fund for our economic future 2008 report
TRANSCRIPT
2008 is a year of transitionfor both the Fund for OurEconomic Future and forregionalism in NortheastOhio. We are confidentthat the outcome of bothtransitions will be a stronger,more globally competitiveregion.
In March 2008, ourcollaboration underwentits first transition inboard leadership sincephilanthropy united in2004 to help strengthenour region’s economiccompetitiveness throughgrantmaking, researchand civic engagement. Weare proud to jointly sharewith you our perspectiveof the Fund’s success overthe last year and our outlookon the work ahead.
The Fund’s grantmakingstoked the fires of economiccompetitiveness in theregion and helped producesuch encouraging outcomesin 2007 as:
$46 million in newannual payroll and morethan 1,500 new jobs
$318 million ingrowth capital raisedby the region’s mostpromising companies,more than twice thecapital raised in 2006
$124 million in stateinvestment through theThird Frontier Program
Northeast Ohio is buildingexciting new industries,growing new enterprisesand attracting newcompanies that promise astronger economic future.These successes andmany others came despitepersistent pressures thatchallenge the region’seconomy. Ultimately, theFund’s success will bedetermined by our abilityto help unite the regionto ease those pressuresand accelerate economicgrowth. In 2007, we madesignificant progress bybuilding awareness andsupport for AdvanceNortheast Ohio, the region’seconomic action plan.
Advance NortheastOhio is a set of regionalinitiatives that is bothimproving the region’seconomic competitivenessand building greaterloyalty to the region.Increasing support forregional approaches toour challenges is vital,particularly as the Fund’sresearch and civicengagement efforts inthe areas of government,education and inclusiontransition from theevaluation and developmentphase to implementation.
In the months ahead, theFund will work with itspartners to build supportfor regional initiatives to:
Connect growingemployers to the talent,capital and innovationthey need to succeed
Provide all residents,especially those whohave been traditionallydisadvantaged, access tothe educational andeconomic opportunitiesthat assure lifelongemployability
Improve the efficiencyand effectiveness ofgovernment
Thanks to your ongoingsupport and participation,we are confident thatthe Fund will continue todemonstrate to the regionthat when we collaborateand share we can builda stronger economyand a brighter future forNortheast Ohio.
Warm wishes,
Rob BriggsChair (2004-March 2008)
David AbbottChair
Dear Friends of the Fund,
Rob Briggs David Abbott
The Fund for Our Economic Future’sgrantmaking is targeted in four action areas:
Business Growth & AttractionTalent DevelopmentGrowth through Racial & Economic InclusionGovernment Collaboration & Efficiency
The majority of grants are awarded to regionaleconomic development organizations.The Fund also awards grants to accelerate thedevelopment of regional approaches to NortheastOhio’s economic development priorities.
GrantmakingResearchCivic Engagement
The Fund for Our
Economic Future unites
philanthropy in Northeast
Ohio to strengthen
the region’s economic
competitiveness through
GRANTMAKING,
RESEARCH and
CIVIC ENGAGEMENT.
Business Growth& Attraction
TOTAL FUND SUPPORT:$5.3 million
MISSION: Form, recruit,accelerate and growhealth care and biosciencecompanies.
UPDATE: In the past 12months, 36 BioEnterprisecompanies receivedinvestments totaling $271million, far exceeding anyprevious totals and placingNortheast Ohio first amongall Midwest regions. Theincreased flow of qualitydeals has convinced fournational VC firms to openoffices in Cleveland andthe region’s increasedvibrancy and nationalvisibility has helped attractfive non-Ohio companiesto the area. Lastly, theoverall bioscience businessinfrastructure fromCleveland’s core to thecenter of Akron continuesto grow across the region.
www.bioenterprise.com
TOTAL FUND SUPPORT:$6.75 million
MISSION: Accelerate growthof early-stage businessesand ideas into venture-readycompanies.
UPDATE: JumpStartportfolio companies raisedmore than $14 million infollow-on capital since July2007 – $33 million sinceinception – validating theircommercialization potentialand progress. JumpStart’sfirst Cleveland AngelFair in November hosted160 attendees and 12companies presented theirbusiness plans to investorsfrom Northeast Ohio andneighboring states.The 2007Venture Capital Report forthe Cleveland Plus region,a joint effort of JumpStart,BioEnterprise and NorTech,revealed that Northeast Ohiocompanies raised $318million in capital – twice theamount raised in 2006.
www.jumpstartinc.org
TOTAL FUND SUPPORT:$1.7 million
MISSION: Support,educate and championmanufacturing inNorthern Ohio.
