NorTech

News Release:

(Cleveland) December 22, 2008—NorTech, Northeast Ohio’s leading technology-based economic development organization, today released data from its annual report that analyzes growth in the region’s high tech sector. The full report, entitled “The High Tech Sector in Northeast Ohio”, will be available to the public in mid-January and monitors Northeast Ohio’s high tech sector through 2007. The report compares Northeast Ohio’s high tech sector with the Midwest region and the U.S. from the perspective of employment and wages in high tech industries and their eight technology groups, as well as research and development activity. The annual analysis is commissioned by NorTech and prepared by the Center for Economic Development at Cleveland State University Maxine Goodman Levin College of Urban Affairs.

At the beginning of the decade, national high tech employment was down sharply as a result of the collapse of the dot-com bubble. Based on high tech employment data of recent years, 2004 marked the reversal of the downward trend and employment has since improved. A major finding of the forthcoming report indicates that employment in Northeast Ohio’s high tech industries was up 2.7% since 2004 despite an overall decline of 0.2% in the region’s employment across all industries. In absolute terms, Northeast Ohio added 4,436 jobs in the high tech sector between 2004 and 2007 while Northeast Ohio lost 3,162 jobs overall in that same period.

Northeast Ohio still faces a challenge to close the gaps in employment growth between the Midwest and U.S. For the same period, 2007 high tech employment in the Midwest (IN, IL, MI, MN, OH, WI) was up 3.6% over 2004; U.S. was up 6.6% since 2004. To achieve the same growth rate as in the Midwest, Northeast Ohio would have had to increase high tech employment by a total of 5,995 jobs - approximately 1,500 more jobs than recorded. To achieve the same growth rate as in the U.S., Northeast Ohio would have had to increase high tech employment by a total of a total of 10,885, as opposed to 4,436 - approximately 6,500 more.

In 2007, total employment in Northeast Ohio was 1,999,668 with 170,602 jobs credited to the high tech sector, representing 8.53% of our regional economy. The Midwest and U.S. percentages of high tech employment were 9.02% and 9.53%, respectively.

Average wages in the high tech sector far exceed average wages across all industries for every geography. In 2007, the average wages in Northeast Ohio’s high tech industries was $70,985 while the average wage across all industries was $40,399. Full details on areas of tech sector growth in 2007 as well as Gross Regional Product (GRP) and technology research and development activity will be available in the full report in mid-January.

“We are pleased that employment in the region’s high tech industries grew in 2007, even in the midst of an overall decrease in employment in Northeast Ohio. Technology-based economic development results from long-term investments and the 2007 data shows the benefits of this sustained effort over the years by the state, regional business community, and private foundations. The outlook for 2008 is uncertain given the current economic conditions, but continued investment in technology is needed to continue the creation of more high-tech, high paying jobs for the future,” said Dorothy Baunach, president and chief executive officer of NorTech.

The Cleveland State research team used a definition of high tech industries and occupations developed by Daniel Hecker, an economist at the U.S. Bureau of Labor Statistics. This definition was used to study Northeast Ohio’s 21-county area consisting of six metropolitan regions (Cleveland-Elyria-Mentor, Akron, Canton-Massillon, Mansfield, Sandusky, and Youngstown-Warren-Boardman) and eight non-metropolitan counties.

Copies of the final report will be available for download in mid-January 2009 at www.nortech.org and http://urban.csuohio.edu/economicdevelopment/index.shtml.  

NorTech believes the findings in its annual high tech report reflect one method of measuring technology-based economic development in Northeast Ohio. Updates will also be used to inform strategic planning efforts, educate policy makers, and inform funding sources. For additional information about this study, please call Dorothy Baunach at 216-363-6883, or Dr. Ziona Austrian at 216-687-3988.

NorTech:
NorTech, the Northeast Ohio Technology Coalition, is a technology-based economic development organization that serves as the voice and catalyst for making Northeast Ohio a global leader in technology development, commercialization and innovation. NorTech works closely with regional technology leaders to build a globally-competitive, innovation driven, technology economy by fostering technology development and commercialization that has potential to build new, economy-sustaining industry clusters and strengthen and grow existing clusters. www.nortech.org  

Center for Economic Development (CED) at Cleveland State University’s Maxine Goodman Levin College of Urban Affairs:
The Center for Economic Development encompasses research and technical assistance activities aimed at furthering the development potential of the Cleveland region and Ohio. It concentrates on economic impact analyses, industry clusters, economic indicators, and investigating innovation and entrepreneurship. The CED is one of 12 research centers within the College that provide applied research, technical assistance, and training to public officials, community leaders, and the private sector with the objective of enhancing the quality of life in urban communities.

The Maxine Goodman Levin College of Urban Affairs is ranked among the top eight schools of urban affairs in the United States. The College is ranked second in the graduate specialty of city management and urban policy in U.S. News and World Report’s 1998, 2002 and 2005 issues of “America’s Best Graduate Schools.” The College offers 12 degree programs: bachelor’s, master’s, Ph.D. and dual degree programs that provide the opportunity to earn the Juris Doctor (JD) with a Master’s in Public Administration (JD/MPA) a Master’s in Urban Planning, Design, and Development (JD/MUPDD), or a JD/Master of Arts in Environmental Studies. The College is also home to Economic Development Quarterly (EDQ), the leading journal in the field of economic development.
http://urban.csuohio.edu/economicdevelopment/index.shtml

A total of $14 million in Third Frontier grants were awarded last Friday, December 12th, as part of the State of Ohio’s continued commitment to expanding its high-tech research and commercialization capabilities. Eight Northeast Ohio technology companies received just over $5 million in Third Frontier grants to commercialize products, create advanced and alternative energy applications and accelerate fuel cell development. Those companies include:

Contained Energy, based in Cuyahoga County, was awarded $350,000 to expand the work being performed under their 2007 Third Frontier Fuel Cell grant by improving Direct Carbon Fuel Cell Stack Efficiency and commercial design.

