Vote YES on Issue 1:

Renew Ohio Third Frontier

What is Issue 1?

• A statewide ballot measure on the May 4 primary ballot

• Issue 1 will renew and continue Ohio’s most successful economic development and jobs program, the Ohio Third Frontier

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What is Ohio Third Frontier?

• A visionary public-private partnership created in 2002 with bipartisan leadership and support

• Makes merit-based state investments in promising technologies, research, small businesses and entrepreneurs

• Builds and attracts new companies, supports business expansion and creates new jobs

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Third Frontier has Touched Most of Ohio

Proven Results

• Most successful economic development and jobs creation program in the state

• $6.6 billion in economic activity*

• Consistent $8 to $9 invested for every state dollar spent

• 21.8% total return on investment* SRI December 2008 Report

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Return on InvestmentReturn on Average Investment - Direct and Total Impact

0%

5%

10%

15%

20%

25%

2005 2006 2007 2008 2009 E

Ret

urn

Direct Total Impact

Return has averaged 21.8% per annum over

the life of OTF on a Total Impact basis

Return has averaged 8.9% per annum on a

Direct employment/ sales tax basis

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Cumulative tax revenue is forecast to exceed cumulative OTF investment by 2014

Note: Forecast assumes historic average return of 21.8% on planned expenditures over life of OTF. Compares forecast of dollars expended to awarded projects against forecast tax revenues to the state from OTF programs. Excludes issuance and interest cost.

-

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2005 2006 2007 2008 H12009

H22009

2010 2011 2012 2013 2014 2015

$ (M

s)

Cumulative Sales Tax Revenue Cumulative Direct Income Tax RevenueCumulative Indirect Income Tax Revenue Cumulative OTF Investment

Payback in 2014

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How is Third Frontier Funded?

• Funded initially in 2002 with multiple sources of state dollars; some no longer available.

• Current funding mechanism, approved by Ohio voters in 2005, expires in 2012.

• Issue 1 will authorize $700 million in bonds to extend funding through 2016.

• Issue 1 will not raise taxes.

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Why Support Issue 1?

• Jobs for Ohioans

• Proven results

• Better future for Ohio

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Jobs for Ohioans

• Through June 2009, Third Frontier created 48,000 new jobs, helped accelerate growth of 571 companies

• Issue 1 will build on that success– More new companies– More expansions of existing companies– Tens of thousands more jobs to Ohio

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Proven Results: 48,000 Jobs

0

10,000

20,000

30,000

40,000

50,000

60,000

2005 2006 2007 2008 2009 E

To

tal

# Jo

bs

Direct Jobs Created Indirect Jobs Created Total Jobs Created

Goal for OTF is 96,000 total jobs

created

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Company Creation & Growth

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OTF Sponsored Startup Companies - Created/ Attracted/Capitalized - since 2005

97

42

117

11

8348 57

213255

372 383

466514

571

116

-

100

200

300

400

500

600

Dec-05 Jun-06 Dec-06 Jun-07 Dec-07 Jun-08 Dec-08 Jun-09

Nu

mb

er o

f C

om

pan

ies

New companies added per period Total since OTF inception

Average growth of 130 companies per year since 2005 (28% YOY

avg increase)

Venture CapitalVenture capital investment in Ohio has grown rapidly over the last 5 years

Note: Defined as investment across Pre-seed/Seed, Early, and Later/Growth stages. Source: 2009 SRI “Making an Impact” report and OSU Fisher College of Business 2008 Ohio Venture Capital Report. US venture capital investment read in hundreds of millions of dollars.

-

100

200

300

400

500

600

2003 2004 2005 2006 2007 2008

To

tal

Inve

stm

ent

$ (M

s)

US ($100Ms) Ohio

- Since 2003, VC investment in Ohio grew at a 20.4% compound annual growth rate versus the US of 8.6%, while the 2008 decline in Ohio of -4% was smaller than

the composite US of -8%- Ohio's $446M in 2008 VC investment ranked 13th nation-wide across the U.S.

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Better Future for Ohio

• Promote economic growth across Ohio– Continue investments in high-tech industries– Support expansion of small & large businesses in

industries such as manufacturing, agriculture, biomedicine and advanced energy

– Bring investment dollars to Ohio

• Leads to medical advances, innovative products and new technologies to improve Ohioans’ quality of life

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OTF has focused on developing five key technology clusters…Cluster Description Example OTF Recipient Companies Investment

Advanced Energy

The advanced energy industry in Ohio includes such areas as fuel cells, photovoltaics, wind, biomass and energy storage.

Parker Hannifin, Rolls-Royce, Velocys, Global Cooling, NexTech, Xunlight, Catacel, GrafTech, SCI, American Trim, UltraCell

$70 M

Advanced Materials

The advanced materials industry in Ohio includes such areas as advanced polymers, composites, nano-materials, liquid crystals, and bio-based materials.

Swagelock, The Andersons, Applied Sciences, Nanotek, Zyvex, WebCore, AlphaMicron, Kent Displays

$96 M

Biomedical The biomedical industry in Ohio includes such areas as cardiovascular, biomedical imaging, regenerative medicine, and orthopedics.

Arteriocyte, NDI Medical, ViewRay, Hyper Tech, ChanTest, Diagnostic Hybrids, Gene Express

$208 M

Instruments, Controls, and Electronics

The ICE industry in Ohio includes such areas as sensors for all manner of manufacturing, unmanned aerial vehicles, infrared imaging detection, and RFID technologies.

Faraday, L-3 Communications, Srico, YSI, Western Robotics, LSP Technologies, Western Datacom

$27 M

Power and Propulsion

The power and propulsion industry in Ohio includes such areas as aircraft turbines, industrial turbines, and power generation.

GE Aircraft, Rolls-Royce, Teledyne $22 M

Note: Definitions and investment dollars provided by ODOD.

Future Building on Ohio’s Strengths

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Show Your Support

• Visit www.unitedforjobsohio.com

• Display a window sign or add a Web banner to your blog or e-mail signature.

• Vote early! Voting begins March 30.

• E-mail info@unitedforjobsohio.com.

• Vote “Yes” on Issue 1 on May 4!

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