Third Frontier is a success

If there’s one government initiative that has exceeded expectations, it is Ohio Third Frontier launched by former Republican Gov. Bob Taft and embraced by Democratic Gov. Ted Strickland. Bipartisan public support has been unwavering.

Now, Strickland has called for increasing the amount of money that would be available through Third Frontier to companies starting up in industries such as alternative energy and biomedical research.

The Ohio House and Senate have answered the call.

But, the two chambers have differing versions of the measure that must be adopted Tuesday in order to give Ohio voters a say in the May primary. The House would add $950 million over five years, while the Senate would add $500 million, plus earmark $100 million for highways and other public works projects.

Given the snail’s pace with which the state is recovering from the national economic recession, we believe a $950 million commitment is appropriate and timely.

Job creation

The numbers tell the story of the Third Frontier’s success: overall economic impact, $6.6 billion; total jobs created, 41,000 — 10,000 direct; tax revenue generated from Third Frontier activities, $107 million. In addition, the program has attracted seven times the amount of follow-on capital invested, and the growth of venture capital activity has been twice the national average in the last five years.

The success in the Mahoning Valley is just as impressive. A couple of examples: Youngstown State University in collaboration with Fireline, Inc., secured $2.1 million for its Center for Advanced Materials Analyses; Refractory Specialties received $400,000 in 2008 under the fuel cell program.

It is clear that the Third Frontier initiative must be expanded to keep Ohio competitive in the global economy.

We urge adoption of the House version, and believe Ohioans will continue to support this important economic development program.