ARC co-chair applauds job-creating OU incubator

A recently appointed federal official visited southeast Ohio for the first time Tuesday to tour the Ohio University Innovation Center, where he got a feel for how the center creates both jobs and income for Athens County and the surrounding region.

Established in 1983, the OU Innovation Center, 340 W. State St., is a business incubator. Earl F. Gohl, federal co-chair of the Appalachian Regional Commission, said he paid a visit to Athens as part of his initiative to make sure that all of the money spent by the commission is "an investment in the economic future of Appalachian families that will generate a return for American taxpayers."�

In Athens, the center has been able to help jumpstart 14 businesses and has had a history of successful job creation in the Appalachian region. That, along with support from OU, has helped create its good reputation, said Gohl.

"The corporation contributes to the economy of the area, and the commitment of the university is critical,"� Gohl said. "The university is committed to the community; it is that strong commitment that is on the right track for getting things going."�

Business incubators allow young companies to use services such as office space, research facilities and equipment during start-up phases, explained Jennifer Simon, director of research at the Innovation Center.

Incubators also help up-and-coming businesses increase their potential for job growth by teaching management skills as well as different business strategies to the newcomers, she said. They are helpful because they provide these means, at an affordable cost. Rent for office space in the Innovation Center usually averages out to about $1 per square foot of room, according to Simon.

"If we have a company that comes in already knowing everything, they don't need us,"� she said.

In 2009, the center created 152 jobs in Athens County and brought   $9.4 million to the local economy. In the past two years, nine businesses opened with the help of the OU Innovation Center. The firms in the center, which reopened with state-of-the-art office space and research laboratories in 2003, range from those that specialize in information technology, biotechnology and transportation technology, to one venture capital firm and one intellectual property firm.

Diagnostic Hybrids, responsible for developing swine-flu tests and treatments for respiratory illnesses and sexually transmitted diseases, was the first to graduate from the center in 2008, Simon said.

Businesses graduate when they are financially stable and need more room for research or to support more employees. Other graduation requirements include being able to afford commercial building rates and no longer needing any of the services provided.

Upon graduation, the workforce at Diagnostic Hybrids, which set up shop in 1983, had grown to more than 225 employees. Diagnostic Hybrids was recently sold to Quidell Corp. for $130 million, which benefited OU by $38 million, Simon said.

"This is what we strive for,"� Simon added. "We really are a regional center for technology."�

Diagnostic Hybrids is not the only company that has found success using the OU Innovation Center. Many younger businesses are thriving as well.

Third Sun Solar and Wind, a firm that specializes in renewable energy, saw a growth of 360 percent after signing on with the center, said founder Geoff Greenfield. One visit to the building was enough to convince him to consider utilizing the facility, he said.

"We got into the Innovation Center when we were there to put on solar panels and ended up renting from them,"� said Greenfield.

Since then, he said, Third Sun Solar and Wind has employed local people, has increased its workforce to almost 24 workers, and is looking to hire more.

The Innovation Center is also an asset to OU students, especially those studying engineering and sports management, Simon said, adding that the center provides job opportunities for both undergraduate and graduate students in those fields.

Both James and Ada Cowan, founders of pharmaceutical firm Metallopharm, which specializes in finding new kinds of metal-based medicines, said they were surprised to have found the perfect place to set up research facilities for Metallopharm in southeast Ohio.

The Cowans said that the "tremendous pull of resources and expertise as we tried to get our business put together"� is what made them decide on a location in Athens after looking for laboratory space in both Cincinnati and Columbus.

"We moved in here in February and started our animal testing in March,"� Ada Cowan said, noting that in some situations it can take years for a company to move into a facility and actually start research. "With this nurturing support system we can move forward,"� she said.