Cleveland Health Tech Corridor- Angelou Economics Study
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In 2009 Angelou Economics, an economic development consultancy based in Austin Texas, was commissioned to study Cleveland’s Health and Technology Corridor. This report sets out an action plan with ...

In 2009 Angelou Economics, an economic development consultancy based in Austin Texas, was commissioned to study Cleveland’s Health and Technology Corridor. This report sets out an action plan with strategies on how to most effectively market the Health Tech Corridor and has served as the basis for many of the subsequent programs and policies that focus on further developing the Corridor.

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Cleveland Health Tech Corridor- Angelou Economics Study Document Transcript

  • 1. 1 Cleveland Health and Technology Corridor Action Plan REPORT IV: Cleveland Health and Technology Corridor: Action Plan TABLE OF CONTENTS EXECUTIVE SUMMARY 3 PROJECT HORIZONS 5 ACTION PLAN 6 GOAL 1: PROMOTE THE CORRIDOR AND GREATER CLEVELAND’S POSITION AS A LEADING BIOMEDICAL CENTER 6 GOAL 2: CREATE A SINGLE POINT OF CONTACT FOR THE CORRIDOR 9 GOAL 3: PUT IN PLACE APPROPRIATE REAL ESTATE OPTIONS TO MEET INDUSTRY REQUIREMENTS 11 GOAL 4: LEVERAGE EXISTING AND CREATE NEW FINANCING OPTIONS AND INCENTIVES TO SPUR DEVELOPMENT AND ATTRACTION OF FUTURE COMPANIES 13 GOAL 5: STRENGTHEN THE CONNECTION BETWEEN THE CORRIDOR AND PORT OF CLEVELAND’S INTERNATIONAL TRADE DISTRICT AND FUTURE PORT FACILITIES 16 GOAL 6: ENSURE THE PROPER ALIGNMENT OF WORKFORCE SKILLS 17 MARKETING CALENDAR 18 Prepared for: BioEnterprise City of Cleveland Cleveland Foundation Cuyahoga County Cleveland Cuyahoga County Port Authority Greater University Circle Initiative Midtown Cleveland Inc. Prepared by:
  • 2. 2 Cleveland Health and Technology Corridor Action Plan Cleveland’s reputation as a healthcare hub and traditional strength in manufacturing are two assets that will greatly benefit the development of the city as a leading biomedical center. Possessing a potent combination of a trained workforce in skilled manufacturing and a wealth of healthcare facilities and expertise, Cleveland is poised to take advantage of the growing biomedical industry, which lies at the intersection of manufacturing, healthcare, and pharmaceutical industries. According to TeamNEO, a regional business attraction initiative, over 80% of biomedical VC funding attracted to Ohio from outside the state has been invested in the greater Cleveland area thanks in large part to the area’s existing education, R&D, business and workforce assets, as well as its huge potential for growth. Economic development promotion is ultimately a marketing activity that has two functions: to promote a community and to improve the community’s product. To be complete, an economic development plan should include community development recommendations as well as those for marketing to an external audience. Great economic development initiatives involve the entire community working together to improve the local “product” while the economic development organization works to improve awareness and perception of the community in the outside world. Since the 1950’s, research parks and incubators have been used by local communities as economic development tools. The research park movement, which started at Stanford and continued at Research Triangle Park in North Carolina, gained prominence during the 1980’s when many universities created their own research parks. These types of development take decades of slow investment and support in order to flourish. In order to be successful, the Cleveland Health and Technology Corridor will need to apply consistent effort to the corridor in the form of marketing dollars, physical investments, and financial incentives over a long period of time. This Action Plan comprises a set of strategies that support an aggressive, collaborative and entrepreneurial driven strategy which will: Act as a catalyst for redevelopment for the greater Midtown area Provide high quality, high wage jobs Setting the stage for long term collaboration and strategic partnerships It sets a framework for connecting, networking and leveraging important economic development, institution, education, workforce and industry assets to strengthen existing assets, foster collaboration all while making the corridor more competitive for future economic development opportunities. This action plan focuses on six core strategy areas: 1. Promoting the Health and Technology Corridor and Greater Cleveland’s position as a leading biomedical center. 2. Creating a single point of contact for the corridor 3. Developing appropriate real estate options to meet industry requirements in every stage of growth 4. Leveraging existing and creating new development financing options and incentives to spur development and attraction of future and expansion of existing companies 5. Strengthening the connections between the corridor and the Port of Cleveland’s International Trade District and future port facilities 6. Ensuring that the Greater Cleveland region is attracting, retaining, and producing individuals with the skills needed to meet future health and technology needs
  • 3. 3 Cleveland Health and Technology Corridor Action Plan PROJECT HORIZONS AngelouEconomics has broken down the final recommendation into three “project horizons” or timeframes to begin implementation. This should serve as a guide on how and when specific action items should be implemented over the next several years. A brief description of the project horizons are below and detailed on page 6. 1. Horizon One – Immediate/Short Term Action Items (0-6 months) These are immediate action items focused on: - Establishing the underlying programs necessary to implement the corridor’s economic development vision - Strengthening existing and establishing new relationships with regional leadership (Team NEO, Greater Cleveland Partnership, Cuyahoga County, City of Cleveland, etc.) and higher education programs (Cleveland Clinic, CWRU, CSU, Tri-C and others) - Building public and private sector excitement and engagement in these activities 2. Horizon Two – Short to Mid Term Action Items (6 months – 1 year) - Launching an aggressive targeted business attraction program aimed at target markets - Establishing collaborative taskforces focused on: sharpening connections to higher education, entrepreneurship and technology transfer - Launching a corridor branding and communications campaign (website, collaterals, media, etc.) 3. Horizon Three – Mid to Long Term Action Items (1 year and beyond) These are longer term strategies focused on international outreach, branding and other strategies requiring significant financial commitment.
