NorTech

Team Northeast Ohio (Team NEO) released its latest quarterly Economic Review today. This quarter’s report provides an update on the 16-county Northeast Ohio regional economy and an in depth analysis of the region’s occupations that are growing and the effect the region’s mix of jobs has on the standard of living in Northeast Ohio.

Every issue of Team NEO’s quarterly Northeast Ohio Economic Review provides updates of basic economic indicators for the 16-county economy including: current estimates of the region’s annual growth rate, as defined by Gross Regional Product (GRP), and up-to-date information regarding Northeast Ohio’s total employment and unemployment rate.  This quarterly report indicates the following:

• Northeast Ohio’s economy is still on track for the 6^th consecutive year of growth
  
  • Gross regional output has grown in 14 of the past 15 years
  • 2007 growth estimated at .7%
  • Northeast Ohio’s economic output is up 31% from 15 years ago, an average annual growth rate of 2%
• Northeast Ohio’s total employment on track to be highest since 2002
  
  • Assuming Q4 2007 total employment change is within the “normal” range of the past five years, the full year of 2007 will outpace 2006 as the highest average annual employment since 2002
• Northeast Ohio unemployment rate decreases, while U.S. rate is on the rise
  
  • In Q3 2007 the gap closed slightly as Northeast Ohio’s unemployment rate decreased by .05% and the U.S. rate increased by .23%

Each issue of Team NEO’s Quarterly Northeast Ohio Economic Review also includes a feature section for an in-depth review of an aspect of the regional economy.  The most recently published report explores the trends among occupational changes in the Northeast Ohio economy.  The report indicates:

• Higher-paying jobs are growing faster in the Cleveland Plus region
  • Occupations above average pay ($37,800) are growing faster, up more than 10% since 1992, while below average wage jobs are up less than 6%.
  • While the production worker occupation has declined, it is noted that the average wage for this occupation ($33,000) is less than the average for all occupations ($37,800).
  • Since 1992, we have added 128,000 jobs to the region.
• Northeast Ohio’s cost of living is more than 10% lower than the national average
  • Higher reported per capita incomes on the East and West coasts do not make up for their higher living costs.
  • When the per capita personal income is adjusted for the cost of living, the four Cleveland Plus metros still fare better than such cities as New York, Orlando, Phoenix, San Francisco and Seattle.

This Quarterly Regional Economic Review also features highlights of 2007 economic development activity.  This is Team NEO’s fourth installment of the report.  The regional economic development organization began publishing the report in March 2007 to provide a holistic picture of Northeast Ohio’s economy.  It is the only regular source of collective economic data for the 16-county region.  It is published quarterly.  This edition is possible with the generous assistance of Charter One Foundation.

Click here to download the latest report

Click here to view past reports

Team NEO markets Northeast Ohio to attract business investment in targeted industry clusters.  The organization is a joint venture of the largest metro chambers, representing 16 counties and their 4 million people.  Team NEO serves as a central resource, informing and serving those considering investment in Northeast Ohio and is a co-founder of the Cleveland Plus Marketing Alliance, a coalition to drive strategic, long-term marketing for Northeast Ohio.  For more information, visit http://www.teamneo.org/.    

The Richard A. Shatten Professional Leadership Award recognizes professional individuals who exhibit the same traits and passion for moving the region forward through public-private partnerships. Recipients reflect Richard’s spirit through their work to enhance Cleveland’s physical and human capital in imaginative ways.  These endeavors are sure to carry their own legacies for years to come.  The first Richard A. Shatten Professional Leadership Award was presented to Christopher Warren.

Nominations are due February 15; the award will be presented at the Greater Cleveland Partnership Annual Meeting on March 5.  More information about the award and the nomination form are available online: www.gcpartnership.com/shatten

2008 AUTM Central Regional Meeting
Imagining the Future: The Genius of Tech Transfer
July 14-16, 2008
Location: Marriott Cleveland Downtown at Key Center

The Association of University Technology Managers (http://www.autm.net) is the world’s leading nonprofit organization dedicated to promoting, supporting, and enhancing the global academic technology transfer profession. This meeting will host nearly 200 technology transfer professionals from across the country. The Central region of AUTM, representing 19 states in the Central U.S., has developed a reputation for offering an outstanding program with up-to-the-minute information on topics that impact technology transfer. Additionally, we’ve become known for offering networking and social functions that are second to none and the 2008 meeting will uphold this tradition.