UPDATE: MAGNETpartnered with NorTechto launch the InnovationAccelerator, with 125companies attendingthe opening event.Additionally, MAGNET’sfirst CompetitivenessChallenge, which evaluatedprojects from 13 companiesgenerating $28 millionin economic impact,named as its winners:McNeil Industries, AstroManufacturing & Designand MTD Products, Inc.The Plain Dealer publisheda special section highlightingthe participants.
www.magnetwork.org
TOTAL FUND SUPPORT:$5.9 million
MISSION: Lead, link andleverage the region’stechnology and innovationassets to build a globallycompetitive regional economy.
UPDATE: NorTech partneredwith MAGNET to launchthe Innovation Acceleratorto stimulate innovation insmall and medium-sizemanufacturers in NortheastOhio, with the goal ofgenerating $5 million ineconomic impact. NorTechalso launched TechLift toprovide business adviceto growing technologycompanies in targetedindustries. Since mid 2007,TechLift’s five signatureentrepreneurs-in-residencehave provided 200 regionaltechnology entrepreneurswith 2,700 hours ofsupport and services, withexpectations to provide 7,000hours of support in 2008.
www.nortech.org
TOTAL FUND SUPPORT:$5.6 million
MISSION: Increase highquality lead flow forcompanies interested inlocating or expandingin Northeast Ohio bymarketing the region andproviding site selectionservices.
UPDATE: Outperformingits metrics by more than200 percent in the pastyear, Team NEO attracted95 new qualified businessinvestment opportunitiesand worked on projects thatattracted $46 million in newannual payroll, accountingfor more than $90 millionin economic impact region-wide annually. It alsolaunched the ClevelandPlus marketing campaignwith regional partners,and developed personalrelationships with morethan half of targeted siteselection consultants.
www.teamneo.org
Talent Development TOTAL FUND SUPPORT:$120,000
The Fund joined with threefoundations to invite adiverse group of leadersfrom throughout theregion to re-imagine theeducation of NortheastOhio’s youth (focusinginitially on 15- to 25-year-olds) to preparethem to succeed in the21st century. The leadersmet in February to beginthe process of identifyingpotential initiatives forthe region to pursue.The group’s aspiration isto create a movement tochange the region’s cultureas it relates to education.The leadership group isscheduled to reconvenein May 2008 to continueits work.
EDUCATIONWORKS
Growth throughRacial & EconomicInclusion
TOTAL FUND SUPPORT:$1 million
MISSION: Increase thecapacity of existing minority-owned enterprises so thatthey can significantly boostsales and employment.
UPDATE: The Accelerator,officially launched in January2008, is currently acceptingapplications from minoritycompanies. Since thelaunch, it has received highlevels of traffic on its Website and 10 inquiries fromminority businesses, of whichtwo signed up and threehave high potential to moveforward. The Acceleratoraims to sign on 10 minoritybusinesses this year.
www.mbaccelerator2-5.com
GovernmentCollaboration &Efficiency
TOTAL FUND SUPPORT:$1.3+ million
MISSION: Aggregate thebuying power of publicsector entities (includingmunicipalities, school districts,counties, special districts,colleges and universities)across the region to achievebest-in-class pricing andimproved service levels forproducts, services and backoffice functions.
UPDATE: Since January 2007,NEO |SO has nearly doubled to68 members, who are savinganywhere from 10-30 percenton products and services byutilizing its contracts. NEO | SOis now partnering with severalassociations including OhioFoundation of IndependentColleges, whose membershipwill soon benefit. Along withthe association partnerships,NEO | SO also secured apartnership to allow members/associations access to nearly30 additional contracts by thespring of 2008.
www.neoso.org
REGIONAL ECONOMICREVENUE STUDY
TOTAL FUND SUPPORT:$90,000
In partnership with theNortheast Ohio Mayorsand City ManagersAssociation, the Fund issupporting an explorationof how the region couldimplement tax revenuesharing and commonland use policies to spureconomic development.A task force of governmentofficials from each of theregion’s 16 countiesis examining alternativeforms of tax sharingand regional planning.Recommendations areexpected in the firsthalf of 2008.