  • 4. 4 Cleveland Health and Technology Corridor Action Plan Goals Horizon One: Horizon Two: Horizon Three: Short Term (0-6 Months) Mid Term (6 months - 1 Year) Long Term (1+ Years)Goal 1: Promote the Health 1.1 Launch targeted marketing campaign 1.2 Enhance connections to incoming 1.3 Launch international recruitmentand Technology corridor and 1.4 Launch corridor website trade shows, business events and strategyGreater Cleveland’s position 1.1 Establish relationship campaign with research forums 1.1 Launch corridor branding strategyas a leading biomedical key site selectors in target marketscenter of excellenceGoal 2: Create a single point 2.1 Establish corridor advisory group 2.2 Hire corridor director 2.3 Survey plastics molding and metalof contact for the corridor 2.2 Submit innovation zone application to fabricators Cuyahoga County 2.3 Release results and post on corridor 2.2 Establish MOU between website, present to targeted clusters BioEnterprise and Midtown Cleveland particularly in device manufacturingGoal 3: Put appropriate real 3.1 Ensure the availability of immediate 3.2 Formally establish development 3.3 Ensure adjacent corridors provide aestate options in place to walk in ready facilities nodes of activity high quality environment to spur premeet industry requirements development activitiesGoal 4: Create new 4.1 Working with regional partners, lobby 4.2 Launch initiative attract key out ofdevelopment financing state of Ohio to extend Third Frontier town venture capitaloptions and incentives to program and include deal closing fund 4.1 Work with State of Ohio to designatespur development and component corridor a HUB of Innovation zonebusiness attraction andexpansionGoal 5: Strengthen the 5.2 Take industry targeted list and begin 5.1 Identify physical infrastructureconnections between the initial contact improvement opportunities along thecorridor and the CCCPA corridorInternational Trade District 5.2 Develop marketing collaterals toand future port facilities. promote the trade district focused on proximity and transportation accessGoal 6: Ensure that the 6.1 Actively recruit top not notch 6.1 Create high school teacherGreater Cleveland region is entrepreneurs and small businesses externship programproducing, retaining and in higher cost locations 6.2 Establish a biomedical industryattracting individuals with the fellows programskills needed to meet future 6.3 Develop bridge training programsbiomedical and technologyneeds 6.4 Launch college university alumni strategy
  • 5. 5 Cleveland Health and Technology Corridor Action Plan GOAL 1: Promote the Health and Technology Corridor and Greater Cleveland’s position as a leading biomedical center of excellence. Many region’s in the country are trying to reposition themselves as biomedical centers, with varying degrees of success. One approach to marketing that the Health and Technology Corridor must establish is a brand. The Health and Technology Corridor needs to develop a biomedical image/brand that: Distinguishes the corridor from its competitors Reflects the consensus of the entire biomedical community Reflects realistic opportunities and a vision Is memorable and easy to communicate The corridor needs to demonstrate and communicate that companies and institutions coming to or growing in the corridor will find a supportive environment in which they can thrive by finding the talent, research and commercial relationships, and access to capital and specialized facilities that are critical to growing a successful biomedical company. Strategy 1-1: Awaken the world to the Health and Technology Corridor Marketing and promotion will be a critical component of the corridor’s economic development activity; one that must aim to ensure that the corridor is positioned effectively, differentiated and creates the right reputation and profile to attract the greatest interest and investment from those that may be considering it as a location to do business and invest. There is an unprecedented amount of international attention focused on the Greater Cleveland region, much of that to do with the growth in the biomedical sector and the region’s enormous higher education and health resources. This provides the corridor with the opportunity to capitalize on the access to global businesses and markets, as well as international connections, to promote and convey a more balanced understanding of the strengths and depth of the local economy in terms of its business activity, supporting assets, location and workforce. While a variety of approaches are required to address the different audiences that must be reached, there is a need to develop a sophisticated and targeted brand and message that reinforces a positive and coherent image of the corridor as a viable business location. An effective marketing program for the corridor will also require learning from the experience of the other competing locations ensuring differentiation in the marketplace. Another key consideration in the promotion and marketing of the corridor is the need to develop improved cooperation and linkages with regional partners. By effectively involving the business community, levels of government and other regional partners in the marketing and promotion of the corridor and the greater Cleveland region, to other businesses and customers in other regions, the corridor will be able to develop and convey a new perspective of the corridor and create a more valuable business case on the attractiveness of the corridor for business and industry. To achieve this vision, strategic partners will need to be found and strong alliances with the business community will need to be built, as well as more aligned approach consistent with the regional brand. Action Items 1.1.1 Promote, profile and increase awareness of the Health and Technology corridor as a viable business location by developing a differentiating brand 1.1.2 Launch a regional and national media and publication campaign 1.1.3 Launch a Corridor Ambassador program for senior executives and researches to promote the corridor in their business abroad