The event will be held at the Marriott Key Center in the heart of downtown Cleveland. The AUTM Central Region Planning Committee is putting the finishing touches on our 2008 program, which offers a combination of educational tracks, workshops, plenary sessions, and networking opportunities. Our Offsite Event, will be at the Great Lakes Science Center, which will feature an exhibit on Albert Einstein that attendees will be able to explore. The event will be catered by Sammy’s, a Cleveland favorite, renown for its fine cuisine, and will feature entertainment from a live band.

The program will include diverse topics of interest to technology transfer professionals, such as:

• Third Frontier in Ohio with a panel hosting Lt. Governor Lee Fisher (invited)
• Entrepreneurship, Start-up formation, and SBIR/STTR Programs
• Technology Transfer Operations 101
• The Technology Transfer Office and its relationship with the Business School and the Law School
  Bayh-Dole Reform
• Metrics and the new paradigm of institutional buy-in
• Working with non-profits, development offices, Alumni Groups, and non-traditional funding sources
• Intellectual Property Valuation
• Inter-Technology Transfer Office Interaction and Bundling of Technologies
• Effective Communication with Inventors, from Invention Disclosure to Marketing
• Export Control - Beyond the Borders and Issues of Foreign Nationals
• Current Trends in Clean Tech and other non-traditional technologies
• Anatomy of a License and Trends in Licensing

For question or more information about sponsorship opportunities please contact: Michael Allan, Vice President for Technology Assessment at First Principals, Inc. at 216-881-8526 or mfallan@firstprincipals.com

Last year the NorTech Venture Capital Advisory Task Force reported in its inaugural 2006 Venture Capital Report that the region would need to generate and attract over $1.2 billion in venture capital by 2011 in order to meet the capital needs of companies located in Northeast Ohio. According to the findings from the recently completed 2007 Venture Capital Report of the Cleveland+ region, to be released in print mid February, Northeast Ohio has made significant progress toward reaching this goal. With $318 million in new investments, compared to $157 million in 2006, the region saw a doubling in the amount of capital invested into its growing companies as well as a 40 percent increase in the total number of investments made during 2007.

The most noteworthy industry sector detailed in the Report was bioscience, comprised of biopharmaceuticals, medical devices and healthcare services and IT, which accounted for approximately 75 percent of the capital raised. In particular, biopharmaceuticals accounted for just over 50 percent of all capital investment for the region. Deal size for this sector was exceptionally large, with an average deal of $15.4 million. Significant wins for companies such as Athersys ($70 million), Franklin & Seidelman ($25 million), as well as Ricerca, contributed to much of the total. Other average industry‐sector deal
sizes ranged from $1 to $7 million.

“2007 was a record year for the region’s bioscience start‐ups. The companies are achieving major milestones and thus continue to draw significant investor attention. In addition, the number of seed and early‐stage financings demonstrates that the pipeline of developing biosciences companies remains robust,” commented Baiju Shah, President of BioEnterprise.

A rise in the number of investments was also noted, with an increase from 48 in 2006 to 71 in 2007. While most industry sectors saw growth in the number of deals, the fastest growing sector overall for 2007 was advanced materials. The Report also shows that Information Technology (IT) remains a strong sector. When all IT‐related companies, both bio and non‐bio‐related, are viewed in combination they comprise 39 percent of all investment dollars since 2004.

The Report also examines the type of companies that received funding by stage of investment and business maturity in the following categories: seed, early and growth. The Report reveals that dollars invested in early and growth‐stage companies have more than doubled since 2006 while the number of investments made in these companies has nearly doubled. At the same time the seed‐stage has remained a robust area for investment as a result of the support of Ohio’s Third Frontier Program and the activities of venture development firms, angels and risk‐friendly investors.

