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Pennsylvania's ranking in various key economic categories is something that rankles Dennis Yablonsky, the state's secretary of the Department of Community and Economic Development.

In comparison to its peer states, Pennsylvania is 27th in high-technology development, 25th in the establishment of so-called "gazelle" companies, 32nd in formation of new business, and 47th in job creation, Yablonsky pointed out during a recent visit to his home in Pittsburgh.

That shouldn't be, he told members of the Pittsburgh Technology Council, not when the state has so many "world-class" assets -- research universities and health care institutions among them -- that could be economic generators in their own right.

"We should be in the top 10 or 15 in some of those categories," said Yablonsky, who for the past 16 months or so has been leading a vagabond-style existence, traveling throughout the state, telling just about anyone who'll listen at various events and meetings that Pennsylvania has the prescription to cure its woes.

His elixir is the $2.3 billion economic stimulus package put forward by his boss, Gov. Ed Rendell, last year and now largely approved by the state Legislature.

Since joining Rendell's cabinet in March 2003, Yablonsky has spent much of his time touting the stimulus plan.

"I've never worked harder, for less money and had more fun," Yablonsky said at the recent Technology Council breakfast program, where he continued his mission, which includes talking to business and corporate leaders, community officials and the general public.

He wants people to know about the stimulus package he said, so they can be prepared to take full advantage to help grow the state's economy. The Rendell administration predicts the program will help generate an additional $5 billion in private investment, bringing a total of $7.3 billion to spur growth in the state over the next three to four years.

"It's a comprehensive, large and integrated plan," he said. "It's got $1.6 billion in new bonding, $400 million in loan guarantees and $300 million in federal money to support grants, loans, tax credits and guarantees. We want to get the private sector to work with us, and then have the private sector sustain it after the state funding has been invested."

The package includes some 19 different funding streams, so Yablonsky generally structures his presentations to highlight aspects that would be of particular interest to the group he is addressing at the time.

In the recent speech to the Technology Council, for example, one of his areas of focus was the new Keystone Innovation Zone program, which will offer financial incentives to help retain talented students after graduation, to create new companies and promote the transfer of promising technologies from the university campus to the commercial marketplace.

"This is important because universities are the source of students -- our future work force -- and the intellectual property that allows us to create new growth companies here in Pennsylvania," Yablonsky said. He explained that the idea is that local leaders designate a specific geographic area within close proximity to a college or university where the financial aid available under the program will be made available.

In April, the Lancaster area became the first in the state to submit an application for the program, designating an area in the city of Lancaster known as the James Street Improvement District between Franklin & Marshall College and Lancaster General Hospital for its KIZ.

And soon, Pittsburgh area academic and technology leaders are expected to announce plans to create a local KIZ near the campuses of the University of Pittsburgh and Carnegie Mellon University in Oakland, where, as part of the Rendell's package, the universities and new companies will have access to thousands of dollars in financial aid.

The program will allocate $250,000 in each zone to an entity selected to coordinate the program, Yablonsky said.

In addition, the universities can apply for a share of $10 million available each year to promote technology transfer efforts, and companies locating within the zone will be eligible for a share of $25 million in state tax credits.

"KIZ companies also will get preferred access to the funding available in other economic stimulus programs," Yablonsky said.

While Pitt and CMU are collaborating to create a Pittsburgh-specific zone, it is the hope that academic institutions in the region would work to develop KIZs in their areas as well, said Don Smith, director of economic development for both schools.

One possibility may be in Fayette County, according to Mike Krajovic, president of the Fay-Penn Economic Development Council, who said there is a possibility of a zone in proximity to Pennsylvania State University's Eberly Fayette Campus in Uniontown.

"We are very interested in the program and are in the process of reviewing guidelines," Krajovic said. He said he also wants to discuss the program with Smith to see if there is some possibility of working in cooperation with the project in Pittsburgh.

"I expect there will be a bunch of proposals for zones in a number of different counties, such as Fayette, Indiana, Washington, Butler, Armstrong and Westmoreland," said Smith, citing such universities as Indiana University of Pennsylvania, Washington & Jefferson, Seton Hill and Slippery Rock, among others as possible participants. "And I see no reason why there can't be some form of regional collaboration among them," he said.

Meanwhile, Krajovic said he believes Western Pennsylvania can benefit from other parts of the $2.3 billion stimulus package, once officials become more aware of the programs available.

"A lot of people are waiting for the details," he said. "I agree with the investment. The Commonwealth does need a shot in the arm, especially in Southwestern Pennsylvania."

That's one of the reasons Yablonsky continues his statewide travels.

He estimates that in the 16 months he's been in office, he's traveled close to 50,000 miles -- about 3,000 miles each month -- in jaunts between various Pennsylvania locations.

That includes starting and ending virtually every week with the three hour-plus commute between his home in Mt. Lebanon and his workplace in Harrisburg.

"Public speaking in this job is a daily event," he said, although he also acknowledged that sometime soon, at least part of his heretofore "normal" itinerary will change. He plans to move his residence to Harrisburg, where he will be joined by his wife, Veronica.

"The commute is difficult, and my wife and I just want to be together," said the native of McKeesport, who has two grown daughters, Kristen, 25, and Kathleen, 21.

Otherwise, Yablonsky expects the rest of his normal routine will continue, including his effort to get the message out about the potential impact of the stimulus package.

"People have some general notion about them, but they really don't know the particulars," he said. Speeches give people a little bit of insight, he said, but he encourages companies and individuals to "really dive in" to their own investigation of the funding programs available.

"They are going to have to get on to our Web site (newpa.com) or start talking to our folks (at the DCED)," he said.

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