  • 6. 6 Cleveland Health and Technology Corridor Action Plan Strategy 1-2: Implement an aggressive corridor marketing and communications strategy The recruitment/attraction of new businesses within the targeted economic clusters is extremely important to the corridor’s economic vitality. Given the ever increasing competitiveness of attracting biomedical and technology companies, the corridor needs to escalate its efforts to identify and build relationships with companies within the targeted industries that best match with the unique assets that the corridor and region provides, and then refine the strategies to recruit those companies to the area. The corridor has to closely collaborate with county, regional and state programs and major institutions in order to fully leverage benefits of those efforts. External marketing efforts should include participation at selected target industry association events, specialized trade shows, symposiums or events to personally promote the corridor to prospects and site selectors. Efforts should include well-planned, prospecting missions to areas where target companies reside. Cooperative missions should be planned that coincide with trade shows, etc. in order to take price advantages due to economies of scale. Leverage existing opportunities occurring in the region including CSU, CWRU, UH and Cleveland Clinic events. The implementation team should also join appropriate industry organizations and attend industry events supported by targeted decision-makers. In addition, the corridor should continue to build upon relationships with site selection consultants. These executives are valuable partners when conducting business attraction activities. The corridor should consistently engage key community stakeholders during prospect visits. Corridor representatives should continue to participate in regional and state sales missions to key geographies with a heavy concentration of target industry businesses that could likely relocate to the area. Finally, host national site selectors who have strong relationships with the area’s target industry businesses. Action Items: 1.2.1 Identify and be visible and active at selected target industry association events and tradeshows such as Manufacturing Week, AdvaMed, Medical Design and Manufacturing, and CORENET national and regional shows in collaboration with regional/state organizations. 1.2.2 Participate in key sales trips to meet with company executives in targeted clusters. 1.2.3 Consider joining and actively participating in key trade associations, particularly the Industrial Asset Management Council (IAMC). 1.2.4 Develop relationship building activities with key site selection consultants who focus on biomedical and technology oriented projects. 1.2.5 Update collateral materials and develop succinct pieces on advantages the corridor offers for companies within the respective target clusters. Ensure connection to corridor institutions when appropriate. 1.2.6 Develop cost/condition comparison reports for your top targets. These reports will depict cost/condition advantages of doing business in Cleveland versus select competitors. 1.2.7 Enhance connections to incoming business events and tradeshows aligned with target industries. 1.2.8 Launch a targeted corridor e-newsletter Strategy 1.3: Elevate international recruitment efforts leveraging the resources of existing state and regional programs International business development cannot be overlooked in today’s economy – particularly given the nature of the corridor’s target economic clusters. Because it is a long-term, expensive proposition such activities need to be linked to existing regional and state programs. The State of Ohio has a successful, well-established foreign investment program with a network of 11 overseas offices. 1.3.1 Leverage existing assets by establishing and strengthening relationships with foreign-owned companies and regional and state international investment organizations such as the State of Ohio Department of Development, Team NEO and the Greater Cleveland Partnership. Seek out collaborative opportunities in cooperation with existing companies, regional organizations, universities, and international
  • 7. 7 Cleveland Health and Technology Corridor Action Plan organizations. Provide local executives who interact with foreign executives, such as those in their vendor networks, with the information and print materials to help promote the corridor. 1.3.2 Ensure that the corridor’s website include at least one section that provides information about foreign- based companies and assets in midtown and the greater Cleveland region, and provides links to international organizations throughout the state. 1.3.3 Presence at selected trade shows in target industries can help establish the corridor as a player in the international sector. The State of Ohio represents economic development entities at large international trade shows. The “Ohio Global Summit” is one example of an international event held within the state. 1.3.4 Recognize international business milestones. Acknowledging an international company’s accomplishments and demonstrating an understanding of their services, products, and economic impact on the community are often-overlooked ways to recognize a company’s contributions and also create community awareness of the importance of international business. Creating an “International Business Award” as part of an annual business awards program would allow for wider recognition of international business in the community. Strategy 1.4: Invest in and launch a Health and Technology Corridor website Businesses consult websites more than any other source of site selection information. The creation of Health and Technology corridor website is strongly recommended. 