Targeting Growth Opportunities

bijoufriesΤεχνίτη Νοημοσύνη και Ρομποτική

19 Οκτ 2013 (πριν από 3 χρόνια και 11 μήνες)

160 εμφανίσεις


BUSINESS SENSITIVE

1



1

Battelle Technology Partnership Practice

August 29, 2011

Ohio Third Frontier:

Targeting Growth Opportunities
for the Next 3 to 5 Years


BUSINESS SENSITIVE

2



2

Project Goal and Focus


Identify Ohio’s changing economy and technology
industry focus areas to enable key stakeholders to
understand the opportunities and how best to seize
them.


Emphasize industry growth opportunities in
technology development over the next 3 to 5 years.



BUSINESS SENSITIVE

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3

Overview of Project Steps

Identify from
Recent Detailed
Industry and
Technology
Innovation Trends
Likely Focus
Areas for Growth
Opportunities

Integrate
Guidance from
Industry Forum
Discussions and
Validate Market
Opportunities

Step 2

Step 3

Assess Changing
Ohio Economy
and Identify
Leading Industry
Sectors for

Tech
-
Based
Growth

Step 1


BUSINESS SENSITIVE

4



4

Methodology for Identifying Growth
Opportunities:
Line of Sight Analysis


Focus Areas of

Growth in Ohio’s
Technology
Industry Sectors
and Technology
Innovation Drivers

Growth
Prospects Within
Technology
Industry Sectors
and Likely
Niches for Ohio

Where the

Puck is Today

Where the

Puck is Going

Differentiation,
Specialization
and Global
Leadership

for Ohio

Growth
Opportunities


BUSINESS SENSITIVE

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5

Details for Line of Sight Analysis


Detailed industry
-
level analysis


of leading industries


Current industry strength


Emerging industry strength


Specialized industry strength


Technology innovation focus
areas in leading technology
industry sectors based on recent
activities in:


Patents by Ohio inventors


Venture capital funding and SBIR
awards


Company presence in specific
technology product markets


Scholarly excellence in publication
fields


Trends in university research funding



Held a series of industry forums for
the leading technology industry
sectors


Key questions posed were:


What are Ohio’s key selling points?


What are the key market and technology
drivers?


In what specific technology development
niches is Ohio well positioned for industry
growth in the next 3 to 5 years?


What are the key strategic development
directions that Ohio must address?


Integrated the intelligence gathered
and validated to identify specific
technology development niches


Reviewed market research studies


Where the Puck is Today

Where the Puck is Going


BUSINESS SENSITIVE

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6

Overview of Project Steps:

Highlights from Assessments

Leading Industry

Sectors


Materials


Aerospace


Biomedical


Energy


Information Technology


Instruments and
Controls

Potential Focus Areas


Advanced Polymer Materials


Composites and Ceramics


Specialty Metals and Alloys


Unmanned Systems


Sensors


Advanced Materials


Propulsion Power

Management


Human Effectiveness


Medical Imaging


Molecular and Other In
-
Vitro
Diagnostics


Advanced Surgical

Instruments and Equipment


Implant Medical Devices


Contract Research and

Manufacturing Resource

Services


Drug Delivery and Development


Regenerative Medicine


Health Informatics and
Logistics


Solar
Photovoltaics


Wind Energy


Smart Grids


Biofuels and Biobased
Energy


Fuel Cells


Energy Storage/Batteries


Business Software and

Enterprise Computing


Test and Measurement


Sensors


Automation/Robotics


Electronics/Embedded

Systems

Leading and

Emerging
Areas


Advanced Materials


Business Software and
Enterprise Computing


Energy Storage


Fuel Cells


Health Information
Technology


Medical Technology


Propulsion Power
Management


Sensing and Automation
Technologies


Situational Awareness and
Surveillance Systems


Solar
Photovoltaics

Step 2: Identify

Step 3: Validate

Step 1: Assess

RESULTS

RESULTS

RESULTS


BUSINESS SENSITIVE

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7

Advanced Materials


GROWTH OPPORTUNITY FOCUS AREA: ADVANCED MATERIALS

WHAT

IS IT?

Unconventional materials that outperform conventional materials allowing them to
play a large role in product development. Typically this class of materials refers to
sophisticated technologies in
metals & alloys, ceramics, polymers and
composites
. Advanced materials are focused on enabling the creation of lighter,
cheaper, smaller and higher quality products across many end
-
user markets,

and
are widely used in biomedical, aerospace, transportation, and advanced energy
market applications.

OUTLOOK



Global consumption of
nanocomposites

to increase at a
CAGR of 27% to $1.4B by 2014


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reach $27.4B by 2015



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to grow 3% annually between 2009
and 2014

HOW IT BUILDS ON
OHIO STRENGHTS


Research Centers and Institutes


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MARKETS THAT OHIO

CAN SERVE


Advanced Energy


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Building & Construction Products


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BUSINESS SENSITIVE

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8

Business Software & Enterprise
Computing


GROWTH OPPORTUNITY FOCUS AREA: BUSINESS SOFTWARE & ENTERPRISE COMPUTING

WHAT

IS IT?

Business software and enterprise computing are technologies that enable
organizations to reduce costs and increase productivity and as a result achieve
greater profitability. These technologies have become ubiquitous among industries
and are constantly evolving to adapt in order to maintain relevance in a rapidly
evolving global economy.

