NorTech

On May 27, the Ohio Third Frontier Commission announced $24 million in awards for Wright Center Program Projects and another $8 million for Success and Pre-Seed Funds. Of the funds announced, six Northeast Ohio organizations were awarded a combined total $14 million from Ohio’s Third Frontier.

Wright Center Program Project recipients include:

Case Western Reserve University:  $3 million to develop wind power supply chain products and establish a wind energy research center at the university.

Cleveland Clinic Foundation: $3 million to develop and commercialize products made from nitinol, a nickel titanium alloy.

Stark State College of Technology: $2.8 million for expansion of Stark State’s fuel cell test capabilities in support of Rolls-Royce’s one megawatt solid oxide fuel cell development program. 

Success and Pre-Seed Fund recipients include:

JumpStart: $2.6 million for its existing Pre-See Fund project

Lorain County Community College: $1.5 million for the LCCC Innovation Fund

BioEnterprise: $600,000 for Accelerating Biomedical Start-ups in Northeast Ohio Fund III project

Cleveland Clinic Foundation: $800,000 for BioValidation Fund II project

Ohio’s Third Frontier is the state’s largest-ever commitment to expanding Ohio’s high-tech research capabilities and promoting innovation and company formation to create high-paying jobs. More information is available at www.thirdfrontier.com.

Statewide data match regional trend with three straight years of growth

NorTech, the champion for growing Northeast Ohio’s high tech economy, today reported impressive gains in Northeast Ohio’s and Ohio’s high tech employment despite the current economic downturn.

In 2008, total employment in Northeast Ohio stood at 1.98 million jobs, with 181,190 jobs credited to the high tech sector, representing 9.1% of the region’s economy. Between 2004 and 2008, Northeast Ohio’s high tech employment grew 3.7%, and added 6,499 jobs, while employment in Northeast Ohio’s non high tech industries declined 1.4% and lost 25,670 jobs. Average wages in Northeast Ohio’s high tech industries are $70,075 which is almost double those wages in Northeast Ohio’s non- high tech industries at $37,297.

Similar trends were identified for the entire state of Ohio. Last year, statewide data for Ohio show total employment at 5.2 million jobs, with 495,088 jobs credited to the high-tech sector, representing 9.5% of the state’s economy. Between 2004 and 2008, Ohio’s high tech employment grew 4.0%, and added 19,198 jobs, while employment in Ohio’s non-high tech industries declined 0.2% and lost 7,247 jobs. Average wages for employees in Ohio’s high tech industries are $76,674, more than double the wages in Ohio’s non-high tech industries at $37,803.

“The recent high tech employment numbers are encouraging and energizing. Northeast Ohio is benefitting from public and private support and our high tech economy is growing as a result. But, our job is not done; Ohio must continue to invest in research, technology commercialization, entrepreneurship, venture capital formation and education to compete globally. We need to attract more federal dollars to complement our state investments,” said Dorothy C. Baunach, president and CEO of NorTech.

The high tech employment and annual wage data is collected for NorTech’s annual analysis of the Northeast Ohio high tech economy, which will be published in fall 2009. The research is conducted by the Center for Economic Development at Cleveland State University’s Levin College of Urban Affairs. 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.

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On May 1st, the Great Lakes Energy Development Task Force released the final feasibility results for the Great Lakes Wind Energy Center on Lake Erie. The year long study conducted by juwi GmbH examined a variety of complex issues to determine the practicality of installing wind turbines off the shore of Lake Erie. (Funders for the Feasibility Study include Cuyahoga County, The Cleveland Foundation, Case Western Reserve University, City of Cleveland, The Fund for our Economic Future via NorTech, Cleveland-Cuyahoga County Port Authority, and the Generation Foundation.)

Overall, the analysis indicated that because the scope of the pilot project is small, initially involving only two to 10 wind turbines, installation of the turbines will have no harmful impact on the environment, marine ecology and avian species. The Task Force said that cost for the project, reported to be between $77 million and $93 million, and community support now seem to be the biggest obstacles to overcome. However, the task force plans to apply for stimulus money and other federal funds to help launch the project.

The ultimate goals of the project is to jumpstart manufacturing of wind turbine parts in Northeast Ohio, and eventually install more wind turbines on the lake to produce clean energy and “green jobs” for Northeast Ohioans.  Read the final report.