Ohio's Third Frontier Initiative Reports 9:1 Leverage as Future Funds are Sought

The most recent annual report of Ohio's Third Frontier initiative announced $3.52 billion in non-state resources has been provided for affiliated projects and companies - a nine to one ratio of state dollars leveraged. Since the Third Frontier's creation in 2002, $893 million in state funds have been awarded, with $403 million of that amount expended to date.

The Third Frontier Initiative is a statewide effort administered by the Ohio Department of Development (ODOD) and is comprised of a diverse set of programs focused in areas such as research faculty recruitment, commercialization assistance, direct research funding, internship assistance, entrepreneurial development, and regional seed fund growth, among others.

The ODOD report finds the aggregate results of the initiative since its launch has led to the direct creation or retention of 7,760 jobs. With an average salary of $67,700, the job figure represents a payroll in excess of $525 million dollars injected into the state's economy each year. By the end of 2008, 514 companies in Ohio have been created, attracted, or capitalized due to Frontier efforts, according to the report.

The current funding source for the Third Frontier initiative is winding down. Originally crafted as a $1.6 billion program using a combination of bonds, the state's general fund, and tobacco lawsuit settlements, the Third Frontier is currently set to expire in 2012.

Gov. Strickland is reported in a Cincinnati Enquirer editorial board interview last week as being in favor of putting an extension of the TBED initiative before voters as early as this November. The governor wants to consult with the state legislature and ODOD officials first, however. Other possibilities include going to voters in 2011 or 2012 to renew or even enlarge the Third Frontier initiative.

The 2008 annual report of the Third Frontier Initiative is available at: http://www.ohiochannel.org/content_files_user/1/119193.pdf