OUTLOOK



North American business software
market will grow at a CAGR of 7.7%
through 2015 to reach $165
B


Global enterprise software market
increased 8.5% in 2010 reaching
$245B


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Global e
-
commerce (including travel
and auto purchases) to grow 13.5%
annually to reach $1.4T in 2015


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HOW IT BUILDS ON
OHIO STRENGHTS


Strong employment growth in recent
years


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MARKETS THAT OHIO

CAN SERVE


Diversified industry focus


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customized, modular applications


Cloud

computing
-
enabled software
as a service for delivering on
-
demand software



BUSINESS SENSITIVE

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9

Energy Storage


GROWTH OPPORTUNITY FOCUS AREA: ENERGY STORAGE

WHAT

IS IT?

Energy storage is a term used to describe various types of technologies that store
energy in order to allow us to use it at a later time.


Energy storage technologies
include utility battery storage, flywheel storage, superconducting magnetic energy
storage, compressed air energy storage, pumped hydropower, and super
-
capacitors.

B
atteries are an important solution to energy storage needs. Batteries
store energy in the form of chemical energy; when connected in a circuit the battery
can produce electricity.

OUTLOOK



U.S. battery market to grow

from
$9.6B in 2011 to nearly $12B in 2016


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harvest technology

is expected to
grow from $13.75M in 2011to $4.4B
2021


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rates ranging from 38%
-
68%


Rechargeable

batteries account for
56% of the battery market and could
reach $16.4B by 2015


HOW IT BUILDS ON
OHIO STRENGHTS


Large share of U.S. battery and
energy storage employment and
establishments


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-
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MARKETS THAT OHIO

CAN SERVE


Automotive


BUSINESS SENSITIVE

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10

Fuel Cells


GROWTH OPPORTUNITY FOCUS AREA: FUEL CELLS

WHAT

IS IT?

Similar to battery technology, fuel cells convert chemical energy into electrical
energy through electrochemical reaction. Fuel cells differ from batteries though in
that the fuel feeding the electrochemical reaction is supplied outside of the cell.
Many different fuels can be used to generate energy including hydrogen, methanol,
biogas, natural gas and hydrocarbons.

OUTLOOK



The total fuel cell market (consisting of
portable, stationary, and transport)

is
still emerging, but

was
less than
$500M

in 2009


Growth will primarily come from
stationary applications


accounting for
50% or more of all shipments currently
and reaching $9.5B by 2017


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“wild card” in the outlook for
fuel cells is whether the automotive
industry goal of 2015 for large scale
roll
-
out of commercial fuel cell
vehicles can be reached

HOW IT BUILDS ON OHIO
STRENGHTS


Large share of U.S. establishments
and employment


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MARKETS THAT OHIO

CAN SERVE


Military needs in aerospace and base operations


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BUSINESS SENSITIVE

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11

Health Information Technologies


GROWTH OPPORTUNITY FOCUS AREA: HEALTH INFORMATION TECHNOLOGIES

WHAT

IS IT?

Health IT utilizes hardware and software to store, retrieve, share and use
healthcare information data and knowledge for improved communication and
decision making. Widespread and consistent use of Health IT improves healthcare
quality, prevents medical errors, reduces healthcare costs, streamlines
administrative procedures, and expands access to affordable care.

OUTLOOK



Significant growth

in
Health IT with the
overall market increasing from $99.6B
in 2010 to $162.2B in 2015


Software applications to increase from
$4.5B in 2010 to $11B in 2016


a
17% CAGR


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2011 to $17.5B in 2016


Mobile healthcare IT will grow at
22% CAGR through 2014 from its
$2.1B base in 2011

HOW IT BUILDS ON
OHIO STRENGHTS


Large employment gains in larger IT
industry


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MARKETS THAT OHIO

CAN SERVE


Healthcare Informatics focused

on
advanced electronic health records,
improved health systems
management, patient
-
physician
communications, smart phone health
applications, etc.


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摥d楣敳



BUSINESS SENSITIVE

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12

Medical Technology


GROWTH OPPORTUNITY FOCUS AREA: MEDICAL TECHNOLOGY

WHAT

IS IT?

Medical technology encompasses a wide range of health care products used to
diagnose, monitor or treat diseases or condition that affects humans. These
innovative technologies include
imaging, surgical instruments and equipment,
implant devices

and regenerative medicine
.

Advances in medical technology
are often based on a “systems” approach in which a range of innovative
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OUTLOOK



Global medical imaging market to
increase from $22.6B in 2009 to
$29B in 2014


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grow 5.2% CAGR through 2015


The market for regenerative medicine
technologies stood at $1.6
B

2010 and
could reach $15
-
20B over the next
15 years


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Neuromodulation

is fast emerging
-

stood at $3B in 2008 and will grow
at 26% CAGR through 2014

HOW IT BUILDS ON
OHIO STRENGHTS


Experienced and growing

employment
base


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Robust VC activity


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牥r楥i敤e
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MARKETS THAT OHIO

CAN SERVE


Healthcare



BUSINESS SENSITIVE

13



13

Propulsion Power Management


GROWTH OPPORTUNITY FOCUS AREA: RENEWABLE ENERGY APPLICATIONS

WHAT

IS IT?

Propulsion systems are machines that produce power required to push or pull a
vehicle into motion, and enables the vehicle to accelerate, decelerate and
maneuver while already in motion. In aircraft, turbine engines provide the
propulsion required to operate reliably for extended periods. Propulsion
requirements differ depending on the use requirements of the aircraft. Globally, the
aircraft engine market is dominated by three companies: GE Aviation, Pratt &
Whitney and Rolls
-
Royce.


OUTLOOK



Global market for aircraft engines
valued at $8.7B 2009 and will grow
5.5%

annually to reach $11.2B in 2015



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increase efficiency and cut operating
costs

HOW IT BUILDS ON
OHIO STRENGHTS


Highly specialized employment in
aircraft engines and engine parts
manufacturing



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centers focused on propulsion

MARKETS THAT OHIO

CAN SERVE


Military, Business and Commercial
Aviation



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BUSINESS SENSITIVE

14



14

Sensing & Automation Technologies


GROWTH OPPORTUNITY FOCUS AREA: SENSING & AUTOMATION TECHNOLOGIES

WHAT

IS IT?

