Ohio Third Frontier

Ohio Third Frontier is a statewide technology initiative created to expand high-tech industry and innovation in Ohio. It was established by legislative action and supported by statewide agencies, private investors, major research universities, and regional development organizations to accelerate commercialization of research from institutions such as The Ohio State University, Cleveland Clinic, Case Western Reserve University, and Ohio University. The initiative coordinated with offices and entities including the Ohio Department of Development, JobsOhio, Governor of Ohio, and the Ohio General Assembly to target sectors like biotechnology, information technology, advanced manufacturing, and aerospace.

History

The program was launched after advocacy by policymakers, civic leaders, and industry coalitions including the Technology Collaborative and endorsements from governors such as Bob Taft and Ted Strickland. Early stages drew on models from initiatives linked to Massachusetts Technology Collaborative, the California Institute for Regenerative Medicine debates, and regional efforts involving organizations like the Cleveland Foundation and Team NEO. Legislation enacted by the Ohio General Assembly created funding mechanisms modeled on state innovation funds used in places like California and Massachusetts, aligning with research capacity at institutions such as Ohio State University, CWRU, University of Cincinnati, Wright State University, and University of Toledo. Major university-affiliated centers including the Wexner Medical Center and corporate partners like Procter & Gamble and Goodyear Tire and Rubber Company participated in applied research and commercialization collaborations.

Governance and Funding

Oversight was provided through boards and commissions appointed by the Governor of Ohio and confirmed by the Ohio Senate, involving representatives from philanthropic organizations such as the Cleveland Foundation, industry stakeholders including executives from Battelle Memorial Institute and The Sherwin-Williams Company, and academic leaders from Ohio State University and Case Western Reserve University. Funding derived from voter-approved bond measures, state appropriations handled through the Ohio Department of Development, and matching funds from private investors including VentureOhio participants and angel networks associated with Northeast Ohio and Columbus, Ohio. The initiative coordinated with regional economic development groups such as JobsOhio, Greater Cleveland Partnership, Columbus 2020, and Team NEO to allocate grants and loans. Fiscal auditing and reporting obligations interacted with entities like the Ohio Auditor of State and budgetary processes of the Ohio General Assembly.

Programs and Initiatives

Programming included commercialization grants, proof-of-concept awards, seed capital investments, and infrastructure projects undertaken in partnership with university tech-transfer offices at Cleveland Clinic Innovations, Ohio State Technology Commercialization Office, and University of Cincinnati Office of Research. Initiatives funded incubators and accelerators such as JumpStart, Inc., Rev1 Ventures, BioEnterprise, TechColumbus, and facilities like the Cleveland Clinic Lerner Research Institute and OSU Research Park. Sector-specific efforts targeted collaborations with firms like GE Aviation and research centers including Air Force Research Laboratory partnerships at Wright-Patterson Air Force Base, as well as health-science projects linked to Nationwide Children's Hospital. Workforce and talent programs coordinated with Ohio Department of Higher Education institutions including Youngstown State University, Kent State University, and Miami University to support commercialization pipelines. Capital deployment mechanisms engaged venture capital firms with regional presence, including Drive Capital and national investors who partnered through co-investment vehicles.

Economic Impact and Outcomes

Analyses by state and independent evaluators attributed job creation, company formation, and investment attraction to grants and capital programs that supported startups spun out of universities and research hospitals like Cleveland Clinic and University Hospitals. Reported outcomes included increases in high-wage employment in metropolitan areas such as Cleveland, Columbus, Cincinnati, and Akron, growth in patenting activity associated with tech-transfer offices at Ohio State University and Case Western Reserve University, and follow-on financing attracted from venture capital firms in markets like New York City and Silicon Valley. Infrastructure investments included lab build-outs and innovation districts linked to projects in Columbus, Ohio and Cleveland Clinic Innovation District. Economic modeling tied some increases in regional gross domestic product to technology-sector expansion and multinational corporate partnerships with local supply chains involving firms like Goodyear.

Criticism and Controversies

Critics raised concerns about the efficacy and oversight of public funds used for private-sector investment, invoking debates similar to controversies around state investment programs in Kansas and California where accountability and measuring return on investment were challenged. Questions were posed by watchdogs and journalists regarding transparency with boards, the role of incumbents like Battelle and established universities in allocation decisions, and whether funding priorities favored certain regions such as Cleveland and Columbus over Appalachian and rural areas including Youngstown and Zanesville. Fiscal scrutiny by entities such as the Ohio Auditor of State and legislative oversight committees resulted in calls for reform to address program evaluation metrics, sunset provisions enacted by the Ohio General Assembly, and alignment with statewide workforce initiatives overseen by the Ohio Department of Higher Education.

Category:Economy of Ohio Category:Science and technology in Ohio