1.4.1 Include information specifically pertaining to the identified target industries, including a list of local companies within those sectors. 1.4.2 Include demographic and incentives data. 1.4.3 Include links to regional and state economic development organizations. 1.4.4 Include a “site selectors” tab/section with specific information that pertains to your target industries and site selector needs. Research Triangle and St. Louis Branding Best practices in biomedical marketing call for an “alliance” approach coupled with strong internal marketing. An active alliance marketing program brings together city, county, economic development; universities; local biomedical industry organizations; and companies to recruit outside investments and new business expansion. Alliance related activities include active presence at trade shows, overseas and other trade missions. Two areas that have been very successful in using these approaches are Research Triangle and St. Louis. In North Carolina, the North Carolina Biotechnology Center helped to identify and recruit life science companies with fly-ins of executives and tours with strong industry and university involvement. St. Louis has formed a coalition for plant and life sciences in close partnership with the St. Louis Regional Chamber and Growth Association (RCGA) that enables highly coordinated outreach marketing activities involving universities, incubators, professional organizations, and others. But what makes an alliance marketing approach possible is an active focus on internal marketing to build the needed community support and enable all key segments of the community to be involved in the outreach effort. Internal marketing for North Carolina included outreach to local schools in promoting biomedical careers and active news stories on biomedical industry developments. St. Louis has had great success in its internal marketing through the use of networking as well utilizing the RCGA’s Technology Gateway Life Sciences Network.
  • 8. 8 Cleveland Health and Technology Corridor Action Plan GOAL 2: Create a single point of contact for the corridor A critical success factor for the benchmarked communities is they each have a single point of contact (entry) for the district. From a site selection perspective, quick access to information is critical. AngelouEconomics recommends that a Corridor Advisory Board be established to guide the gradual development of land and oversee corridor marketing activities. AngelouEconomics also recommend that the corridor create a content rich website, with information on companies, emerging technologies, and property information. From this website, an email newsletter should be created that will be sent out quarterly to a database of target audiences. Focus early marketing efforts on public relations drive aimed at raising awareness of the corridor and the research done by corridor companies and institutions. Effective PR will create awareness of the corridor so that other more direct marketing activities are effective and successful. Fund a marketing effort by the corridor to a level that will have a noticeable impact and can be sustained for 5 years at a minimum. AngelouEconomics does not believe that marketing should be expensive, particularly in the age of the internet. However, a stable marketing budget for supporting efforts in this plan will be necessary. Strategy 2.1: Establish a Health and Technology Corridor Advisory Group and include representatives of each of the target industries and major institutions along the corridor As outlined within this analysis, AE has developed and outlined specific target segments for the corridor to focus upon to achieve the maximum results for economic development. In order to become the most successful in attracting these targeted clusters, AE recommends tapping into the vast knowledge and resources of business, education and institution leaders within these industries to help identify opportunities and further define specific messages and activities that could attract these industries. Action Items: 2.1.1 Engage business leaders representing the target industries whose main purpose is to supply trend information, identify possible target companies, develop strategies for attracting industry, and develop key messages concerning each industry. 2.1.2 The Advisory Group should meet quarterly to discuss industry strategies while focusing on specific outcomes for targeted industry initiatives, value chain opportunities and other industry intelligence. 2.1.3 The Advisory Group must include representatives from the major institutions along the corridor such as Case Western Reserve University, University Hospital, Cleveland Clinic and Cleveland State University. Strategy 2.2: Establish a single point of contact to leverage relationships with all involved to leverage strong industry connections, real estate development expertise and public policy knowledge to establish a collaborative partnership to lead industry attraction, real estate development and public policy decisions along the Health and Technology Corridor Success for the Health and Technology Corridor will hinge upon long term collaborative partnerships. Rather than creating a new organization, AE recommends combining organizational skill sets to create a single point of contact for the corridor. Increased competition requires locations competing for projects in the corridors clusters to provide quick access to information, implement aggressive marketing strategies and provide strong industry and research connections. To achieve success, a single point of contact which leverages all involved should begin work immediately in partnering with Cuyahoga County to identify the corridor as a county innovation zone.