Automation technologies reduce the need for human labor in the production of
goods and services through the use of control systems. Sensors, which receive
and respond to external signals or stimuli, are critical to the process of automation.
Combined, sensing and automation technologies comprise the “nervous system”
for manufacturing plants, unmanned

vehicles, logistics systems, and many other
advanced applications.

OUTLOOK



Global sensors market to

grow
at
CAGR of 7.8% to reach $91.5B by
2016


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systems
-
$11.2B in 2010 to $18B by
2015


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increase from $6.5B in 2009 to $8B
in 2014


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HOW IT BUILDS ON
OHIO STRENGHTS


Strong presence of corporate R&D
and manufacturing


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MARKETS THAT OHIO

CAN SERVE


Automotive


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BUSINESS SENSITIVE

15



15

Situational Awareness &
Surveillance Systems



GROWTH OPPORTUNITY FOCUS AREA: SITUATIONAL AWARENESS & SURVEILLANCE SYSTEMS

WHAT

IS IT?

Situational awareness and surveillance encompass a comprehensive set of
technologies that allow users to perceive information about their environment with
respect to time and space, and anticipate how those environmental factors may
affect circumstances in the near future. Enhanced situational awareness improves
decision
-
making in dynamic environments and helps reduce accidents based on
human error making it invaluable in situations with high levels of information flow
and where poor decision
-
making can have disastrous effect.


OUTLOOK



Surveillance equipment market $78B
in 2009 to $139.2B in 2015


Remote sensing products market to
witness robust growth
-

$8.2B in 2009
to $11B by 2014


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-

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to measure but enabler of enhanced

situational awareness and
surveillance

HOW IT BUILDS ON
OHIO STRENGHTS


Strong employment growth search,
detection, navigation guidance system
and instruments


Presence of AFRL’s Sensor
Directorate at Wright
-
Patterson Air
Force Base


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MARKETS THAT OHIO

CAN SERVE


Aerospace & Defense


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BUSINESS SENSITIVE

16



16

Solar
Photovoltaics


GROWTH OPPORTUNITY FOCUS AREA: SOLAR PHOTOVOLTAICS

WHAT

IS IT?

Solar power harnesses the energy of the sun and converts it to electricity or heat.
Innovations in solar technology are enabling a wide spectrum of uses from
concentrated solar power plants and building
-
integrated PV to powering electronic
devices. There are many types of solar power approaches
, such as concentrated
solar, silicon
photovoltaics

and thin film
photovoltaics
.

OUTLOOK



North American PV market will grow at
a CAGR of 28% from 2010
-
2017 to
reach nearly $17B


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a CAGR of 33%


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HOW IT BUILDS ON
OHIO STRENGHTS


Large share of U.S. establishments


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MARKETS THAT OHIO

CAN SERVE


Development of solar power plants


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BUSINESS SENSITIVE

17



17

Next Steps


Address input from today’s meeting


Work to complete overall report by end of
September


BUSINESS SENSITIVE

18



18

Appendices on Line of Sight Analysis for Leading
Technology Industry Sectors


BUSINESS SENSITIVE

19



19

Aerospace:

Where the Puck is Today

Industry Focus Areas

Ohio Bioscience Industry: Employment Size, Growth, & Relative Concentration, 2009

Source: Battelle analysis of Bureau of Labor Statistics, QCEW data, enhanced file from the Minnesota IMPLAN Group, Inc.


BUSINESS SENSITIVE

20



20


TECHNOLOGY IDENTIFICATION NICHES

PATENT
AREAS

(Top areas of Ohio invented patents
with at least 25 patents from
January 2007 to September 2010)


Power sources/plants


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浯t潲s


Mat敲楡氠c潭p潳楴敳


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Met慬aw潲k楮g

CORPTECH
TECHNOLOGY
PRODUCT MARKETS

(4% or higher share of firms with
HQ and independent operating
units based in Ohio, and at least 5
firms)


Major aircraft systems


䝲潵nd 獵pp潲t 敱u楰浥湴


Air/spacecraft propulsion


PRESENCE

OF VENTURE
FUNDING &
SBIR AWARDS

(January 2006 to December 2010)


1

Venture Capital Financing o $2.6 million & 31
SBIR awards totaling $9 m


Focused broadly on aerospace
components
Aircraft

Hydraulic
Components


AREAS
of
EXCELLENCE
in
SCHOLARLY ACTIVITY

(Excellence measured by share of
U.S. publications in field or quality
based on citations per publication)




Aerospace

Engineering


Mechanical Engineering


Composites


R敭et攠卥n獩sg


Aerospace:

Where the Puck is Today

Innovation Focus Areas


BUSINESS SENSITIVE

21



21


Existing aircraft engine manufacturing and development
industry


Strong presence in military aeronautics acquisition and R&D


WPAFB; AFRL; AFMC


Broad, deep presence of firms in aerospace supply chain


Extensive base of federal R&D Facilities


NASA, AFRL Materials and Sensor Directorate; aerospace and
human performance research facilities; propulsion testing facilities


Business Aviation Industry Presence


NetJets
, Flight Options, GE Aviation


Aerospace:

Where the Puck is Going

Why Ohio?


