When the Pittsburgh Digital Greenhouse was established three years ago, the city of Pittsburgh was determined to position itself at the forefront of systems-on-a-chip (SoC) technology. SoC technology involves a smaller, more efficient chip-making method. It is considered by many to be the wave of the future.

Cadence Design Systems, a Silicon Valley creator of chip software, developed the business plan for the Digital Greenhouse.

The state-sponsored economic development initiative's main goal is to grow the city's industry cluster to 40 companies, generate a substantial amount of new jobs and cultivate partnerships between the area's three universities, existing businesses and new companies.

So far, the Digital Greenhouse has helped Pittsburgh's computer technology cluster grow from a base of about 16 companies initially located there to the current 25 to 30 companies.

Digital Greenhouse member companies, universities and non-profit organizations are working to make the region a leader in advanced chip design. The project is not a brick-and-mortar-type incubator, but rather a regional, virtual incubator, or program management office, which helps chip companies in a variety of ways.

It works as a liaison between local businesses and educational institutions, and assists businesses in recruiting talent, finding real estate and establishing beneficial partnerships with Carnegie Mellon University, the University of Pittsburgh and Penn State University.

Innovation Takes Root

Since its inception in 1999, the Digital Greenhouse project has helped create more than 600 local jobs.

Two projects that resulted from the Digital Greenhouse's efforts involved the unveiling of Oki Electric Industry Co.'s new microchip design center in Pittsburgh in November 2001 and a design and research center for Sony Corp.

The Digital Greenhouse handled the hiring of the three employees for Oki's facility, as well as the recruitment of six of Sony's seven employees there. It strives to recruit talent from all over the world, as well as from the 1,100 students that graduate from local universities in electrical engineering, computer engineering and computer science disciplines.

For Oki, the Pittsburgh location offered the company an East Coast presence while providing a favorable quality of life, low cost of living and affordable real estate.

Other SoC companies that are now part of the Greenhouse consortium include California-based firms RedCreek Communications and SaRonix.

Additionally, Advanced Interface Technologies, spawned out of Penn State, has signed on as a member of the Digital Greenhouse.

The company focuses on machine vision technologies that can allow people to interact with computers through cameras and gestures, as opposed to using a mouse.

IC Mechanics, a Carnegie Mellon spin-off, is another newcomer to the Digital Greenhouse consortium. The innovative company is a micro-electro-mechanical-systems (MEMS) technology manufacturer and is in the process of developing electronic motion sensing control integrated circuits.

Askesis Development Group Inc. is perhaps the latest firm to join the ranks of Pittsburgh's high-tech tenants. It revealed plans in late June that it would relocate its corporate headquarters to the city.

The company, which is a leading provider of behavioral-health and social services technology solutions, will create almost 150 new jobs during the next three years.

Governor's Trip Down Under

Helps Reel in New Business

In other high-tech news, a trip to Australia by Pennsylvania's Gov. Mark Schweiker ultimately resulted in an Australian firm's decision to establish its U.S. headquarters in Philadelphia.

The June announcement came on the heels of Schweiker's March trade mission to Australia, where he and representatives from Plugged in Software participated in an investment luncheon in Sydney.

"The fact that Gov. Schweiker was willing to literally travel around the world to meet with us was a major factor in our decision," said Bernadette Hyland, president and CEO of Plugged in Software. "Phone calls and faxes are fine, but nothing beats a face-to-face meeting. And when you're in Australia doing business with Pennsylvania, face to face isn't always easy.

The software company plans to set up its U.S. headquarters in the Naval Business Center - located in a tax-free Philadelphia Keystone Opportunity Zone - and create at least 30 new jobs within the next three years.

The Brisbane, Australia-based firm has developed and deployed an enterprise application integration (EAI) framework that enables intelligent access and management of disparate data types and repositories across an enterprise.

Plugged In Software has forged partnerships with service providers in the federal information technology and intelligence, health care, legal publishing and professional service markets.

"The logistical benefits of being based in Philadelphia to service our clients in Pennsylvania, New York and Washington, D.C., make tremendous sense," Hyland said. "We are delighted that the tax-free Keystone Opportunity Zone, Opportunity Grant and Customized Job Training programs exist and that there is an efficient process for handling companies that wish to relocate to Pennsylvania."

Nova Cruz Motors into Scranton

About 335 new jobs are coming to Lackawanna County thanks to a designer and manufacturer of high-performance, electric-powered personal transportation devices opening doors in Scranton.

Nova Cruz Inc. is in the process of locating a new manufacturing facility in Scranton's Stafford Avenue Business Park.

The Voloci electric motorbike will be manufactured at the facility. The high-efficiency, microprocessor-controlled Voloci offers riders a method of transportation for commutes and errands in urban and suburban areas.

"We are thrilled to be locating the Voloci motorbike facility in Scranton," said Karl Ulrich, founder and chairman of Nova Cruz. "The location is ideal for us because of logistical efficiency, a strong work ethic and a substantial manufacturing infrastructure."

Rachael Hedgcoth is Senior Editor of Expansion Management magazine and can be reached at rhedgcoth@penton.com.