Energy Technologies, based in Richland County, was awarded $1,000,000 for the development of a High Volume Manufacturing Process for Metal Hydride Fuel Cell Stack. This award builds on a previous Third Frontier award to Energy Technologies, which will help the company develop the capability to produce the metal hydride fuel cell stack, stack components welding process and balance of plant integration.

Industrial Railway Switching & Services, based in Lorain County, was awarded $450,000 to develop and commercialize a new switcher-style locomotive prototype that uses more fuel-efficient technology to transport materials within industrial plants and to loading sites for commercial railroads.

Lockheed Martin, based in Summit County, was awarded $998,393 to develop a Solid Oxide Fuel Cell system that can meet military performance requirements for mobile generator sets to operate more than 1,000 hours.  

Parker Hannifin, based in Cuyahoga County, was awarded $1,000,000 to commercialize a modular high speed shaft brake for wind turbines based on the company’s existing helicopter brake technology. Prototypes will be created and evaluated by wind turbine manufacturers collaborating on the project.

Proxy Biomedical, currently based in Galway, Ireland was awarded $160,000 to establish its first U.S. full service operation in Cleveland (Cuyahoga County). The company plans to design, develop, market, and manufacture devices and materials for advanced surgical procedures.

Rolls Royce Fuel Cell Systems, based in Stark County, was awarded $600,000 to improve performance and reduce the cost of a critical component for the company’s fuel cell design-the Internal Steam Reformers (ISRs).

Tremco Incorporated, based in Cuyahoga County, was awarded $1,000,000 to develop easy-to-install and maintain building-integrated photovoltaic systems, which will be code compliant.  

The recent grant awards bring the total investment of Third Frontier dollars in Northeast Ohio’s 21 county region to just over $79 million for 2008.

For more information about the Third Frontier, including the grants announced last week or upcoming Request for Proposal (RFPs) opportunities, please go to www.thirdfrontier.com.

NorTech (Northeast Ohio Technology Coalition) and Crain’s Cleveland Business have partnered to host the 2009 Innovation Awards to honor and celebrate the most exciting and impactful innovations in the region and honor those innovative individuals and organizations who have transformed their creative ideas into reality. 

Over the past several years, NorTech has recognized Northeast Ohio innovators that have created new products, processes and services that have significantly improved our regional and global technology economy.  This year, NorTech will once again recognize “breakthrough innovation”-technologies that have the potential to dramatically impact a specific industry or market sector. The 2009 Innovation Awards will recognize innovations in five broad technology categories: bioscience; instrumentation, controls and electronics; advanced materials; information and communications technologies; and advanced energy, power and propulsion.  

Congratualtions to this year’s finalists:

Case Western Reserve University
-Biotech Platform for Diagnosis, Monitoring and Drug Development

Pathogen Systems Inc.
- Realtime Pathogen Detection Device

The University of Akron & Kencak LLC
- Artificial Pancreas

InSeT Systems LLC
- Inertial Tracking System for Underground Mines

NASA Glenn Research Center & ZIN Technologies Inc.
- Wireless Biometric Monitoring

NeuroWave Systems Inc.
- Brain Activity Monitoring During Anesthesia

Quality Electrodynamics LLC
- Miniaturized MRI Pre-amplifier

Sensor Development Corporation
- VOC and Microbial VOC Sensor

Plasticolors Inc.
- UV Additive Platform for Fiberglass Reinforced Plastics

Powdermet Inc.
- High-strength, Low-weight Nano Composites

Sherwin-Williams Automotive Finishes
- Fast-dry, High-speed, Low-temperature Auto Finish

The Sherwin-Williams Company
- Blast Effect Mitigation Panels

The University of Akron
- Breast Implant Shell

AmTrust Bank
- Electronic Signature Solution

OEConnection
- OEM Collision Part Sales & Marketing Platform

Simpliance Inc.
- Rule-based Software Development Platform

Arisdyne Systems Inc.
- Hydrodynamic Caivtation Process for Biodiesel Production

GreenField Solar Corp.
- High density Photovoltaic Concentrator

The University of Akron
- Highly Efficient CO2 Capture Technology

Venture Lighting International
- Energy Efficient Track Lighting System

Innovation Award winners will be recognized at a dinner reception and ceremony on Wednesday, February 18, 2009 at Windows on the River, located in the west bank of the Flats in downtown Cleveland. Tickets for this event will go on sale January 5, 2009. Sponsorship opportunities are available. To learn more, please contact Mike Malley, Crain’s Advertising & Sales Director, at 216-771-5070 or mmalley@crain.com. Stay tuned to http://www.crainsclevelandbusiness.com/ and http://www.nortech.org/ for all news and event info for the 2009 NorTech Innovation Awards.