Gov. Ed Rendell's proposed Keystone Innovation Zone plan passed the General Assembly Tuesday and, pending his signature, will soon be passed into law in an effort to keep students from seeking jobs outside Pennsylvania upon graduation.

The proposal is expected to foster economic growth in the state by forming a working relationship between state-funded universities and colleges with young businesses. These businesses are mostly technology-based.

Penn State spokesman Tysen Kendig said the university has preliminarily courted the idea of applying and expects to do so if the program is officially launched.

"The university has been preparing to participate in the program, but we can't submit an application until the bill is adopted and signed by the governor," he said.

If businesses are eligible to participate, they may receive up to a $100,000 tax credit and other additional incentives as well, some of which include attracting university students to local businesses after graduation.

"Businesses would receive a tax break and loans through community and economic development to entice them to stay in the zone or to relocate to the zone," said Laura Felty, Pennsylvania Department of Community and Economic Development spokeswoman.

To be eligible, a business must be near the university and only in operation for eight years or less. For participation, a university must apply to the program.

"In other words, it's a reward for those companies to help support the university ... It's an incentive for companies to move there," Felty said. "The biggest benefit of it is a young, intelligent work force that is the cream of the crop, instead of leaving Pennsylvania."

The emphasis on science and technologies is a key component regarding the growth of economies in surrounding areas of higher education.

"$10 million will be made available from the state to help move technology from the university to the marketplace," Felty said.

Karen Dickinson, Innovation Park director, said the 100-acre "incubator" facility will offer various opportunities for students and faculty in science and technology.

"If there are companies that are started based on technologies developed in the university, there might be opportunities that those companies could do intellectual research," she said.

Dickinson added students may be able to work as interns and get experience in the company or be hired as full-time employees within the company.

In addition, the Keystone Innovation Zone plan will offer support to start-up companies to help them learn and understand the logistics of business.

"The advantage of the incubator is that, in addition to reasonable rent rates, there is a program in place that helps [companies] write their business plan or a workshop to help them develop," she said. "The more important part of it is the mentoring and business development support that goes along with it."

Keith Orris, Franklin and Marshall College executive and administrative director, said they will apply for admittance into the program and are in the process of laying the groundwork for the institution's acceptance.

"[It would promote] a better quality of life from a higher education standpoint and is a way of combating the 'brain drain' the commonwealth currently suffers from," Orris said. "It knits us all together and gives graduates the opportunities they're leaving [Pennsylvania] for right here."

Teresa Sparacino, Downtown Improvement District director, said such a project would be good for the local economy, despite that it seems geared toward information technology.

"That's not to say we'd ignore it. But it would be interesting to see benefits from working with the university," she said.

Orris is enthusiastic about encouraging students to stay in Pennsylvania.

"You've got an area, a zone, intellectual capital, highly trained individuals and state of the art businesses," Orris said. "Young start-up businesses would see a place where they could tap into that ... to leverage resources. It would be a pretty good place to locate."