Third Frontier Project

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					November 2003

Third Frontier Project
Governor Bob Taft believes that Ohio’s future             Frontier Funds
lies in biotechnology, micro-manufacturing
                                                          The Wright Capital Fund will provide $500
and hydrogen power. To propel Ohio into the
                                                          million to expand the state’s base of leading-
new economy, and reclaim its title as a center
                                                          edge research and commercialization, primarily
for innovation, Governor Taft announced
                                                          through the creation of Wright Centers of
the creation of the Third
                                                                                 Innovation. The first $50
Frontier Project in 2002. It
                                                                                 million available in FY 2003
will match $1.6 billion in
                                                                                 was awarded to create three
state investment with an
                                                                                 Wright Centers in fuel cells,
additional $4.5 billion in
                                                                                 medical imaging and stem
federal and private funding
                                                                                 cells, and regenerative
to create a $6 billion
                                                                                 medicine. In addition to
initiative. Third Frontier
                                                                                 the capital funds, the
initiatives will help existing
                                                                                 biomedical Wright Centers
businesses innovate and
                                                                             will receive a portion of the
generate new start-up
                                                                          $350 million Biomedical Trust
companies to create the high-paying jobs
                                                          Fund, which is another major component of the
desired to sustain Ohio and its families in
                                                          Third Frontier Project.
the 21st century.
                                                          The Third Frontier Action Fund provides $150
The initial focus will be on areas of core
                                                          million to be used to support the creation of
                research strength in Ohio, identified
                                                          professionally managed early-stage capital
                      by the Battelle Institute:
Why                       1) advanced materials;
                                                          and commercialization. An example of
Third                        2) biosciences;
                                                          funded projects is the $979,000 grant to the
Frontier?                                                 Queen City Angels for their QCA First Fund.
                               3) instruments,
                                                          The Queen City Angels is a Cincinnati-based
The name for this                controls and elec-
                                                          group of about 22 angel investors that fund
initiative came from              tronics; 4) power
                                                          innovative, high-growth, early stage companies.
Ohio’s past successes,             and propulsion;
                                                          Too many companies must be rejected for
looking to our future.              and 5) information
The first frontier of major                               funding though, because they are too early-stage,
                                    technology. The
economic growth in Ohio                                   not yet having finished developing their product
                                    entire Third
was agriculture. The                                      or technology. The QCA First Fund fills the gap,
                                   Frontier Project,
second frontier was                                       providing money to very early-stage companies
                                  which is an umbrella
manufacturing. The                                        to help them get their product to a marketable
                                 name for almost a
third frontier will                                       stage. The EDABC has been working with the
                               dozen different specific
be technology                                             Queen City Angels to not only connect them
and knowledge                programs, is geared
                                                          with Butler County companies that might offer
based.                    to spur the growth of
                                                          attractive funding opportunities, but to identify
                      investment and jobs in
                                                          potential individuals that could join their group
               those specific areas.
                                                          and help expand their network.

Issue One Facts    Issue 1 will appear on the                             Third Frontier Project Continued
                   November 4, 2003 ballot. Issue 1
                                                                          The Innovation Ohio Revolving Loan                Re-Authorization of Technology
                   proposes a constitutional amendment
                                                                          Fund, funded at $100 million, will help           Investment Tax Credit — Expands and
                   to authorize the State of Ohio to
                                                                          existing Ohio companies, as well as               re-authorizes the existing investment tax
                   issue $500 million in bonds to
                                                                          companies new to the state, invest in             credit program for Ohio investors that
                   support research, development and
                                                                          fixed assets for the purpose of developing        invest in qualified small technology
                   commercialization of new products
                                                                          new cutting edge products. The loans              companies.
                   to create more high paying jobs
                                                                          will range from $250,000 to $5 million, and
                   in Ohio.                                                                                                 We Support the Third Frontier
                                                                          the money can be used to purchase fixed
                                                                                                                            and Issue 1
                       ● Issue 1 is not a tax increase,                   assets. The loan program is strategically
                          nor will it require a tax increase              aligned with the Wright Centers of                The Third Frontier Project matters to
                          in the future.                                  Innovation, and preference will be                Butler County. This ambitious initiative
                                                                          given to companies participating in a             has the potential to create new jobs
                       ● With private and federal financial               Wright Center project.                            and attract millions of dollars of new
                          support, Issue 1 will help generate                                                               investment. The EDABC has already
                          more than $6 billion for Ohio’s                 Other Frontier Programs
                                                                                                                            made connections with Miami University
                          economy, creating new high                      Besides the creation of new funds we              and the CincyTechUSA effort, to explore
                          paying jobs, recruiting world                   have already covered in this article, the         the possibilities of Miami partnering with
                          class researchers to Ohio and                   Third Frontier Project includes other new         other area universities and private sector
                          bringing cutting-edge products                  programs, and the restructuring of some           companies. Our goal is to establish one
                          to market.                                      existing ones. A brief summary of some            or more Wright Centers of Innovation
                                                                          of the major programs is provided below.          right here in Butler County, bringing
                                                                                                                            technology, investment and high-tech
                                                                          Ohio Research Commercialization Grant
                                                                                                                            jobs to our local community.
                                                                          Program — Provides additional financial
                                                                          support for final commercialization and           For more information on Ohio's Third
                                                                          pilot production to Ohio’s small technology       Frontier Project, please visit their web
                                                                          companies that have received previous             site at
                                                                          awards from federal Small Business
                                                                          Innovation Research, Small Business
                                                                          Technology Transfer and Advanced
                                                                          Technology programs.

                                                                                      Research and Development
                                                                                      Investment Fund — Creates
                                                                                      a fund to attract new research            EDABC’s
                                                                                      and development operations/                       INVESTORS
                                                                                      facilities to Ohio by providing           • Butler County
                                                                                      low-interest loans for                    • Butler Rural Electric Cooperative
                                                                                      companies relocating or                   • Cincinnati Bell Telephone
                                                                                      expanding their operations                • Cinergy
                                                                                      in Ohio. Loan repayments                  • Danis Construction
                                                                                      would be deposited back into              • Duke Realty
                                                                                      the fund to create a revolving            • Fifth Third Bank
                                                                                                                                • Henkle Schueler/Bunnel Hill
                                                                                      loan fund to assist future
                  Governor Bob Taft talks with                                                                                  • Lebanon Citizens National Bank
                  LexisNexis CEO Lou Andreozzi,                                                                                 • Mercy Hospital Fairfield
                  left, in the company's data center.
                                                                          Research Park Roadwork Infrastructure                 • Middletown Economic
                                                                          Assistance Fund — Modifies existing                     Development Corp.
                                                                                                                                • Miami University
                                                                          guidelines to provide enhanced assistance
                                                                                                                                • Midd-Cities Partners
                                                                          (80 percent funding) to communities
                                                                                                                                • Middletown Regional Health Systems
                                                                          developing research or technology parks.
                                                                                                                                • Miller Brewing Company
                                                                                                                                • Ohio Casualty Group
                                                                                                                                • Turner Construction
                                                                                                                                • University Pointe
                                                                                                                                • U.S. Bank
                              Commissioners:            Publisher/Editor:                    Economic Development
                              Michael A. Fox            Andrew T. Kuchta, Director           Association of Butler County
                              Charles R. Furmon          130 High Street 6th, Floor
                              Courtney E. Combs         (513) 887-3404 FAX (513) 785-5723    Hamilton, Ohio 45011

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