www.revenuestudy.org
COST OF FRAGMENTEDGOVERNMENT STUDY
TOTAL FUND SUPPORT:$100,000
Northeast Ohio is hometo more than 500different (and som timescompeting) governmentalentities. The Fund, alongwith the Youngstown-WarrenRegional Chamber, TheGeorge Gund Foundation,Greater ClevelandPartnership, Canton RegionalChamber of Commerce andthe Samuel H. and MariaMiller Foundation, awardeda grant to the Center forGovernmental Researc
2005
BUSINESS DYNAMICS
GROWTH FACTORS
2005
RACIAL INCLUSION &INCOME EQUALITY
GROWTH FACTORS
2005
TECHNOLOGYCOMMERCIALIZATION
GROWTH FACTORS
2005
SKILLED WORKFORCEAND R&D
GROWTH FACTORS
NORTHEAST
OHIO ECONOMIC
DASHBOARD
INDICATORS
e
Inc.hof Rochester, N.Y. to helpanswer the question:
government? A final
second quarter of 2008.
What is the economic cost to residents of fragmented
report is scheduled for the
,,
The Fund relies heavily oneconomic research to guideits efforts to strengthen theregion’s economiccompetitiveness. In 2007,the Fund issued the secondedition of The Dashboard ofEconomic Indicators for theNortheast Ohio Economy.
The 2007 Dashboardmeasured the economicperformance of 136metropolitan statisticalareas (MSAs) in the UnitedStates and identified ninecommon growth factorsin the metropolitan areas.The Fund is focusingits efforts on improving theregion’s performance infour of those factors:
Skilled Workforceand R&DMeasures the qualityof a region’s labor forceand advanced researchactivities
TechnologyCommercializationPrimarily focuses onpatents and venturecapital in a region
Racial Inclusion& Income EqualityMeasures poverty andracial segregation
Business DynamicsMeasures the ratioof business openings toclosings in a region
The Fund identified fourimportant lessons from theDashboard:
1. There is no singlesolution to turning arounda $170 billion economy.
2. The region’s pastdictates much of its presenteconomic performance,but it doesn’t preordainNortheast Ohio’s future.
3. Regional economicdevelopment efforts need tostay focused on the factorstied to growth, in particularthe essential role talent andentrepreneurship play in aknowledge-based economy.
4. Regional goals need to beincorporated into AdvanceNortheast Ohio to boost theregion’s aspirations and itseconomic performance.
To help the region’seconomic developmentprofessionals use theDashboard to guide theirefforts, the Fund hosteda regional colloquium inNovember 2007. Morethan 200 governmentand private sector officialsparticipated in the session.
Mark Barbash, chiefeconomic developmentofficer for the OhioDepartment of Development,presented the state’seconomic developmentstrategy at the colloquium.
Other Research Projects
The Fund joined withseveral other organizations,including the ClevelandFoundation and CuyahogaCounty, to support researchinto the feasibility ofinstalling wind turbinesin Lake Erie. The WindTurbine Feasibility Study
will draw attention toCleveland as an attractivemanufacturing site for windturbine components forthe growing U.S. market,creating new jobs inNortheast Ohio. The study isexpected to be completedin 2009.
The Fund sponsored the2007 Venture CapitalReport for the ClevelandPlus region. The reportfound that investments inNortheast Ohio companiestotaled $318 million in2007 – twice the dollarsinvested in 2006.
Research under way in 2008includes an examinationof the effect union activityplays in the economiccompetitiveness ofNortheast Ohio and a publicopinion survey of theregion’s attitudes regardingthe state of the economyand the region’s future.
GrantmakingResearchCivic Engagement
Building awareness andsupport for the economicaction plan, AdvanceNortheast Ohio, is essentialto the Fund’s mission ofstrengthening the region’seconomic competitiveness.
In addition to promoting theoverall plan, the Fund helpsbring together constituenciesfrom throughout NortheastOhio to develop regionalapproaches to specificinitiatives of the action plan.
Transforming TalentDevelopment
At the direction of Gov. TedStrickland, Ohio is transitioningits workforce developmentefforts from a social servicesorientation to one focused oneconomic development. TheFund for Our Economic Futureembraced that change inphilosophy in 2007 and beganworking with state, regionaland local officials to developa more regional approachto talent development inNortheast Ohio.