“Seed investments are critical to the formation and growth of new companies in an innovation economy,” said Ray Leach, President and CEO of JumpStart Inc. “The increased rate of investment at the seed level is encouraging news. We need to continue to encourage the support of current activities that focus on this segment as well as the creation of new and expanded angel, seed and early‐stage funds to ensure that we maintain capital in NEO that has the appropriate appetite for risk at the earliest stages of company formation and development.”

In 2007 there were a number of successful exits in the Northeast Ohio. Two of the most significant wins were the exits of MemberHealth ($630 million) and Hyland Software. The Hyland Software exit is of particular interest as it is among the largest IT company deals that Northeast Ohio has seen in recent years. Private equity firm Thoma Cressey Bravo agreed to acquire 58% of Hyland in a deal valued at $266 million. Hyland Software is a strong example of a Northeast Ohio‐founded company that has reached a successful transition point with its founding and early investors receiving a significant return on their investment. Another benefit of this transaction is that Hyland and its new investors remain focused on
growing the business in Northeast Ohio.

“Exits like MemberHealth and Hyland help demonstrate that this region has competitive, high‐return investment opportunities” said James D. Ireland III, Managing Director of Early Stage Partners LP and Chair of the NorTech Venture Capital Advisory Task Force. In 2002‐2004 the Task Force led efforts to pass legislation that resulted in the creation of the $150 million Ohio Capital Fund, which is now actively investing in regional venture funds around the State, including investment commitments to date of $48 million to eight funds that are headquartered or have offices in Northeast Ohio.

Another encouraging finding of the Report is that while regional fund investors are consistently making investments, they are being supplemented by an increasing number of venture capital funds that are making investments in Northeast Ohio companies for the first time, some of which have also opened offices in the region. Since 2004, almost 70 investors from outside the region have invested in Northeast Ohio companies. In 2007 four investment firms, including iNetworks, LLC of Pennsylvania and RiverVest Venture Partners of Missouri, opened new offices in Northeast Ohio.

“We are pleased to see that local asset managers are expanding their allocation of assets to regional venture capital, which facilitates the raising of new funds by local firms, while investors from outside the region and state see potential in the innovative ideas coming out of Northeast Ohio and are partnering on deals,” said Ireland. “These continued market trends demonstrate that our regional and state strategies to increase equity investments in local companies are working.”

From 2004 to 2007, Northeast Ohio companies were able to raise $856 million in venture and private equity investments. In the 2006 Report, it was determined that the capital needs for companies through 2011 equaled $1.2 billion – assuming that the investment amounts would increase over subsequent years. With $318 million raised in 2007, the Report affirms that Northeast Ohio has made positive strides towards meeting its capital goals.

“This is great news for the region. It is extremely important that in the coming years, the region continues to build on the momentum and do our best to close the funding gap that exists for innovative, high‐growth companies,” said Dorothy Baunach, President and CEO of NorTech. “Company growth and Northeast Ohio’s competitiveness in the national venture landscape, depends on stable, strong, and growing seed, early, and growth‐stage investing,” she added.

“This year’s findings demonstrate that regional economic development initiatives focused on venture capital are moving the needle and regional companies are making progress in accessing the capital they need to grow their business and to create opportunities,” noted Leach of JumpStart.

About JumpStart Inc.
JumpStart (http://www.jumpstartinc.org) accelerates the growth of innovative early‐stage businesses and
ideas into venture‐ready companies by delivering vital, focused resources to entrepreneurs and the
community of Northeast Ohio. JumpStart identifies and invests in early‐stage companies that have
strong potential in the marketplace, solid prospects for high growth, and are likely to qualify for laterstage
funding. Beyond investing, the JumpStart team provides a continuum of business development
services to its client companies to help ensure their success.