  • 9. 9 Cleveland Health and Technology Corridor Action Plan Action Items: 2.2.1 Work with Cuyahoga County and submit Innovation Zone application. Immediate funding allocations should be used for: hiring a corridor “director” and launching a corridor website and marketing program. 2.2.2 Optimal “director” characteristics will include the following: The director should have a well established reputation as an economic developer with significant business attraction expertise They should be able to demonstrate a high level of familiarity with deal making by verifiable results – particularly with biomedical and technology companies The director should have personal contact and direct relationships with site selection consultants The director should be both decisive and a consensus builder 2.2.3 Ensure ongoing communication with the City of Cleveland, Cuyahoga County and State of Ohio, to present ongoing vision and collaborate on public policy and land use decisions impacting the corridor. 2.2.4 Consider updating the Euclid Corridor Master Plan to ensure alignment to this strategy document. Strategy 2.3: Leverage plastic molding and metal fabrication capacity The region has unique capabilities in the design and production of plastic molded and metal fabricated parts that serve many different industries. There is an opportunity to better leverage this capability in support of the design and production of medical devices, medical and other instruments, and other equipment produced throughout the region. A formal connection should be established to bring these capabilities together and use this relationship to market the region to other firms. Action Items: 2.3.1 Working with Team NEO, identify existing regional companies engaged in plastic molding and metal fabrication. 2.3.2 Survey these companies to identify core competencies, production capabilities and opportunities to connect these manufacturing capabilities to biomedical companies within the region and outside to strengthen the industry supply chain. 2.3.3 Market these results on the Health and Technology corridor’s website, provide contact information and work with Team NEO to strengthen connections.
  • 10. 10 Cleveland Health and Technology Corridor Action Plan GOAL 3: Place appropriate real estate option to meet the needs of targeted companies A company may start out as an R&D concept but as it progresses through pilot scale, initial commercialization, and market expansion, there is an evolving need for incubator space near the corridor’s education and institution assets, then larger multi-tenant space, and finally a stand alone building. The Health and Technology corridor must develop the sites and facilities that support growth and have them available at the level of readiness required by each company. Strategy 3.1: Ensure the availability of “walk in” ready facilities. Companies are increasingly in need of immediate move in ready facilities. This will require the development of some speculative space. Many of Cleveland’s top competitors are able to provide space in existing buildings or development ready sites with time to move in of less than 18 months. Action Items: 3.1.1 Continue to establish relationships with existing property owners to present the vision of this strategy 3.1.2 Work with commercial brokers and developers to develop understanding of facility needs identified in the analysis 3.1.3 Identify high priority sites where build out could begin immediately, while brownfield sites are important redevelopment opportunities these are longer term sites, priority must be given to sites with minimal infrastructure improvements needed and limited abatement Strategy 3.2: Focus immediate opportunities on specific development nodes of activity Successful biomedical and technology clusters have developed as nodes of activity. A critical component of success will be the corridor’s ability to create a critical mass of biomedical and technology companies and workers in high priority locations along the corridor. Specific nodes of activity should focus in locations where there is an existing company or institution cluster in place. Also understanding the facility requirements by company stage will assist the corridor in future land planning activities. For instance based on our analysis small start up facilities requiring incubation type space are likely going to look for a location in close proximity to R&D activities at one of the universities along the corridor. As the company grows, their facility requirements will change. This is only a general guide, facility flexibility along the corridor will be critical. Strategy 3.3: Ensure that adjacent corridors provide an attractive high quality environment While the primary focus of this strategy is on the Euclid Corridor, International Trade District and University Circle areas, the Carnegie and Chester corridors need to be considered. Physical improvements should be considered as the corridor continues to develop. This will provide the corridor with additional pre development sites to complement the corridor Action Items: 3.3.1 Working with the City of Cleveland, identify funding opportunities to improve the infrastructure along the Carnegie and Chester corridors. 3.3.2 Identify pre development opportunities to strengthen connections to the Health and Technology corridor
