Fund For Our Economic Future 2008 Report

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


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


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


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


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.


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


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


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


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

Fund For Our Economic Future 2008 Report

Documents