But in today’s competitive economic climate, we must do more than just keep the doors open to innovation. We need deliberate strategies to promote economic development and a culture that rewards entrepreneurship -- not just in STEM (science, technology, engineering and math) fields, but in the arts, health and human development, education and more. We are prepared to invest for the long-term because the outcomes will benefit generations of Pennsylvanians.
A recent study indicates that every $1 million in R&D spending generates 36 jobs. And, not surprisingly, the lowest unemployment rates are consistently found in the areas of the highest concentration of research activity. The Association of University Technology Managers reports that despite reduced federal research funding, there has been a 16 percent year-to-year increase in the number of new technology business startups based on university research. Net sales from new products totaled nearly $23 billion.
Through its $30 million investment, Penn State is poised to build a stronger entrepreneurial ecosystem around our campuses, and we are pursuing this goal on several fronts. We plan to create flexible and vibrant physical spaces in key locations across the Commonwealth to host entrepreneurial boot camps that will allow individuals and groups to incubate their ideas and develop viable businesses.
We will be hiring dozens of entrepreneurs-in-residence and new faculty members in areas of potential economic impact to serve as a catalyst for both innovation and marketable products. Through new faculty reward structures, we are promoting interdisciplinary partnerships to foster productivity and creative solutions.
This infusion of tens of millions of dollars also allows Penn State to launch an online branded platform to encourage outside investment in startup companies, as well as provide the expertise to kick-start promising new companies. Need legal advice? It will be there. Need assistance navigating the patent process? Just ask. Help at every stage of the entrepreneurial process is our goal. Our initial $30 million investment will be augmented through fundraising and industry and government partnerships to bring in additional expertise and resources.