Throughout the winter of2007-08, the Fund helpedbring together representativesfrom the state Departmentof Development, the region’scommunity colleges anduniversities, county-basedWorkforce Investment Boardsand many others to evaluatehow best Northeast Ohio can
GrantmakingResearchCivic Engagement
use its talent developmentresources to meet the needsof growing employers andprovide lifelong employabilityto the region’s residents.
Talent development willcontinue to receive asignificant amount of theFund’s attention throughout2008 as we work toimprove the economiccompetitiveness ofNortheast Ohio.
advancenortheastohio.org
The Fund operates the Web
org to promote hundredsof examples of local andregional efforts under waythat address the plan’s fouraction areas:
Business Growth &Attraction
TalentDevelopment
Growth throughRacial & EconomicInclusion
GovernmentCollaboration &Efficiency
The Fund also issues amonthly newsletter to morethan 8,000 regional leadersand residents.
Regional Day 2007
On Oct. 30, 2007, FundChairman Rob Briggsprovided a six-monthupdate on the progress ofAdvance Northeast Ohioto more than 400 regionalleaders who participated inthe fifth annual RegionalDay sponsored by theNortheast Ohio RegionalLeadership Taskforce.Members of more than adozen regional leadershipprograms heard Robdescribe how the region hasmoved from a “Quiet Crisis”to a “Noisy Renaissance.”The “Noisy Renaissance”is distinguished byhigh-growth companies,increased ventureinvestments and emergingglobal industries.
Participants inDay also helped shapethe region’s economicdevelopment goals.
Director of RegionalPartnerships
In October 2007, the Fundhired Laura Steinbrink toserve as director of regionalpartnerships. Laura engagesthe region’s public andprivate sector leaders toaccelerate the developmentand implementation of theregional initiatives that makeup the action plan.
Regional
Funder Funders Committee Representative
Abington Foundation Allen Ford
Akron Community Foundation Jody Bacon
AmTrust Charitable Foundation David Goldberg/Michael Goldberg
Ashland County Partnership for Our Economic Future Evan Scurti
Ashtabula County Partnership Stuart Cordell
Benesch, Friedlander, Coplan & Aronoff LLP -in honor of Kirtland Capital Partners
Brentwood Foundation
Brian A. Bass Charitable Fund
Burton D. Morgan Foundation Deborah Hoover
Case Western Reserve University John Wheeler
Catholic Diocese of Cleveland Foundation Patrick Grace
The Cleveland Foundation Ronald Richard/Robert Eckardt
Cleveland Clinic Foundation Oliver Henkel, Jr./Gayle Agahi
Cleveland Indians Paul J. Dolan
Cleveland State University Michael Schwartz/Jack Boyle
Community Foundation of Lorain County Brian Frederick
Community Foundation of Mahoning Valley
Cuyahoga Community College Craig Follins
Board of County Commissioners, Cuyahoga County Paul Oyaski /Greg Zucca
David and Inez Myers Foundation Mort Epstein
Deaconess Community Foundation Deborah Vesy
Elizabeth and Ellery Sedgwick Fund of the Cleveland Foundation
Elizabeth Ring Mather and William Gwinn Mather Fund Lucy I. Weller/James Ireland III
Eva L. and Joseph M. Bruening Foundation Susan Althans
Foundation Advisory Council Group Kim Pesses/Peter Meisel
FirstEnergy Mary Beth Carroll
Forest City Enterprises Charitable Foundation Albert Ratner/KC Yasmer
Frances G. and Lewis Allen Davies Endowment Fundof the Cleveland Foundation
Frances Shoolroy Charitable Fund,a component of the Wayne County Community Foundation
Adam Briggs
Fred A. Lennon Charitable Trust Chris Hitchcock
Frederick W. and Janet P. Dorn Foundation
GAR Foundation Rob Briggs
Generation Foundation
The George Gund Foundation David Abbott
George W. Codrington Charitable Foundation William R. Seelbach
Greater Cleveland Partnership Joseph Roman/Shana Marbury
Gwendolyn McDay
Gross Builders
Harry K. and Emma R. Fox Charitable Foundation Harold Friedman/Stephen Strayer
Note: Members of the Steering Committee are in bold.