BUSINESS SENSITIVE

22



22

Aerospace: Where the Puck is Going

Market and Technology Drivers


NextGen

air traffic management system


Implementation to occur between 2012 and 2025


Potential to disrupt distribution of U.S. passenger and air
cargo business


Large growth in Unmanned Systems market


Growing demand for advanced aerospace materials
such as composites and titanium


Higher payloads, more effective propulsion and
lighter aircraft


Exports to increase as global demand increases and
low value of the dollar benefits manufacturers


Federal defense budget cuts may limit growth
opportunities




BUSINESS SENSITIVE

23



23

Aerospace: Where the Puck is Going

Recommended Growth Opportunities

Niches

Insights from Ohio Aerospace & Business
Aviation Advisory Council

Unmanned Systems


View as a core area of focus


see need to strengthen R&D via

OTF

… build up defense applications

and be a first mover on
commercial developments (
NextGen

Air Traffic
Mgt

Systems)

Propulsion


Current keystone of Ohio aerospace mfg with GE Aviation.

Advanced Materials


Viewed

as a core area of focus … note need to promote
transition of scalable advanced materials to industry & its supply
chain

Sensors


Emerging area … key OH

development drivers are AFRL’s
Sensor Directorate and NASA Glenn


BUSINESS SENSITIVE

24



24

Aerospace: Where the Puck is Going

Other Potential Growth Opportunities

Niches

Insights from Ohio Aerospace & Business
Aviation Advisory Council

Human Effectiveness


Emerging area

… relocation of Human Performance Wing at
WPAFB key driver

Power Management


Emerging area … GE Aviation’s Electrical

Power Integrated
Systems R&D Center viewed as key driver


BUSINESS SENSITIVE

25



25

Aerospace: Where the Puck is Going

Strategic Directions for Ohio


OTF
-
Related Strategic
Technology Development
Approaches


Need for improved tech transfer,
involving federal labs and universities,
particularly in: sensors, propulsion,
platforms, human factors


Talent is a concern with aging
engineering and technical workforce in
aerospace industry.




Broader Strategic Economic
Development Approaches


Negative perception of labor
-
management relations


Maintaining global competitiveness in
aerospace manufacturing costs



BUSINESS SENSITIVE

26



26

Biomedical:

Where the Puck is Today

Industry Focus Areas

Ohio Bioscience Industry: Employment Size, Growth, & Relative Concentration, 2009

Source: Battelle analysis of Bureau of Labor Statistics, QCEW data, enhanced file from the Minnesota IMPLAN Group, Inc.


BUSINESS SENSITIVE

27



27


TECHNOLOGY IDENTIFICATION NICHES

PATENT
AREAS

(Top areas of Ohio invented patents
with at least 25 patents from
January 2007 to September 2010)


Surgical instruments: 162 patents


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pat敮ts


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d敶楣敳㨠㠷 pat敮ts


Elongated
-
member driving apparatus: 84 patents


Beds used in medical settings: 64 patents


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汩癩l朠潲g慮楳浳㨠㔵 pat敮t猠


卵r杩g慬ab汯ld/f汵楤 d敶楣敳㨠㐷 pat敮ts


D牵朠b楯
-
aff散e楮朠c潭p潳楴楯i猺s㐳 pat敮ts

CORPTECH
TECHNOLOGY
PRODUCT MARKETS

(4% or higher share of firms with
HQ and independent operating
units based in Ohio, and at least 5
firms)


Pharmaceutical packaging


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Rehabilitation devices


Over the counter
drugs


M敤楣慬ath敲慰敵t楣 敱u楰浥mt


M敤楣慬a
浯n楴潲楮朠敱u楰浥湴


Medical diagnostic/imaging equipment


Health services software

PRESENCE

OF VENTURE
FUNDING AWARDS

(January 2006 to December 2010)


VC falls into several broad categories


Medical
imaging


Diagnostics


Surgical instruments and
equipment


Implant medical devices


Drug
development and delivery


Health informatics and
logistics

AREAS
of
EXCELLENCE
in
SCHOLARLY ACTIVITY

(Excellence measured by share of
U.S. publications in field or quality
based on citations per publication)



Extensive statewide strengths with

41
publications fields
recording a
high share of U.S. publications
and/or high
quality.


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浥m楣楮攠pub汩lat楯渠
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that st慮d 潵t 楮 b潴h
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c慲d楡i

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out in both share and quality of publications.

Biomedical:

Where the Puck is Today

Innovation Focus Areas


BUSINESS SENSITIVE

28



28


Existing base of Ohio businesses with many leading firms,
including Cardinal Health, Ethicon Endo
-
Surgery, Steris, and
Abbott Labs.


Outstanding clinical research infrastructure


Name “brand” academic health centers; 3 NIH supported centers for
translational sciences


Large and growing research base across Ohio regions


Ohio universities increased research base 87% from 2003
-
09
compared to 43% nationally


Integration with advanced materials and manufacturing base


High density and high value supply chain for biomedical products


Experienced technical workforce

Biomedical:

Where the Puck is Going

Why Ohio?


BUSINESS SENSITIVE

29



29

Biomedical: Where the Puck is Going

Market and Technology Drivers


Rise of molecular diagnostics and
personalized medicine approaches


Growing focus on regenerative

medicine approaches


Shifting regulatory requirements


Impact of healthcare reform


Wireless
-
digital medical technology
innovation


Continued “push” for minimally invasive
medical procedures


Advent of disposable biologics manufacturing



BUSINESS SENSITIVE

30



30

Biomedical: Where the Puck is Going

Recommended Growth Opportunities


Medical Technology
Products


Technologies include: medical
imaging, sensing and remote
monitoring, minimally invasive
surgery and advanced implant
medical devices


Highly integrative new “systems”
approach combines Ohio’s core
capabilities


Offers strong linkages to Ohio’s
strengths in academic health
centers


Large and growing markets



Health Informatics


Ohio is among most active
states on health information
exchanges


Builds on strength of clinical
infrastructure


Key focus of state’s three NIH
funded Clinical and
Translational Science Institutes


