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The
Bright Bulb of Innovation in Northeast Ohio
June 23, 2004 @ 6:33 am and 8:20 am on 90.3
It’s
generally accepted that a nurturing community for entrepreneurs
results in successful economic development. Northeast Ohio, however,
is not one of those regions known for its plethora of start-ups:
in its rankings of “Best Cities for Entrepreneurs,”
Entrepreneur Magazine ranks the Cleveland area 57th out
of 61 cities. But the winners of this year’s NorTech Innovation
Awards reveal a different trend - one that emphasizes the abundance
of innovative ideas and products within existing Northeast Ohio
companies. As part of Making Change: Reinventing
our Economy, ideastream’s Shula Neuman reports
that encouraging that kind of innovation could be just as valuable
to the economy as a brand-new start up.


Frequently,
when we talk about entrepreneurs, we think of people starting up
their own business; going out on their own; being their own boss.
We think of people like Seryrell Davis.
Seryrell
Davis: And I was sitting at home watching (a) football
game and a commercial came on and I had the jar in my hand of salsa
and I was tossing it up in the air and I looked at the ingredients
and I looked at the jar and I said, “I betcha I could make
this and sell it.” And I just started going into production
on my own.
In his garage, Davis used a food processor to whip up cases of his
self-titled “Seryrell’s Salsa.” After a few years
he quit his job as a corrections officer and started to make deals
with some local supermarkets. Demand grew enough that he now contracts
with production companies that pump out hundreds of cases of his creation.
His salsa might not be making him rich, but Davis has high hopes.
Seryrell
Davis: I’m hoping to conquer
the United States and other continents.
While
entrepreneurs often start with big goals, once their businesses
reach a certain size, that creativity and energy often ebbs. It’s
not that the entrepreneurs lose their ability to generate new ideas
- it’s that other things get in the way.
Scott
Rickert: Entrepreneurs can’t do everything,
that’s my message.
Scott Rickert is CEO of NanoFilm, a mid-size, Cleveland-area company
that uses nano-technology to make ultra-thin coatings for various
surfaces.
Scott
Rickert: You can’t do everything,
cannot run your business or grow your business. You have to decide
and at some point you have to stop running the business if you’re
going to continue to grow.
For
Rickert, that meant hiring a Chief Operating Officer to handle the
day-to-day business. This gave him the freedom to play with new
ideas, such as their recent creation - the de-fogger -
a specialized cloth that prevents sunglasses or scuba masks from
fogging up. That product won a NorTech Innovation Award this year.
Rickert’s shift in responsibility makes him more of an “intrapreneur”
these days: someone who works from the inside of an existing business
to take risks and come up with new products. Intrapreneurship is
something the region should be encouraging, says Kirk Neiswander,
senior vice president of programs at the resource center for early
stage companies, JumpStart. He says lately some well-established
businesses are leaning toward innovation.
Kirk
Neiswander: Those companies are the ones that right
now are expressing a great deal of interest in learning about innovation
and actually in some cases, I think they’re expressing interest
in trying to figure out either in total or by division, how they
can be more entrepreneurial.
One
of those big boys did take a risk on a new product that paid off.
And it’s all because of one word: plastics.
Mark
Kziezyk: There wasn’t a paint out there that
we could paint on plastic without it dripping off or scraping off
or pealing off. So our lab was able to create this great product
called Fusion that is no prep, no sanding, no priming. It goes right
on the surface and bonds to it and keeps it from pealing or chipping.
Mark
Kziezyk is senior product manager in the Krylon division of Sherwin
Williams. Now, Sherwin Williams is a 138-year-old, $5.4 billion
company and the Krylon division is just one part of that, handling
aerosol products and caulking. Kziezyk says Fusion outsold their
forecast for the year in just four months. That success got the
company to sit up and take notice - and make some changes. Pat Macko
is vice president of marketing for the division.
Pat
Macko: With that product launch and that success, it
really opened our eyes to understanding what a new product can
do, what innovation can do.
The division
is now intent on breeding a culture of innovation, Macko says. Employees
are encouraged to develop their idea-hunting skills and then submit
them to the division heads through a link on their e-mail system.
She says you never know where a new idea will pop up.
Pat
Macko: So we’re really just trying to create the
environment of rethinking and sharing ideas and really giving
anyone the opportunity to post an idea, to pose an idea that may
or may not be a valid one, but we’re willing to hear them
all.
Macko says the
whole company is observing how this new culture plays out. But it
should be the entire region paying attention to companies that make
innovation a priority, says JumpStart’s Kirk Neiswander. The
NorTech Innovation Awards have been honoring innovative companies
for more than ten years, but Neiswander says it’s in the region’s
best interest to do more than just recognize them once a year.
Kirk
Neiswander: Generally, we get them started or they’re
located here and all we do is tax them and forget about them and
that’s the worst thing we could do. I think there are things
we could do to help existing companies grow in value, not revenue
but grow in value. And if you can do that and they are good corporate
citizens - which means they have to give something back, and they
do through taxes and so forth but also for philanthropy - that’s
going to drive and enhance regional economic development.
A company’s
successful innovation might not directly create new jobs, but it
has a ripple effect, Neiswander says. Increased value in one company
puts added demand on suppliers, for example, and those companies
increase earnings and add new jobs. Neiswander says the challenge
now is finding a way the region’s intrapreneurs have the support
our entrepreneurs already enjoy. In Cleveland, Shula Neuman, 90.3.
Resources:
- JumpStart
Official website for JumpStart, the business start-up resource
organization.
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