About NorTech
NorTech (http://www.nortech.org), the Northeast Ohio Technology Coalition, is a technology‐based economic
development organization and catalyst for making Northeast Ohio a global leader in technology,
innovation, and entrepreneurship. NorTech works closely with regional technology leaders to build a
globally‐competitive, innovation driven, technology economy by: Leading technology projects that have
an impact on the region’s innovation infrastructure; Linking together regional technology leaders and
innovation assets to spur collaboration and commercialization; and Leveraging public and private
investments to revitalize Northeast Ohio’s economy. Through its Venture Capital Advisory Task Force,
NorTech seeks to promote increased availability of seed and early‐stage capital and greater
professionalization of its management.

About BioEnterprise
BioEnterprise (http://www.bioenterprise.com) is a business formation, recruitment, and acceleration effort
designed to support the growth of bioscience companies. Located in Cleveland, BioEnterprise provides
management counsel and support services to health care companies. BioEnterprise’s partners are Case
Western Reserve University, The Cleveland Clinic Foundation, University Hospitals Health System, and
Summa Health System. Additional technology partners include the NASA Glenn Research Center,
Cleveland State University, NorTech, and BioOhio. The BioEnterprise Initiative comprises the
collaborative activities of BioEnterprise Corporation, the Case Western Reserve University Technology
Transfer Office, Cleveland Clinic Innovations, and Summa Enterprise Group. The combined efforts of
these groups has created, recruited, and accelerated more than 60 companies in four years.

The Nanotechnology Institute of Pennsylvania: Technology Transfer Models as Engines for Economic Growth

Thursday, January 31, 2008
6:00 PM – 8:30 PM
Parker Hannifin Corporation
(6035 Parkland Blvd., Cleveland, OH 44124)
RSVP to Bonnie J. West at bwest@nortech.org or 216-363-6877 or online at http://www.nano-network.org/signup.php  

Speaker: Anthony P. Green, Ph.D., Vice President, Technology Commercialization Group: Life Sciences for Ben Franklin Technology Partners of Southeastern Pennsylvania (BFTP/SEP); Ben Franklin Director of The Nanotechnology Institute™ (NTI); and Visiting Research Professor, Department of Biomedical Engineering at Drexel University.

At BFTP/SEP, Dr. Green is focused on Ben Franklin’s larger and region-wide technology partnerships and major initiatives, include the NTI, the Mid-Atlantic Nanotechnology Alliance (MANA®), new and evolving life sciences initiatives including the IP Donation Program, Keystone Innovation Zones (KIZs), regional translational research programs and the development and implement new commercialization models. Dr. Green has over 30 years experience in the biotechnology industry, with a specialization in the research, development and commercialization of cutting-edge technologies primarily in small, emerging companies, including Centocor and Puresyn. Dr. Green earned his Bachelor of Science degree in Immunology, with Honors, from Brown University, in Providence, Rhode Island and his Ph.D. from Temple University School of Medicine, in Microbiology and Immunology.

Sponsored by: Parker Hannifin

According to a report published today by NorTech and the Nano-Network, Ohio exhibits significant strengths in nanotechnology research, development, commercialization and entrepreneurship; and Northeast Ohio, in particular, is a leader in nanotech innovation. Through better cross-pollination of Ohio’s regions and sectors, the State has the potential to become an even greater national player in nanotechnology.

The report, entitled, “The Northeast Ohio Nanotechnology Report” is the result of a strategic planning exercise conducted by the NanoBusiness Alliance and funded by the Generation Foundation. The study examined the nanotechnology landscape in Northeast Ohio and Ohio overall as compared to peer regions (Central Ohio, greater Chicago, Detroit/Ann Arbor and Pittsburgh) as well as other Midwest/neighboring states (Illinois, Indiana, Michigan, Missouri, and Pennsylvania) in the areas of research funding and publications, academic patents, the concentration of small to mid size nanotechnology companies, the nanotech-related activity of large technology corporations, venture capital investment, and workforce.

From research to innovation to commercialization and entrepreneurship, Ohio and Northeast Ohio have many of the right ingredients to be considered nanotechnology leaders. In particular, the report shows that Ohio has rich a concentration of growing, small/mid-size nanotech companies; an impressive research publication record, complemented by large aggregate nanoscience/nanotechnology research expenditures; a significant concentration of active, public-market resourced companies hungry for new technology; a nexus of world-class polymer materials companies and a strong presence in the healthcare/biotechnology space, which are both areas of nanotech strengths; a growing venture capital community with an appetite for early stage investment; and an established and successful nanotechnology focused organization, the Nano-Network, which has been a catalyst for nanotech activity in Northeast Ohio and an attractor of national attention.
 
