'Technically' speaking, Bob Coy knows high-tech. As President of CincyTech - a non-profit that advises and invests in high-tech start ups in our region - he's charged with helping Cincinnati become a part of the new economy. In this week's blogs, Bob shares his thoughts about Cincy's revitalized culture of innovation, from start ups to tech powerhouses, and why supporting Ohio's Issue 1 on next month's ballot might be one of the most important decisions we can make this year.
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Why vote yes on Issue 1?
Posted By: Bob Coy
4/8/2010
Why should you vote yes on Issue 1 to renew Ohio Third Frontier?
I've given you many reasons, I hope, in my two previous posts. But here's the most urgent reason: the economy.
Since 2001, Southwest Ohio's gross regional product has grown 24 percent less than the national average. The state's rate of growth has lagged the nation as well. Why has this been the case? My reading of the data leads me to conclude that it is our industry mix. Many industries in Ohio are either mature or in decline.
The Ohio Third Frontier is helping the growth of new firms in emerging industries, most of which are based on technology and innovation. It is doing this by stimulating new industry-university partnerships and seeding the start up of new high potential firms, as I outlined earlier.
The program also was designed to be fiscally responsible. According to a study by the Ohio Business Roundtable, the activity created by Third Frontier is generating enough tax revenue to pay back Ohio taxpayers on the $1.35 billion invested in the Third Frontier by 2014. That is impressive by any measure.
I'm proud of how CincyTech has used Third Frontier money to seed the start up of new companies in Southwest Ohio. Since May 2007, we have reviewed more than 850 opportunities, assisted 157 companies, conducted extensive due diligence on 85 companies and invested almost $4 million in 13 companies. Because of our work, private investors have put another $43 million of their money into those companies alongside us.
That money gives companies incentives to stay here, too. One company in CincyTech's portfolio, AssureRx Health, demonstrates this point. In 2006, AssureRx received an offer of funding from a San Francisco-based fund. But they said AssureRx had to move to San Francisco to get the money. Fortunately, AssureRx's local investors, with assistance from a Third Frontier seed fund, rejected the offer. The company elected to stay and grow in Southwest Ohio and expects to have 30 employees by the end of the year.
The Third Frontier program represents support for entrepreneurial capitalism at its best: market driven, with a public purpose - to grow jobs and our economy. That's why I, for one, will vote yes on Issue 1.