Leverage state’s IT strengths in
business
-
to
-
business software
expertise


Consider ways to connect with
molecular and other in vitro
diagnostics


focus on wireless
digital medical devices



BUSINESS SENSITIVE

31



31

Biomedical: Where the Puck is Going

Other Potential Growth Opportunities


Molecular & Other In
-
Vitro Diagnostics


Possible opportunity to access university technologies on biomarkers/reagents


But Ohio does not stand out


not seen as having a competitive advantage


Contract Research & Manufacturing Support


Contract research for clinical trials viewed as a commodity market


Ohio does not stand
out


possible approach of creating stronger connections between CROs and universities

-
Note: Even if Ohio does not stand out, this is an area that can create jobs in short time
frames


In Contract Manufacturing, Ohio not viewed as having base of biologics strengths to play
in high growth opportunities


Drug Delivery and Development


Ohio’s lack of sizable venture capital firms to lead deals is a major weakness


hard to
overcome, limits growth potential


Potential for specialty pharmaceutical companies

-
Leverage advanced materials strength found in Ohio (both polymer and nano
-
related
advances in drug delivery)


Cell Therapeutics


Ohio’s primary focus is on the application of adult stem cell technologies to addressing
diseases, which is closer to market than embryonic stem cells.


A few growing companies in Ohio, but still an emerging area and very competitive
nationally


BUSINESS SENSITIVE

32



32

Biomedical: Where the Puck is Going

Strategic Directions for Ohio


OTF
-
Related Strategic
Technology Development
Approaches


Need for stronger connections
between industry and the state’s
strong clinical infrastructure

to
further market
-
driven product
innovations as well as to test out new
medical products.


Significant gap between NIH funding
and having a commercially viable
product
. Calls for more focused
funding on translational research
infrastructure (prototyping centers, drug
development centers, etc.) and support
mechanisms to connect with emerging
and established industry.


Talent gaps in Ohio for biomedical
fields



lack depth in biologics, level of
graduate students lagging other states
and connection to engineering talent for
biomedical firms lagging other states.



Broader Strategic Economic
Development Approaches


Accelerate reaching critical mass of
biomedical companies in regions
across the state
. This calls for more
pro
-
active marketing and increased
focus on ensuring recent start
-
up firms
have access to follow on venture
financing.


Concern that venture capital in Ohio
is not well positioned to support
high growth biomedical start
-
ups
,
particularly in the biopharmaceutical
area.



BUSINESS SENSITIVE

33



33

Energy:

Where the Puck is Today

Industry Focus Areas

Ohio Bioscience Industry: Employment Size, Growth, & Relative Concentration, 2009

Source: Battelle analysis of Bureau of Labor Statistics, QCEW data, enhanced file from the Minnesota IMPLAN Group, Inc.


BUSINESS SENSITIVE

34



34

Ohio’s Share of Renewable Energy
Industries

Selected

Niches

OH Share of U.S.
Establishments

2010

OH Share of U.S.
Employment

2010

Smart Grid Systems
/

Smart
Metering

8.6%

5.2%

Fuel
Cells/Hydrogen

8.4%

9.8%

Solar
PV (includes installers)

5.6%

1.6%

Energy Storage/Batteries

5.3%

5.7%

Wind

2.6%

1.9%

Biofuels/Biomass

2.3%

3.5%

Source: Battelle analysis of D&B
Selectory

database

The most comprehensive national database of renewable companies was recently
produced by Brookings and Battelle in “Sizing the Clean Economy” and identifies
the leading renewable industries in Ohio:


BUSINESS SENSITIVE

35



35


TECHNOLOGY IDENTIFICATION NICHES

PATENT
AREAS

(Top areas of Ohio invented patents
with at least 25 patents from
January 2007 to September 2010)


No patent areas stand out among Ohio’s energy
industry

firms for Ohio
-
based inventions


CORPTECH
TECHNOLOGY
PRODUCT MARKETS

(4% or higher share of firms with
HQ and independent operating
units based in Ohio, and at least 5
firms)


Alternative energy systems


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䙵敬e


HVAC equipment


Lighting systems


䕬Ect物r慬

p潷敲 tr慮獭楳獩潮

PRESENCE

OF VENTURE
FUNDING AWARDS

(January 2006 to December 2010)


VC deals in fuel

cells, batteries, biofuels, energy
management and solar PV
-
but not concentrated
in any area


7 companies

with deals totaling $26.6M



AREAS
of
EXCELLENCE
in
SCHOLARLY ACTIVITY

(Excellence measured by share of
U.S. publications in field or quality
based on citations per
publication
across ALL

Ohio universities
)




Electrochemistry


Geochemistry and

Geophysics


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Energy:

Where the Puck is Today

Innovation Focus Areas


BUSINESS SENSITIVE

36



36


Presence of Ohio’s supply chain is a major selling point


allows for
innovative solutions to be put together more quickly and at less cost


Strength in materials research and development, which is critical to
advancing innovative energy applications


Forward thinking utility companies found in Ohio


Leading companies in specific niche areas, such as Energizer Battery for
batteries, Rolls Royce for fuel cells, Parker Hannifin for wind turbine
controls, Timken for wind turbine bearings and Battelle in smart grid
technologies.


Energy:

Where the Puck is Going

Why Ohio?


