitionChoice – a private student loan application and comparison Web site that helps students figure out the student loan program best suited for them.

• Bossa Nova Concepts – a Carnegie Mellon University spinoff dedicated to introducing the most exciting robotic toys in the marketplace.

Read more about EnterPrize, explore the enhanced features of the NEW Pittsburgh Technology Council Web site and nominate an exceptional company for the annual Tech 50 Awards.

Two University Student Teams Gain Commercialization Grants
The Technology Collaborative (TTC) recently announced two Phase-2 grant awards through its Pennsylvania Assistive Technology Commercialization Initiative (PATCI). Up to $30,000 each will be awarded to:

• Lehigh University team with plans to commercialize their MPlug product idea, which alleviates the trouble that those with arthritis and/or weak grip strength encounter when plugging and unplugging household electrical appliances; and

• Penn State Universi≠ty team that has formed Buzby Networks, LLC to formally pursue the commercialization of ZigBee®, which uses Wireless Sensor Network technology to solve patient and equipment tracking problems in hospitals and nursing homes.

Read more

EVENTS

Tuesday, July 8 – The Alberta Oil Sands:  Filling the Pipeline with Pittsburgh Products, Services and Technologies (Business Opportunity Luncheon/Media Briefing) (PDF file)
Alberta’s “Black Gold” Meets “The Black and Gold!” In the face of dependence on oil at record-high cost, Canada has an oil boom in Alberta.  That boom – with the potential to change the way the world thinks about oil supply – is creating opportunities for Pittsburgh region products, services and technology.  Learn more about these opportunities directly from a Canadian delegation.  Noon - 1:45 p.m. The Rivers Club – Oxford Centre, Pittsburgh. To register call Ann-Marie Terry, 412.281.4783 ext. 3540.

Wednesday, July 30 – NAIOP Pittsburgh’s Developer’s Showcase – Pittsburgh: Energy Works Here! (PDF file)
As the region’s energy sector converges with the other key industries that are charging our 21st -century economy, see how regional developers are preparing for a surge of business opportunities. Learn more about Westinghouse Electric Company’s remarkable investment in the region – the global hub of nuclear energy technology development – and the resulting prospects. Hear from national site selectors about how to attract and retain energy companies, other industries and more. Regional Learning Alliance at Cranberry Woods, 5 p.m. Pre-registration: $25 members/$50 non-members. On-site registration: $40 members/$75 non-members. To register, call NAIOP Pittsburgh at 412.928.8303.

Saturday, August 2-28 – Diversity SoccerFest 2008
Join The Hispanic Center, Inc. in celebrating diversity with soccer games and other activities on August 2, 3, 9, 10, 16, 17, 23 and 24, 2008 from 9 a.m. – 3 p.m. at North Park Soccer Fields. Activities include: authentic Mexican food on sale, a food drive for Pittsburgh Community Food Bank, children's mini soccer games and special guests from the Pittsburgh Riverhounds to public officials. Plus, a Diversity/Career Fair is scheduled for August 28, 9 a.m. – 3 p.m.

Wednesday, August 13 - 15 – 2008 ARMTech Showcase of Industry and Technology
Part of the Armstrong County Regional Manufacturing Initiative, this 10th annual three-day Showcase will feature nearly 100 exhibits from across the country, allowing regional businesses and organizations to build relationships with respected industry professionals. Attending will be exhibitors from the electro-optics, advanced manufacturing, medical research, aerospace and defense contracting fields, joined by U.S. Rep. John Murtha. Questions? Contact Nick Caruso at 724.548.1500.

SAVE THE DATE

September – September is the monthlong GlobalPittsburgh Celebration
GlobalPittsburgh Celebration is a monthlong extravaganza to highlight global connections in the Pittsburgh region – home to more than 50 international communities and the operations of more than 300 foreign-owned firms. Organized in conjunction with the region’s 250th anniversary celebration, festivities will celebrate the region as an international hub from both a business and cultural perspective. Visit the Web site above to learn how individual companies can get involved.

October 5-9, 2008 – MS&T ’08 (Materials Science & Technology 2008 Conference and Exhibition)
Attend the leading forum addressing structure, properties and performance across the materials community. The program will address eight diverse themes to cover the breadth of materials science and engineering, with a keynote address by Cherry A. Murray, Ph.D. on “The Role of Science and Engineering in U.S. Competitiveness.” At the David L. Lawrence Convention Center.

October 15 – Network Centric Manufacturing (NCM) Forum
Join in the evolution of U.S. manufacturing to a Network Centric future. Attend the second annual NCM Forum at the Hilton Pittsburgh. Last year, thought leaders from multinational corporations, federal agencies, universities and the manufacturing community came together for the inaugural NCM Forum to discuss a new approach to manufacturing and supply chain management – Network Centric Manufacturing. This year's NCM Forum will focus on a practical implementation of NCM nationally, utilizing strategic working sessions to examine the most critical NCM issues related to: NCM Architecture, R&D for NCM, Intense Collaboration and Managing in the NCM Environment.