  • 11. 11 Cleveland Health and Technology Corridor Action Plan GOAL 4: Leverage existing and create new development financing options and incentives for future tenants and development While the private sector shoulders the majority of the costs of development, the public sector must lead a development incentive program for the corridor. AngelouEconomics recommends that modest tax incentives and financial tools be created to attract new development and tenants to the corridor and foster expansion of existing companies. Incentives should be designed to enhance the quality of the corridor without burdening new companies or developers with above market upfront costs or lease rates. Incentives should not only be used to subsidize ongoing lease payments (or loan payments) but to also support ongoing carrying costs for high profile strategic properties in support of a corridor land acquisition strategy. Leading options include the designation of a State of Ohio HUB of Innovation Zone, tax exempt financing, property tax abatements and a revolving loan fund. Additionally, the State of Ohio currently lacks a deal closing fund. Many states that are direct competitors of Ohio have found that developing a discretionary fund to provide up front cash grants to high profile companies in targeted sector provide significant competitive advantages while maintaining public trust through claw back provisions. There is an opportunity through the renewal of the Ohio Third Frontier fund to develop such a fund. Strategy 4.1: Help advocate for needed improvements in Ohio’s incentive offerings – closing fund and workforce training funding Ohio’s tax reform package eliminated tangible personal property tax, reduced the personal income tax, and will phase out the corporate franchise fee. The package will improve competitiveness by 10-20% according to the Ohio Department of Development’s “Economic Development Incentives Study”. Ohio remains at a significant disadvantage in “closing funds” relative to competitor states. Such funds will be particularly important in recruiting and expanding replacement employers. Action Items: 4.1.1 Strongly advocate for the creation of a STATE DEAL CLOSING FUNDS state deal closing fund in Ohio. Competing locations are actively STATE FUND NAME FUND AMOUNT pursuing the same targets with a deal TEXAS Texas Enterprise Fund $200 million (2008-2009) closing fund. Consideration should be given to including a deal closing fund ARKANSAS Arkansas Quick Action Closing $50 million (2009-2010) Fund component in the state’s Third Frontier Program. NORTH One North Carolina Fund $20 million (2008-2009) CAROLINA 4.1.2 Continue to utilize Ohio’s Third Frontier Program and support its growth and VIRGINIA Governor’s Opportunity Fund $20 million (2009-2010) extension. This is critical, this program has been extremely successful in FLORIDA Florida Quick Action Closing $13.5 million (2009-2010) growing the biomedical sector in Ohio. Fund 4.1.3 Work with the State of Ohio Department of Development in the creation of a State HUB of Innovation zone program and the creation of a designation encompassing the corridor. The State should consider the concept of an innovation zone as “an intellectual innovation zone,” rather than as just a “place based zone”. In this case, and if individual companies are going to be eligible for zone incentives, companies should be considered as being part of the zone if they’re located within some reasonable time based proximity to the zone.
  • 12. 12 Cleveland Health and Technology Corridor Action Plan 4.1.4 Explore options for creating a fund with an emphasis on assisting in development and targeted land assembly costs for projects suitable for companies in targeted clusters particularly for post incubator space. One opportunity would be to establish a Health and Technology corridor revolving loan fund which would assist in (pre)development costs for properties targeted for biomedical and technology companies. Strategy 4.2: Undertake activities to make out of state venture capital funds aware of investment opportunities along the Health and Technology Corridor The Health and Technology Corridor and the Greater Cleveland region represents an emerging, fertile market for entrepreneurial activity and investment in biomedical and technology sectors. The 2008 Venture Capital report for the Greater Cleveland region suggests that the region is producing a significant pipeline of biomedical and technology focused companies. An effort should be undertaken to increase the interest and involvement of national venture sources in the Greater Cleveland region focused on the Health and Technology Corridor. To accomplish this action will require not only having more locally managed funds that can partner with national and international funds, but also selling the corridor’s success to this market and organizing events, such as a biomedical investor conference, at which high quality deals can be presented. The key will be to convince out of state venture funds that the corridor and the region offer significant competitive advantages.