BUSINESS SENSITIVE

37



37

Energy: Where the Puck is Going

Market and Technology Drivers


Continued growth in demand for energy drives market
opportunities


Disruptive technologies harder to find in advanced energy


much more of a focus in the near
-
term on incremental
advances


Importance of government incentives for driving demand of
renewable technologies


High capital costs for large power plant installations of
alternative and renewable energy sources


Regulatory issues impacting both traditional and new sources of
energy generation


Transmission and distribution issues considerable for bringing
on renewable sources of energy




BUSINESS SENSITIVE

38



38

Energy: Where the Puck is Going

Recommended Growth Opportunities


Solar PV


Challenge of low cost Chinese poly
-
silicon cells hurts
adoption of thin film solar cells

-
Makes it difficult for Ohio companies to compete in
solar modules


Opportunities for Ohio:

-
Base load solar


First Solar moving in direction
generating solar
-
based power plants


very capital
intensive

-
Integrated solar solutions


highly customized to
specific users linked with energy efficiencies +
require specialized installation

-
Exports of advanced materials targeted to energy
applications



Fuel Cells


Significant OEM
-
supply base
complex found in Ohio


Opportunities for Ohio:

-
Meeting military requirements
(aerospace, military bases)

-
Stationary power more
broadly, but requires state
incentives like in California

-
Transportation


may take
longer than 3
-
5 years, but still
seen as coming. Right now in
niches, such as fork lifts



Energy Storage/Batteries


Big opportunity for energy storage systems, though hard to compete in lithium
-
ion technologies
given base in Asia


Considerable R&D required

-
Cost advances needed in manufacturing processes to reduce scrap rates, improve inspection

-
Need for higher density materials


Opportunities for Ohio:

-
Focus on automotive sector


Rising auto efficiency standards; Ohio part of three state supply
chain

-
Energy harvesting devices

-
Rechargeable batteries


BUSINESS SENSITIVE

39



39

Energy: Where the Puck is Going

Other Potential Growth Opportunities


Wind


Still needs to overcome performance issues, reliability, maintenance


Opportunities for Ohio viewed as more limited:

-
Specific companies are critical suppliers of components

-
Advanced materials



Smart Grid


Value proposition still being

defined
--

whether

smart metering, integration of distributed
energy and other smart grid applications still being developed


Requirements for energy reliability seen as critical


Opportunities for Ohio:

-
Focus on small subsystems development


smart mini
-
grids


Bio
-
Fuels


Waste is largest biomass feedstock in Ohio


wastewater, solid waste and farming wastes


Biggest challenge is having a reliable, long
-
term source of biomass


Opportunities for Ohio:

-
Focus on integrated solutions linked to environmental issues

-
Major plants

-
Waterway clean
-
up

-
Meeting military requirements (aerospace, ships, military bases)


BUSINESS SENSITIVE

40



40

Energy: Where the Puck is Going

Strategic Directions for Ohio


OTF
-
Related Strategic
Technology Development
Approaches


Leverage Ohio’s strengths in
advanced materials and sensors
and controls for advanced energy
applications.


Key cross
-
cutting competency in
power electronics is critical to
success in many energy
application areas.
Ohio considered
to be strong in the past, but not a
leader today. Activities such as the
new GE research center can have
broader implications for advancing
power electronics in Ohio that can
reach




Broader Strategic Economic
Development Approaches


Address high capital requirements to
advance innovative energy
technologies with more high value
infrastructure resources.

-
Development of shared use facilities
to reduce costs, as well
demonstration facilities to shorten
development cycle.


Local markets are key.
With no national
standards, every state is its own market.


State incentives and regulatory
approaches matter
to whether Ohio is an
early adopter of advanced energy
applications.


Leveraging intersection of
environmental and energy in state
approaches
. Through advanced energy
solutions, innovative approaches to
environmental issues can be advanced.



BUSINESS SENSITIVE

41



41

Info Tech:

Where the Puck is Today

Industry Focus Areas

Ohio Bioscience Industry: Employment Size, Growth, & Relative Concentration, 2009

Source: Battelle analysis of Bureau of Labor Statistics, QCEW data, enhanced file from the Minnesota IMPLAN Group, Inc.


BUSINESS SENSITIVE

42



42


TECHNOLOGY IDENTIFICATION NICHES

PATENT
AREAS

(Top areas of Ohio invented patents
with at least 25 patents from
January 2007 to September 2010)


Multiplex communications


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卵pp潲t f潲 敬ect物r慬ac潭put敲猠慮d d楧楴慬a
pr潣敳獩og


CORPTECH
TECHNOLOGY
PRODUCT MARKETS

(4% or higher share of firms with
HQ and independent operating
units based in Ohio, and at least 5
firms)


Insurance software


Health services software


Education and training software


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M慮uf慣aur楮朠獯stw慲e

PRESENCE

OF VENTURE
FUNDING AWARDS

(January 2006 to December 2010)


VC falls into four broad categories


Business software


Health IT


Internet and messaging services


Data related software and processing
services


AREAS
of
EXCELLENCE
in
SCHOLARLY ACTIVITY

(Excellence measured by share of
U.S. publications in field or quality
based on citations per
publication
across

ALL Ohio universities
)



No statewide strengths in information technology or computer sciences fields


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Info Tech:

Where the Puck is Today

Innovation Focus Areas


BUSINESS SENSITIVE

43



43


Presence of large and mid
-
sized corporate administrative
offices and leading academic health centers based in the
state.


Lower cost of living compared to established leaders in
information technology, largely found on the East and West
coasts.


Less staff turnover than found in IT hotspots around the
nation.


Ability of new IT start
-
ups to access seed and start
-
up capital
with the presence of Ohio’s Entrepreneurial Signature
Program.


Ohio has one of the most active health information
exchanges found among large states, which offers a platform
and distribution network for health care software applications.


Info Tech:

Where the Puck is Going

Why Ohio?


BUSINESS SENSITIVE

44



44

Info Tech: Where the Puck is Going

Market and Technology Drivers


Growth of software as a service and on
-
demand
applications through cloud computing
.


Wireless applications driving real
-
time
intelligence gathering and customer connectivity
.


