Philly’s tech and innovation ecosystem runs on collaboration 

November is State of the Local Tech Economy Month on Technical.ly’s 2024 editorial calendar.

Philadelphia tends to self-identify as an underdog, but the region’s startup and innovation ecosystem is overcoming that reputation. 

With a lofty goal to solidify itself as a top tech market, the region is leaning into collaboration to get there. Startups, nonprofits, community orgs and local government are all working together to build out a strong workforce with enough growth resources for all.

Across sectors, Philadelphia emphasizes its affordability, while also being a short train ride away from other major cities like New York and Boston. Plus, local universities are invested in tech transfer, providing resources and professional networks for spin-out companies. 

That translated to the region’s workforce being strong in educational services and life, social and physical sciences, with orgs dedicated to building out those talent pools. 

All of that adds up to a city with the talent and resources to help startups thrive, with a strong foundation for the innovation ecosystem to keep building on.

A multi-billion ecosystem that keeps pushing for more

Philadelphia rakes in financial support from VCs and government funding alike.

The region ranked as the No. 25 startup ecosystem globally on Startup Genome’s Global Startup Ecosystem Report this year. Philadelphia’s startup ecosystem exceeded the standard, at a $92 billion valuation between 2021 and 2023 while the global average was $29.4 billion. 

Philadelphia’s venture capital market tends to align with the national VC trends, too. It’s on an upward trajectory as the region is raising more funds now than it was 10 years ago. 

Federal funding opportunities are coming into the region, too, showing Philly’s reputation as an area that the national government pays attention to — especially for its health prowess. 

The University City Science Center was designated an Advanced Research Projects Agency for Health “spoke” and received funding from the National Institutes of Health last year to support its Founders Fellowship program. 

Workforce development organization the West Philadelphia Skills Initiative received funding from the American Rescue Plan’s Good Jobs Challenge to establish the Keystone LifeSci Collaborative this spring. The org launched to bring together life science stakeholders working in workforce development, research and development, entrepreneurship and economic development. 

While the region continues to push for more federal funding, not all efforts have panned out. 

The Philadelphia region, including southern New Jersey and northern Delaware, was designated by the US Economic Development Administration as a precision medicine Tech Hub in 2023 but wasn’t among the 12 hubs to receive implementation awards this summer. 

Now, the consortium is regrouping to prepare for future funding opportunities. Orgs from all three states remain signed on and prepared to work together as it reworks its pitch to land money next round.

A destination for life sciences, academia and more

Cross-sector collaboration supports the startup ecosystem in Philadelphia as well, offering programs, funding opportunities and networks for founders to engage with. 

Life sciences is a top market in the region thanks to university tech transfer and established pharma presence. The region is consistently in the top 10 markets nationally for life sciences talent. 

For example, companies like Spark Therapeutics, which developed the first FDA-approved gene therapy, Luxturna, continue to grow here. Spark is building its new Gene Therapy Innovation Center in University City, not far from the Children’s Hospital of Philadelphia, where it spun out. 

Plus, the 60-year-old Science Center is a nonprofit that provides programming and resources for local healthcare tech startups. The Science Center established its Capital Readiness Program in 2023 as a weeklong accelerator program for health tech startups looking for fundraising guidance. 

The wide span of programs like that makes it an attractive spot for startups in those industries to grow. Plus, there’s a mighty academic landscape to rely on, too.

The University of Pennsylvania, Drexel University and Temple University all contribute to the tech ecosystem through talent and research. Penn’s Penn Center for Innovation and Temple’s Innovation Nest both provide physical space and resources for university-affiliated startups. 

Drexel’s Innovation Fund provides grants to its spinouts, too. Drexel’s Expressive and Creative Interaction Technologies (ExCITe) Center also works with community organizations to provide STEM programming to the surrounding community. 

Don’t forget Philly has its giants, too. Telecommunications company Comcast remains one of Philly’s largest tech firms, employing around 15,000 people at its Center City HQ. The company supports tech startups through its LIFT Labs accelerator program.

City and workforce development programs fuel what’s next

With all of this momentum, Philadelphia is also thinking about the future of tech talent and working to make sure all residents have basic access to technology. 

ExCITe is a partner organization for the Digital Navigator network, a program run through the city that provides in-person services and a hotline for Philadelphians looking for digital literacy services, tech support or help accessing the internet. Community orgs Beyond Literacy, SEAMAAC and Esperanza are also members of the digital navigator network. 

The City of Philadelphia’s Office of Innovation and Technology also works with community partners, advocacy orgs like the Technology Learning Collaborative and corporations like Verizon and Comcast to bridge the digital divide in the city. 

What’s this all building toward? A strong ecosystem that keeps churning out qualified workers to support this ecosystem for years to come. Many tech-focused programs exist in the area to build a talent pipeline ripe with opportunities. 

To continue the tech talent pipeline in Philadelphia, organizations like Hopeworks provide tech workforce development opportunities to young adults. Coded by and Launchpad also provide tech education opportunities to young people. The nonprofit Campus Philly works with local universities to encourage students to stay in the region after graduation. 

Organizations from across sectors recognize the potential Philadelphia has to be a destination for tech companies and are working together to push toward that goal.