  • 13. 13 Cleveland Health and Technology Corridor Action Plan GOAL 5: Strengthen the connection between the Health and Technology Corridor and the Port of Cleveland’s International Trade District and future Port of Cleveland site along 55th Street The Port of Cleveland’s International Trade District provides biomedical and technology manufacturing, distribution, warehousing and wholesale trade companies with a unique opportunity. The district is served well by rail, road and sea. For success to be achieved, the district must strengthen its connection to the corridor via 55th Street and be engaged in the marketing’s initiatives and materials. Strategy 5.1: Enhance the physical connections to the corridor via 55th Street connector The international trade district will play an important role in providing real estate opportunities for larger scale, production, warehousing and distribution activities within the biomedical and technology cluster. However, more can be done now to enhance the physical connections between the trade district and the corridor. Action Items: 5.1.1 Work with the City of Cleveland to identify funding opportunities to upgrade the physical infrastructure along the corridor. Consider placing corridor signage which will further strengthen the linkage. 5.1.2 Ensure that all marketing materials and maps identify the international trade district. 5.1.3 When marketing and promoting the corridor be sure to provide value propositions for the district focused again on providing attractive sites for companies focused on manufacturing, distribution and warehousing. Strategy 5.2 Focus site development activities on attracting wholesale trade, device and technology manufacturing and distribution The BioMedical and Technology sector supply chain is highly tied to manufacturing, wholesale trade and distribution. Immediate opportunities exist to strengthen the supply chain, thus Cleveland’s competitive position by filling the supply chain “gap” particularly in wholesale trade. The Medical Mart which will be located in Cleveland’s central core will present the district with an opportunity to attract new wholesalers entering the Cleveland market. While there may be some companies likely to fill space in existing facilities in the district, new construction will likely be the market driver. The CCCPA is currently developing a strategy of key targeted sites for development. Action Items: 5.2.1 Once the key targeted sites have been identified by Allegro and the CCCPA, develop a strategic marketing collateral identifying priority sites and incentives. 5.2.2 AE has identified immediate company targets for recruitment by sector. Market these sites to the companies within the appropriate cluster for the trade district. Gain feedback and revise approach if needed. 5.2.3 Constantly strengthen relationships with existing company base and institutions to further market opportunities with a focus on proximity and transportation connections.
  • 14. 14 Cleveland Health and Technology Corridor Action Plan GOAL 6: Ensure that the Greater Cleveland region is producing, retaining and attracting individuals with the skills needed to meet future biomedical and technology needs. A critical aspect of developing the biomedical and technology opportunities in the Health and Technology Corridor is cultivating a pool of talent with the appropriate skills for firms to be competitive. Human capital, or talent, is a key ingredient in creating a successful biomedical cluster. Most companies now list an adequate labor force as their primary site selection requirement. In the face of this need for talent, regions must now become “talent magnets” to succeed in this new economy. Futurist Richard Florida has noted that “access to talented and creative people…determines where companies will choose to locate and grow, and this in turn changes the way cities compete.” STRATEGY 6-1: Actively recruit creative entrepreneurs, top-notch technology workers, and small tech business entrepreneurs in higher cost locations Communities including Austin and Boise have successfully recruited high impact, successful entrepreneurs and start- ups from higher cost locations. Cleveland has the opportunity to do the same and recruit high impact, small businesses and individual entrepreneurs that will bring an infusion of capital, talent, and higher wages to the region. The area’s desirable cost of doing business, existing biomedical and technology industry base and talent and active research institutions and universities should be attractive to entrepreneurs and start ups. Action Items 6.1.1 Identify locations with an active entrepreneurial climate in health and technology i.e. Boston, and other east coast locations. 6.1.2 Identify 5-10 successful “venture-backable” entrepreneurs and second stage companies within each market that best fit into the industry base. 6.1.3 Take 1-2 trips annually to each location for face-to-face meetings with companies and individual entrepreneurs. 6.1.4 Work with local brokers to develop database of available spaces to market to each individual/company. STRATEGY 6-2: Ensure that the Greater Cleveland region is attracting, retaining and producing individuals with the skills needed to meet future biomedical and technology industry needs. The demands for a highly trained, technical workforce in today’s knowledge based economy are extraordinary and mounting. This is particularly true in biomedical and technology industries, where innovation is king. Workers are needed to conduct research, translate innovation into product development and improved health care techniques, and ultimately to manufacture biomedical and technology related products. Thus, ensuring the availability of an educated, skilled workforce is critical in developing and sustaining a highly competitive, robust biomedical and technology cluster for the region. The region must continue to advance a pipeline of biomedical and technology talent to support the future growth of this sector by preparing high school science teachers to teach core biomedical and technology lessons, encouraging students to obtain business and entrepreneurial skills, and providing opportunities for biomedical and technology graduates to gain industry experience.