Rise of open source platforms
.


Growing consumerism in health care
.


Rise of “accountable care organizations” as a
new model for health care delivery
.



BUSINESS SENSITIVE

45



45

Info Tech: Where the Puck is Going

Recommended Growth Opportunities


Business Process Related Software
: Focus on serving
enterprise computing needs of industry to automate,
generate intelligence and add value to sales, financial
management, supply chain management, human resource
management, production systems and customer services.


Health Information Technology.

Emerging area primarily
focused on software applications and services focused on
cost cutting. This includes ways to use a variety of services
from workflow management to medical coding to streamlined
billing and claims processes to electronic health record
systems. It is expected that in the next three to five years, the
use of information technology in health care will begin to
expand to include improving patient outcomes, and so
become more integrated with monitoring patient health and
delivering health services.



BUSINESS SENSITIVE

46



46

Info Tech: Where the Puck is Going

Strategic Directions for Ohio


OTF
-
Related Strategic
Technology Development
Approaches


Better facilitation and engagement
mechanisms to network emerging
information technology companies and
well
-
established corporate and
healthcare customer community in
Ohio.


Ohio can become a market leader in
health IT by addressing the integration
of health care information technology
with medical devices, which is proving
to be a major hurdle to moving towards
systems that can improve patient
outcomes.


Talent base being generated in Ohio is
not viewed as sufficient across the
broad spectrum of information
technology skills.




Broader Strategic Economic
Development Approaches


Power costs hurt opportunities to pursue
the data centers that drive cloud
computing.


Commercial banking in Ohio is not savvy
about information technology
businesses, and these companies often
need to seek outside banks for financing
of equipment, working capital and
mobilization on contracts.


Lack of adequate later stage venture
financing for emerging information
technology companies in Ohio.



BUSINESS SENSITIVE

47



47

I&C:

Where the Puck is Today

Industry Focus Areas

Ohio Bioscience Industry: Employment Size, Growth, & Relative Concentration, 2009

Source: Battelle analysis of Bureau of Labor Statistics, QCEW data, enhanced file from the Minnesota IMPLAN Group, Inc.


BUSINESS SENSITIVE

48



48


TECHNOLOGY IDENTIFICATION NICHES

PATENT
AREAS

(Top areas of Ohio invented patents
with at least 25 patents from
January 2007 to September 2010)


Generic control systems


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䕬Ect物捩r礠浥m獵物r朠☠t敳t楮g



䕬Ect物r慬ac潭浵n楣at楯is


佰t楣猠浥m獵物r朠☠t敳t楮g

CORPTECH
TECHNOLOGY
PRODUCT MARKETS

(4% or higher share of firms with
HQ and independent operating
units based in Ohio, and at least 5
firms)


Assembly mfg systems


Automatic test equipment


Manufacturing control systems


M慮uf慣aur楮朠浥m獵物r朠敱u楰


Mat敲楡汳ih慮d汩l朠慮d 獨楰p楮朠敱u楰


Robots/robotic equipment


Automation services

PRESENCE

OF VENTURE
FUNDING &
SBIR AWARDS

(January 2006 to December 2010)


17 VC deals and 276 SBIR Awards falling into two
broad areas


Automation & Process Control


Sensors & Sensing Equipment

AREAS
of
EXCELLENCE
in
SCHOLARLY ACTIVITY

(Excellence measured by share of
U.S. publications in field or quality
based on citations per
publication
across

ALL Ohio universities
)



Statewide strengths in:


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偬P猬⁏s楯i却at攠啮楶敲獩s礠st慮d猠潵t 楮 慵t潭at楯i 慮d c潮瑲潬osyst敭献

I&C:

Where the Puck is Today

Innovation Focus Areas


BUSINESS SENSITIVE

49



49


Strengths found in Ohio across all components of
advanced instrument and control systems, including:


Sensors; Automation; Signal Processing; Information
Processing; Distribution; Decision Support


Presence of Air Force Research Lab Sensors
Directorate at Wright
-
Patterson AFB


University strengths, particularly in sensors and
sensing systems


I&C:

Where the Puck is Going

Why Ohio?


BUSINESS SENSITIVE

50



50

I&C: Where the Puck is Going

Market and Technology Drivers


Broad range of markets to be served from aerospace &
defense, law enforcement and homeland security, industrial
automation and manufacturing, energy and biomedical.


Unmanned vehicles becoming an important platform for
advanced automation and sensing technologies.


Continued need for advances in sensor technologies, such as
improved chemical sensors able to function in real world
conditions, full motion video
gigapixel

class sensors and
terahertz wave sensing.


Market seeking linkage of wireless
-
based real time monitoring
with advanced sensing technologies into a system.






BUSINESS SENSITIVE

51



51

I&C: Where the Puck is Going

Recommended Growth Opportunities


Two major technology niches stand out for Ohio that serve
multiple markets:


Sensors


Bottom up, enabling
technology


Many types of sensors


Electromagnetic; IR;

Biological; Chemical;
T
-
Rays; etc.


Ohio seen as having many
technology capabilities in
sensor development,

but
no single area stands out


Test & measurement
markets seen as near
-
term


Situational Awareness/

Surveillance


Top down, systems approach


Involves:


Sensor technologies


Processing (sensor data and
information processing)


Data storage


Distribution


Exploitation


Ohio seen as strong across the
components of these systems


BUSINESS SENSITIVE

52



52

I&C: Where the Puck is Going

Strategic Directions for Ohio


OTF
-
Related Strategic Technology
Development Approaches


Need for test bed facilities that can allow
emerging companies and consortiums to
test and demonstrate solutions.


