GRANTS HELP PROVIDE NEW PRODUCT DEVELOPMENT SERVICES TO OHIO MANUFACTURERS IN THIRD FRONTIER TARGETED INDUSTRIES

FOR IMMEDIATE RELEASE
March 30, 2005

Columbus, OH -- Governor Bob Taft today announced $4 million in Third Frontier grants to help three Ohio organizations provide product development support services to small- and medium-sized Ohio manufacturers categorized as Third Frontier targeted industries.

“This funding will allow these organizations to provide the resources so that small- and medium-sized Ohio manufacturers in Third Frontier targeted industries can launch new, innovative products,” said Taft. “It’s important we continue to assist companies so they can transform their ideas into new products that will have positive economic outcomes and create new jobs for Ohioans.”

The grants, administered by the Ohio Department of Development, were awarded through the Product Development Pilot Program (PDPP), which is part of the Third Frontier Project. The PDPP allows organizations to deliver specialized and cost-effective product development services to small- and medium-sized Ohio manufacturers categorized as Third Frontier targeted industries. The services can help companies throughout the product development process, from generating ideas for new products to market testing and validation to launching a new product.

The Third Frontier Commission awards the grants through a competitive process. To qualify, the organizations receiving the awards must be a non-profit or public body with a significant presence in Ohio, or an Ohio state-supported institution of higher learning. Third Frontier targeted industries consist of advanced materials; bioscience; instruments, controls and electronics; information technology and power and propulsion. The organizations receiving grants for 2005 are:

TechSolve, Inc., located in Cincinnati (Hamilton County), in collaboration with the University of Cincinnati, will receive a $1,886,563 grant to create a partnership, whose purpose will be to provide workshops and services to companies focusing on lean product development and innovation. The economic impact due to new product development from this project over five years is expected to be up to $48 million in revenue growth, with 120 jobs being created or retained.

The Edison Materials Technology Center (EMTEC), located in Dayton (Montgomery County), will receive a $1.2 million grant to develop a new product development center, to be located at Sinclair Community College and run by EMTEC, that will be utilized by manufacturers in the region. Companies using the new development center will be able to utilize FlexiTracTM, a tool that provides innovative product development services to small- and medium-sized Ohio-based manufacturers dealing with advanced materials. The economic impact due to new product development from this project is expected to be $25 million annually, with 142 jobs being created or retained over five years.

CAMP, Inc., located in Cleveland (Cuyahoga County), will receive an $866,606 grant so it can continue delivering product development services to manufacturers in northern Ohio. Services offered range from production ideas to product launch, through the collaboration with private and public sector experts. This project will provide the organization with adequate funds to extend delivery services to a larger number of companies. The economic impact due to new product development from this project is expected to be $40-$50 million annually, with 300 jobs being created or retained over five years.

A 10-year, $1.1 billion initiative, the Ohio Third Frontier Project is the state’s largest-ever commitment to expand Ohio’s high-tech research capabilities and promote start-up companies to create high-paying jobs for generations to come.