  • 15. 15 Cleveland Health and Technology Corridor Action Plan Action Items 6.2.1 Create and fund a high school science teacher Arizona Biodesign Institute High School externship program. Internship Program 6.2.2 Establish a BioMedical Industry Fellows Program to place graduate and postdoctoral students in emerging biomedical companies. In Arizona, 24 high schools with existing 6.2.3 Expand efforts to provide business and biotechnology programs were invited to send a entrepreneurial education to biomedical and teacher to participate in an internship during the technology students and to increase offerings summer of 2008 at Arizona State University’s to address critical skill needs. The University Biodesign Institute, a multidisciplinary biosystems of Colorado-Colorado Springs offers a research center. The teachers help select students Bachelors of Innovation, the University of to serve as interns as well. Each student/teacher Kansas and Washington State University both team works on a research problem under the offer animal health MBA’s. CWRU’s Case guidance of a Biodesign researcher. The daily Technology Ventures fund is developing a exposure to large research teams and world class focus on biomedical entrepreneurship; facilities of the Institute give interns an in-depth opportunities may exist to sharpen curriculum introduction to the career of a bioscience research connections particularly the Case School of scientists. Fifty-eight students and teachers Engineering BioMedical Engineering program. participated in the program in 2008. This level of participation was made possible by a $50,000 contribution by a local foundation. STRATEGY 6-3: Expand the utilization of specific “Bridge” training programs that have been effective in retraining worker from declining industries into growing biomedical and technology fields. Bridge programs are quick and effective ways to assist workers in refining core competencies to reflect technologies and tools used in the life science and renewable industries. The central Texas region has done this effectively quickly retraining semiconductor manufacturing workers for work as solar panel manufacturers. While bridge training programs are effective ways to address shorter-term occupational needs, the region may also wish to explore longer-term program changes and partnership building designed to enhance high school-community college-university connections. Best Practice: Flexible Curriculum Modules While a number of articulation agreements exist within the Austin Community College has designed an Electronics and region, the region may wish to Advanced Technologies curriculum that includes a set of core further explore additional based competencies in electronics with eight integrated programming (or capacity specialization modules that provide certifications in key building) between Cleveland emerging sectors such as renewable energy (e.g. Solar State, CWRU, Tri-C system Photovoltaic Installer), biotechnology (e.g. Bio-instrumentation) and advanced biomedical device manufacturing manufacturing (Automation, Robotics and Controls). The model also includes an and other biomedical and engineering technology 4-year transfer program with the University of Texas system. technology applications. As Tri-C continues to align more closely to the biomedical and technology sectors, the workforce system should push to more deeply understand specific employer occupational demand, existing regional post-secondary and job training programs and gaps, and strategize about additional programs to be developed or refined. In addition, the system should enhance efforts to promote a range of programs.
  • 16. 16 Cleveland Health and Technology Corridor Action Plan Action Items: 6.3.1 Conduct a series of sector-based roundtables to identify specific occupational demand within each target industry (i.e. #s of hirings expected, types of competencies most critical, specific types of training and certifications needed for most “in-demand” occupations identified in AE occupational analysis). 6.3.2 Host regional forum to learn about new and emerging occupations and regional workforce system program best practices. 6.3.3 Inventory list of regional job training programs and resources and identify specific programmatic gaps. 6.3.4 Use information to inform discussions and potential program changes. 6.3.5 Support development of curriculum and new equipment investments. 6.3.6 Post specific target industry information on workforce system websites and align them to specific job training programs in the region STRATEGY 6-4: Implement a college/university alumni attraction strategy In partnership with regional university/college professors, department heads, deans and presidents, implement a targeted alumni attraction strategy to retain and attract the immense amount of talent being generated from the region’s higher education programs. Action Items 6.4.1 Work with alumni associations to confirm what cities have a large concentration of alumni and target these cities by: a. Sending alumni printed postcards comparing Cleveland to their city and highlighting why they should move back. b. Build relationships with Cleveland Clinic, CWRU, CSU and others to identify opportunities for existing student and alumni outreach opportunities c. Identifying an alumni chair in these cities and make routine phone calls to provide updates on business and career opportunities. d. Sponsor alumni happy hours and have Cleveland representative who speaks for five minutes on current opportunities in Cleveland.
  • 17. 17 Cleveland Health and Technology Corridor Action Plan
  • 18. 18 Cleveland Health and Technology Corridor Action Plan