Talent is an area of concern, especially
given high numbers of retirement eligible
engineers working in sensors and
automation at Wright
-
Patterson AFB. Also
hard to attract both young graduates and
experienced workers to Ohio.




Broader Strategic Economic
Development Approaches

-
Lack of prime integrators in Ohio
holds back industry growth. With
expansion of Wright
-
Patterson AFB, it
is important to attract more prime
integrators to Ohio.

-
Need for further capital in support of
commercialization. SBIR funding
particularly important in sensors and
sensing technology systems. Ohio
might want to consider providing
matching funds to companies that are
awarded Phase II SBIRs tied to
commercialization within OH.

-
Improved contracting approaches for
small and mid
-
sized Ohio companies
with the Air Force Research Lab.




BUSINESS SENSITIVE

53



53

Materials:

Where the Puck is Today

Industry Focus Areas

Ohio Bioscience Industry: Employment Size, Growth, & Relative Concentration, 2009

Source: Battelle analysis of Bureau of Labor Statistics, QCEW data, enhanced file from the Minnesota IMPLAN Group, Inc.


BUSINESS SENSITIVE

54



54


TECHNOLOGY IDENTIFICATION NICHES

PATENT
AREAS

(Top areas of Ohio invented patents
with at least 25 patents from
January 2007 to September 2010)


Synthetic resins


Mat敲楡i

C潭p潳楴敳


卯汩l 慮ti
-
fr楣t楯渠浡t敲楡汳


C潡t楮杳


CORPTECH
TECHNOLOGY
PRODUCT MARKETS

(4% or higher share of firms with
HQ and independent operating
units based in Ohio, and at least 5
firms)


Ceramics


Composites


Oils & lubricants


P潬祭ors


䕬Ectr潮楣 浡t敲楡汳


C潮st牵ct楯i

Mat敲楡汳i


Met慬猠☠&汬lys


Tet楬敳if楢敲s


Abrasives


Adhesives


䅤d楴楶敳e浯d楦楥is


Mat敲楡氠獥s癩v敳


䙩汬敲猯s敩ef潲c敭ents


N潮浥t慬汩a敲r潵o

浡t敲楡汳

PRESENCE

OF VENTURE
FUNDING &
SBIR AWARDS

(January 2006 to December 2010)


30 VC deals and 301 SBIR awards falls into three
broad categories


Ceramics & Composites


Chemicals & Materials


Specialty Metals & Alloys

AREAS
of
EXCELLENCE
in
SCHOLARLY ACTIVITY

(Excellence measured by share of
U.S. publications in field or quality
based on citations per
publication
across

ALL Ohio universities
)




Polymer Sciences


C潭p潳楴敳


Met慬猠慮d Met慬a䕮杩g敥物rg


Material Sciences, Characterization and Testing


Biomaterials


C潡t楮杳g慮d 䙩汭猠

Materials:

Where the Puck is Today

Innovation Focus Areas


BUSINESS SENSITIVE

55



55


Supplier “value chain” is outstanding in Ohio across
all materials industries


Innovation base outstanding with significant
strengths in development and materials analysis
across multiple universities across the state.


End use industries significant in Ohio


Strong and engaged base of industry organizations
creating “connective” fabric in Ohio


Materials:

Where the Puck is Going

Why Ohio?


BUSINESS SENSITIVE

56



56

Materials: Where the Puck is Going

Market and Technology Drivers


A number of key attributes are driving the need for
advanced materials including:


Demand for more multifunctional materials that can provide
increased value to applications


“Light weighting” of materials that ensure strength and
reliability but enable the use of less materials at lower costs.


Ability for materials to be environmentally friendly and
recyclable


Advances in material production processes also
driving market:


Direct Digital (Additive) Manufacturing


Retooling


Modeling & simulation


Near net shape production




BUSINESS SENSITIVE

57



57

Materials: Where the Puck is Going

Recommended Growth Opportunities


Consider “advanced materials” from a broad
technology and market application focus … do not
focus from viewpoint of specific types of advanced
materials



Build Upon Broad
Range of
Advanced
Materials Found in
Ohio


Advanced Polymer
Materials


Structural Composites


Advanced

Ceramics


Specialty Metals & Alloys


Focus on Specific
Market Application
Areas for Materials

Found in
Ohio and
Beyond


Biomedical


Aerospace/ Defense/
Transportation


Advanced Energy


Green Products


Address Requirements for

Advanced Materials




Multifunctional materials


“Light weighting


Sustainable/ Recyclable


Advanced production
processes


BUSINESS SENSITIVE

58



58

Materials: Where the Puck is Going

Strategic Directions for Ohio


OTF
-
Related Strategic Technology
Development Approaches


OTF needs to be on a real
-
world business schedule


opportunities for capturing large company
development projects being lost. Need for an open RFP
process that is available as opportunities arise.


Need a targeted focus on entrepreneurial
development in advanced materials.
New ventures in
advanced materials have specific requirements that
need to be recognized in the state’s approach to
entrepreneurial development. Focus on common
services, SBIR support, business partnering, scale
-
up,
etc.


Better connect Ohio innovations in advanced
materials to Ohio industry customers.
Calls for more
scale up and demonstration facilities. Focus on “de
-
risking” adoption of advanced material solutions.


Diminishing industry support to universities
because of difficulties with contracting/technology
transfer processes
. Companies are finding it easier to
do business overseas given complexities of negotiating
intellectual property rights and contract terms. Need for
more “template” agreements.



Broader Strategic
Economic
Development
Approaches


Manufacturing costs
relative to rest of the
world.
Consider ways to
reward those who seek to
pursue the manufacturing
of innovations made in
Ohio.


Place an emphasis on
recruitment of emerging
innovative advanced
materials companies to
Ohio.
Ohio stands out in
its support for advanced
materials