Phase 2 Fund ParticipantsPhase 2: March 2007- March 2010
Funder Funders Committee Representative
Huntington Bank Richard Hull/Brian Matthews
J.M. Smucker Company
Jane and Jon Outcalt Foundation Ken Outcalt
John G. and Karen R. Nestor Fund of the Cleveland Foundation John and Karen Nestor
John Huntington Fund for Education Peter W. Adams/Ann Pinkerton Ranney
John P. Murphy Foundation Allan Zambie/Richard Clark
John S. and James L. Knight Foundation Vivian Neal
Katherine and Lee Chilcote Foundation Lee Chilcote
Kelvin and Eleanor Smith Foundation William LaPlace/Ellen Mavec
Kent H. Smith Charitable Trust Phillip A. Ranney
Kent State University Foundation Lestor Lefton/Patricia Book
Kirtland Capital Partners
Kulas Foundation
Lake-Geauga Fund of the Cleveland Foundation Raphael Omerza
Lloyd L. and Louise K. Smith Memorial Foundation
Lorain County Community College Foundation Roy Church
Lubrizol Corporation - in honor of Gwendolyn McDay
Mandorel Fund of the Cleveland Foundation
Marcia and Harold Levine Philanthropic Fund of the JewishCommunity Federation of Cleveland
Martha Holden Jennings Foundation George Milbourn
Meisel Family Foundation of the Jewish Community Federation of Cleveland Kim Pesses/Peter Meisel
Michael J. Horvitz
Mount Sinai Health Care Foundation Tom Adler/Mitchell Balk
The Nathan and Fannye Shafran Foundation of theJewish Community Federation of Cleveland
Nord Family Foundation John Mullaney
Payne Fund Oliver Gratry
Reinberger Foundation Karen Hooser
Richland County Coalition for Our Economic Future Robert Cohen/Robert Stimpert
RPM International, Inc. Randell McShepard
Saint Luke’s Foundation Denise ZemanJanet Burney/Sally Hollington
Sally and Richard Hollington, Jr.
Samuel H. and Maria Miller Foundation
Senkfor Family Foundation
The Sherwick Fund of the Cleveland Foundation John Sherwin, Jr.
Sisters of Charity Foundation of Canton Victoria S. Conley
Sisters of Charity Foundation of Cleveland Susanna Krey
Stark Community Foundation James Bower/Cynthia Lazor
Stocker Foundation Patricia O’Brien
Paul Smuc er Wagstaffk
Summa Hospitals Foundation August A. Napoli
Funder Funders Committee Representative
Third Federal Foundation Kurt Karakul
Thomas and Joann Adler Family Foundation of theJewish Community Federation of Cleveland
University Hospitals Heidi Gartland/Edgar Jackson
University of Akron Research Foundation Luis Proenza
Vincent K. and Edith H. Smith Memorial Trust
Wayne Growth Partnership Lud Huck /Rod Crider
Weathertop Foundation
Westfield Insurance Foundation Jani Davis
Whitehead Family Fund of the Cleveland Foundation
William J. & Dorothy K. O’Neill Foundation William O’Neill/Leah Gary
The Wuliger Foundation, Inc.
Fund Officers Fund Action Team Chairs
Staff
ChairmanDavid AbbottThe George Gund Foundation
First Vice ChairRandell McShepardRPM International, Inc.
Vice ChairChristine MayerGAR Foundation
Vice ChairBrian FrederickCommunity Foundation ofLorain County
TreasurerWilliam LaPlaceKelvin and Eleanor SmithFoundation
PresidentBradley Whitehead
Vice PresidentRobert JaquayThe George Gund Foundation
Business Attraction,Retention and ExpansionKim PessesFoundation Advisory Council Group
Peter MeiselFoundation Advisory Council Group
Talent DevelopmentRandell McShepardRPM International, Inc.
Entrepreneurship & InnovationAdam BriggsFrances Shoolroy Charitable Fund
Deborah HooverBurton D. Morgan Foundation
Racial & Economic InclusionVivian NealJohn S. and James L. KnightFoundation
Denise ZemanSaint Luke’s Foundation
Government Collaboration &EfficiencyRobert JaquayThe George Gund Foundation
Phase 2 Fund Participants (Continued)
Note: Members of the Steering Committee are in bold.
PresidentBradley Whitehead
Fund CoordinatorMichael Shafarenko
Director of Marketing,Communication and Civic OutreachChris Thompson
Director of Regional PartnershipsLaura Steinbrink
Administrative AssistantAngela Maldonado
Susan and John Turben Foundation John Turben