Leadership from the Cleveland-to-Pittsburgh Mega-Region Join to Create Tech Belt Initiative to Reinvigorate the Economy

Friday, October 31, 2008

Cleveland, OH, October 31, 2008 - The Tech Belt Initiative is an economic development strategy designed to reinvigorate the Cleveland-to-Pittsburgh region (Cleveland, Youngstown and Pittsburgh) by building on its unique civic, educational, healthcare, and industrial institutions. The transition to a knowledge-based economy has caused opinion leaders from these metropolitan areas to recognize that the future of these once great manufacturing communities are tied together, and that our continued success depends on our ability to collaborate in the creation of new products, technologies, and wealth.

To spearhead this effort, a steering committee, comprised of leadership organizations from Southwest Pennsylvania and Northeast Ohio, is working to develop a strategic vision for this initiative and to build the partnerships necessary to leverage the region's collective resources. The committee has identified the following goals for potential partnership opportunities:

Encourage the federal government to identify the region as a Premier Innovation Zone and invest in/augment existing state technology-based economic development programs

  • Continue support for SBIR/STTR programs
  • Reinstate funding for the National Institute of Standards and Technology's Manufacturing Extension Partnerships (MEP)
  • Continue the Alternative Energy Tax Credits for wind power, solar energy, and other renewable fuels
  • Augment funding for translational research at both the university and commercial levels

A comprehensive list of the Tech Belt Initiative's goals and actions to be pursued can be found in the white paper titled, "The Tech Belt Initiative; Realizing the Full Economic Potential of the Cleveland-Pittsburgh Technology Corridor," which can be downloaded at www.techbelt.org.
 
Tech Belt's collaborators believe that now is the time to emphasize our regional strengths. A projected economic downturn combined with still struggling regional economies will have an immediate negative impact on both regions; but together as one, the potential for weathering a downturn and promoting mega-region-wide recovery makes this an urgent and timely opportunity for the long-term economic transformation.

Project collaborators, the Greater Cleveland Partnership, the Allegheny Conference on Community Development, and the Youngstown/Warren Regional Chamber have stepped forward to support and advocate on behalf of the Tech Belt Initiative.

 "While each region that makes up the Tech Belt has made tremendous progress over the last several years, the possibility for economic turnaround improves significantly by working together," said Joe Roman, president and CEO of the Greater Cleveland Partnership. "As an inter-state region, the Tech Belt would be the 4th largest industrial/technology region nationally, with a potential economic impact of more than $1 billion in annual academic R&D."

Tech Belt project collaboration has already demonstrated success for BioScience investment in recent years. In 2007, as part of the emerging Tech Belt Initiative, BioEnterprise of Cleveland and the Pittsburgh Life Sciences Greenhouse (PLSG) revealed the following impressive metrics regarding BioScience venture activity: the combined regions drew $343 million in healthcare venture investment in 2007 across 45 companies; the regions boasted eight company exits; and the two organizations made numerous cross-introductions of venture capital firms and initiated the exploration of 18 company collaborations.

Each region has exceptional challenges, strengths, and records of achievement enabling public-private partnerships that receive and implement substantial state funding. It is these track records of success and clear signs of economic innovation and transformation that make the potential for this region substantial. However, the regions' combined assets have never been fully leveraged. 

"Our strengths represent a strong foundation for enhanced engagement in technology-based economic development," said Tom Humphries, president and CEO of the Youngstown-Warren Regional Chamber. "We've had some very notable successes locally, but we could advance exponentially as one of the anchors within the larger mega-region of the Cleveland-Pittsburgh Technology Corridor." 

DeWitt Peart, executive vice president of economic development at Allegheny Conference on Community Development stated, "Our focus will be to continue looking for synergies, identifying our top resources, bringing people together for discussion and collaboration, and attracting the talent, businesses and capital necessary to grow our economy."

The states of Ohio and Pennsylvania have been remarkable examples as investors of technology-based economic development already. In Northeast Ohio (via the Third Frontier Project) and Southwest Pennsylvania (via the Ben Franklin Technology Partners) alone, state governments have demonstrated an impressive quantifiable return on combined public investments of more than $800 million since 2002, illustrating the tremendous potential and economic utility of the Tech Belt Initiative. With support and funding from the Federal government, programs like the Tech Belt Initiative can leverage regional resources and help complete the transformation of the region and ensure its long-term viability.

About The Greater Cleveland Partnership
The Greater Cleveland Partnership, the primary voice for businesses in Greater Cleveland, seeks to create jobs and improve the economic vitality of the region. On behalf of its more than 17,000 members, the GCP advocates with one voice; advances small business success; accelerates economic inclusion; builds a high-impact, sustainable economic development system; changes the face of Cleveland; strengthens global connections; and initiates a demand-driven talent system.  The GCP is a founder and proud supporter of the Cleveland Plus marketing campaign. Learn more at www.gcpartnership.com.

About The Youngstown/Warren Regional Chamber
The Youngstown/Warren Regional Chamber (Regional Chamber) is a private, nonprofit organization that provides leadership and business services to promote the growth of our nearly 3,000 members-representing more than 150,000 employees in the Mahoning Valley. In addition to offering our membership access to a range of benefits, from discounts on healthcare and workers' compensation to networking opportunities at more than 100 events annually, enhancing the essential partnership between economic development and education and advocating on behalf of the business community to improve our quality of life are a significant part of what we do. Learn more at www.regionalchamber.com.     

About The Allegheny Conference on Community Development
The Greater Pittsburgh Chamber of Commerce, the Pennsylvania Economy League of Southwestern Pennsylvania and the Pittsburgh Regional Alliance - work in collaboration with public and private sector partners to stimulate economic growth and improve the quality of life in southwestern Pennsylvania. Learn more at www.alleghenyconference.org.

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