The Inc. 5000 is an annually released list that tracks the 5,000 companies in the U.S. that are experiencing the highest revenue growth. Of those companies on the 2020 list, 188 are headquartered in PA.
The literature shows that high growth firms (defined as firms experiencing 20% or greater compound annual revenue grown over 3-years) are responsible for a significantly outsized contribution to economic growth and job creation. It also suggests that small, young, and knowledge-based firms are much more likely to achieve the levels of high growth seen on this list.
The Brookings Institute conducted an analysis and general endorsement of the list: https://www.brookings.edu/research/high-growth-firms-and-cities-in-the-us-an-analysis-of-the-inc-5000/

Data Source: INC 5000, Introducing the 5,000 Fastest-Growing Companies in America

Entrepreneurship
Number of companies appearing in the annual Inc. 5000 list of Fastest Growing Companies in America (top states by number of companies in 2020)

The Milken State Technology and Science provides a simple glance at how Pennsylvania is doing relative to other states. The Index considers 106 indicators across R&D inputs, risk capital and entrepreneurial infrastructure, human capital investment, technology and science workforce, and technology concentration and dynamism. Though there are some areas the Milken Index does not account for.

Source: Milken Institute

Immigrants living in Pennsylvania are a key driver of the economy. They make up 7% of the state’s population, but about 10% of the entrepreneurs. They are also over-represented as workers and founders in the science and technology industries. The top countries of origin for Pennsylvania’s foreign-born population are India, Dominican Republic, China, Mexico, and Vietnam. (1)

(1) “Immigrants in Pennsylvania,” American Immigration Council, August 6, 2020. https://www.americanimmigrationcouncil.org/research/immigrants-in-pennsylvania.

This graph shows funds allocated to the Dept. of Community and Economic Development (DCED) from the state’s General Fund, by year. This is part of the annual budget proposed by the Governor and altered or approved by the General Assembly. The three DCED programs highlighted—the Ben Franklin Technology Partners, Manufacture PA, and Partnerships for Regional Economic Performance (PREP)—are central to fostering the Commonwealth’s entrepreneurial community and emerging technology companies, often providing necessary capital before the private market can feasibly be expected to step in.
Note re Small Business Assistance/PREP (red series): In FY 2011, Industrial Development Assistance Local Development Districts, Small Business Development Centers, and Industrial Resource Centers were consolidated into Partnerships for Regional Economic Performance (PREP).
Note re Manufacturing PA (green series): In FY 2017-18, the Manufacturing PA line item was created at $12M. That line includes the Industrial Resource Centers (IRCs). As a result of the IRCs being moved out of the PREP line item, coupled with the creation of a new program within the PREP line, the overall appropriation for PREP was reduced by $2M, but its programs were not negatively impacted.

Source: Pennsylvania Department of Community and Economic Development

While STEM graduates aren't the only contributors to PA’s innovation economy, the number of STEM degrees awarded each year serves as a proxy for the labor pool’s interests and its level of skill development and sophistication (Milken 2018 Report).

As businesses grow in PA, they need skilled and well-educated workers who are prepared for the innovation economy. STEM degree programs help equip students with the knowledge and skills they need to enter the workforce and be successful in a tech-driven, global economy. (PA Department of Education).

Note about data: This table presents data collected from Title IV institutions in the United States. Prior to 2009-10, the data include only Title IV primarily postsecondary institutions.

Source: U.S. Department of Education, National Center for Education Statistics, Integrated Postsecondary Education Data System (IPEDS), Completions component final data (2001-02 - 2017-18) and provisional data (2018-19)

These graphs show the importance of foreign-owned companies to job creation in the Commonwealth. Foreign-owned companies tend to provide high wages because they are typically in high-tech, research-based industries. The presence of foreign-owned companies in a region may also attract other foreign firms, both within and outside of the same industry, ultimately creating more jobs for Pennsylvanians. (Brookings)

For the visualization, we define “foreign-owned companies” referring to the definition of “majority-owned U.S. affiliate” given by BEA (U.S. affiliate and Majority-owned U.S. affiliate). A foreign owned company is defined as a U.S. business enterprise in which there is foreign direct investment (FDI) and the combined ownership of all foreign parents exceeds 50 percent.

The FDI into Pennsylvania has been creating job opportunities in multiple industries, including manufacturing, wholesale trade, retail trade, information, finance and insurance, real estate and rental and leasing, scientific & technical services, and manufacturing industry takes the largest proportion among them.

Source: U.S. Bureau of Economic Analysis - Foreign Direct Investment

The Small Business Innovation Research (SBIR) and Small Business Tech Transfer (STTR) programs are federal grants that allow small companies to conduct proof-of-concept research and develop prototypes, with the goal of commercialization. STTR grants require a partnership with a non-profit research institution. Awards are both an indicator and enabler of future business success. More about these grants can be learned at www.sbir.gov/about.

Source: SBIR/STTR Award Summary by Year (Small Business Administration)

Pennsylvania’s annual ranking in the annual Milken Institute State Technology & Science Index, relative to the top 15 states in 2020

Small Business Innovation Research (SBIR) and Small Business Tech Transfer (STTR) Funding in Pennsylvania and selected states per $1 Million in GDP (2009-2019)