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CHDP Group Looks to Attract Hungarian Innovation to Northeast Ohio

By Lél F. Somogyi,  on April 8, 2009 in Cleveland, OH  (Download this article as a PDF)

“Our group, part of the Cleveland Hungarian Development Panel (CHDP), here in the Northeast Ohio area, is focused on bringing innovation, brain power and jobs to the region from overseas. In a trip scheduled for May 9-16 this year, we are looking to identify and attract business investment and opportunities from Hungary to Cleveland,” Jeanette Grasselli Brown says emphatically, speaking from experience in having led a successful mission to Hungary in May 2007 for just this purpose.

When most people think of economic development, they think locally, focusing on doing the things needed to help entrepreneurs and existing businesses compete and grow in the local market. The next step is usually focusing on attracting business from outside the area, often in competition with other cities, regions and states. Attracting foreign-owned business to the region has typically come in a distant third, although the benefits of attracting outside investment are significant. Efforts have usually focused on attracting the big companies, with less attention to small and medium sized businesses.

Jeanette Grasselli Brown is co-chair of the CHDP Economic Development Program, and well-known on the boards of a number of leading Cleveland organizations including the Cleveland Orchestra, the Great Lakes Science Center, and IdeaStream. She holds over a dozen honorary doctoral degrees, including one from the University of Pécs in Hungary. For 38 years she worked at Standard Oil Co. of Ohio, retiring in 1989 as Director of Corporate Research for BP America.

She notes, “We’ve assembled a group of business people, entrepreneurs and representatives from a number of regional economic development organizations, universities, city governments, and the State of Ohio, who are interested in making this happen and have had some great experience with successfully doing it as well.”

Up until fairly recently, little effort has been focused on attracting smaller companies from overseas to come to the region. “If you approach it the right way, there can be significant economic benefits and the opportunity for local job creation,” according to Tom Sudow, who has first-hand experience in this type of business attraction. As executive director of the Beachwood Chamber of Commerce for more than five years, he succeeded in attracting numerous businesses, including more than 20 international companies, to the innovative Cleveland, Ohio suburb.

According to an August 2007 article in Crain’s Cleveland Business, Sudow believes strongly in working with international companies. For the last couple of years, he has been hard at work leading a unique collaboration between Team NEO and the Cleveland Clinic to attract bioscience and medical device companies to the Global Cardiovascular Innovation Center.  “We’re constantly on the lookout for the best innovations from around the world,” he notes, adding that countries like Israel and Hungary are good sources for innovative solutions.

A major reason for the focus on Hungary has to do with the large, well-connected Hungarian community in the Northeast Ohio area, which provides a ready cultural affinity to fostering business collaboration with Hungary.

This year the focus is on polymers/biopolymers and nanotechnology. The first trade mission to Hungary focused on health care and biotechnology.

Few people realize that the polymer industry is Ohio’s largest and most important industry. Ohio is a truly a world-leader in polymers.  The polymer industry in Ohio includes more than 2,800 facilities and 140,000 workers.  It generates $49 billion in annual sales revenue and pays its workers $5.6 billion in wages. “And it stays strong by being on the leading edge of innovation,” according to Dave Karpinski, VP of Technology Innovation, Manufacturing and Electronics for NorTech. “We can honestly say this industry has the potential to change the world.”

The polymer industry includes the following major segments:  a) polymer processing – molding, especially for automotive, packaging, medical devices and building products markets;  b) polymer composites;  c) additives – color, stabilizers, foaming agents, etc.;  d) bio-derived materials;  e) polymer reinforcements – glass, fiber, natural fiber, wood, etc.;  f) process equipment.

Joe Jacomet, Vice President Asset Based Company Attraction, with PolymerOhio is one of the key  participants in the trade mission trip in May 2009. In his role with PolymerOhio, he will be on the lookout for opportunities on behalf of the polymer industry in Ohio.

Another key participant is Dr. Judit Puskas, Professor of Polymer Science in the Department of Polymer Science and the Integrated Bioscience Program, at The University of Akron.  Dr. Puskas is originally from Hungary and brings valuable polymer research and commercial development insights to the trade mission effort.

“We are looking for exciting new technologies and fast growing companies in Hungary,” Karpinski points out. “Our objective is to connect with technologists, entrepreneurs and companies engaged in the polymer industry in Hungary that may have an interest in collaborating with companies in the polymer industry in Ohio.”

The primary goal of the group of organizations working in conjunction with the Cleveland Hungarian Development Panel is to find and visit Hungarian technologists and companies to explore possibilities of business relationships with polymer companies in Ohio. Opportunities could include a wide range of possibilities from simply licensing, to deeper levels of collaboration and partnership, to joint venture or acquisition, to locating in Ohio to access the North American market.

“Our other focus is on nanotechnology, since there is so much happening in this broad field,” according to Jeanette Grasselli Brown. “Nanotechnology can include almost anything because it is fundamentally involved with making things smaller.” Polymers and biopolymers fall under the broad category of nano-materials, she adds, and breakthroughs can lead to everything from rapid medical advances to brand new categories of electronic devices.

“Exciting opportunities abound in new technologies and fast growing young firms,” according to Jennifer Thomas, Director of the Cleveland-based Civic Innovation Lab.  She was instrumental in the organization and success of the first mission to Hungary a couple of years ago when she worked for the Cleveland Foundation in encouraging the attraction of international businesses into the Northeast Ohio area.  “Since the Civic Innovation Lab is focused on fueling innovation by providing mentoring and funding for ideas that can improve the Greater Cleveland economy, I’m excited at the impact these efforts of Panel group can eventually make on our region.”

“Now is the time to be working on new business development opportunities for the region,” states Tom Sudow. “Those working the ground now are the ones who are going to win as the economy heats up again.”

With the focus on looking for “breakthrough” technologies and solutions to leapfrog the competition, Northeast Ohio businesses might just find what they are looking for in Hungary, with its tradition of excellence in math and the sciences.  And Hungarian technologists and companies may well find the market opportunities that they are seeking in Northeast Ohio. “The secret is in making the people connections first,” concluded Jeanette Grasselli Brown. “And that is what we are working to do.”

For further information about the trade mission and the trip, read the Details about the May 2009 Trade Mission to Hungary page on www.clevelandhdp.org and contact Jeanette Grasselli Brown at grabro@aol.com.

For polymer industry opportunities, contact David Karpinski at dkarpinski@nortech.org.