A lot of startups come up around UPMC in the medical devices area. The investors that are here are extremely practica/rigidl. There's such a small amount of capital that they can only invest in something that seems like a sure thing, like putting a patented design for a medical device into production. I can't blame them for that strategy, but it doesn't make Y Combinator style companies.
This is a list of companies that got seed stage funding in Pittsburgh in quarter 4 2007. http://www.popcitymedia.com/timnews/vcroundup1219.aspx
I do think that this program is good for Pittsburgh. It certainly can't hurt and it is costing Innovation Works so little to run that they can surely afford to do it indefinitely while operating a loss. They get money from the state in the type of post-socialist arrangement that I think is good for society. They have a nice incubator facility in the district of Pittsburgh where I would most like to have an office. It's a decent sized building in the district that has great coffeshops and lots of restaurants and bars.
If anyone from here is thinking of applying, send me an email...