The report also cited specific challenges that Northeast Ohio and Ohio are facing, including: the lack of a collective statewide nanotech strategy which could better connect its regions and sectors; a relatively low rate of translating nanotech research into commercializable technologies; and the national venture capital community being largely unaware of the high level of nanotech activity and entrepreneurship within the State.

“We believe nanotechnology-enabled innovation and products will have a major impact on the global economy in the future.  Keeping that in mind, we want to cultivate an ecosystem that fosters nanotechnology growth and commercialization in Ohio to ensure that we advance innovation and remain globally competitive,” said Dorothy C. Baunach, President and CEO of NorTech.

The study also concluded that a priority of the Nano-Network, Northeast Ohio and Ohio should be consideration of a statewide nanotechnology initiative. In addition, the Nano-Network must continue to involve the Northeast Ohio region in a nanotech focused dialogue to stimulate collaborations and partnerships that engage top researchers in commercially focused R&D, include a cross-section of industrial sectors (e.g. materials and healthcare), and that bring together Ohio’s large corporations with its small to mid-size nanotech companies. Finally, the Nano-Network must work to increase the visibility of Ohio’s nanotechnology landscape, thereby attracting more investment, talent and technologies to the Northeast Ohio region and the State.

“Ohio has all the assets to be a powerhouse in nanotechnology, and a statewide initiative that will help to bring together Ohio’s nanotech assets and stimulate further collaboration and commercialization will certainly benefit the State’s institutions and companies. The Nano-Network has done an excellent job in serving Northeast Ohio’s nanotechnology community, and it’s my hope that we can soon have a similar industry-led entity coordinating nano activities for the entire state,” said Scott Rickert, President and CEO, of Nanofilm.

“We are very encouraged by the results of the report. It paints a vibrant picture of Northeast Ohio’s nanotechnology landscape and highlights how the Nano-Network can improve our efforts to accelerate nanotechnology research, development, commercialization and entrepreneurship in the region and the State,” said Alexis Abramson, Ph.D., Executive Director of the Nano-Network, Senior Fellow at NorTech, and Assistant Professor in Mechanical and Aerospace Engineering at Case Western Reserve University.

Copies of the Northeast Ohio Nanotechnology Report can be obtained from http://www.nano-network.org/ or http://www.nortech.org/resourcelibrary/resourcelibrary.aspx.  

Northeast Ohio is one of three U.S. regions to be recognized as 2008 Top 7 Intelligent Communities by the New York-based think tank Intelligent Community Forum (ICF). Northeast Ohio is now a finalist in the 2008 Intelligent Community of the Year competition. The winner will be announced May 16 in New York City.

The other six finalists represent a global footprint. They are Dundee, Scotland, United Kingdom; Fredericton, New Brunswick, Canada; Gangnam District, Seoul, South Korea; Tallinn, Estonia; Westchester County, New York, USA; and Winston-Salem, North Carolina, USA.

According to the ICF, the seven (7) communities selected for this award are being recognized for building broadband networks with a sustainable business models that became catalysts to create economic growth, social inclusion, and environmental stewardship. The networks serve as starting points and lead to community transformation through collaborative utilization.

Northeast Ohio was selected for its success in re-creating “the entrepreneurial business, political and social culture that produced its first wave of prosperity. A successful fiber network deployment by OneCommunity has been leveraged by government and nonprofits to jumpstart new investment, improve health care delivery, bring the best in culture and education to urban schools, and engage tens of thousands of area leaders in collaboration over regional economic development,” states a release from the ICF.

“The region’s achievements during 2007 were remarkable,” said Mark Ansboury, CTO of OneCommunity. “The collaborative efforts of the Greater Cleveland Partnership, Team NEO, the Cleveland Clinic, NorTech, the Northeast Ohio Regional Health Information Organization, ideastream, JumpStart, BioEnterprise, and state and local leaders across Northeast Ohio have made this achievement possible.”

