By Kevin Aldridge
The Cincinnati Enquirer

Ohio officials hope to join other states that have enjoyed success by forging partnerships among businesses, research universities and state government.

On Nov. 4, Ohioans will vote on an issue that would give the state borrowing authority for funds to foster high-tech industry

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Issue 1 asks voters to let the state borrow $500 million in bonds over 10 years for seed money to help create new high-tech businesses and jobs in Ohio. It's the final piece of Gov. Bob Taft's $1.6 billion Third Frontier economic stimulus plan.

The other pieces include hundreds of millions already set aside in the state's capital budget, its tobacco settlement fund and a loan program fueled by state liquor profits.

Taft said Ohio must transform its economy by being more innovative and creating higher-paying jobs if it is to prosper. Ohio remains the nation's third-biggest manufacturing state and is home to 25 Fortune 500 companies. However, more of its companies are being closed, acquired, or moving away.

Taft said he believes the key to getting back on track is for the state, businesses and research universities to work together to cultivate and invest in new technology industries - a strategy some other states moved toward more than a decade ago.

"We were a little slow to start and now we are playing a little catch-up," Taft said last week. "We were a bit complacent because we were a manufacturing giant."

"We can't compete by making boots or bicycles in Ohio anymore," he said. "Ohio must be a place where new knowledge is used to create new products, new businesses and new jobs."

If passed, Issue 1 would create at least 30,000 new, high-paying jobs, according to a report by the Ohio Public Expenditure Council. The nonprofit research organization estimated the entire Third Frontier Project would generate about 96,000 jobs.

But critics of Issue 1 argue there's no guarantee it will create the promised new jobs. While proponents of Issue 1 say it won't raise taxes, opponents say the $500 million in bonds would cost taxpayers at least $63 million in interest.

The Buckeye Institute for Public Policy contends there are better ways to help create jobs in Ohio than favoring any one sector of industry over others. The Institute has taken the position that lowering corporate taxes would be a better solution than targeted investment.

Taft said Ohio's plan has been modeled after successful ventures in North Carolina, Georgia and Michigan. All three states have created prosperous marriages among innovators, investors, universities and state government.

One of the most highly acclaimed models is the Georgia Research Alliance, a public-private partnership of six Georgia research universities. The Alliance began in 1990 when a group of Georgia leaders developed a plan to build a technology-driven economy fueled by innovative university research.

The state's plan was to attract top world scientists to Georgia's universities to lead programs of research and development in areas with the most potential for generating new companies, helping established companies grow and creating new high-tech jobs.

This cadre of scholars would compete for federal and foundation research dollars and attract talented faculty and graduate students to Georgia.

To date, Georgia's state legislature and governor have approved more than $375 million in support of investments in the Alliance. The state's investment has helped to leverage an additional $2 billion in federal and private funding, a return of $6 for every $1 invested.

The Alliance has created more than 3,000 new technology jobs and 90 new technology companies. Venture-capital investments from 1995 to 2000 grew from $100 million to $1 billion.

Michigan legislators committed $1 billion from a settlement with tobacco companies over the next 20 years to help boost the state's life-sciences industry.

Michigan now has 20,000 life-science workers and more than 22 new life-science companies, among other accomplishments.

E-mail kaldridge@enquirer.com