From http://www.alphalab.org/about.aspx:

    Funding

    Innovation Works will invest $25,000 in each AlphaLab company in
    return for 3% of the common stock of the company. This funding
    should support company operations during the AlphaLab program. As
    Innovation Works utilizes funds from the Commonwealth of
    Pennsylvania, each company receiving funding is expected to
    maintain a significant presence in Pennsylvania after the
    program.

and from http://www.alphalab.org/faqs.aspx:

    14) Do we have to stay in Pittsburgh after the program ends?

    Companies are expected to remain in Pittsburgh after the end of the
    AlphaLab program. Our goal is to help you build a successful
    technology company and to add to the critical mass of flourishing tech
    companies in the Pittsburgh region. We believe that Pittsburgh is a
    great place to build a company and after your experience at AlphaLab
    we are confident that you will agree.

As I understand it, the state money imposes the condition that companies stay in PA. It's been a long time since I looked at our contract/agreement, but I think the technical details for this round were (roughly) that companies must maintain a "significant presence" in PA for at least 5 years after receiving the money. If a company fails to maintain this "significant presence" they must return the $25,000 invested, but IW retains their 3% equity in the company. So, I'd say they're pretty serious, but if it were essential for your company to cut ties with PA at some point it wouldn't be the end of the world.

I don't get around that much myself, but can add: The AlphaLab office space is on the South Side, which is the big "night life" area, with a bunch of bars, clubs, restaurants, and for some reason a tattoo parlor on every other block (maybe drunk people are more likely to spontaneously get tattoos?). Overall Pittsburgh kind of reminds of Portland, OR, since it's green, cheap, and has a big river (two actually) running through the downtown. It's also supposed to rain a lot like Portland, but that hasn't started yet ...