Examining Northeast Ohio's Attributes

Aired February 22, 2005

When employers consider a job applicant, they often look at the resources that have been available to the contender - where did they go to school? What special programs, awards or fellowships have they participated in? Similarly, in the second part of our series, "The Region's Resume," ideastream's Janet Babin reports that when companies or industries consider a potential region to call home, they look for similar attributes.

When Biotech Company President Trevor Jones made the leap across the Atlantic from London to Ohio, he received a little financial backing from his fellow travelers:

Trevor Jones: I was on the Concorde, flying back and the stewardess said there's a couple that are moving from London to Cleveland, and we're going to take up a collection - and they got $18.40! That was the reputation!"

Not exactly a glowing endorsement, or something to point out on the resume of a region seeking hi-tech business opportunities. But government officials insist that view of the region is outmoded. They say many programs are in place to help the state expand its high-tech prospects. Pat Valente with Ohio's Department of Development says that while voters last year did turn down a proposed bond issue to support Governor Taft's 3rd Frontier program, there's still a substantial amount of money dedicated to the state's premier hi-tech investment plan:

Pat Valente: Without the bond issue it's still a $1.1 billion initiative - it's huge. We are spending, my division alone, upwards of 90 million a year in 3rd Frontier-related activities.

According to the Department of Development, the 10-year Third Frontier program has awarded $12 million between 2000 and early 2004; Valente's office says that money's been leveraged into $160 million that's been invested in nearly 60 Ohio companies. But only a small percentage, about 30% of the money, has actually been invested to date.

The Third Frontier program dollars have helped fund or create many area organizations that advance hi-technology, like Jumpstart, TeamNEO, BioEnterprise, and NorTech, The Northeast Ohio Technology Coalition. Nortech President Dorothy Baunach says the group focuses its efforts on bioscience, it, electronics power and propulsion, and the polymer industry:

Dorothy Baunach: NORTEC's role is to create economic development and global competitiveness in this region through technology innovation and entrepreneurship. So that everything that we do and everyplace that we look, we're looking at ways to increase the investment in our economy so that we can thrive based on technology, innovation and entrepreneurship.

Ohio's Development Office says such programs are working. The office cites a study by the Milken Institute that ranked Ohio #1 in growth of biopharmaceutical risk capital funding. But the same study lists Ohio as having fewer than 4,600 jobs in the industry, compared its neighbor Pennsylvania, with nearly 35,000 jobs.

Additionally, Cleveland's new Tech Czar Michael DeAloia says the region is gaining a solid association with emerging technology sectors. He says people just don't realize the region's hi-tech presence because companies here are scattered across a large geographic area:

Michael DeAloia: There's roughly 400 software development companies, 300 biotech companies... it's a misnomer to think that technology hasn't been successful in Cleveland - it's very successful, it's just spread out all over the place.

In addition to government assets from the city and the state, Northeast Ohio is well known for its higher learning institutions. Tech startup owner Trevor Jones says the region's university and research institutions are invaluable to his company's success, but he says the region fails to fully utilized these strengths:

Trevor Jones: The fact that we're here, near the clinic, University Hospitals and Case, and dramatic depth of medical research, but we're not capitalizing on the position.

While Trevor Jones applauds the Governor's efforts, he says state government must do more to attract and retain hi-tech sector companies. Jones was named the 2004 Northeast Ohio Entrepreneur of the Year for Innovation by Ernst and Young. The former TRW officer created his company, BioMec, in 1998. One of the company's latest products is a device for curing an inflammation of the esophagus that leads to cancer. It uses a liquid nitrogen spray to freeze the affected area, so it drops off like a blister, then washes away. Jones says higher education and technology must have a much higher priority in both the State House and the Senate.

Trevor Jones: It's a problem with all the clowns in Columbus, whether Democrat or Republican.

Jones also has harsh words for Cleveland's hi-tech efforts. In a 2004 Milken Institute Study of the 200 top performing cities, the Cleveland-Lorain-Elyeria region ranked 187th. Jones says the responsibility for the city's failures falls squarely on local government, and Mayor Jane Campbell.

Trevor Jones: There is no economic development in Cleveland, and if you asked the Mayor about it, she said, well I don't have the money. I have a great deal of respect for her on a personal basis, but if you look at the results you come to a different conclusion. The buck stops somewhere.

Tech czar DeAloia says that while resources are spread thin, he believes this year will bring dramatic improvements.

Michael DeAloia: In the next year, I'm making a concerted effort to meet and greet - my goal is define specific industries.

Tomorrow in our series THE REGION'S RESUME, a review of what Ohio's assets have wrought, and a profile of two successful hi-tech companies. In Cleveland, Janet Babin, 90.3.