“OneCommunity is proud to be a part of the movement to ensure the success of Northeast Ohio in the new broadband economy,” said Scot Rourke, OneCommunity’s president and CEO. “We will continue our work with corporate, civic and government leaders to revitalize our region’s economy, enhance service delivery in our school and hospital systems, and expand our digital infrastructure and applications.”

About OneCommunity
OneCommunity is a nonprofit organization dedicated to fostering economic development and improving the quality of life by leveraging information technologies. OneCommunity connects hundreds of public and nonprofit institutions to each other, to the world, and to leading technology vendors via its fiber-optic broadband network - one of the largest and fastest in the world. Leveraging the network, OneCommunity supports 21st-century programs in health care, education, government and workforce development. OneCommunity enables innovative connections and collaborative solutions, and transforms communities by enhancing their ability to compete in the global economy. http://www.onecommunity.org/

About the Intelligent Community Forum
ICF is a nonprofit think tank that focuses on the creation of prosperous local economies in the “broadband economy” of the 21st century. ICF conducts research, hosts events, publishes newsletters and presents awards to help communities understand both the opportunities and challenges, and to promote best practices in economic and social development.
http://www.intelligentcommunity.org/

Two of Northeast Ohio’s major economic development organizations, MAGNET, the Manufacturing Advocacy & Growth Network, and NorTech, the Northeast Ohio Technology Coalition, today announced they are working together on a program designed to stimulate innovation and growth in the region’s small and midsize manufacturing companies.

Called the Innovation Accelerator, the program seeks to engage manufacturers looking to grow their business by adding new products and services, leveraging ideas from employees, vendors, customers and competitors and exploring new technologies capable of making their products stronger and more effective.

Companies who work with MAGNET and NorTech through our Innovation Accelerator program will be exposed to proven strategies capable of helping them develop ideas that will increase their competitiveness and profitability which will bring jobs and growth to our regional economy,” said MAGNET President Dr. Fatima Weathers.

The partnership between NorTech and MAGNET to bring the Innovation Accelerator to manufacturers in Northeast Ohio leverages the strengths of both organizations. Through its many years of service to manufacturing companies, MAGNET understands the challenges facing manufactures today and is poised to address those challenges, while NorTech has been driving growth in the region’s technology sectors through innovation and entrepreneurship. The Innovation Accelerator will combine the expertise of these two organizations and bring new momentum to our manufacturing sector and result in economic growth in the region,” said NorTech President Dorothy Baunach.

The Innovation Accelerator program will be introduced at a launch event to be held on Thursday, February 7 at 8 a.m. at the DoubleTree Hotel in Independence. Speaking at that event will be Dave Karpinski, VP Technology Innovation, NorTech; Stephen Brand, Innovation Fellow, NorTech; Dan Adams, President, Advanced Industrial Marketing; Charlie Brez, VP Innovation Alliances, Nine Sigma, Inc.; Chad Cook, President, Bright Side, Inc.; Sayan Chatterjee, Professor of Policy and Chair, Marketing and Policy Studies, Weatherhead School of Management, Case Western Reserve University; Joe Glick, Senior Consultant, Newry Corp; and Ed Nolan, Vice President, Product Development and Engineering Services, MAGNET.

Four additional workshop sessions will be held following the launch. A session on March 6 is titled Immerse Yourself in Your Customers. April 3 is Create and Foster a Culture of Innovation. May 1 is Differentiate Your Products. June 5 is Open Innovation. Additional workshop sessions will be scheduled beginning in September 2008.

For further information on the Innovation Accelerator program, visit http://www.innovationaccelerator.com/

Related story: MAGNET, NorTech hoping to incite innovation with workshops, peer meetings, by Chuck Soder, Crain’s Cleveland Business, January 14

A new program to promote innovation among Northeast Ohio manufacturers won’t be your standard lecture series, according to officials from regional economic development agencies Magnet and NorTech.